HomeMy WebLinkAbout2014-07-08; City Council; 21677; Review Results Technology Help Desk Services RequestCITY OF CARLSBAD - AGENDA BILL 10
AB# 21,677
MTG. 7/8/14
REVIEW THE RESULTS OF THE TECHNOLOGY
HELP DESK SERVICES
REQUEST FOR PROPOSAL
DEPT.DIRECTOR e/^ AB# 21,677
MTG. 7/8/14
REVIEW THE RESULTS OF THE TECHNOLOGY
HELP DESK SERVICES
REQUEST FOR PROPOSAL
CITY ATTY. -^l^
DEPT. ASD-IT
REVIEW THE RESULTS OF THE TECHNOLOGY
HELP DESK SERVICES
REQUEST FOR PROPOSAL CITY MGR.
RECOMMENDED ACTION:
Review the results of the Request for Proposal for Technology Help Desk Services and adopt Resolution
No. 2Q14-172 directing staff to pursue contracting out the technology help desk services and, if
requested by the Carlsbad City Employees' Association (CCEA), to meet and confer.
ITEM EXPLANATION:
For over a decade the City of Carlsbad has been partially outsourcing its technology help desk services.
The current partially outsourced help desk model costs the city $406,447 annually. This cost is comprised
of vendor fees and the cost for three full-time IT staff assigned to help desk services. During development
of the Information Technology (IT) Strategic Plan in 2013 technology consultants suggested that the city
consider moving to fully outsourcing its technology help desk services, initial market research showed
that making this move could increase service levels while decreasing costs to the city.
In March of 2013 the Information Technology Department jointly developed a request for proposal (RFP)
with CCEA to fully contract out technology help desk services. CCEA appointed two members to attend
meetings and provide input on creation ofthe RFP for contracting out the city's help desk services. Once
developed, the RFP was reviewed by CCEA prior to publication in July of 2013.
The RFP for technology help desk services produced two vendor responses. A best value analysis was
performed on the responses with Allied Digital ultimately selected as the vendor of choice for fully
outsourced technology help desk services. The proposed vendor. Allied Digital, presented a help desk
model offering the city a ticket resolution rate of 100 percent in a full-service around-the-clock
environment (in comparison to the current model, under which the vendor provides a ticket resolution
rate of approximately 25 percent and charges additional fees for services provided outside of normal
work hours).
In addition to offering a higher resolution rate in an around-the-clock service model, the proposed vendor
is offering help desk services that can grow as the city introduces new enterprise applications. The
proposed vendor's ability to meet the city's current and future help desk demands will permit current city
IT staff to focus their efforts on helping all city staff use technologies efficiently to meet their business
needs. The vendor proposal also allows for the elimination of three full-time IT positions (IT help desk
staff), while providing increased technology services to city staff at an overall cost savings.
Department Contact: Tina Steffan 760-602-2454 Tina.Steffan@carlsbadca.gov
FOR CLERK USE
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
ii CONTINUED TO DATE SPECIFIC •.
• CONTINUEDTO DATE UNKNOWN •
• RETURNED TO STAFF •
• OTHER- SEE MINUTES •
FISCAL IMPACT:
Pricing for this new expanded service model is quoted at $337,450 per year. This represents a cost
savings of almost $69,000, or 17 percent annually over the current partially outsourced model.
Help Desk Costs
Current
Partially Outsourced
Proposed
Fully outsourced
Savings
Vendor Costs $100,000 $337,450 ($237,450)
3 City help desk staff $306,447 $0 $306,447
Totals $406,447 $337,450 $68,997
The next step in the process is for the City Council to direct staff to pursue contracting the technology
help desk services and, if requested by CCEA, to meet and confer over the decisions and/or effects of that
decision.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the
meaning of CEQA in that it has no potential to cause either a direct physical change in the environment,
or a reasonably foreseeable indirect physical change in the environment, and therefore does not require
environmental review.
