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HomeMy WebLinkAbout(0041) M&C 20-0405City of Fort Worth, Mayor and DATE: 06/16/20 Texas Council Communication M&C FILE NUMBER: M&C 20-0405 LOG NAME: 13P MOTOROLA MANAGED SERVICES AGREEMENT AMENDMENT ITS ADK SUBJECT Authorize the Execution of an Amendment to Extend the Term of the Managed Services Agreement with Motorola Solutions, Inc., for an Additional Five Years Through December 31, 2029 and for an Increase of $7,863,842.27 for the Total Cost of the Agreement Not to Exceed $21,185,529.27 for Maintenance Services to Support the City's Public Safety Radio Communications System (ALL COUNCIL DISTRICTS) RECOMMENDATION: Authorize the execution of an amendment to extend the term of the Managed Services Agreement with Motorola Solutions, Inc., for an additional Five years through December 31, 2029 and for an Increase of $7,863,842.27 for the total cost of the agreement not to exceed $21,185,529.27 for maintenance services to support the City's Public Safety Radio Communications System. DISCUSSION: The City of Fort Worth has established a Public Safety Communications System that currently provides primary and mutual aid communications to more than 150 agencies in North Central Texas. Agencies external to Fort Worth that utilize the system for their primary communications help offset the system costs through user fees and allocations. In November 2016, Council approved M&C C-27994 authorizing the execution of an agreement in the amount of $13,321,686.74 to outsource much of the maintenance and support of the system infrastructure to Motorola Solutions, Inc. (Motorola) for eight years through December 31, 2024. At the time, execution of a long-term agreement as opposed to annual renewals resulted in savings of more than $1,500,000.00 over the life of the agreement. Because the system is provided by Motorola, these services are available only through Motorola. In October 2017, IT Solutions staff negotiated a reduction of $1,000,000.00 for the remainder of the agreement, resulting in Amendment One of City Secretary Contract 48412. Staff is now recommending the extension of the Agreement for an additional five years through December 31, 2029. The extension will result in $500,000.00 in technology credits over the life of the Agreement. In addition, staff has determined that that some services may be supported more cost-effectively with improved response times by moving that support in-house. Some additional support services, however, will be outsourced to Motorola under this amendment. These service revisions result in a net increase in cost of $113,212.65 over the remaining life of the Agreement. Because the reductions are retroactive to 2019, the City will receive credits totaling $42,327.34 to accommodate the cost reduction for 2019 and 2020. Extending the Agreement will stabilize the support cost of the communications system through 2029. To accommodate these changes, cost of the Agreement will be revised as follows: Original Contract Amount (11/2016) Amendment One (10/2017) Amendment Two (Current Request) Year 2017 $1,540,098.60 $1,540,098.60 $1,540,098.60 Year 2018 $1,603,082.12 $1,203,082.12 $1,203,082.12 Year 2019 $1,628,994.23 $1,528,994.23 $1,517,995.54 Year 2020 $1,655,350.99 $1,555,350.99 $1,524,022.34 Year 2021 $1,682,160.78 $1,582,160.78 $1,656,036.27 Original Contract Amount (11/2016) Amendment One (10/2017) Amendment Two (Current Request) Year 2022 $1,709,432.09 $1,609,432.09 $1,684,240.68 Year 2023 $1,737,173.63 $1,637,173.63 $1,712,924.08 Year 2024 $1,765,394.30 $1,665,394.30 $1,640,890.40 Year 2025 - - $1,672,976.52 Year10 2026 - - $1,706,435.05 Year11 2027 - - $1,740,565.75 Year12 2028 - - $1,775,377.06 Year13 2029 - - $1,810,884.86 Total $13,321,686.74 $12,231,686.74 $21,185,529.27 COOPERATIVE PURCHASE: State Law provides that a local government purchasing an item under a Cooperative Purchasing Agreement satisfies state laws requiring that the local government seek competitive bids for purchase of the item. The National Intergovernmental Purchasing Alliance (NIPA) and the Texas Department of Information Services (DIR) contracts have been competitively bid to increase and simplify the purchasing power of government entities across the State of Texas. PRICE ANALYSIS: The NIPA and DIR contracts offer fixed discounts. Staff reviewed pricing and determined it to be fair and reasonable. M/WBE: A MBE/SBE goal is not assigned when purchasing from an approved purchasing cooperative or public entity. SUCCESSOR CONTRACTS: In the event that a Cooperative Agreement is not renewed, Staff would cease making purchases at the end of the last Purchase Agreement coinciding with the valid Cooperative Agreement. If the City Council were to not appropriate funds for a future year, Staff would cease making purchases when the last appropriation expires, regardless of whether the then -current Purchase Agreement has expired. If the cooperative contract is extended, this M&C authorizes the City to purchase similar software and services under the extended contracts. If the cooperative contract is not extended, but a new cooperative contract is executed with Deccan International with substantially similar terms as the previous cooperative contract, this M&C authorizes the City to purchase the services under the new cooperative contract. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that funds are available in the current operating budget, as appropriated, of the General Fund to support approval of the above recommendation and award of the contract, and that future year renewals will be subject to the approval of appropriations by the City Council. Prior to any expenditure being incurred, the IT Solutions Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office bT. Jay Chapa 5804 Originating Business Unit Head: Reginald Zeno 8517 Additional Information Contact: Cynthia Garcia 8525 Ashley Kadva 2047