Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Juan Raigoza, Controller
Subject: Agreement with Insight Public Sector, Inc.
RECOMMENDATION:
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Adopt a resolution authorizing and directing the President of the Board to execute an agreement with Insight Public Sector, Inc. to provide IBM iSeries cloud hosting services, for an initial term of January 1, 2026 through December 31, 2028, with two one-year options to extend the term, for a total not to exceed amount of $2,034,668.20.
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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) (“2020 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 2020 Agreement was 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.
This Board subsequently authorized several amendments to the 2020 Agreement to provide for additional services to increase and modify server capacity, disk space, and provide virtual firewall network services which increased the contract amount.
On May 8, 2025, pursuant to authority granted by this Board, the County and Insight amended the 2020 Agreement a fourth time to extend the contract term for six months and authorize a necessary upgrade to IBM Power 10 series hardware and increase the County’s fiscal obligation by $220,848.94, such that the total amount due for the five and one half year term would not exceed $2,131,900.41.
The County has exercised each of its options to extend the term of the 2020 Agreement, which will terminate as of December 31, 2025.
On April 7, 2025, in anticipation of the expiration of the 2020 Agreement, the County Controller issued a request for proposals (RFP) to identify and select a vendor to provide cloud hosting services for the property tax accounting system.
The hosting services are critical to meet the County’s needs for business continuity and disaster recovery. The competitive procurement was directed to locating a qualified vendor to provide long-term IBM server hosting services and upgrades. Four proposals were received and evaluated.
DISCUSSION:
The County Controller’s team has reviewed the proposals for cloud hosting services and server upgrades and determined that Insight should be selected to provide these services. Insight’s organizational capacity, experience and qualifications, quality of hosting services, support and implementation approach and fee proposal most closely met the County’s requirements. A copy of the RFP matrix is submitted with this memorandum as Attachment A.
Staff recommends that this Board approve a new agreement with Insight, which will provide comprehensive cloud hosting services, processes, and tools to operate and maintain the County’s property tax system and make necessary upgrades to ensure business continuity and disaster recovery. The proposed new agreement is for a three-year term, with two one-year options to extend at the County’s election.
The proposed new agreement provides that the County’s total fiscal obligation from the term January 1, 2026 through December 31, 2028 shall not exceed $1,260,800.92; if the County exercises its first one-year term renewal option, the County's total fiscal obligation through December 31, 2029 will not exceed $1,647,734.56, and if the County exercises both renewal options, the County's total fiscal obligation through December 31, 2030 shall not exceed $2,034,668.20.
The County Attorney has reviewed and approved the resolution and proposed agreement 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 responsibility to ensure property taxes payable by each taxpayer are accurately calculated, that taxes collected are accurately distributed to taxing agencies, and that any tax refunds due are processed in a timely manner. These services impact all 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 $2,034,668.20 that will be incurred under the proposed new agreement with Insight is funded by the Controller’s Office budget and is included in the FY 2025-27 Recommended Budget.
Attachment:
RFP Matrix