EXHIBITS:
1. Resolution No. 2014-172
2. Agreement between the City of Carlsbad and the Carlsbad City Employees' Association regarding
contracting out work, dated February 7, 2013
1 RESOLUTION NO. 2014-172
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2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, DIRECTING STAFF TO PURSUE CONTRACTING OUT
THE TECHNOLOGY HELP DESK SERVICES AND, IF REQUESTED BY
4 THE CARLSBAD CITY EMPLOYEES' ASSOCIATION, (CCEA) TO MEET
AND CONFER
5 "
^ WHEREAS, for over a decade the City of Carlsbad has been partially outsourcing its
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technology help desk services; and
WHEREAS, city staff researched the technology services market and discovered that
moving to a fully outsourced technology help desk service could save the city money and
increase the services offered to staff; and
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12 WHEREAS, in March of 2013 Information Technology (IT) department staff, along with
13 two CCEA members developed a request for proposal (RFP); and
WHEREAS, in July of 2013 the RFP for Technology Helpdesk Services was published; and
WHEREAS, two vendors provided responses to the RFP and after a best value analysis
was performed. Allied Digital was selected as the vendor of choice for a fully outsourced help
18 desk; and
19 WHEREAS, the proposed vendor's fully outsourced service model represents increased
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service levels and a savings of 17 percent annually; and
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WHEREAS, the fully outsourced help desk proposal allows for the elimination of three
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full time IT positions (IT Help Desk Staff); and
24 WHEREAS, staff requires City Council direction to purse contracting out for help desk
25 services and, if requested by CCEA, to meet and confer over the decisions and/or effects of that
decision.
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1 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
^ California, as follows that:
1. The above recitations are true and correct.
2. Staff are directed to pursue contracting out the technology help desk services.
3. Staff are directed, if requested by CCEA, to meet and confer over the decisions
and/or effects ofthe decision to contract out the technology help desk services.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 8th day of July 2014, by the following vote to wit:
AYES: Council Members Hall, Packard, Wood, Schumacher, Blackburn.
NOES: None.
ABSENT: None.
MAH HALL, Mayor
ATTEST:
BARBARA ENGLESON, Ci
yy^yo-';
Side Letter Re: Contracting Out
Date: February 7, 2013
AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE CARLSBAD CITY
EMPLOYEES ASSOCIATION REGARDING CONTRACTING OUT WORK
The City of Carlsbad ("City") and the Carlsbad City Employees Association ("CCEA") agree to
the following:
1. The City has the right to contract out any or all ofthe services currently being
performed by CCEA-represented classifications or that could be performed by
CCEA-represented classifications to any one or more public or private entities or
individuals.
2. Prior to contracting out the services referenced in item number I above, the City shall
first satisfy its obligation to meet and confer with CCEA regarding both the decision
and effects of contracting out those services.
3. CREATION OF A REQUEST FOR PROPOSAL ("RFP")
a. CCEA may appoint up to two (2) of its members to attend a meeting with City
staff responsible for the creation of an RFP for the purpose of providing input to
the City regarding die creation ofthe RFP for contracting out the services
referenced in item number 1 above. This first meeting shall occur prior to the
RFP being prepared by City staff.
b. After the draft RFP is completed by City staff, a copy of the draft RFP shall be
forwarded to the CCEA appointees by email and a subsequent meeting shall be
scheduled, which shall take place within seven (7) calendar days from the date
the RFP is received by the CCEA appointees. The purpose of the meeting is for
CCEA appointees to meet with the City staff responsible for preparing the RFP
in order to discuss the RFP and ask questions as necessary. Additional meetings
may be scheduled if mutually agreeable. Following conclusion ofthe meeting(s),
CCEA's appointees may provide written feedback/suggestions regarding Ihe RFP
for the consideration of City staff prior to it being finalized and sent to any
potential conlxactors. CCEA's feedback/suggestions shall be forwarded to City
staff responsible for the creation ofthe RFP by email within seven (7) calendar
days from the date of conclusion of these meetings.
c. Prior to distribution of the RFP to potential contractors, the Cily shall provide the
CCEA appointees with a final version ofthe RFP.
d. Neither CCEA nor its appointees shall have veto power over any City decision
related to the contents of an RFP or the RFP process.
e. Neither CCEA nor its appointees may use the appointees' involvement in the
RFP process to delay the RFP process.
f CCEA's appointees shall sign confidentiality agreements, as agreed to by the
City and CCEA, prior to receiving any information related to an RFP.
