SR-101-003-04-02 (4)
Council Meeting: July 27, 2004 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Authorization of the City Manager to Negotiate and Execute a Contract
with DELL Software and Peripherals for the Purchase of Microsoft
Software Licenses, Software License Upgrades and License Tracking
Services over a Period of Five-Years in an Amount not to Exceed
$903,588.
Introduction
This report recommends that the City Council authorize the City Manager to negotiate
and execute a contract with DELL Software and Peripherals for the purchase of
Microsoft software licenses, software license upgrades and license tracking services for
a period of five years in an amount not to exceed $903,588.
Background
Consistent with practice for governments and businesses with large computing
environments, the City developed a desktop computer equipment replacement program.
The program, now entering its fifth year, provides for the scheduled replacement of
computers, printers, and software on a four-year cycle. A study conducted by City staff
determined that a four-year purchase, installation and maintenance contract provides
quality equipment, software and maintenance services at the most competitive prices.
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Discussion
City staff requested proposals from five companies authorized to license upgrades to
Microsoft software. A selection committee of staff from the Information Systems Division
evaluated the five proposals submitted. Of the five proposals submitted, DELL Software
and Peripherals was found to be the most responsive and competitive bidder. DELL
Software and Peripherals offered the lowest price and best purchase and license
tracking service through Microsoft’s Volume Licensing web-based system. DELL
Software and Peripherals provides services to other municipalities such as Riverside
County.
Budget/Financial
The cost for the software license and services will not exceed $903,588 over the next
five years. Funds of $180,717 are available in the Information Technology
Replacement and Services Fund at account C55000304.589000 for FY 2004/05. Future
purchase and maintenance costs will be determined by the amounts appropriated by
Council in fiscal years, 2005/06, 2006/07, 2007/08 and 2008/2009 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.
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Recommendation
1. It is recommended that Council Authorize the City Manager to negotiate and
execute a contract with DELL Software and Peripherals Inc., for the Microsoft
software licenses, software license upgrades, and license tracking services over
a period of five-years in an amount not to exceed $903,588, 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 $180,717.
Prepared by: Jory Wolf, Chief Information Officer
Al Dave, Software Systems Officer
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