sr-041012-3c19
tmm
City or
it uncil eort
Santa nio„ae,9
City Council Meeting: April 10, 2012
Agenda Item: 3C
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 first modification to Contract No. 8877 in the amount of $1,109,250 with
Hewlett Packard, a California -based company, for the purchase, installation, and
maintenance of desktop computers. This will extend the existing contract by one year,
resulting in a new five -year contract in the amount of $3,029,250.
Executive Summary
The City of Santa Monica's Information Systems Department administers the City's
Computer Equipment Replacement Program (CERP), which covers the purchase,
installation and maintenance of the City's desktop computers, printers, servers and
other computer equipment. Approximately 1,000 desktop computers will be reaching
end -of -life within the next twelve months and need to be replaced. Therefore, staff
recommends extending the City's existing agreement with Hewlett Packard (HP) for one
year in order to purchase and install new desktop computers to replace these machines.
The purchase, installation and maintenance of up to 1,000 new desktop computers from
HP will not exceed $1,109,250 for a one year period.
Background
On January 22, 2008, Council authorized the purchase of desktop computer equipment
from Hewlett Packard to refresh all out -of -date computers. These computers came with
a four year warranty for product replacement and on -site maintenance support.
Extending the existing agreement with HP for one year would allow the City to replace
approximately 1,000 desktop computers in a timely and cost - effective manner.
1
Discussion
The existing agreement between the City and HP to provide desktop computer
equipment expires this spring. The City has the option to extend the agreement for up to
three one -year terms. To ensure the City's desktop computers remain functional,
compatible with new software systems, and remain covered for product support by HP
approximately 1,000 machines will need to be replaced over the next 12 months.
Contractor /Consultant Selection
The initial agreement with HP was the result of a Request for Proposals published in
August 2007. A selection committee comprised of Information Systems Department
staff evaluated the proposals and selected HP as the best bidder. HP was
recommended because they best met the City's specifications for equipment and
service at the most competitive prices.
A study conducted by City staff found that a four -year refresh cycle of desktop
computers provides quality equipment and services at the most competitive prices. This
is a best practice in governments and businesses today. 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.
2
Financial Impacts & Budget Actions
The contract amount to be awarded to HP will not exceed $1,109,250 over the next
year. Funds in the amount of $1,109,250 for purchase, installation and maintenance of
the City's desktop computers are available in Fiscal Year 2011 -13 in the account at
055000312.589000.
Prepared by: Christopher Smith, Senior Administrative Analyst
Approved:
on � f
iief nformation Officer,
Information Systems
191
Forwarded to Council:
Rod Gould
City Manager