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Ferndale OKs three-year IT managed services contract with MacroConnect amid vendor-lock concerns
Summary
The council authorized a three-year IT managed-services contract with MacroConnect (first-year cost $478,524) but several members pressed staff for an independent cybersecurity audit, a clear timeline for a promised software audit, and succession planning to avoid vendor lock-in.
The Ferndale City Council approved a three-year contract with MacroConnect for IT managed services, with a first-year cost presented at $478,524 and an estimated three-year total near $1.47 million based on staff figures. The motion passed 4-0 after an extended discussion about cybersecurity posture, independent assessment, project timelines, and exit planning.
City staff explained the decision was informed by an RFP that filtered respondents for on-site support and relevant government experience. Staff noted that an in-house alternative would require multiple technicians and a director-level position; the city’s internal estimate for fully staffing IT was similar to the incumbent contract cost. Staff also emphasized continuity, 24/7 monitoring, quarterly phishing simulations, and disaster-recovery planning in the vendor’s proposals.
Several councilmembers pressed for a third-party cybersecurity audit before or soon after contract execution. "I just struggle personally with having an incumbent vendor do an assessment and basically say, here's the scope of what we should be signing off on," one councilmember said, urging a plan to avoid vendor lock-in and documentation of internal knowledge in case the city later decides to change providers (speaker 11). Staff said the RFP process and bimonthly VCIO meetings provided groundwork and committed to producing a work plan and deliverables timeline.
Council also asked for clarity about major projects included in the contract (software audit, access-control rollout), escalation procedures, termination/opt-out provisions, and the cost-of-disruption estimate for a possible future transition. Staff said termination-for-cause and other contract protections are in the agreement and agreed to circulate the RFP materials, evaluation scoring, and a vendor-produced project schedule to the council.
Next steps: City staff will request from MacroConnect a written work plan and project timeline for major deliverables (software audit, access-control implementation, VCIO/project-management items) and will explore the feasibility and cost of an independent cybersecurity audit requested by council members.
