Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Juan Raigoza, Controller
Subject: Amendment of Agreement with Insight Public Sector, Inc.
RECOMMENDATION:
title
Adopt a resolution authorizing and directing the President of the Board to execute a fourth amendment to the agreement with Insight Public Sector, Inc. for cloud hosting services and authorizing a hardware upgrade, extending the term by six months and increasing the County’s maximum fiscal obligation by $220,848.94, for a revised total amount not to exceed $2,131,900.41.
body
BACKGROUND:
The County Controller requires cloud hosting services to support and securely configure, run and maintain the County’s property tax accounting system on appropriate IBM operating systems and hardware.
On September 29, 2020, following a competitive procurement process, this Board approved an Agreement (#14000-20-R077741) (“Agreement”) with Insight Public Sector, Inc. (“Insight”) to provide cloud hosting services related to the County Controller’s property tax accounting system for a total not-to-exceed amount of $1,791,988.23. The initial term of the Agreement is from July 1, 2020, to June 30, 2023, with options exercisable at the County’s sole discretion to extend the term for an additional two years through June 30, 2025.
On January 19, 2022, pursuant to authority granted by this Board, the County and Insight executed an amendment to the Agreement to modify the server hardware specifications and to increase the total amount payable under the Agreement by $20,979.70 for a total not to exceed amount of $1,812,967.93 (“First Amendment”).
On May 25, 2022, pursuant to authority granted by this Board, the County and Insight amended the Agreement to increase additional disk space capacity of the servers, to provide virtual firewall network services and to increase the total amount payable under the Agreement by $94,353.14 for a total not to exceed amount of $1,907,321.07 (”Second Amendment”).
On July 1, 2024, pursuant to authority granted by this Board, the County and Insight amended the Agreement to increase the County's bandwidth resources from 20 Mbps to 100 Mbps and to increase the total amount payable under the Agreement by $3,730.40 for a total not to exceed amount of $1,911,051.47 (”Third Amendment”).
The County has exercised each of its options to extend the term of the Agreement, such that if not amended, the Agreement will terminate as of June 30, 2025.
DISCUSSION:
The County Controller is in the process of conducting a competitive procurement for a new 3-5 year agreement for a cloud hosting services provider and expects to return to the Board within the next several months with a recommendation to enter into a new agreement with the selected proposer. To allow sufficient time to complete the competitive procurement and negotiate a new agreement and to ensure continuity of cloud hosting services in the interim, it is necessary to amend the current contract with Insight to extend the term and make such other amendments set forth therein.
In view of the above, the Controller’s Office is recommending that the Board approve a fourth amendment to the Agreement. This amendment would extend the contract term for six months and authorize a necessary upgrade to IBM Power 10 series hardware and would increase the County’s fiscal obligation by $220,848.94, such that the total amount due under the Agreement will not exceed $2,131,900.41.
Procurement has reviewed and approved the Controller’s request for an extension of the Agreement for a term beyond 5 years.
The County Attorney has reviewed and approved the resolution and proposed amendment as to form.
COMMUNITY IMPACT:
The purpose of providing IBM cloud hosting services is to house the County’s Property Tax Accounting System, which is mission critical to the Controller’s Office responsibility to ensure property taxes payable by each taxpayer are accurately calculated, taxes collected are accurately distributed to taxing agencies, and that any tax refunds due are processed in a timely manner. These services impact all San Mateo County taxpayers and local taxing agencies including all the Cities, School Districts and Special Districts that operate within the County of San Mateo.
FISCAL IMPACT:
The cost of $2,131,900.41 that will be incurred under the proposed Fourth Amendment to the Agreement is funded by the Controller’s Office budget and will be included in the FY 2025-27 Recommended Budget.