TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Miguel Guardado, Information Technology Director
Tatyana Roujenova-Peltekova, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving a Three-Year Agreement with Savant for Managed Detection and Response Services for a Total Not-to-Exceed Amount of $374,826, Inclusive of a Potential Contingency (Budgeted) (Information Technology Director Guardado).
A) WAIVE FORMAL BIDDING DUE TO COOPERATIVE PURCHASING
B) ADOPT RESOLUTION NO. 26-0112
Body
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RECOMMENDATION:
Staff recommends that the City Council:
a) Waive formal bid requirements pursuant to Manhattan Beach Code Section 2.36.150 (cooperative purchasing);
b) Adopt Resolution No. 26-0112, approving a three-year agreement with Savant for Managed Detection and Response services for a total not-to-exceed amount of $374,826, inclusive of potential contingency; and
c) Authorize the City Manager or her designee to execute the agreement with Savant.
FISCAL IMPLICATIONS:
The overall Managed Detection and Response (MDR) cost of up to $374,826 includes the three-year services cost of $309,774 and a potential additional contingency of $65,052 for the three-year contract term. Sufficient funds are included in the Fiscal Year 2026-2027 Information Technology (IT) budget for the first year of the contract and the contingency, in the event that adjustments to the current services and/or additional services are utilized during Year 1 of the agreement. Future years will be budgeted accordingly.
BACKGROUND:
Managed Detection and Response is a 24/7 cybersecurity monitoring service combining threat-detection software with security experts to detect, investigate, and stop malicious threats in real time. The MDR service proactively protects organizations through advanced detection and swift incident response to cyber threats. These cybersecurity services are needed because they provide around-the-clock screening, threat hunting, specialized expertise, and incident containment assistance without requiring the costly creation of a dedicated in-house Security Operations Center (SOC).
The City has been utilizing MDR services since 2020 as part of its multilayer cybersecurity protection measures. With the current contract expiring this November, and given the rapid technological developments in the field, Information Technology initiated a review of the top-tier MDR market to ensure the City is getting the best value for the services. After surveying other agencies and conducting an in-depth evaluation of industry-proven technology options, the proposed MDR provided by Savant (Savant MDR) was selected as a more comprehensive and cost-effective solution for the City's network requirements than the platform currently in use.
DISCUSSION:
The Savant MDR provides extensive response and unique software capabilities compared to alternative solutions. The services include three 24/7 Security Operations Centers, each staffed and operating simultaneously, providing concurrent coverage, rather than a shift handover from one site to the next. Each SOC is staffed with experienced security analysts who monitor, investigate, analyze, contain, and respond to cybersecurity threats. The SOC screening includes not only on-premises IT infrastructure, but also Microsoft 365 and cloud applications.
Furthermore, the new platform combines an Artificial Intelligence-driven system with multi-signal attack surface coverage, providing comprehensive visibility across the IT infrastructure. Instead of looking at security alerts in isolation, the solution uses correlation engines to identify, combine, and analyze seemingly unrelated patterns, timelines, and relationships among these isolated signals. This allows security teams to stitch together seemingly disparate indicators into unified, cohesive behavior and detect complex cyberattacks that would otherwise slip under the radar. Due to this distinctive MDR delivery model, the Savant platform has been used by various agencies and municipalities, including the City of Santa Ana, the City of Thousand Oaks, and the City of Palm Springs.
The proposed agreement for MDR services is for three years, with an overall contract amount not-to-exceed $374,826, including $309,774 for MDR services over the term, or $103,258 per year. The new solution’s annual cost is $7,881 lower than the current MDR solution's $111,139 for the last one-year term. In addition to the MDR service costs, the agreement incorporates a $65,052 contingency, of which $30,977 is for growth and any unforeseen urgent additions in response to changes to cybersecurity frameworks and roadmaps issued by State and federal entities. The remaining balance of the reserve, $34,075 (11%), is designated for software taxes under the new Senate Bill 122 (SB 122). Starting January 1, 2027, the SB 122 mandate will tax remotely accessed software, software-as-a-service/cloud software services, and digitally delivered software purchases.
Whenever practical and in the City’s best interest, the City “piggybacks” onto advantageous contracts issued by other public agencies, permissible under the City’s Municipal Code, Section 2.36.150. Piggybacking is the extension of pricing, terms, and conditions of one agency’s contract to other governmental agencies at the mutual consent of all parties. The new MDR agreement is with Savant since the provider sells the services only through the reseller channel. The vendor’s pricing structure is based on the OMNIA cooperative purchasing contract, allowing the City to take advantage of pre-negotiated, competitive rates and an expedited, streamlined procurement process. All OMNIA cooperative purchasing contracts are competitively solicited and publicly awarded in accordance with the applicable procurement regulations. Furthermore, Savant holds the highest tier of partnership with the provider, Advanced Solution Reseller, ensuring the most favorable pricing available across the provider’s reseller network. The City maintains a longstanding, successful relationship with Savant, which has historically ensured the seamless delivery of critical technology services.
In conclusion, staff recommends that the City Council: a) waive formal bid requirements pursuant to Manhattan Beach Code Section 2.36.150 (cooperative purchasing); b) adopt Resolution No. 26-0112, approving a three-year agreement with Savant for Managed Detection and Response services for a not-to-exceed total of $374,826, inclusive of potential contingency; and c) authorize the City Manager or her designee to execute the agreement with Savant.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENT(S):
1. Resolution No. 26-0112