ORDINANCE amending Ordinance No. 2014-008, as amended, to increase the maximum contract amount; approving and authorizing first amendment to contract between the City and McCONNELL & JONES LLP / BANKS, FINLEY, WHITE & CO., a Joint Venture Partnership known as M&J/BFW TEAM, for Professional Auditing Services for the Finance Department - $1,600,000.00 - General Fund

76-T24529.A1 - Approve a first amendment to Ordinance No. 2016-401, passed January 8, 2014 for the contract between the City of Houston and McConnell & Jones LLP & Banks, Finley, White & Co. to extend the contract term from January 15, 2019 to January 14, 2020 and to increase the maximum contract amount from $7,800,000.00 to $9,400,000.00 for professional auditing services for the Finance Department.

Specific Explanation:
The Director of the Finance Department and the Chief Procurement Officer recommend that City Council approve a first amendment for the contract between the City of Houston and McConnell & Jones LLP & Banks, Finley, White & Co. to extend the contract term from January 15, 2019 to January 14, 2020 and to increase the maximum contract amount from $7,800,000.00 to $9,400,000.00 for professional auditing services for the Finance Department.

The contract was awarded on January 8, 2014 by Ordinance No. 2014-0008 for a three-year term, with two one-year options in the total amount of $7,000,000.00. On May 25, 2016 it was amended by Ordinance No. 2016-401 to increase the contract amount from $7,000,000.00 to $7,800,000.00.  Expenditures as April 25, 2018 totaled $5,593,750.00. The increased spending authority is required to complete the remaining eighteen (18) months of the contract.

The scope of work requires the contractor to provide all supervision, labor, materials, necessary to perform audits covering the financial statements of all funds and account group for the City, which include a variety of governmental, proprietary and fiduciary funds. The contractor also conducts reviews of the City’s investments and systems for procurement, inventory, cash receipts processing, payroll and petty cash.

MWBE Participation:
The contract was awarded with a 24% M/WBE participation level. Currently, McConnell & Jones LLP & Banks, Finley, White & Co. (BFW) is achieving 45.6%.

Fiscal Note:
Funding for this item is included in the FY18 Adopted Budget. Therefore, no Fiscal Note is required a s stated in the Financial Policy Ord. 2014-1078.

Ordinance 2014-008 - Passed January 8, 2014

Ordinance 2016-401 - Passed May 25, 2016

Brenda Chogoya - 3-8723

Conley Jackson - 3-8733

Bobby Qasim - 3-9096