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HomeMy WebLinkAboutItem 09h - Information Technology Services STAFF REPORT ADMINISTRATIVE SERVICES DEPARTMENT DATE: October 6, 2026 TO: Honorable Mayor and City Council FROM: Henry Chen, Administrative Services Director By: Wilson Luo, Information Technology Manager SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH SDI PRESENCE INC. FOR INFORMATION TECHNOLOGY SUPPORT SERVICES CEQA: Not a Project Recommendation: Approve SUMMARY The City’s current contract with its Information Technology (“IT”) Support Services consulting firm, SDI Presence Inc. (“SDI”), expires on November 30, 2026. In May 2026, the City issued a Request for Proposals (“RFP”) for IT Support Services and received six (6) proposals in response. Staff from several departments evaluated the proposals based on the criteria established in the RFP. SDI Presence Inc. received the highest overall score. It is recommended that the City Council award a Professional Services Agreement to SDI for an initial five-year term, with the option to extend the agreement for three additional one-year terms. The total cost for the initial 5-year term is $3,106,798. Each optional extension is proposed to include a 3% annual increase. BACKGROUND Between 2015 and 2017, IT Support Services were provided to the City by two separate firms. During this period, an insufficient level of technical support was provided, which had a significant and detrimental impact on City operations. The City’s IT infrastructure was not adequately maintained or updated, resulting in security vulnerabilities. Additionally, the City’s information technology infrastructure and systems were not maintained in alignment with generally accepted standards Professional Service Agreement with SDI Presence Inc. for IT Support Services October 6, 2026 Page 2 of 8 and best practices, resulting in an increasingly outdated and unstable technology environment. As a result, the City identified a need for enhanced IT support services to provide greater continuity of operations, improved oversight, and more proactive management of the City’s technology environment. In September 2017, the City awarded an IT Support Services contract to SDI Presence Inc. (formerly Scientia Consulting Group), replacing the previous IT Support Services provider. The transition was intended to provide greater stability and continuity of support for the City’s IT systems, while also addressing identified operational and information security needs. Following the successful performance of services under the initial interim agreement, the contract was extended in 2018. Subsequently, in 2019, a five-year IT Support Services contract, with the option for two additional one-year extensions, was awarded to SDI through a competitive process. During the current contract term, the City’s IT infrastructure was brought into alignment with current standards and best practices, and previously identified system deficiencies and information security vulnerabilities were addressed. Improvements were also made to system reliability, cybersecurity, network performance, and overall infrastructure management. In addition, a more proactive approach to maintenance, monitoring, and issue resolution was established, resulting in greater operational stability and continuity of critical IT services. The enhanced level of support has provided City staff with improved access to timely technical assistance and has contributed to a more secure, reliable, and sustainable IT environment. Although the City has been satisfied with the services provided by SDI, it was considered prudent to solicit proposals from other qualified firms to evaluate available service providers and ensure that the City continues to receive high-quality, effective, and cost-competitive IT services. DISCUSSION In May 2026, the City issued an RFP to qualified firms for IT Support Services and published the proposal in accordance with City Council Resolution No. 7483. The City Professional Service Agreement with SDI Presence Inc. for IT Support Services October 6, 2026 Page 3 of 8 received six (6) responsive proposals. The proposals were distributed to staff from the Police Department, Fire Department, and Administrative Services Department for review and evaluation. Representatives from the Police and Fire Departments were included in the evaluation process due to their significant utilization of IT services and the number of upcoming projects requiring significant IT support. The review committee evaluated each proposal based on the criteria established in the RFP, including the proposer’s qualifications and experience, understanding of the City’s IT support requirements, proposed approach and methodology, level of technical expertise, ability to provide responsive and reliable support, and overall cost. Consideration was also given to the proposer’s demonstrated experience in supporting municipal entities of similar size and its experience providing specialized IT services for public safety departments. Following the initial evaluation of the written proposals, the two highest-ranked firms, SDI Presence Inc. and ConsultAdd, were invited to interview regarding their qualifications, service approach, staffing, and technical capabilities. Particular consideration was given to each firm’s ability to support the Police Department in meeting new mandatory Criminal Justice Information Services (“CJIS”) requirements and in supporting the implementation