San Francisco City Technology Purchasing Overview
This overview provides insights into the City & County of San Francisco's technology purchasing policies, considerations, and methods. It covers the city's policy on technology purchases, considerations for purchasing technology, cloud computing policy, and IT purchasing methods.
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City & County of San Francisco City & County of San Francisco Technology Purchasing Overview Technology Purchasing Overview JANUARY 2020
Table of Contents I. City Policy on Technology Purchases II. Two Primary Considerations for Purchasing Technology for the City: A. Commodities v. Professional Services B. On Premise v. Cloud Computing III. City Policy on Cloud Computing IV. How does the City buy Technology? A. Public Bid / Direct Contract B. OCA Technology Marketplace Contracts C. Enterprise Agreements V. Comparing IT Purchasing Methods 2
I. City Policy on Technology Purchases I. City Policy on Technology Purchases A. All technology purchases must go through the Office of Contract Administration (OCA). B. May be subject to review by the City s Department of Technology ( DT ). C. Can NEVER be completed using Departmental Delegated Authority (aka Prop Q), even if under $10,000 3
II. Two Primary Considerations for II. Two Primary Considerations for Purchasing Technology for the City Purchasing Technology for the City Before you begin thinking about a solution, consider the following because they will impact the what, why and how of your purchase: A. Commodities v. Professional Services B. On Premise v. Cloud Computing 4
A. Consideration 1: Commodities v. Professional Services A. Consideration 1: Commodities v. Professional Services Commodities Professional Services Examples Hardware Software Standard software support Cloud computing software w/out technical services Non customized training Commodity transactions with incidental services Customizations Services Configuration Services Integration Services Cloud computing software w/ technical services Managed Services Customized Training Solicitation Model: Solicitation Model: Solicitation Model Low Bid Request for Proposals (RFP) Request for Proposals (RFP) Request for Qualifications (RFQ) Request for Information/Interest (RFI) Who Does the Solicitation? Low Bid: OCA RFP: Department RFP: Department RFQ: Department RFI: Department 5
B. Consideration 2: On Premise v. Cloud Computing B. Consideration 2: On Premise v. Cloud Computing On Premise: Cloud Computing: The product is located within the physical confines of YOUR enterprise. Whether a software, network, data center or application, YOU maintain it. The product is hosted within the physical confines of the SERVICE PROVIDER S enterprise and accessed using a web browser. The SERVICE PROVIDER is responsible for maintaining access to the cloud and storage of your data. Most importantly, your data is under YOUR control. Cloud Computing Models: Software as a Service (SaaS) Infrastructure as a service (IaaS) Platform as a service (PaaS) Desktop as a service (DaaS) Backend as a service (BaaS) IT as a service (ITaaS) PROCEED WITH CAUTION BECAUSE YOUR ARE GIVING UP CONTROL OF YOUR SYSTEMS AND/OR DATA! 6
III. City Policy on Cloud Computing III. City Policy on Cloud Computing Use of cloud services encouraged when: Cost-efficient; Potential risks are considered and mitigated; and Supports interoperable systems throughout City Departments must conduct a risk assessment to identify data security/privacy issues and how to mitigate them. Data/System Classification Potential Risk Level 1: Public None - Low Level 2: Internal Use Low Level 3: Sensitive Low Level 3: Sensitive Moderate Level 4: Protected Moderate Level 5: Restricted High 7
IV. How does the City buy Technology? IV. How does the City buy Technology? A. PUBLIC BID / DIRECT CONTRACT B. OCA TECHNOLOGY MARKETPLACE CONTRACTS C. ENTERPRISE AGREEMENTS 8
A. A. PUBLIC BID / DIRECT CONTRACT PUBLIC BID / DIRECT CONTRACT PURCHASING INSTRUMENT SOURCING METHOD PURCHASE TYPE REQUEST METHOD RESPONSIBILITY NOT REQUIRE SOFTWARE HARDWARE THAT DOES REQUISITION TO OCA ONE-TIME PURCHASE DEPARTMENT + OCA PURCHASING PO BY OCA < $10K N/A LICENSING SOLICITATION BY OCA REQUISITION TO OCA ONE-TIME PURCHASE DEPARTMENT + OCA PURCHASING PO BY OCA > $10K (e.g. LOW-BID) HARDWARE, SOFTWARE & HARDWARE, SOFTWARE & SOFTWARE/EQUIPMENT SOFTWARE/EQUIPMENT ONE-TIME OR RECURRING PURCHASE CONTRACT + PO RELEASE BY DEPT < $10K N/A N/A DEPARTMENT+ OCA SUPPORT SUPPORT LOW BID LOW BID: : SOLICITATION BY OCA ONE-TIME OR RECURRING PURCHASE CONTRACT + PO RELEASE BY DEPT DEPARTMENT+ OCA N/A > $10K BEST VALUE BEST VALUE: : SOLICITATION BY DEPT CONTRACT + PO RELEASE BY DEPT DEFINED SCOPE OR AS-NEEDED DEPARTMENT+ OCA PROFESSIONAL PROFESSIONAL < $10K N/A N/A SERVICES SERVICES CONTRACT + PO RELEASE BY DEPT DEFINED SCOPE OR AS-NEEDED SOLICITATION BY DEPT (e.g. RFP) DEPARTMENT+ OCA > $10K N/A 9
