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 Amendment No. 1 for a One-Year Term Extension of the Managed Detection and Response Services Agreement with Savant Solutions, Inc. with an Additional Amount of $122,913, for a New Not-to-Exceed Amount of $350,622 (Budgeted) (Information Technology Director Guardado).
ADOPT RESOLUTION NO. 25-0128
Body
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RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 25-0128, approving Amendment No. 1 for a one-year term extension of the Managed Detection and Response services agreement with Savant Solutions, Inc., in an amount of $122,913.
FISCAL IMPLICATIONS:
Sufficient funds for this amendment are available in the Information Technology Department’s budget for the current fiscal year.
BACKGROUND:
Since 2020, the City has been utilizing Managed Detection and Response (MDR) services, a comprehensive cybersecurity solution that proactively protects the organization’s information technology assets against evolving cyber threats. As part of the City's cybersecurity stack, the MDR combines technology and professional services to ensure continuous monitoring and response in the event of a malicious cyberattack on the City's network. The platform provides round-the-clock scanning, logging, and reporting for any abnormal network behavior, adding another layer of robust security expertise to enhance the City's resilience against security breaches.
Since the Managed Detection and Response is sold exclusively through authorized resellers, Savant Solutions, Inc. (Savant) has been designated by the solution provider as the preferred reseller, ultimately offering the best MDR pricing (see Provider Preferred Reseller Letter attachment). At the November 7, 2023, City Council meeting, the City Council approved the Managed Detection and Response services with a not-to-exceed amount of $264,709. The overall cost included the two-year agreement contract cost of $227,709 and a contingency of $37,000, which was not utilized during the duration of the agreement. With the current contract set to expire on November 19, 2025, a subscription extension is required to ensure uninterrupted service.
DISCUSSION:
Amendment No. 1 extends the agreement with Savant for MDR services by one year and increases the contract amount by $122,913, bringing the overall total contract value for the services to $350,622. In addition to the approximately 5% increase due to inflation, the extension amount accounts for adjustments resulting from network growth in the number of servers and log counts. The proposed renewal also includes a new incident response service that provides coverage for major cyber incidents, along with proactive preparedness activities (planning and readiness exercises), to further enhance the City's cybersecurity posture.
During last August’s contract negotiations, it was discovered that the provider considered the start date of the contract as January 3, 2024, the services’ activation date in the MDR system, instead of the actual contract effective date of November 20, 2023. Since the subscription cost correlates with the cost, the amendment amount of $133,443 has been prorated to account for the variance in the subscription term between the MDR service activation date on the platform and the contract effective date. As a result, a credit of $10,530 (adjustment period: November 20, 2025, through January 3, 2026) is applied to the platform’s yearly cost of $133,443, reducing the amendment total to $122,913. This price adjustment effectively aligns the MDR services term in the provider’s MDR system with the amendment/contract commencement date of November 20, 2025.
Since Managed Detection and Response is part of the City’s multilayer approach to protecting the agency’s digital assets, the proposed one-year extension will further enhance the organization’s cybersecurity efforts to prepare and respond more quickly and effectively to malicious attacks. Thus, staff recommends that the City Council adopt Resolution No. 25-0128 approving Amendment No. 1 for a one-year term extension of the Managed Detection and Response services agreement with Savant Solutions, Inc., for a not-to-exceed amount of $122,913.
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 amendment as to form.
ATTACHMENTS:
1. Resolution No. 25-0128
2. Amendment No. 1 - Savant Solutions, Inc. (Redacted)
3. Provider Preferred Reseller Letter (Redacted)