SR-05-08-2012-3CCity of City Council Report
Santa Monica
City Council Meeting: 3/08/2012'
Agenda Item: 3 C.
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer
Subject: Purchase of Hardware and Software. Technology
Recommended Action
Staff recommends that the City Council authorize the purchase of hardware and
software technology from:
1. CDW, a Illinois —based company in an amount not to exceed $700,000 for
FY 2011/12 and FY 2012/13;
2. EnPointe, a California -- company, in an amount not to exceed $500,000 for FY
2011/12 and FY 2012/13;
3. Nth Generation, a California —based company, in an amount not to exceed
$300,000 for FY 2011/12 and FY 2012/13
for a total amount not to exceed $1,500,000 for a two year period.
Executive Summary
The City must purchase computer hardware equipment and software to maintain and
expand its network infrastructure; application servers; and government, business and
public networks. Staff competitively bids these purchases and has found that CDW,
EnPointe and Nth Generation consistently provide the City with the best pricing for
routers, switches, servers, virtual memory, and the associated software and hardware
needed to maintain the City's technology services. Given the price point of technology
hardware, these purchases can amount to over $100,000 per vendor within a single
fiscal year. Therefore, staff seeks the authority to purchase needed hardware and
software from these vendors this fiscal year and for one additional year. Staff would
then use these vendors to make purchases of required hardware and software
technology in an amount not to exceed $1,500,000 over a two year period.
Background
The Information Systems Department (ISD) is responsible for the procurement of
technology on behalf of all City departments. ISD has implemented and maintains a
secure, state -of- the -art technology infrastructure using best -in -class technologies.
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Equipment must be purchased in order to maintain the stability of this technology
infrastructure and support the implementation of new systems to provide improved
government services
This existing technology infrastructure requires the City purchase specific hardware and
software in order to be complaint. The City's telecommunications infrastructure and
networks rely on Cisco technologies and business applications must operate on HP
virtual server technologies with VMWare and Dell virtual memory to store electronic
content and documents.
Discussion
Staff oversees the purchase of computer hardware and software based on established
City purchasing guidelines, seeking competitive pricing for all hardware and software
purchased for the City. Consistently CDW, EnPointe and Nth Generation submit quotes
that have the best pricing for the equipment. In FY 2011112, CDW, EnPointe and Nth
Generation have provided the best pricing for 18 separate purchase orders of Cisco,
Dell, HP and VMWare hardware and software.
CDW, EnPointe and Nth Generation supply needed technologies at the best value for
the City as established by a series of competitive bids for these products. CDW
provides Cisco switches, routers, and software that support the City's
telecommunications infrastructure and government, business and public fiber optic and
wireless networks. EnPointe provides best pricing for application servers, printers and
computer components from Hewlett- Packard needed to operate the City's business
applications. Nth Generation provides best pricing for VMWare and Dell virtual memory
for computer systems needed to store electronic data for business applications and for
the City's disaster recovery program.
The pricing for these purchases was established through competitive bid processes by
getting bids from multiple vendors. Through these competitive processes, staff has
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identified that CDW, EnPointe and Nth Generation consistently provide the best pricing.
The result is that the City has reached the $100,000 threshold with each of these
vendors this fiscal year and will do so again next year. Staff seeks Council approval to
spend up to $700,000 with CDW, $500,000 with EnPointe and $300,000 with Nth
Generation, resulting in a total not to exceed $1,500,000 for a two year period.
Financial Impacts & Budget Actions
Hardware and software purchases are funded from various budgets, including the ISD
and other departmental operating budgets as well as the budgets of capital
improvement projects. The City will make necessary purchases of hardware and
software technology in an amount not to exceed $700,000 for CDW, $500,000 for
EnPointe, and $300,000 for Nth Generation, resulting in a total not to exceed
$1,500,000, in FY 2011/12 and 12/13. Software and hardware will only be purchased if
funds are available in the appropriate account. Budget authority for subsequent years
will be requested in each budget cycle for Council approval. Future funding of
purchases is contingent upon Council approval.
Prepared by: Christopher Smith, Sr. Administrative Analyst
Approved:
mq
rmation Officer, C o ion
Systems
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Forwarded to Council:
Rod Gould
City Manager