SAN DIEGO (CNS) - The city of San Diego has agreed to tentative contracts with two companies to handle information technology services, which should result in cost savings of $7.4 million over the next five years, Mayor Jerry Sanders said Tuesday.
The deals with Atos IT Solutions and Services and CGI Technologies and Solutions are part of the city's move to end its 30-year relationship with Data Processing Corp., Sanders said.
"In an effort to reduce our costs and bring our IT system out of the 1970s, my administration last year launched a fair and open process that allows private companies an opportunity to bid for the right to provide the city with IT services," Sanders said.
It's the first time the city has put its entire IT portfolio to bid since it began its relationship with DPC, the mayor said.
The five-year proposed deals, which will go before the City Council's Rules Committee on Wednesday, require approval from the full council to take effect.
The two firms would perform software development and maintenance and provide help desk support for city employees and other services, the mayor said. He said if the companies perform well, and two years are added to the contracts, the savings would grow to more than $21 million over the life of the deals.
Another IT contract with an outside firm has also been reached and will be announced in the near future, with similar savings totals, city officials said.
Chief Operating Officer Jay Goldstone said the transition from DPC to the other companies would cost the city more than $12 million next year, including $6 million from the general fund. That money is already in the mayor's budget proposal released last week, he said.
Goldstone said the savings from the contracts will catch up, though, and the city should break even after about three years. The last couple of years will result in the estimated $7.4 million in savings, he said.
According to Goldstone, about 95 percent of DPC's revenue comes from the city of San Diego, and 144 of its employees work on municipal functions. Many of them are expected to be hired by the new vendors, he said.
DPC will continue to provide IT services to the city for a transition period of about one year, Goldstone said.
Fossa is a cat-like, carnivorous mammal that can be found in Madagascar. The modern mongoose and the fossa evolved from the same ancestor, which arrived on Madagascar about 21 million years ago.
Recent assaults by tactical teams on prototypes of President Donald Trump’s proposed wall with Mexico indicate their imposing heights should stop border crossers, a U.S. official with direct knowledge of the rigorous assessment told The Associated Press.
A head-on collision near the San Diego Zoo Safari Park left one of the motorists seriously hurt and the other less severely injured Friday.
The San Diego County unemployment rate remained steady at 3.3 percent between November and December despite a loss of 3,500 jobs.
A 6.3-magnitude earthquake struck offshore in Mexico's Gulf of California on Friday morning, but there were no immediate reports of damage.
Scattered showers and lower temperatures are in the forecast Friday for San Diego County with snow possible in the mountains at gradually lower elevations throughout the day.
Teachers in the Solana Beach School District, who have been without contracts for months, on Thursday pushed for new contracts, but the district is not backing down.
A Ramona man was arrested Thursday on suspicion of stealing tip jars from a half-dozen Poway businesses.
People who take their pets to Del Mar's dog beach wanted to know who planted the incredible garden there.