Sole Source for S21-N29453 - Approve an ordinance awarding a sole source contract to Library Ideas, LLC in the maximum contract amount not to exceed $375,000.00 for Digital Services Agreement for the Houston Public Library.
Specific Explanation:
The Director of the Houston Public Library and the Chief Procurement Officer recommend that City Council approve an ordinance awarding a three-year sole source contract with two one-year options to Library Ideas, LLC in the maximum contract amount not to exceed $375,000.00 for the digital services agreement for the Houston Public Library (HPL).
Freegal® Music is a database of over 40,000 music videos and 15 million songs holding from over 40,000 music labels that originate in over 100 counties. Freegal® provides access to thousands of library patrons to stream music as well as the ability to download and catalog songs from a variety of popular musical artists and genres, including the entire Sony music collection. HPL's goals are to provide entertainment to the citizens of Houston as they are no longer purchasing music CD’s. Streaming and downloadable music is the only method our patrons have in accessing this type of material. The services provided allows our customers to access and utilize resources while visiting the various library branches or from the comfort of their residence.
Under the proposed scope of services, Library Ideas, LLC will provide HPL with the digital music services for an aggregate usage for an annual subscription fee of $75,000.00 which includes:
- Five (5) downloads per patron per week and;
- Five (5) hours streaming per patron per day
Library Ideas, LLC is the sole developer, owner and marketing source for the Freegal® Music and related licensed, copyrighted services. These products are not available through distributors or dealerships, nor are they supported or maintained by any other entity. These are proprietary products licensed and copyrighted by Library Ideas, LLC and all services contracted pertaining to the installation, customization, conversion, maintenance, support and training can only be obtained through Library Ideas, LLC.
This recommendation is made pursuant to Chapter 252, Section 252.022 (a)(7)(A) "a procurement of items that are available from only one source because of patents, copyrights, secret processes, or natural monopolies" of the Texas Local Government Code for exempted procurements.
M/WBE Subcontracting:
Zero-Percentage Goal document approved by the Office of Business Opportunity.
Pay or Play:
The proposed contract requires compliance with the City's Pay or Play ordinance regarding health benefits for employees of City contractors. In this case, Library Ideas, LLC provides health benefits to eligible employees in compliance with the City policy.
Hire Houston First (HHF):
This procurement is exempt from the City’s Hire Houston First Ordinance. Bid/proposals were not solicited because the department is utilizing a sole source contractor for the purchase.
Fiscal Note:
Funding for this item is included in the FY2021 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
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Jerry Adams, Chief Procurement Officer
Finance/Strategic Procurement Division
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Department Approval Authority
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Estimated Spending Authority
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DEPARTMENT
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FY2021
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OUTYEARS
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TOTAL
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Houston Public Library
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$75,000.00
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$300,000.00
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$375,000.00
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