SR 07-23-2019 3H
City Council
Report
City Council Meeting: July 23, 2019
Agenda Item: 3.H
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To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer, Information Services
Department, Customer Experience and Support
Subject: Award Request for Proposal (RFP) for Network Operations Center Services
Recommended Action
Staff recommends that the City Council:
1. Award RFP#196 to Zones, LLC, a Washington-based company, for Network
Operations Center (NOC) and afterhours Service Desk services for
the Information Services Department;
2. Authorize the City Manager to negotiate and execute an agreement with Zones,
LLC, in an amount not to exceed $2,387,000 (including one-time setup costs, 2%
annual cost increases and a 10% contingency of $217,000) for five years, on the
same terms and conditions, with future year funding contingent on Counc il
budget approval.
Summary
To better secure and support critical municipal systems, such as those for safety,
transportation, traffic, utilities, and others, Information Services Department (ISD) staff
recommend establishing a Network Operations Center (NOC) to provide around-the-
clock monitoring and technical support. ISD provides centralized support services for all
automated information and communication systems for the City. Many City functions
that serve the public operate on a 24x7 basis, such as Police, Fire, Water,
Transportation, and Public Works. Staff seeks approval to enter into a services contract
with Zones, LCC to establish the NOC and provide around-the-clock system monitoring
and support.
Discussion
For critical systems that must be available 24/7 technology support primarily relies on
the knowledge and availability of a single subject matter expert. To mitigate risk
exposure and reduce reliance on singular individuals, the City must setup a more
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sustainable support structure to ensure operational continuity. This is especially
important for effective response to cyber-security incidents. To establish that support
structure, ISD recommends the implementation of a Network Operation Center (NOC)
function through an established service provider. The NOC will proactively monitor,
identify, and respond to technology issues 24x7. This proactive oversight of critical
services will enhance security, support, and free-up internal technical resources to focus
on maintaining systems and addressing issues before they cause interruptions to City
services. Additionally, this same contract will include services for the vendor to provide
call center and end user support for City staff in departments that work outside of
standard City Hall operating hours, such as Fire, Police, Public Works, and Big Blue
Bus; there are currently no such after-hours Service Center services available to staff
working outside the City’s regular business hours.
Using an external service provider is a cost effective approach for mitigating risks
associated with single subject matter expert resources. Additionally, industry
specialized NOC services utilize technical expertise and technologies not available with
current City staffing and technology investment levels. The implementation of this
service reduces the risk of interruption of critical City services that are provided to the
public 24x7. An established NOC vendor provides flexibility in staffing based on
fluctuating technology needs of the City. By leveraging its workforce and technologies
across multiple clients, such vendors are able to ramp up or down resources as needed
to address City technology support needs as they arise.
Method of Service
On January 13, 2015 (Attachment A), Council adopted a Policy for Hiring Contracted or
As-needed Staff for Non-professional Services. This policy includes criteria under
which contracting for a public service is appropriate. Staff has reviewed the service
needs, and recommends providing NOC and after-hours Service Desk services through
a contractor due to the following criteria:
Evaluation Criteria Staff Assessment
Risk Service entails risk that significantly increases the City’s
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potential liability
Specialized/Technical expertise Service requires technical or special expertise that City staff
could not or does not provide, and is outside of core service
mission of the department; and,
Workforce Flexibility: Service is seasonal or unpredictable, but requires multiple
staff if service is needed. Service continuity relies on large
employee pool with numerous and immediately available
backup options. The use of contract services provides the
City with an opportunity to redefine or adjust service levels.
Vendor selection
Staff solicited an RFP for NOC and after-hours ServiceDesk (call center)
services from multiple established vendors. The services include 24x7 monitoring and
proactive response for key application systems and underlying infrastructure; reactive
on-call support for key application systems; and after-hours call center services. Staff
evaluated all proposals submitted and identified the bidder that can deliver services to
the City efficiently and cost effectively, while providing an excellent customer experience
to all City staff.
RFP Data
RFP Posting
Date RFP Posted On RFP Advertised In
(City Charter &
Municipal Code)
# of Vendors
Downloaded # of Submittals
Received Date Publicly
Opened
9/24/18 City's Online
Bidding Site Santa Monica Daily
Press 61 5 10/29/18
RFPs Received Selection Criteria
Zones, LLC InterVision
Systems, LLC Municipal Code SMMC 2.24.190
Smart IMS, Inc. Dell Marketing,
L.P. Evaluation Criteria
Cost of services, experience and technical competence,
value added-breadth of service, and stability and
references.
Insight Public
Sector, Inc.
Justification to Award
Responses to the RFP were reviewed by a selection panel of staff from the Information
Services Department. Staff then shortlisted and interviewed three firms. Based on the
evaluation criteria listed above and criteria in SMMC 2.24.190, staff recommends
Zones, LLC, as the best qualified firm for Network Operations Center and after-
hours Service Desk services. Zones was the lowest bidder and their proposal provides
the greatest value for the cost; they provide 24/7/365 Microsoft Office 365 Concierge
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support services for Microsoft direct customers and this service will be extended to the
City at no additional cost; they are experienced in the area of Network Operations
Center services and have mature service delivery processes for end user computing,
service desk, and operational monitoring and response; they will leverage the City’s
current technology investments for service delivery (ServiceNow) and operational
monitoring and control infrastructure; and their proposed solution best aligns with the
City’s IT needs in terms of delivering an ITIL structured solution for the City to
seamlessly transition to a 24x7 Network Operations Center services model.
Additionally, Zones, LLC has extensive experience managing similar engagements for
other agencies, including Warner Media Group, Scotia-Glenville Central School District,
and Microsoft. Zones received praise from their references for their exceptional
customer service, focus on customer satisfaction, and their commitment to recommend
and implement best practices to improve service delivery availability and reliability for
their customers.
Financial Impacts and Budget Actions
Staff seeks authority to award an agreement with Zones, LLC for NOC and after-hours
Service Desk services.
Agreement Request
Request Amount
FY 2019-20 Budget
Department Account #
Total Contract
Amount
$41,010 C7100030.689000
$284,657 01140001.550010
$60,718 60600002.552010
$5,020 11400001.552010
$384 53160001.552010
$14,004 57500001.552010
$17,937 54500002.552010
$10,120 50500001.552010
$10,120 51500001.552010
$3,006 75300001.552010
$613 70500001.552010
$2,490 59500001.552010
Total $2,387,000
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Future year funding is contingent on Council budget approval.
Prepared By: Sandye Amshen, Customer Experience and Support Manager
Approved
Forwarded to Council
Attachments:
A. Oaks - Zones
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a public benefit. If the public benefit is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax abatement, exception, or benefit of a value in excess of $5,000 in any 12-
month period; or
7. Payment of cash or speci of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
Jon.Bailey@Zones.com
VP, Business & Legal AffairsJon Bailey
01/30/19
(253) 205-3000
Directors: Firoz Lalji, John H. Bauer, and Ken Kirkpatrick
Zones, LLC
Firoz Lalji
REFERENCE:
Agreement No. 10887
(CCS)