APPROVE spending authority in the amount not to exceed $22,426,000.00 for Purchase of Technology related products and services through Cooperative Purchasing Agreements with TEXAS DEPARTMENT OF INFORMATION RESOURCES, NATIONAL ASSOCIATION OF STATE PROCUREMENT OFFICIALS VALUE POINT, U. S. COMMUNITIES, NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE and GENERAL SERVICES ADMINISTRATION for Various Departments - 12 Months - General and Other Funds

H28785 –  Approve spending authority in the amount not to exceed $22,426,000.00 for the purchase of technology related products and services through Cooperative Purchasing Agreements with Texas Department of Information Resources (DIR), National Association of State Procurement Officials ValuePoint (NASPO ValuePoint), U.S. Communities, National Intergovernmental Purchasing Alliance (National IPA) and General Services Administration (GSA) for Various Departments.

Specific Explanation:

The Chief Information Officer and the Chief Procurement Officer recommend that City Council approve spending authority in an amount not to exceed $22,426,000.00 for the purchase of technology related products and services through Texas Department of Information Resources (DIR), National Association of State Procurement Officials ValuePoint (NASPO ValuePoint), U.S. Communities, National Intergovernmental Purchasing Alliance (National IPA) and General Services Administration (GSA) for various departments; and that authorization be given to issue purchase orders, as needed to the contract holders/contractors of these cooperative purchasing programs. The spending authority is expected to sustain the various departments for approximately 12 months.

All purchases citywide will require approval from Houston Information Technology Services (HITS).  Strategic Procurement  Division (SPD) will be responsible for processing all purchase orders citywide.  Individual purchases over $300,000.00 will continue to require separate Council approval.  Houston Information Technology Services will continue to monitor detailed spending under each agreement and provide monthly reports.

The contractors will provide technology products and services for all City Departments; this will significantly decrease the amount of staff time required to develop specifications and bid items for IT related software, hardware, equipment and services.  The City is eligible to participate in these programs as set out in Chapter 2054 of the Texas Government Code.

Background:

Beginning in the 1980s,  the Texas Legislation began to recognize the potential benefits of information and communication technology to reduce the cost of state and local governments.  As a result, acts of the Legislature since that time have streamlined the procurement processes and provided cooperative purchasing programs between the state and political subdivisions, i.e., counties, cities, school districts, etc.  Additional changes made by the 2007 Legislature have delegated State contracts to be administered by DIR. This change allows the City to leverage numerous existing State contracts, which has increased the utilization of the DIR program.

This item was presented to the Transportation, Technology and Infrastructure Committee on July 23, 2018.

M/WBE Subcontracting:

All purchases made valued at $100,000.00 or greater are assessed in terms of divisibility of work and the M/WBE capacity related to the type of work to be performed.  The City assigns the M/WBE participation goal in the pre-procurement phase and will be referenced on each purchase order issued.

Hire Houston First:

These procurements will be exempt from the City’s Hire Houston First ordinance.  Bids/proposals will not be solicited because the department is utilizing a Cooperative Purchasing Agreement for these purchases.

Fiscal Note:

Funding for this item is included in the FY2019 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.