B. OCA B. OCA T TE EC CH HN NO OL LO OG GY Y M MA AR RK KE ET TP PL LA AC CE E CONTRACTS CONTRACTS PURCHASING INSTRUMENT SOURCING METHOD PURCHASE TYPE REQUEST METHOD RESPONSIBILITY HARDWARE, SOFTWARE & HARDWARE, SOFTWARE & SOFTWARE/EQUIPMENT SOFTWARE/EQUIPMENT ONE-TIMEOR RECURRING PURCHASE < < $25K (Tier 1 & 2) < < $100K (Tier 3) REQUISITION TO OCA PO RELEASE BY OCA DEPARTMENT+ OCA N/A SUPPORT SUPPORT ONE-TIMEOR RECURRING PURCHASE SOLICITATION BY OCA (e.g. LOW-BID) > > $25K (Tier 1 & 2) > > $100K (Tier 3) REQUISITION TO OCA PO RELEASE BY OCA DEPARTMENT+ OCA PROFESSIONAL SERVICES PROFESSIONAL SERVICES DEFINED SCOPE OR AS-NEEDED < < $25K (Tier 1 & 2) < < $100K (Tier 3) DEPARTMENT+ OCA REQUISITION TO OCA PO RELEASE BY OCA N/A DEFINED SCOPE OR AS-NEEDED SOLICITATION BY DEPT > > $25K (Tier 1 & 2) > > $100K (Tier 3) DEPARTMENT+ OCA REQUISITION TO OCA PO RELEASE BY OCA (e.g. RFP) 10
B. CITYWIDE ENTERPRISE AGREEMENTS B. CITYWIDE ENTERPRISE AGREEMENTS PURCHASING INSTRUMENT SOURCING METHOD PURCHASE TYPE REQUEST METHOD RESPONSIBILITY ONE-TIMEOR RECURRING PURCHASE AGREEMENTS THAT AGREEMENTS THAT REQUIRE DEPT TO REQUIRE DEPT TO GO THROUGH OCA GO THROUGH OCA DEPARTMENT+ OCA REQUISITION TO OCA PO RELEASE BY OCA N/A AGREEMENTS THAT AGREEMENTS THAT DON T REQUIRE DON T REQUIRE DEPT TO GO DEPT TO GO THROUGH OCA THROUGH OCA OBTAIN ONE-TIME OR RECURRING PURCHASE DEPARTMENT + EA ADMINISTRATOR APPROVAL FROM EA ADMINISTRATOR PO RELEASE BY DEPT N/A EA's administered by OCA: OCA Enterprise Agreements EA's administered by DT: DT Enterprise Agreements 11
V. Comparing IT Purchasing Methods V. Comparing IT Purchasing Methods Public Bid / Direct Contract Enterprise Agmts. Technology Marketplace Contracts Process Duration 1-4 weeks 3+ months 1-3 days Transaction Limits Tiers 1 & 2: $2.5MM Tier 3: Products: $110K, Services: $600K None Contact EA Administrator Purchasing Method RQ to PO, through OCA, using OCA s Term Contracts. PO issued by OCA, accompanied with non-negotiable term sheets. Department cannot sign any agreements. Department must abide by manufacturer use terms only. Multi-year contract, regardless of amount. Department negotiates contract directly with supplier. Once contract has been approved, Department issues POs against it. EAs that require going through OCA: Req to PO EAs that don t require going through OCA: PO by Dept Cloud Computing Ok? Yes, but only if data risk is at or below Level 3-Low (See slide 8). Must buy from Tier 1 suppliers only. Yes, in accordance with City policy on cloud computing (See slide 8). Purchase limited to goods/services covered by the EA Ok to Name Manufacturer? Yes. You can name the product of your choice. No. Must provide specs or make No Substitute request to OCA using OCA s solicitation waiver process. N/A. Purchase limited to goods/services covered by the EA Solicitation Thresholds $25K: Bid not required > $25K Commodities: Bid out by OCA > $25K Services: Bid out by Dept (See slide 5) $10K: Bid not required > $10K Commodities: Bid out by OCA > $10K Services: Bid out by Dept N/A. No solicitation required. Tier 3 Exception: No bid required if under $110K. Solicitation Waivers May not request to waive solicitation requirements. See Guide to Request to Waive Solicitation Requirements.pdf N/A. No solicitation required. Solicitation Audience Technology Marketplace resellers. Must choose from one of three Tiers. All suppliers w/ City Supplier ID, Business Tax License and 12B compliant. 12B exception: 21.30 Software Licenses/Maintenance purchases < $10MM N/A. No solicitation required. Civil Service Approval For Professional Services Not required. Submit request to Local 21. 10 day wait period. Required. Submit request to Civil Service. Expedited 7 day review if < $100K. Otherwise min. 30 days for union review, then full commission hearing. N/A. All approvals obtained by EA Administrator prior to EA execution. Other Agency Approvals DT: See DT CIO policy to determine if applicable. CMD: If Professional Services over $110K. Multiple agencies must approve. Use OCA s checklists to determine which agencies must approve. N/A. All approvals obtained by EA Administrator prior to EA execution. 12
