TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: RFQ for On-Call IT Services
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the issuance of a Request for Qualifications (RFQ) for On-Call Innovation and Technology (IT) Services.
Body
STRATEGIC IMPORTANCE:
Goal - Convenient and Reliable Service
Initiative - Service Quality
On-call IT Services contracts support the execution of the District’s Strategic Plan by having specialized resources available to address specific and often short-term project needs. Having these resources on-call and readily available saves months of procurement time.
BUDGETARY/FISCAL IMPACT:
There is no impact on the budget as this solicitation will create a pool of contracts available as needed for future individual contract task orders. Funding for the task orders will be identified when the services are required and contracted from existing operating or capital project budgets.
BACKGROUND/RATIONALE:
The District’s project portfolio frequently requires specialized Project Managers, Software Engineers, Network Engineers, Cybersecurity Engineers, Mobile Developers, Database Administrators, and PeopleSoft Engineers to supplement the efforts of the District’s in-house staff. Projects often need these specialized skills for a limited period ranging from weeks to months, depending on the situation.
The District intends to enter into multiple on-call IT Services contracts. Having a pool of these contracts will enable the District to pick the best suited and cost-effective domain expertise to build a solution in the shortest time frame. This vehicle will streamline the enterprise process of technology services acquisition, improve cost competitiveness, leverage industry best practices, and minimize the risks of new technology adoption.
Each contract will have a three (3) year offering period and a five (5) year contract term. This allows firms tasked in Year 3 to complete the work before the actual contract term expires.
The resulting contracts will be on-call, multiple-award task order-based contracts. When the Innovation and Technology Department identifies a project, staff will prepare the scope of work and an independent cost estimate for submission to the office of Chief Information Officer (CIO). Following CIO review and approval and identification of funding, the District will solicit bids from the on-call panel for review and eventual contracting.
The procurement approach used for the subject contracts will be qualifications-based, price not determinative, Brooks Act, as defined by FTA Circular 4220.1F Rev 3. An outreach campaign will be conducted to increase the level of DBE/SBE participation in these contracts.
ADVANTAGES/DISADVANTAGES:
There are several advantages associated with on-call IT Services contracts, including:
1. Relatively quick access to specialized skills when necessary;
2. Pay as you go approach, so the District pays only for the services utilized; and
3. No cost to the District if the services are not required or used.
There are no immediate disadvantages to soliciting these on-call contracts.
ALTERNATIVES ANALYSIS:
There are three (3) alternative approaches to providing the District with the services intended for these on-call contracts. Having these on-call contracts in place would not preclude the Districts from using any of these alternative methods, which may include the following:
1. Hire additional employees. Adding staff to handle the wide range of specialties and paying them full-time wages and benefits when only part-time is needed is not cost-effective.
2. Procure independently. The District could elect to solicit proposals for each technology project as specific needs arise. This would result in extended project implementation schedules and increased effort among project managers and contract specialists. While the on-call contract alleviates much of this effort, there would still likely be major procurements from the Innovation and Technology Department that would require a separate solicitation and procurement process.
3. Hire temporary employees. The District could use temporary employees hired through a placement agency for the duration of a project. This approach does not generally fit with IT’s need for a very specialized skill set which may not be available through general-purpose temporary agencies.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Board Policy 465, Procurement Policy
ATTACHMENTS:
None
Prepared by:
Manjit K. Sooch, Director of Systems and Software Development
In Collaboration with:
Cheryl Sudduth, Contracts Services Manager
Approved/Reviewed by:
Fred Walls, Director of Procurement and Materials
Ahsan Baig, Chief Information Officer
Chris Andrichak, Chief Financial Officer
Jill A. Sprague, General Counsel