HomeMy WebLinkAbout10/17/2000, C8 - GARTNER CONTRACT AMENDMENT council M° Dft/0
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CITY OF SAN LUIS OBISPO
FROM: Bill Statler,Director of Finance 0-_94C__
SUBJECT: GARTNER CONTRACT AMENDMENT
CAO RECOMMENDATION
Amend the contract with Gartner Consulting for preparing an information technology/wireless
communications plan in the amount of$25,100.
DISCUSSION
Background. As part of the 1999-01 Financial Plan Supplement for 2000-01, the Council
authorized the CAO to enter into an agreement with Gartner Consulting for the preparation of an
information technology/wireless communications plan in an amount not to exceed $287,500. Work
on this is well underway, and we plan to present the results to the Council in January 2001.
As reflected in Exhibit A of the proposed contract agreement, Gartner Consulting has requested an
increase in their contract for this work of$35,000: $28,200 in professional fees and $6,800 in direct
out-of-pocket expenses.
In general, we concur. with their explanation of the factors underlying their request, which is
essentially this: the workscope is larger than they envisioned based on what a "typical city" our size
is normally already doing—and thinking about doing; and they were already on a tight budget since
we negotiated the fees down by $67,500 from their proposal, with no reduction in workscope. On
the other hand, we have a fixed contract for work to protect us against"project cost creep."
Proposed Approach. We believe that an adjustment to their contract is warranted due to a larger,
more complicated workscope than they could have reasonably anticipated in their proposal. Until
they completed the initial work of documenting and assessing our current technology systems, it
would simply not have been possible to know how extensive they are. However, we do not believe
we should fully absorb this cost: it should be shared. As such, after an in-depth review of the status
and scope of the project, and follow-up discussions with Gartner, we recommend paying the direct
out-of-pocket costs ($6,800) and two-thirds of the professional fees ($18,900), fora total contract
amendment of$25,700.
FISCAL IMPACT
Funding is available from 1999-00 carryover. As such, no additional appropriation is required to
fund this contract amendment.
ATTACHMENT
I Amendment to Agreement with Gartner Consulting
C84
AMENDMENT TO AGREEMENT
THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on October
17, 2000, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as
City,and GARTNER CONSULTING,hereinafter referred to as Consultant.
WITNESSETH:
WHEREAS, on September 1, 2000, the City entered into an Agreement with Consultant for preparation of
an information technology/wireless communications master plan in the amount of$287,500;and
WHEREAS, the City agrees to amend the compensation to address an expanded workscope that could not
have reasonably been envisioned before contract award.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained,the parties hereto agree as follows:
1. The scope of services and related compensation is hereby amended as described in Exhibit A attached
hereto, except that the City's cost for additional professional services will be $18,900 (two-thirds of the requested
amount of$28,200),for a total change in compensation of$25,700($18,900 for professional services and$6,800 for
expenses).
2. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year
first written above.
ATTEST: CITY OF SAN LUIS OBISPO,
A Municipal Corporation
By:
City Clerk Mayor
APPROVED AS TO FORM: CONSULTANT
L By:
mey
CS-2
A4ach merit
EXHIBIT A
Dear Bill,
We appreciate the opportunity last Friday to discuss this change order request. Following are the
reasons that formulate our request for the change order.
■ Our original proposal to the City was for $343,000 plus 8% in out of pocket expenses. After
negotiations due to budget limitations, we revised our estimate down to $287,500 plus 8% in
out of pocket expenses.
■ Due to a misunderstanding in reading the proposal, the City Council approved $287,500. We
worked with the City to absorb another $11,500 in expenses.
■ The scope of work required to assess telemetry for the wireless environment requires
significantly more work. Our proposal presumed the majority of the work involved assessing
the current wireless/voice environment (one integrated network and a backup location). In
reality, the citywide telemetry system consists of 6 integrated networks (5 for Utilities and 1
for Public Works). In order for us to provide the City with in-depth recommendations for a
Wireless Strategic Plan, we need to assess these systems at a much deeper level than we
anticipated.
■ The City's current information technology environment is more advanced than many
comparable cities of similar size. We have spent many hours (more than originally
proposed) conducting current assessment/needs analyses through in-depth interviews and
focus groups. These have helped us to get a good understanding of the City's eleven
departments and their technology initiatives as we prepare the IT Strategic Plan.
■ In our experience, when doing Strategic Planning projects for cities the size of San Luis
Obispo (SLO), we usually assign a manager, two senior consultants and a consultant.
However, given the uniqueness of SLO's more advanced technological environment, there
has been greater manager-level involvement in both the IT and the Wireless assessments.
We have dedicated two managers and three senior consultants to this project.
After careful planning and working within our original proposal's work plan, we have
accomplished several tasks within the original scope of work that required additional hours to
complete For reasons stated above, we are requesting an additional $35,000 in fees including
expenses ($28,200 in professional fees and$6,800 in expenses).
We will continue working diligently towards completing the Master Strategic Plan that meets the
City's scope of work requirements and expectations. We appreciate the opportunity to outline
our reasons for this change order request.
Sincerely,
Sean Thakkar,
Manager, Gartner Public Sector Consulting
C8-3