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STAFF REPORT
Administrative Services Department
DATE: September 4, 2012
TO: Honorable Mayor and City Council
FROM: Hue Quach, Administrative Services Director V15
SUBJECT: AWARD A THREE YEAR INFORMATION TECHNOLOGY
MANAGEMENT CONTRACT TO KNIGHT COMMUNICATIONS IN THE
AMOUNT OF $314,280 ANNUALLY WITH THE OPTION TO ENTER
INTO THREE ONE -YEAR EXTENSIONS
Recommendation: Approve
SUMMARY
The City sent out Request for Proposals for Information Technology Consultant services
on June 8, 2012, to 26 potential consulting firms that were known to be serving
California government agencies. The City received three proposals in return. Those
proposals were submitted by: Definitive Networks Incorporated (DNI), Knight
Communications, and Synoptek.
After an evaluation process conducted by the Director of Administrative Services,
Director of Recreation and Community Services, and Director of Public Works Services,
Knight Communications received the highest total score and is recommended for award
of a three year information technology contract based on excellent services and overall
contract value.
DISCUSSION
On June 8, 2012, a Request for Proposal for Information Technology Consultant (IT)
services was solicited from 26 IT consulting firms that were known to be serving
California government agencies. Staff developed the list of possible consultants based
upon discussion with other agencies as well as several IT consulting firms that had
previously contacted the City.
The RFP included goals such as seeking cost- effective, quality, and productive
Information Technology Management Services to assist the City to effectively and
efficiently serve the City's residents, businesses, and visitors without compromising the
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September 4, 2012
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security of the City's network. The basis for award and acceptance of a submitted
proposal included: cost, stability, reliability, references of comparable services, resumes
of individuals, and a complete understanding and knowledge of the requirements as set
forth in the RFP.
Out of the 26 IT consulting firms that were invited to provide a proposal, the City
received only three proposals. Prior to the deadline for submitting proposals, numerous
inquiries were posed regarding current contract cost; why the City went out for
proposals; as well as whether the City was happy with our current service provider,
Knight Communications. It seemed there was general interest based on these inquiries.
The evaluation of proposals was conducted by the Director of Administrative Services,
Director of Recreation and Community Services, and Director of Public Works Services.
There were five criteria that were utilized in selecting the best IT Consultant for the City:
1) Thoroughness and understanding of scope of work; 2) Related experience of the
firm; 3) References; 4) Cost; and 5) Quality of proposal. Each criterion was scored
using a point system established below with each consulting company having the
potential of scoring a maximum of 100 points from each rater.
1. Thoroughness and understanding of scope of work 20 points
2. Related experience of firm 20 points
3. References 20 points
4. Cost 25 points
5. Quality of proposal 15 points
Total: 100 points
The proposed range of fees was $306,000, $314,280, and $330,600 annually.
However, because one firm provided fees with an annual increase, as opposed to a
fixed fee for the initial three year term as requested in the RFP, the combine three year
cost of $936,000, $942,840, and $991,800 gives a better comparison of the net cost
differences proposed by each consulting company. The overall summary of results is
provided in the table below.
Company
Total Score
All Raters Combined
3 Year Cost
Knight Communications
427 Yale Ave., Suite 201
294
$942,840
Claremont, CA 91711
Synoptek
19520 Jamboree Rd., Suite 230
257
$991,800
Irvine, CA 92612
Definitive Networks Inc. (DNI)
4305 Hacienda Dr., Suite 560
250
$936,000
Pleasanton, CA 94588
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All three bidders are sufficiently qualified to do the work. In choosing Knight
Communications over the other companies, there were three main factors, which are
discussed below.
1. On -site Staff Assigned to the City: Knight Communications will be providing
three full time bodies on site at any given time of the day. DNI and Synoptek
have proposed to provide 2 full time bodies from their respective company.
Current experience in the City calls for staffing, at a minimum, three full -time
individuals for services and demands within the City. In some cases, such as
when new computers are deployed, Knight has provided an extra part-time body
on site, at no cost to the City, to ensure service level does not decline but also
that the project will be completed without delays.
2. Additional Services Cost: Since the initial contract with the City in August 2000,
Knight Communications has provided a comprehensive service that included
assistance with bids and vendors and all special projects that are outside of the
scope of work with no additional charge to the City. Knight has proposed to
continue with that level of service and added additional services such as:
a. Develop and implement a comprehensive Technology Master Plan.
b. Maintenance and support of the Police Department's Mobile Digital
Computers (MDC).
c. Management of the Digital Video recording system at the Police
Department.
d. Provide input and review of requests for proposal or bids.
e. Assist with vendor negotiation on I.T. projects.
DNI has provided a proposal that specified special projects outside the scope of
the Information Technology Management Services Agreement are billable based
on a fixed -bid analysis. Similarly, Synoptek stated that they will bill based on an
hourly set rate structure, for professional services beyond the scope of the
proposed services.
3. Familiarity with Cities: Although all of the consultant companies have experience
working with government agencies, the two companies that have clients that are
closely similar to Arcadia are Knight Communications and Synoptek. DNI's client
base is mostly Fire Departments and Special Districts. Knight Communications
and Synoptek have worked with full service cities and consequently provides
them with a better understanding to expedite solutions to Arcadia's organizational
needs learned through those experiences.
In addition, selecting Knight Communications will allow for continued stability with the
network system. Knight Communications became the City's I.T. consultant in August
2000 and have been the architect of the City's I.T. infrastructure that has been reliable,
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secure, and stable without major downtime to the City. Their services to City staff have
been exemplary with many complements coming from all departments for their
responsiveness and tailored services.
FISCAL IMPACT
The annual cost for providing information systems management is $314,280. This
amount is less than the current contract of $324,000. Appropriate funds are budgeted
in the General Fund Operating budget for Fiscal Year 2012 -13.
RECOMMENDATION
It is recommended the City Council award a three year Information Technology
Management contract to Knight Communications in the amount of $314,280 annually
with the option to enter into three additional one -year extensions.
Approved:
ominic Laz o
City Manager