Action on Proposed Master Services Agreement with Unisys Corporation for Information Technology Outsourcing Services with a Not-to-Exceed Maximum Compensation of $29,804,800

Summary

This item proposes a new Master Services Agreement (MSA) between the City of Santa Clara and Unisys Corporation for comprehensive information technology (IT) outsourcing services. The agreement has an effective date of January 1, 2026, and an initial term of 30 months. The total not-to-exceed compensation is $29,804,800, which includes recurring fees and a buffer for potential variable costs.

The services covered are extensive, encompassing IT infrastructure, applications and web, departmental IT solutions, end-user services, and cross-functional capabilities such as 24x7 management of mission-critical systems, helpdesk, cybersecurity, and project management. The contract mandates the use of the ServiceNow platform for incident and service request management, change management, configuration management, and a centralized knowledge base.

Key financial details include recurring fees totaling $25,815,672 over the 30-month term, with annual Cost of Living Adjustments (COLA) based on the Consumer Price Index (100% for staff labor, 88% for resource units). The agreement is performance-based, with Service Level Agreements (SLAs) and associated Service Credits for non-performance. It also includes provisions for benchmarking to ensure competitive pricing and service quality, robust data security protocols (HIPAA, GDPR, PCI DSS compliance), and Disaster Recovery Planning.

The MSA outlines a detailed governance structure, including dedicated Key Service Provider Personnel and mechanisms for managing subcontractors. It also defines terms for termination for convenience, default, or lack of funds, and requires termination assistance to ensure a smooth transition of services if the contract ends.

Citizen Impact

This agreement ensures the City's critical IT systems and services, including those supporting public safety, utilities, and online citizen portals, remain stable, secure, and efficient. Residents will benefit from reliable access to City services, enhanced data privacy, and a commitment to continuous improvement in technology delivery. The contract's performance incentives and benchmarking aim to ensure cost-effective IT operations for the City.

Confidence

high