TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with MGT of America LLC (MGT), of Florida, for the preparation of the City of Long Beach Cost Allocation Plans, on the same terms and conditions afforded to Pinellas County in an annual amount of $93,270, and authorize a 10 percent contingency in the amount of $9,327, for a total annual amount not to exceed $102,597, until the Pinellas County contract expires on September 30, 2024, with the option to renew for as long as the Pinellas County contract is in effect, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with MGT for the furnishing and delivering of cost allocation plans. MGT currently develops and prepares the annual Cost Allocation Plan (both Citywide and 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards), as well as departmental cost allocation plans. These plans are necessary for the City of Long Beach (City) to maximize cost recovery from external entities (including grants and contract agencies), as well as General Fund cost recovery for central services from other City funds. Cost allocations are also used as part of the calculation to determine the full cost of services for purposes of establishing user rates and fees.
The Accounting Division of the Financial Management Department researched procurement options for Cost Allocation Plan services and discovered other governmental agencies had completed an open, fair, transparent, and competitive procurement process. The City reviewed the contract options and determined that the contract between Pinellas County and MGT provided the best value to the City.
MGT was selected based on their competitive pricing, service level, and expertise. MGT possesses historical City knowledge and proprietary software used to develop the various cost allocation plans, including methodologies which range in complexity based on the specific plan. MGT also assisted in the submission of the Fiscal Year 2021 Cost Allocation Plan to the City’s cognizant agency.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor with other governmental agencies. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other governmental agencies on a voluntary and selective basis, when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Monica Kilaita on August 31, 2023, Purchasing Agent Michelle Wilson on August 22, 2023, and by Revenue Management Officer Geraldine Alejo on August 25, 2023.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on September 19, 2023, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total annual amount of the contract will not exceed $102,597, inclusive of a 10 percent contingency. The total cost is budgeted in the General Fund Group in the Financial Management and Citywide Activities Departments. This recommendation has no staffing impacts beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR
FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER