SR-012208-1B~~
;tYof City Council Report
Santa Moniea
City Council Meeting: January 22, 2008
Agenda Item:
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer
Subject: Purchase, Installation, and Maintenance of Desktop Computers
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a contract with Hewlett Packard for the purchase, installation, and maintenance
of desktop computers for a period of four years for a total amount not to exceed
$1,920,000, with four additional one-year renewal options.
Executive Summary
The City of Santa Monica's desktop computers and related maintenance services
contract with Gateway recently ended in November 2007. Prior to the contract
expiration date, Information Systems Department staff issued a Request for Proposals
to solicit interests from other computer manufacturers. Three top-tier desktop computer
manufacturers responded with proposals. Hewlett Packard was selected as the best
bidder. Funds are available in the current budget to replace and maintain approximately
600 computers. Future budget requests will be recommended for Council consideration
annually.
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 provides for the scheduled replacement of approximately 1,600 desktop
computers on a four-year cycle. A study conducted by City staff determined that afour-
year purchase, installation and maintenance contract provides quality equipment and
services at the most competitive prices. This is a common practice for governments
and businesses with large computing environments. The City's recycled computer
equipment is donated to local public schools and qualified community service agencies
per City Council authorization on March 3, 1998.
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Discussion
A Request for Proposals (RFP) for desktop computer equipment and related
maintenance services was published in the Santa Monica Daily Press on August 20tH
and 21St, 2007. Three vendors responded to the RFP with the following bids:
VENDOR PRICE PER UNIT
Gateway $1,351.00
Dell $1,168.25
Hewlett Packard $1,109.25
A selection committee comprised of Information Systems Department staff evaluated
the proposals and invited the two most responsive bidders, Dell and HP, for an
interview. After a thorough review and interview process, the selection committee
selected HP as the best bidder. HP is recommended because they best meet the City's
specifications for equipment and service at the most competitive prices. They are also
highly recommended by their reference agencies, including the counties of Los Angeles
and San Bernardino.
Financial Impacts & Budget Actions
The cost for the computer equipment and services will not exceed $1,920,000 over the
next four years. Funds of $720,000 are available in the Computer Equipment
Replacement Program Fund at account 055000308.589000 for the FY 2007/08
computer replacement and maintenance of approximately 600 systems. Annual funding
requirements will be requested in each fiscal year's proposed budget and will be subject
to Council review and approval.
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Prepared by:
Phil Tong, Senior Administrative Analyst
Approved:
Jory Wolf
Chief Information Officer
Forwarded to Council:
Ewel
Reference Contract
No. 8877 (CCS).