Committee backs higher spending ceilings for four tech-marketplace vendors after first-year usage

The Budget and Finance Committee on March 12 voted to forward to the full Board four resolutions increasing the not-to-exceed amounts for technology marketplace contracts after departments’ first-year usage exceeded earlier ceilings.

Sophie Hayward of the Office of Contract Administration (OCA) explained the technology marketplace is a prequalified pool of vendors city departments use to buy hardware, software and professional IT services. The marketplace was competitively procured in 2023 and the current set of five-year contracts runs through Dec. 31, 2028. OCA said it negotiated an initial $20 million ceiling for large contracts and planned to amend ceilings based on actual usage.

OCA requested the following increases to allow departments to continue purchasing from vendors they already rely on: Computerland (Esquared Inc. d/b/a Computerland of Silicon Valley) from $20,000,000 to $61,065,000; Cornerstone Technology Partners JV to $42,413,000; Insight Public Sector, Inc. to $53,848,000; and Eaton Associates to $85,014,000. Hayward noted individual transactions remain capped at $2,500,000 and that departments must fund purchases from their approved budgets; OCA is not requesting general-fund allocations through these measures.

The Budget and Legislative Analyst recommended approval, explaining the approach was anticipated in the original procurement and that OCA is reallocating projected first-year spending across the remaining contract term. No members of the public spoke on the items.

Supervisor Connie Chan moved to forward items 6–9 to the full Board with a positive recommendation; the committee recorded a roll-call vote of Dorsey — aye; Engadio — aye; Chan — aye. The motion passed 3-0.

OCA said each professional-services vendor must subcontract at least 18% of its total cost to LBEs over the five-year term and that OCA monitors compliance.