of its new Records Management System and Computer-Aided Dispatch (“RMS/CAD”) system. Information obtained during the interviews was incorporated into the overall evaluation and considered in determining each firm’s qualifications and suitability to provide IT Support Services to the City. The evaluation process resulted in the following overall score summary as noted in the table below. Name of Firm Scoring SDI Presence Inc.91.5 ConsultAdd Inc.85.5 Knight Communication Inc.84.8 Infinity Technologies 84.5 Amick Brown 81.5 GEM Team 75.5 Professional Service Agreement with SDI Presence Inc. for IT Support Services October 6, 2026 Page 4 of 8 While cost was an important component of proposal evaluation, it was not the primary factor used in the scoring and selection of the recommended firm. Consideration was given to the firm’s qualifications, experience, technical capabilities, level of service, and demonstrated ability to meet the City’s IT needs. The overall value and quality of the services proposed were evaluated in conjunction with the associated costs to ensure that the recommendation represented the best value to the City. The pricing submitted by the firms is presented below: Company Year 1 Year 2 Year 3 Year 4 Year 5 Total Amick Brown *$405,000 $435,000 $475,000 $500,000 $500,000 $2,315,000 ConsultAdd *$415,000 $425,375 $436,009 $446,910 $458,082 $2,181,376 GEM Team *$525,000 $540,750 $556,972 $573,681 $590,891 $2,787,294 Infinity Technologies *$802,536 $802,536 $802,536 $802,536 $802,536 $4,012,680 Knight Communication Inc. *$498,000 $512,940 $528,328 $544,178 $560,503 $2,642,949 SDI Presence Inc.$585,180 $602,735 $620,817 $639,441 $658,625 $3,106,798 * Amount includes base pricing only. Based on service level needs, there are expected additional billings based on their proposals that are not incorporated. The lowest-priced proposal was submitted by ConsultAdd, which received the second-highest overall score during the evaluation process. The proposal presented a well-defined service plan that generally addressed the City’s anticipated IT service needs. ConsultAdd’s client base included several public-sector agencies; however, its municipal experience was primarily focused on county agencies and school districts. During the interview process, it was determined that, although general municipal IT experience was demonstrated, ConsultAdd’s experience with public safety was limited. Almost all of ConsultAdd’s client base did not have a public safety component so they had limited experience with public safety applications and requirements. Additionally, ConsultAdd did not demonstrate familiarity with the FBI’s CJIS requirements applicable to local public safety agencies. And although a Southern California office was maintained to provide local day-to-day support, higher-level network and server administration would be provided by personnel based in the firm’s East Coast offices. It was also determined during the interview process that the proposal did not include unlimited 24/7 staffing or planned after-hours project support. Authorized planned or non-emergency after-hours work would be billed at 1.5 times the applicable project rate-card rate. As a result, the limitations on after-hours and project support, together with the additional fees associated with advanced technical Professional Service Agreement with SDI Presence Inc. for IT Support Services October 6, 2026 Page 5 of 8 services and project-related work, could result in costs significantly exceeding the initial proposed price and may present operational issues for the City. The highest rated proposal was submitted by SDI, who has served as the City’s IT Support Services provider for the past nine years. During this period, SDI has developed extensive familiarity with the City’s technology environment and has provided ongoing support for critical IT infrastructure and public safety systems. SDI’s client portfolio also includes numerous local public agencies with public safety operations, providing relevant experience with mission-critical applications such as CAD and RMS, as well as compliance with FBI CJIS requirements. SDI’s proposal includes 24-hour, seven-day-a-week, 365-day-a-year support as part of its standard service model. In addition, the firm’s performance during the current contract has demonstrated responsive after-hours support, including rapid response to urgent service requests. SDI has also provided guidance and assistance on various IT projects without additional charges to the City. SDI’s proposal was positioned in the mid-range of the proposals received with respect to overall cost. However, the proposed pricing should be considered in the context of the broader scope of services and technology solutions included within the proposal. Several costs that are currently incurred as standalone expenditures for security would be consolidated through a package of solutions that would enhance the City’s existing security software portfolio. In addition, the City’s Geographic Information System (“GIS”) services would be incorporated into the overall proposed IT Support Services solution rather than being maintained as a separate service. The implementation of the new security services included in SDI’s proposal will enhance the City’s security capabilities and facilitate compliance with applicable cybersecurity requirements, which may result in a reduction in the cost of the City’s cybersecurity insurance. While the costs reflected in the