Page 1 of 2
4. MEET AND CONFER PROCESS
a. The Cily may send RFPs created following the procedure outlined in item
number 3 above to potential contractors prior to engaging in the meet and confer
process vvith CCEA.
b. After the Cily receives responses lo the RFP, the City Council or designee shall
detennine whether to pursue contracting out of those services that are die subject
ofthe RFP
c. In the event that the City Council or designee decides to pursue confracting out of
any or all ofthe services dial are the subject ofthe RFP, the City's negotiating
team will make a proposal in writing to CCEA to contract out those services and
will provide a copy ofthe leading proposal to CCEA along with its proposal.
d. After reviewing the City's proposal, CCEA may request in writing to meet and
confer over the decision to contract out services and/or the effects of that
decision no later than fourteen (14) calendar days from the date of CCEA's
receipt of the City's proposal. The first meeting ofthe meet and confer process
shall be scheduled witiiin fourteen (14) calendar days of CCEA's written request
If CCEA requests to meet and confer over boUi the decision and effects, decision
and effects negotiations shall take place simultaneously. It is understood by the
parties dial the meet and confer process is not required to be completed in one
single meeting.
e. The negotiations over the decision and/or effects shall be subject to combined
impasse procedures.
5. CITY COUNCIL DECISION
a. After the meet and confer process has concluded by either reaching agreement or
exhausting impasse procedures, the City Council will make its final decision on
whether to contract out those services subject to the RFP.
6. This agreement shall be enforceable once execuled by the parties and shall be made a
part of any subsequent Memorandum of Understanding between tiie City and CCEA
until such time as the parties agree lo remove il.
This Agreement is entered into on tiiis 7* of February, 2013.
On Behalf of CCEA On Behalf of tiie City of Carisbad
By:V^ ^ir^^^^'^?........ By: ^
Pam Drew, President Steve Beriiner, Esq.
Page 2 of 2
IT Help DeskCity Council PresentationJuly 8, 2014
AGENDAWhat is a Help Desk?What’s Changing in IT?Today’s IT Help DeskSame Model in 5 YearsWhy 100% Outsource?Help Desk Model ProposedCost / Benefit
What is the Help Desk?My laptop keeps crashing….what do I do?My phone doesn’t work.We can’t get the payroll file uploaded.The application is running really slow.I can’t find my files.My report isn’t running.I am getting a database error when retrieving a file.I can’t get to my email (or my meetings disappeared from my calendar)I think I opened an email with a virus.I am getting a printer error; I don’t have the device drivers installedThe Help Desk is critical to keeping the City running.
Since we last met in Dec…1. Alga Norte Park2. Enterprise Storage/Backup3. Desk Side Ops Upgrade4. Wireless Infrastructure5. Fisher Identity Mgmt & Security6. Web Security7. Virtual Desktop8. Mobile Device Management9. Voice over Internet Protocol10. Data Center MigrationGreen = DoneRed = In ProgressPurple = Major Strategic Initiatives1. Class Registration Management2. Code Enforcement3. IFAS Financial Upgrade4. Library System Upgrade5. Computer Aided Dispatch Upgrade6. Street Address Verification7. HRMS Data Center Move8. Permitting System9. Police Records Management10. Website Re‐design11. My Carlsbad (311/CRM)12. Business Intelligence Architecture13. Enterprise Content Management14. HR Performance Management15. Enterprise Resource Planning (ERP)(Financials, HR, Payroll/Time, WO)InfrastructureSoftware ApplicationsMany new applications and infrastructure requiringdeep experience and peak/sustaining support
