sr-061212-3tCity Council Meeting: June 12, 2012
Agenda Item:
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer
Subject: Purchase of Hardware and Software Technology
Recommended Action
Staff recommends that City Council authorize the purchase of hardware and software
technology from:
1. ePlus, a Virginia -based company, in an amount not to exceed $400,000 for FY
2011/12 and FY2012/13, and
2. PC Mall, a California -based company in an amount not to exceed $400,000 for
FY 2011/12 and FY 2012/13
for a total amount not to exceed $800,000 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 ePlus and
PC Mall consistently provide the City with the best pricing for servers, data storage,
virtual memory, and the associated software and hardware needed to maintain the
City's technology services. Staff seeks the authority to purchase needed hardware and
software from ePlus and PC Mall this fiscal year and for one additional year in order to
procure needed hardware and software technology in an amount not to exceed
$800,000 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.
Equipment must be purchased in order to maintain the stability of this technology
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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 compliant. The City's business applications must operate on HP
virtual server technologies with Dell hardware and VMWare 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 ePlus and PC Mall submit quotes that have the
best pricing when the City seeks to purchase HP virtual servers, Dell hard drives, VM
Ware virtual storage and the associate hardware and software. ePlus and PC Mall
supply the needed technologies at the best value for the City as established by a series
of competitive bids for these products, providing the best pricing in 11 recent
competitive bids. ePlus and PC Mall provide best - pricing for HP virtual servers, Dell
hard drives, VM Ware virtual storage and the associate hardware and software needed
to operate these products.
The pricing for these purchases was established through competitive bid processes by
getting bids from multiple vendors. Through these competitive processes, staff has
identified that ePlus and PC Mall consistently provide the best pricing. The result is that
the City has reached the $100,000 threshold requiring Council approval with both of
these vendors this fiscal year and will do so again next year. Staff seeks Council
approval to spend up to $400,000 with ePlus and $400,000 with PC Mall, resulting in a
total not to exceed $800,000 for a two year period.
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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 $400,000 for ePlus and $400,000 for
PC Mall, resulting in a total not to exceed $800,000 in FY 2011/12 and 12/13. Software
and hardware will only be purchased if funds are available. 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:
Jo Vj olf
ie {Information Officer,
nformation Systems
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Forwarded to Council:
i�J
Rod Gould
City Manager