SR-101-003-04-02
CMO:JW:LP:f:\sysdev\share\pcpurchase.doc
Council Meeting: September 14, 1999 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT:Request to Authorize the City Manager to Negotiate and Execute Contracts
with Gateway Companies, Incorporated, for an Amount not to Exceed
$2,041,312, and Wareforce, Incorporated for an Amount not to Exceed
$128,450 for the Purchase, Installation and Maintenance of Microcomputers
and Printers for a Period of Three Years for a Total Amount not to Exceed
$2,169,762.
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate and
execute contracts with Gateway Companies, Incorporated, for an amount not to exceed
$2,041,312, and Wareforce, Incorporated for an amount not to exceed $128,450 for the
purchase, installation and maintenance of microcomputers and printers for a period of
three years for a total amount not to exceed $2,169,762.
BACKGROUND
To keep pace with advancements in computer technology, the City developed a desktop
computer equipment replacement program. The program, now in its third year, provides
for the scheduled replacement of computers and printers on a three-year cycle. A study
conducted by City staff determined that a three-year purchase, installation and
maintenance contract provides quality equipment and services at the most competitive
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prices. This is now common practice for governments and businesses with large
computing environments.
DISCUSSION
A Request For Proposals (RFP) for desktop computer equipment and related maintenance
services was issued in June, 1999. Nine responses were received and evaluated by a
five-member committee. It was determined that Gateway Companies Incorporated and
Wareforce Incorporated were the most responsive and competitive bidders. The selected
vendors best meet the Citys specifications for equipment and service at the most
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competitive prices. Gateway and Wareforce provide similar services to the County of Los
Angeles and other Southern California cities, including Long Beach, Anaheim and Santa
Barbara, and have been highly recommended.
BUDGET/FINANCIAL IMPACT
The cost for the equipment and services will not exceed $2,169,762 over the next three
years. Funding for fiscal year 1999/2000 is available in account numbers
C55000300.589000 and 01262.544390. City budgets for fiscal years 2000/2001 and
2001/2002 will include sufficient budget authority to finance years two and three of this
contract. Funding allocations are outlined as follows:
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Projected Cost
Vendor Name Account # (includes sales tax) Contingency Total
Gateway
Companies, Inc. C55000.589000 $ 1,662,930 $ 249,439 $ 1,912,369
Gateway
Companies, Inc. 01262.54439 $ 122,803 $ 6,140 $ 128,943
Gateway
subtotal
$ 2,041,312
Wareforce C55000.589000 $ 111,696 $ 16,754 $ 128,450
$ 2,169,762
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to negotiate and
execute contracts with Gateway Companies, Incorporated, and Wareforce, Incorporated
for the purchase, installation and maintenance of microcomputers and printers for a period
of three years.
Prepared by: Jory Wolf, Chief Information Officer
Ligia Perez, Senior Administrative Analyst
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