SR-02-12-2013-3ICity Council Meeting: February 12, 2013
Agenda Item: 3- 1
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, a California -based company, for the purchase,
installation, and maintenance of desktop computers, for a total amount not to exceed
$1,600,000 over a four year period, with funding contingent on Council budget, approval.
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. Over the next four years, the City plans to refresh its fleet of
desktop computers. Therefore, staff recommends contracting with Hewlett Packard (HP)
for four years in order to ensure the timely replacement of desktop computer equipment.
The purchase, installation and maintenance of approximately 1,450 new desktop
computers, laptops, and tablets from HP will not exceed $1,600,000 for a four 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.
On April 10, 2012, Council authorized a one -year extension of an existing contract with
HP for the purchase and installation of desktop computers that were reaching end -of -life
and needed to be replaced. This existing agreement between the City and HP to
provide desktop computer equipment expires this spring.
Discussion
Under the Computer Equipment Replacement Program, the Information Systems
Department centrally purchases, installs and maintains the City's computer equipment.
CERP was established six years ago to ensure the City's computer equipment was
properly maintained and regularly refreshed. The City's computer hardware is replaced
on a four year refresh cycle to ensure that computer hardware remains reliable and up-
to -date. Computers that are over four years old are no longer covered by the
manufacturer warranty and show an increased rate of failure. 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.
Contractor /Consultant Selection
On November 23, 2012, the City issued a Request for Proposals (RFP) for the
purchase, installation, and maintenance of City desktop computer equipment. The RFP
was posted on the City's online bidding site for three weeks. Four responses were
received. A selection committee comprised of Information Systems Department staff
evaluated them. Responses were evaluated based on product approach, ability to meet
the City's technical specifications and requirements for product support, and cost. HP
was the lowest bidder and best met the City's technical specifications and requirements
for product support. Based on these criteria, HP is recommended as the best bidder to
provide desktop computer equipment and services in accordance with the City
specification.
To ensure the City continues to receive the latest technologies and services at the most
competitive pricing, staff recommends the City enter into a new four -year agreement
with HP for purchasing, installation, and maintenance of desktop computer equipment at
a cost not to exceed $1,600,000.
W
Financial Impacts & Budget Actions
The contract to be awarded to HP is not to exceed $1,600,000 for the next four years.
Funds in the amount of $400,000 for purchase, installation and maintenance of the
City's desktop computers are available in FY 2012 -13 at account 055000313.589000.
this fiscal year. Budget authority for subsequent budget years will be requested in each
budget for Council approval.
Future funding is contingent upon Council approval. If the necessary funds for
subsequent fiscal years are not approved by City Council, the agreement will allow for
termination of further services without penalty at the sole discretion of the City.
Prepared by: Christopher Smith, Senior Administrative Analyst
Approved:
Chief Information Officer,
Information Systems
3
Forwarded to Council:
Rod Gould
City Manager
Reference Contract No.
9710 (CCS)