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HomeMy WebLinkAbout10/17/2000, C8 - GARTNER CONTRACT AMENDMENT council M° Dft/0 j agenda Repot 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