Current IT Help Desk‐Partially OutsourcedScopeExternal ResourcesInternal Resources• 450 Tickets/month•Call Desk; On Site; After Hours•PAI = Vendor•Call Desk•< 25% Outsourced•3 Deskside 100%•2 Analysts 78%•2 Engineers 78%$100,000 Annually$100,000 Annually$772,853 Annually$772,853 Annually$872,853 Annually [w/out OT or standby pay] $872,853 Annually [w/out OT or standby pay] PAI resolves < 25% of ticketsPAI is not on siteLimited skillsets High staff turn overNo after hoursPAI can’t do Police Department TicketsPAI resolves < 25% of ticketsPAI is not on siteLimited skillsets High staff turn overNo after hoursPAI can’t do Police Department Tickets3 Client‐side Staff have limited skillsetsOT for after hoursSystems analysts at capacity with KTLONo time to build new skillsets for new applicationsNo capacity for new applications3 Client‐side Staff have limited skillsetsOT for after hoursSystems analysts at capacity with KTLONo time to build new skillsets for new applicationsNo capacity for new applications**OT/Standby Pay to mid‐May $36,665 Avg Cost per ticket = $162
Current Partial Model 5 years from now…ScopeExternal ResourcesInternal Resources•700 Tickets/month•Call Desk; On Site; After Hours; Enterprise Apps•Vendor•Call Desk•<<25% Outsourced•+4 Analysts 78%$100,000 Annually$100,000 Annually$ 772,853 ‐> $1,265,148 Annually$ 772,853 ‐> $1,265,148 Annually$ 872,853 ‐> $1,365,148 Annually [w/out OT or standby pay] $ 872,853 ‐> $1,365,148 Annually [w/out OT or standby pay] PAI cannot absorb implementation peaksPAI is not application supportreadyPAI cannot absorb implementation peaksPAI is not application supportreadyBurden of New Applications support falls directly on staffCore competence is lost to consultantsUser adoption has a direct correlation to IT CompetenceStaff shown here are minimal for KTLO Necessary to add Analyst resources to support new Enterprise ApplicationsBurden of New Applications support falls directly on staffCore competence is lost to consultantsUser adoption has a direct correlation to IT CompetenceStaff shown here are minimal for KTLO Necessary to add Analyst resources to support new Enterprise ApplicationsAvg Cost per ticket = $162
Why the100% Outsourced Model Makes SenseOver 60% cheaper and vendor does all the ticketsScalable to absorb New Applications, Police IT, Library IT, Water ITOur staff can focus on helping City staff with new systemsOn site technicians and Call Center; 24x7 availability –no after hours costsBetter service management tools with metrics [Enforce vendor performance]
Proposed Help Desk ModelType of RequestProposed Fully OutsourcedCurrentPartial OutsourceDesktop supportClient servicesApplication Use CasesVendor 100%Vendor <25%City 75+%Hardware : Break FixVendor 100% City 100%Asset Lifecycle ManagementVendor 100% City 100%Allied Digital$337,450+No Internal StaffSoftwareApplications$100,000+7 Internal StaffKeeping the current systems runningTotal Cost AnnuallyFor Centralized IT only**$ 337,450$ 872,853No redundancyScalable for entire CityCan absorb tickets for new applicationsContracted vendor performance metricsIT Staff can focus on businessBetter user adoption of new applicationsBEST VALUE**Centralized IT excludes Police IT, Library IT, Water IT **Centralized IT excludes Police IT, Library IT, Water IT Avg Cost per ticket = $62
Proposed Help Desk Cost Benefit‐Raw Savings16.98% SavingsCurrent CostsProposed Fully OutsourcedCosts Savings % SavingsCost of Vendor$100,000 $337,450 ($237,450)3 Client‐side Staff$306,447 $0 $306,447 Total Costs $406,447 $337,450 $68,997 16.98%
Proposed Help Desk Cost Benefit with Indirect Savings17%‐61.3% SavingsCurrent CostsProposed Fully Outsourced Costs Savings % SavingsCost of Vendor$100,000 $337,450 ($237,450)3 Client‐side Staff$306,447 0 $306,447 2 Analysts2 Engineers@78%$466,406 0 $466,406 Total Costs:$872,853 $337,450 $535,403 61.34%
Our RequestApproval to pursue contracting out help desk services? Authorization to move forward with the CCEA meet and confer process?