SR-101-003-04-02 (3)
CMO:JW:LP:f:\infosys\admin\share\staff reports\Computer equipment and maintenance
services.doc
Council Meeting: October 14, 2003 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Contract with Gateway Companies, Inc., for the purchase, installation and
maintenance of microcomputers for a period of four years for a total amount
not to exceed $1,807,560, with four additional one-year renewal options.
Introduction
This report recommends that the City Council authorize the City Manager to negotiate and
execute a contract with Gateway Companies, Inc., for the purchase, installation and
maintenance of microcomputers for a period of four years for a total amount not to exceed
$1,807,560, with four additional one-year renewal options.
Background
To maintain staff productivity and enhance efficiency, the City developed a computer
equipment replacement program to keep pace with changes in computer technology. The
program, now in its seventh year, provides for the scheduled replacement of computers on
a four-year cycle. The cycle was lengthened from three years to four years in FY 2002/03.
A study conducted by City staff determined that a four-year purchase, installation and
maintenance contract provides quality equipment and services at the most competitive
prices. This is now common practice for governments and businesses with large
computing environments. The City’s recycled computer equipment is donated to local
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public schools and qualified community service agencies per City Council authorization on
March 3, 1998.
Discussion
A Request for Proposals (RFP) for desktop computer equipment and related maintenance
services was published on August 1st and 2nd, 2003 in accordance with Charter and
Municipal Code provisions and proposal forms were sent to 110 vendors. Six responses
were received, opened and read on August 25, 2003. Two firms, Dav Tech Computer
Center and Availatech did not meet the City’s specifications and were eliminated. Of the
firms who met the City’s specifications, the total cost per microcomputer including
installation and four years maintenance are as follows:
VENDOR PRICE
Gateway Companies, Inc $1,210
Impress Technology Solutions, Inc $1,510
Dell Computer Corporation $1,518
En Pointe Technologies Sales, Inc $1,639
A six-member committee comprised of staff from the Information Systems and Purchasing
Divisions evaluated the responses and determined that Gateway Companies, Inc., was the
most responsive and competitive bidder. The selected vendor best meets the City’s
specifications for equipment and service at the most competitive prices. Gateway
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Companies, Inc., was selected as the most competitive bidder during the last RFP process
and has provided the City with quality equipment and services over the last four years.
They have also provided similar services to the Los Angeles County Department of
Children and Family Services, Orange County Superior Courts, Orange County Social
Services and City of Santa Barbara and have been highly recommended.
Budget/Financial Impact
The cost for the computer equipment and services will not exceed $1,807,560 over the
next four years. Funds of $451,890 are available in the Information Technology
Replacement and Services Fund at account C55000304 for the FY2003/04 computer
replacement and maintenance. Future purchase and maintenance costs will be
determined by the amounts appropriated by Council in fiscal years 2004/05, 2005/06 and
2006/07 for the replacement and maintenance program. Annual funding requirements will
be requested in each fiscal year’s proposed budget and will be subject to Council review
and approval. If the necessary funds for a subsequent fiscal year are not appropriated by
City Council, the agreement will allow for termination of further services without penalty at
the sole discretion of the City.
Recommendation
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a contract with Gateway
Companies, Inc., for the purchase, installation and maintenance of microcomputers
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for a period of four years in an amount not to exceed $1,807,560, including
applicable sales tax, with contract language reflecting annual funding
authorizations as set forth above; and
2. Authorize four additional one-year renewal options at an estimated annual
expenditure of $451,890.
Prepared by: Diane Howell, Purchasing Agent
Richard Chiu, Buyer
Jory Wolf, Chief Information Officer
Ligia Perez, Senior Administrative Analyst
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