TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Kyndryl Holdings, Inc., of New York, NY, for disaster recovery technology services, in a total annual amount not to exceed $149,266, for a period of one year, with the option to renew for four additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Kyndryl Holdings, Inc. (Kyndryl), for the purchase of disaster recovery technology services.
On September 14, 1999, the City Council approved the updated terms and conditions to the 1989 Master Purchase Agreement with International Business Machines Corporation (IBM) for the purchase of products and managed services until such time as IBM or the City terminates the contract. The Technology and Innovation Department has purchased services from IBM under this Master Purchase Agreement for disaster recovery technology services.
On May 26, 2021, the Technology and Innovation Department was notified that IBM was transitioning its Managed Infrastructure Services business into a new public company, Kyndryl. The two companies will continue to work together as Kyndryl will remain IBM’s preferred partner for infrastructure. Meanwhile, the Technology Support Services business of IBM will remain an integral part of IBM. Kyndryl will continue to design, run, and manage the modern and reliable technology infrastructure that the City of Long Beach (City) had previously been implementing under the Master Purchase Agreement with IBM and the City will continue to receive the same solutions and support directly from Kyndryl.
The terms of the original Master Purchase Agreement with IBM will remain in effect and only the services provided in Transaction Document 31 will be transferred to Kyndryl. Kyndryl has agreed to assume all of the contractual oblications under the same terms and conditions provided under the IBM agreement so there will be no interruption to the disaster recovery technology services that the City relies on.
City Charter 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process but allows for awards without a competitive bid process when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley on January 21, 2022, Business Services Bureau Manager Tara Mortensen on January 11, 2022, and by Budget Operations and Development Officer Rhutu Amin Gharib on January 17, 2022.
TIMING CONSIDERATIONS
City Council action is requested on February 8, 2022, to ensure the new contract assignment is executed expeditiously.
FISCAL IMPACT
The requested action will allow the City to enter into a contract with Kyndryl for disaster recovery technology services previously provided by IBM. Sufficient funding is budgeted in the General Services Fund Group in the Technology and Innnovation Department. This recommendation has no staffing impact 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.
BODY
[Enter Body Here]
Respectfully Submitted,
LEA D. ERIKSEN
DIRECTOR OF TECHNOLOGY AND INNOVATION
APPROVED:
THOMAS B. MODICA
CITY MANAGER