TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Miguel Guardado, Information Technology Director
Steve S. Charelian, Finance Director
Mario Hernandez, Purchasing Supervisor
Tatyana Roujenova-Peltekova, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving an Agreement With Savant Solutions, Inc. for Management Detection and Response Services for a Not-to-Exceed Amount of $264,709 (Information Technology Director Guardado).
A) WAIVE FORMAL BIDDING DUE TO COOPERATIVE PURCHASING
B) ADOPT RESOLUTION NO. 23-0148
Body
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RECOMMENDATION:
Staff recommends that the City Council:
a) Waive formal bid requirements pursuant to Manhattan Beach Municipal Code Section 2.36.150 (cooperative purchasing);
b) Adopt Resolution No. 23-0148 approving an agreement with Savant Solutions, Inc. for Managed Detection and Response (MDR) services for the maximum compensation of $227,709; and
c) Authorize the City Manager or his designee to amend the agreement to modify the services and increase the maximum compensation by up to $37,000 during the contract term if deemed in the City’s best interest; If the City Manager/his designee exercises this option, the amended agreement amount is not to exceed $264,709.
FISCAL IMPLICATIONS:
Should the City Council approve, the City Manager: a) will be authorized to execute a two-year agreement with Savant Solutions, Inc. for Managed Detection and Response services in the amount of $227,709; and b) has the option to amend the contract increasing the total cost by up to $37,000 for a total not-to-exceed amount of $264,709. There are sufficient funds available in the Fiscal Year 2023-2024 Information Technology Department budget required for the first year ($111,139) of Managed Detection and Response services. The subsequent year’s cost will be budgeted accordingly.
BACKGROUND:
The Managed Detection and Response services provide a highly intelligent system and monitoring service that continuously scans, logs, and reports abnormal behavior on the City network. The services secure a quick and adequate response if there is suspicious activity or an identified cyberattack on the City network. The MDR is part of the multilayer cybersecurity framework implemented to protect the City's critical systems, networks, applications, and data storage from malicious attacks.
The City’s selected MDR solution is a recognized leader in the cybersecurity field, providing a comprehensive solution and highly professional customer support. The present services are utilized through a three-year contract with Savant Solutions, Inc. The contract was approved on November 17, 2020, City Council meeting for the total amount of $205,041. The agreement will expire on November 20, 2023. A new contract extending the MDR services is needed to secure further the City's cybersecurity efforts.
DISCUSSION:
The proposed contract is for another two-year term with Savant Solutions, Inc., the authorized reseller of the City's currently utilized MDR service. The overall Managed Detection and Response proposed cost of $264,709 includes the new agreement amount of $227,709 and an 11% contingency of $37,000. This contingency option is needed in the event that there are increases in the user/server numbers and/or sensor upgrades are required due to network changes during the contract term. The optional amount is not included in the proposed contract and will be utilized only if required.
The contract amount of $227,709 includes updated current services and net new services. The current services two-year cost of $207,002 is higher, accounting for the rise in the number of users (131 additional user licenses) and servers (15 additional server licenses), respective log retention, and upgraded sensors to accommodate impending network changes. The net new services two-year cost of $20,707 is needed to accommodate the upcoming implementation of Microsoft Office 365.
The two-year agreement secures a cap of a 5% yearly increase for the duration of the contract. Alternatively, if we choose to renew yearly, the annual MDR services amount may be higher than 5% depending on the adjusted Consumer Price Index for next year.
The proposed MDR cost breakdown is as follows:
Two-year cost (updated current services and net new services)
• Year 1 Cost: $111,139 ($111,019 Year 1 service and $120 sensor shipping)
• Year 2 Cost: $116,570 (with a 5% increase)
Two-year contract cost: $227,709
Contingency
• 11% to accommodate any increases in the number of users/servers and/or changes in sensors: $37,000
Contingency Amount: $37,000 (to be added to the contract if needed)
In addition, the chosen solution is sold only through resellers. Savant Solutions, Inc. has been identified as the provider’s preferred reseller for the MDR services, thus providing the best and most cost-effective pricing (see Provider Preferred Reseller Letter attachment).
Cooperative Purchasing
The vendor’s price is based on the National Association of State Procurement Officials (NASPO) public cooperative contracting. NASPO leverages procurement through a single solicitation with the best value and contract terms with lowered administrative costs. Savant Solutions’ overall MDR service amount utilizes the NASPO cooperative pricing under Contract No. AR2472.
In conclusion, staff recommends that the City Council:
a) Waive formal bid requirements pursuant to Manhattan Beach Municipal Code Section 2.36.150 (cooperative purchasing);
b) Adopt Resolution No. 23-0148, approving an agreement with Savant Solutions, Inc. for Managed Detection and Response services for the maximum compensation of $227,709; and
c) Authorize the City Manager or his designee to amend the agreement to modify the services and increase the maximum compensation by up to $37,000 during the contract term if deemed in the City’s best interest; If the City Manager/his designee exercises this option, the amended agreement amount is not to exceed $264,709.
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.
ATTACHMENTS:
1. Resolution No. 23-0143
2. Agreement - Savant Solutions, Inc. (Redacted)
3. Provider Preferred Reseller Letter (Redacted)