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Committee questions recurring IT contract increases as budget analyst recommends approval
Summary
Supervisors pressed purchasing and the controller's office about frequent, incremental increases to IT 'requirements contracts' for vendors including En Puente and Extech; the budget analyst and purchasing staff explained the contracts' variable scope and coordination with DITAS/COIT and recommended approval of the requested authorizations.
Clerk read a resolution authorizing amendments to city IT contracts, including a sixth amendment with En Puente to increase the contract to $35,000,000 and an eighth amendment with Extech to increase the contract to $51,000,000.
Chair Supervisor Aaron Peskin asked why so many incremental increases were coming before the committee. Bill Jones, assistant director of purchasing, explained these are requirements contracts without a single fixed scope; departments call on vendors for many small or large projects, making expenditures hard to predict. Jones said departments must solicit at least three bids on projects over $100,000 and that purchasing shares scopes with DITAS for technical standardization and coordination.
A representative from the Controller's Office said COIT (citywide IT governance) has new oversight structures and that an early-stage citywide IT plan will produce multi-year projections and standardization. The budget analyst (Mr. Rose) explained the requested authorizations reflect projected needs (he cited an Extech projection of approximately $48,200,000 against a requested authorization of $51,000,000, leaving an estimated $2.8 million contingency) and recommended approval; he noted the monies are in departmental budgets and this request is not for additional funding.
There was no public comment on the item in open session. The committee discussed the role of stacking and planning for City Hall operations and asked for additional data on occupancy and benchmarks; purchasing offered to provide a high-level procurement overview and departments agreed to coordinate with DITAS and the budget analyst.