ConsultAdd proposal initially appeared lower than those proposed by SDI, the evaluation identified significant differences in the scope and level of services included in each proposal. Under the ConsultAdd proposal, basic IT services were included; however, several additional features and services were identified as add-on services that would be billed separately. As a result, the initial cost proposal did not provide a complete representation of the costs associated with the level of service and functionality required by the City. When the additional Professional Service Agreement with SDI Presence Inc. for IT Support Services October 6, 2026 Page 6 of 8 services and associated costs were taken into consideration, a more comprehensive and equitable comparison of the two finalists was made. The table below provides a comparison of the proposed costs for the two finalist firms and reflects a more realistic assessment of the total anticipated costs for the services and features required by the City. For example, during Fiscal Year 2025–26, approximately 320 hours of after-hours support were required by the City. Of these hours, approximately 64 hours, or 20 percent, would be considered Tier 1 support and would be included within the basic support contract. The remaining 256 hours, or approximately 80 percent, would be considered Tier 2 support and would be subject to additional billable charges under ConsultAdd’s proposed service model. To facilitate a more equitable comparison, ConsultAdd was contacted regarding the additional services included in SDI Presence Inc.’s proposal and their response was incorporated to adjust the expected overall cost for the level of service from each firm. Support Features ConsultAdd SDI Base Level Support Package 415,000$ 585,180$ GIS Consultant 900 hrs @ $100/hr 90,000 Included Network Supprot (Tier 1)Included Included Network Support (Tier 2) - 64 hours @ $155/hr 9,920 Included Security Support (Tier 1)Included Included Security Support (Tier 2) - 105 hours @ $165/hr 17,325 Included Server and Cloud Backup Support (Tier 1)Included Included Server and Cloud Backup Support (Tier 2) - 96 hours @ $125/hr 12,000 Included Email and Desktop Security Software 19,120 Included Annual After-Hour Support (Tier 1)Included Included Annual After-Hour Support (Tier 2) - 256 hours @ $145/hr 37,120 Included SQL Admin Services - 30 hours @ $165/hr 4,950 included Total 605,435$ 585,180$ The qualifications necessary to provide network infrastructure management and routine Help Desk support were generally demonstrated by all firms that submitted proposals. However, differences were identified in the approaches proposed for delivering the required level of service, including the number and composition of on- site staff, the availability and depth of back-end technical support, and the remote support systems and resources to be utilized. Professional Service Agreement with SDI Presence Inc. for IT Support Services October 6, 2026 Page 7 of 8 The City’s technology environment is supported by a complex network infrastructure, a robust virtualization platform, and numerous databases that require advanced programming, engineering, and system design capabilities. Through the engagement of a full-service IT provider such as SDI, access to a broad range of specialized technical expertise can be provided without the need to separately procure each area of expertise. This consolidated service model is expected to provide greater flexibility, improve access to specialized resources, and result in potential cost efficiencies for the City. Based on the overall evaluation of qualifications, experience, service approach, technical capabilities, staffing resources, and cost, SDI Presence Inc. received the highest overall score and was determined to provide the best overall value and most comprehensive solution for the City. SDI’s demonstrated familiarity with the City’s IT environment, experience supporting municipal and public safety operations, dedicated on-site staffing, and specialized technical resources, were determined to provide significant advantages in meeting the City’s current and anticipated IT needs. The proposed service model will also provide greater access to specialized technical expertise while consolidating certain services and security solutions, thereby maximizing the value of the City’s existing technology investments and supporting a secure, reliable, and sustainable IT environment. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), under Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. FISCAL IMPACT The proposed Professional Services Agreement totals $3,106,798 over the five-year term. Funding for the first year of the agreement is included in the Fiscal Year 2026– 27 Operating Budget. Funding for the remaining years of the agreement will be requested as part of the City's annual budget development process. Professional Service Agreement with SDI Presence Inc. for IT Support Services October 6, 2026 Page 8 of 8 RECOMMENDATION It is recommended that the City Council find that this action is not a project under the California Environmental Quality Act (“CEQA”); and approve, authorize, and direct the City Manager to execute a Professional Services Agreement with SDI Presence Inc. for Information Technology Support Services in the amount of $3,106,798 for an initial five year term, with the option to extend for three additional one-year terms, subject to a three percent (3%) annual increase.