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Solvang renews IT managed-services contract with LandSpeed, approves up to $105,254 annually
Summary
The Solvang City Council on June 23 approved a multi-year managed IT services contract with Sabre Dome Corporation (dba LandSpeed) following a staff RFP that drew 12 proposals. The council approved a contract not to exceed $7,937.72 per month ($105,254.64 annually), plus reimbursables and a $10,000 contingency for unanticipated work.
The Solvang City Council approved a managed-services agreement with Sabre Dome Corporation (dba LandSpeed) on June 23, authorizing continued outside IT support at a not-to-exceed rate of $7,937.72 per month and an annual cap of $105,254.64 for the initial year (term 07/01/2025 through 06/30/2028). The contract also includes a $10,000 contingency for unanticipated or emergency work and lists a $250 per-hour rate for optional project work that the vendor described as nonnegotiable.
City staff said Solvang has contracted with LandSpeed since February 2019 and that recent work included a network infrastructure upgrade, migration to Microsoft 365 and implementation of cloud-based storage. Staff said the city issued an RFP on April 25, received 12 proposals and evaluated vendors on qualifications, security, cost and past performance; staff recommended LandSpeed based on cost-effectiveness and proven performance.
Council members asked for clarification about invoicing language, the blank cost line in one staff document and the nature of reimbursable expenses. Staff clarified that reimbursables include licensing fees (Microsoft 365, Azure and other software) and that the contract contains a not-to-exceed contingency for emergency work. Staff also said LandSpeed assisted with a federal penetration test and supports the city's cybersecurity program.
Mayor Brown and council members expressed support for continuing with a familiar vendor while also acknowledging the need for periodic rebidding. The motion to approve the award passed 4-0 on roll call.
Actions: Council approved the multi-year managed-services contract with LandSpeed (not to exceed $7,937.72 per month; $105,254.64 annually) with a $10,000 contingency and reimbursable licensing costs. The contract term is listed through 06/30/2028 and the vendor's hourly rate for extra projects is $250/hour (vendor stated this rate is nonnegotiable).
