REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Negotiate and Execute Amendments to Agreements with Archer Energy Solutions, LLC, Compunnel Software Group, Inc. DBA Compunnel, Inc., DatamanUSA, LLC, Global Solutions Group, Inc., Infojini, Inc., LookingPoint, Inc., Synkriom, Inc., V-Soft Consulting Group, Inc., and ZDAAS, LLC, for As-Needed Specialized Information Technology Support Services for Silicon Valley Power, with a Combined Aggregate Maximum Compensation Not to Exceed $5,000,000
Report
BACKGROUND
Silicon Valley Power (SVP), the City of Santa Clara’s electric utility, relies on information technology (IT) and operational technology (OT) systems for the safe, secure, and reliable operation of the utility. These systems support core utility functions, including power generation and distribution operations, energy management, utility control systems, cybersecurity, customer operations, communications, regulatory compliance, and data analytics.
To maintain reliable service and meet evolving business, operational, and regulatory requirements, SVP must continually implement, maintain, enhance, secure, and replace technology systems and related infrastructure. This includes modernization of aging and legacy systems that no longer meet current requirements for operational performance, integration, reliability, resiliency, or cybersecurity.
SVP’s technology needs are expected to increase as the utility enters a significant period of growth over the next 10 years. This growth will increase the scale, urgency, and technical complexity of SVP’s IT and OT planning, operations, and modernization efforts. To support these needs, SVP requires specialized technology resources to supplement internal staff capacity, maintain continuity of operations, and ensure timely delivery of critical utility initiatives.
DISCUSSION
Pursuant to Section 2.105.140(c) of the Santa Clara City Code (City Code), a formal Request for Proposals (RFP) for Information Technology Support Services was conducted, with award based on “best value.” The RFP was published on the City’s e-procurement system. A total of 224 firms viewed the solicitation, and 35 proposals were received by the proposal due date.
The proposals were independently evaluated by a three-member evaluation panel against the criteria and weights published in the RFP, including experience, technical capability, and cost. Based on the results of the evaluation process, the panel recommended award to the following firms:
1. Archer Energy Solutions, LLC
2. Compunnel Software Group, Inc. DBA Compunnel, Inc.
3. DatamanUSA, LLC
4. Global Solutions Group, Inc.
5. Infojini, Inc.
6. LookingPoint, Inc.
7. Synkriom, Inc.
8. V-Soft Consulting Group, Inc.
9. ZDAAS, LLC
To make the agreements available for immediate SVP needs, staff executed agreements with the selected firms within the City Manager’s delegated authority of $250,000 under Section 2.105.300(a) of the City Code. The agreements have an initial term of approximately five years ending on January 31, 2031, with one one-year option to extend the term through January 31, 2032. Staff have not authorized any work under these agreements exceeding the delegated authority.
Staff have begun utilizing the agreements for specialized IT and OT support services and anticipate that additional contract capacity will be needed to support planned projects and ongoing operational needs over the term of the agreements. Therefore, staff is seeking City Council authorization for the City Manager to negotiate and execute amendments to the agreements to establish a combined aggregate maximum compensation of $5,000,000 across all nine agreements through January 31, 2032.
The requested $5,000,000 aggregate capacity is based on SVP’s estimated service needs, as summarized in Table 1 below.
Table 1: Estimated Service Needs
|
Service Category |
Amount |
|
Microsoft Infrastructure Services |
$500,000 |
|
Microsoft Desktop Engineering |
$250,000 |
|
Cisco & HP/Aruba Network Infrastructure Architecture, Engineering, and Operational Support |
$1,100,000 |
|
Microsoft SQL Server Administration |
$100,000 |
|
Microsoft 365 (M365) Services |
$750,000 |
|
Microsoft Intune & Endpoint Management |
$400,000 |
|
Cybersecurity Services |
$1,250,000 |
|
Program & Project Management |
$500,000 |
|
IT Infrastructure Library and IT Service Management Process Support |
$150,000 |
|
Total Estimated Service Needs |
$5,000,000 |
Each agreement establishes rate schedules that remain fixed for the first two years of the agreement term. Thereafter, rate adjustments may be negotiated in accordance with the price adjustment provisions of the agreements and are subject to City approval.
Actual work will be assigned through a secondary competitive process among the awarded contractors. When a project need is identified, SVP will solicit quotes from the awarded contractors and evaluate responses based on factors such as availability, relevant experience, project approach and cost.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the proposed actions are exempt from the California Environmental Quality Act (“CEQA”) pursuant to section 15061(b)(3) of Title 14 of the California Code of Regulations as it can be seen with certainty that there is no possibility that the proposed services will have a significant effect on the environment.
FISCAL IMPACT
Sufficient funds are available in the FY 2026/27 and FY 2027/28 Electric Utility Capital Fund for the specific projects for which services are required and in the Electric Utility Operating Fund, where applicable. Budget for future years will be requested through the biennial budget process.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to negotiate and execute amendments to agreements with Archer Energy Solutions, LLC; Compunnel Software Group, Inc. DBA Compunnel, Inc.; DatamanUSA, LLC; Global Solutions Group, Inc.; Infojini, Inc.; LookingPoint, Inc.; Synkriom, Inc.; V-Soft Consulting Group, Inc.; and ZDAAS, LLC, for as-needed specialized information technology support services on the terms presented, with an initial term through January 31, 2031, to: (a) increase the maximum compensation from the current $250,000 per agreement to a combined aggregate maximum compensation not to exceed $5,000,000 across all agreements; (b) add or delete services consistent with the scope of services; (c) implement rate adjustment as provided in the agreements; (d) exercise one option year, as provided in the agreements, to extend the term through January 31, 2032; and (e) make de minimis changes, to be funded by the Electric Utility Capital Fund or Operating Fund, as applicable, subject to the appropriation of funds and the review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take any actions necessary to implement and administer the agreements.
Staff
Reviewed by: Nico Procos, Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement for Services with Archer Energy Solutions, LLC
2. Agreement for Services with Compunnel Software Group, Inc. DBA Compunnel, Inc.
3. Agreement for Services with DatamanUSA, LLC
4. Agreement for Services with Global Solutions Group, Inc.
5. Agreement for Services with Infojini, Inc.
6. Agreement for Services with LookingPoint, Inc.
7. Agreement for Services with Synkriom, Inc.
8. Agreement for Services with V-Soft Consulting Group, Inc.
9. Agreement for Services with ZDAAS, LLC