Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Contract No. 6002342 for three years with two one year renewals with CDW Government LLC to utilize MiDeal cooperative contract #071B6600110 for the purchase of standardized and as-needed technology commodities and services for DWSD, for a total contract amount not-to-exceed $5,000,000; and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of September 18, 2019
Item No.: 19-00248
Contract No: 6002342
Contractor: CDW Government LLC
230 N. Milwaukee Ave., Vernon Hills, IL 60061
Contract Total Amount: $5,000,000
Contract Term: 10/1/2019 - 7/31/2024 (3 years + 2 one year renewals)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6002342
Purchase of standardized and as-needed technology commodities, equipment,
software, support and services for DWSD
MOTION
Upon recommendation of Mamata Burgi, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Contract No. 6002342 for three years with two one year renewals with CDW Government LLC to utilize MiDeal cooperative contract #071B6600110 for the purchase of standardized and as-needed technology commodities and services for DWSD, for a total contract amount not-to-exceed $5,000,000; and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The DWSD IT Department is responsible for the purchase, installation and maintenance of all technology equipment and software used by DWSD. To help manage this, IT is requesting to utilize cooperative purchase arrangements to ensure access to a vast catalog of items while obtaining discounted rates on as-needed general purpose commercial technology equipment, software and services to support DWSD’s technology needs and requirements.
DWSD IT raised concerns about the inability to order computing equipment, software, licenses and services in a timely manner. The City of Detroit contract with CDW-G does not have enough funds available for DWSD IT’s demands. DWSD IT has a recurring and ongoing need for equipment, software, hardware, licensing and support. By DWSD having its own contract there will be less of a need to rely on other sources for the procuring of licensing, software, hardware and related services.
JUSTIFICATION
DWSD is requesting to utilize the State of Michigan’s MiDeal cooperative purchase agreement contract to provide DWSD with their own standardized and as-needed IT commodities and services contract. Utilizing cooperative purchase agreements provides an efficient and cost-effective method of procuring technology related goods and services. CDW Government LLC is a leading multi-brand technology solutions provider to businesses, government, educational and healthcare organizations in the United States and Canada. This contract will provide DWSD with a discount of up to 60% retail pricing, with most items being around 10% off and will eliminate he need for DWSD to piggyback off the City of Detroit contract.
PROCUREMENT METHOD
The DWSD Procurement Policy allows for participation in cooperative purchasing agreements from other public purchasing consortiums of competitively solicited contracts. The State of Michigan issued a Request for Proposals (RFP) #071B6600110 for IT commodities, software, hardware, licenses support and related services. The initial contract term expires July 31, 2024, and although there are additional renewal options, DWSD will re-evaluate its needs in 2024 and proceed with obtaining additional approvals to extend the term and add funds, if it is deemed to be in DWSD’s best interest.
The DWSD Procurement Policy requires that Detroit Based Businesses (DBB) and Detroit Resident Businesses (DRB) be provided an exclusive opportunity to submit a bid that is equal to or less than the cost of the cooperative purchase price, provided the DBB or DRB will meet or exceed all terms and conditions of the original cooperative contract. To ensure compliance, DWSD Procurement issued an Invitation to Respond (ITR) on MITN on July 10, 2019, which required an intent to respond due on July 24, 2019. The ITR yielded zero responses.
Therefore, it is recommended that CDW Government LLC be awarded DWSD Contract No. 6002342.
SUMMARY
A. Contract Purchase Agreement No. 6002342
B. Contractor: CDW Government LLC
C. Contract Term: 10/1/2019 - 7/31/2024
D. Contract Amount: $5,000,000
E. Funding Source: O&M Funds
F. GL Strings:
5720-20168-483301-622301-000205-10790-0000-000000 - 30 % Water
5820-20179-493301-622301-000226-15805-0000-000000 - 70 % Sewer
G. Projected Fiscal Year (FY) Contract Expenditures:
FY 20: $1,000,000 FY 21: $1,000,000 FY 22: $1,000,000
FY 23: $1,000,000 FY 24: $1,000,000
Proposed Contract No. 6002342 was presented to the BOWC Finance Committee on September 4, 2019. Per the DWSD Procurement Policy, this contract will also be presented for Post-FRC review and Detroit City Council approval.