SR-06-25-2013-3Cawn City of
i Council Report
Santa Monica'
City Council Meeting: June 25, 2013
Agenda Item: 3C
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. CDWG, an Illinois -based company, in an amount not to exceed $750,000 for the
period between FY 2013/14 and FY 2017118;
2. EnPointe, a Virginia -based company, in an amount not to exceed $1,000,000 for
the period between FY 2013/14 and FY 2017/18;
3. Nth Generation Computing, Inc., a Virginia -based company, in an amount not to
exceed $1,000,000 for the period between FY 2013/14 and FY 2017/18; and
4. PCMG (formerly PC Mall), a California -based company, in an amount not to
exceed $750,000 for the period between FY 2013/14 and FY 2017/18;
for a total amount not to exceed $3,500,000 for a five -year period.
Executive Summary
The City purchases 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 a select
group of vendors —CDWG, EnPoint, Nth Generation, and PCMG— 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 these
vendors over the period between FY 2013/14 and FY 2017/18 in order to procure
needed hardware and software technology in an amount not to exceed $3,500,000 over
a five -year period.
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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
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 with the existing infrastructure, security standards, and
business applications. 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, CDWG, EnPoint, Nth Generation, and PCMG
submit quotes that have the best pricing when the City seeks to purchase HP virtual
servers, Dell hard drives, VM Ware virtual storage, security equipment and the
associate hardware and software.
Vendor Selection
CDWG, EnPoint, Nth Generation, and PCMG 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 31 competitive bids held during this fiscal year. These
vendors provide best - pricing for HP virtual servers, Dell hard drives, VM Ware virtual
storage, security equipment, and the associate hardware and software needed to
operate these products.
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The pricing for these purchases was established through multiple informal competitive
bid processes by getting bids from multiple vendors. Through competitive processes
conducted this fiscal year, staff has identified that CDWG, EnPoint, Nth Generation, and
PCMG 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 continue to do so over the next five years. Staff seeks Council approval to
spend up to $150,000 with CDWG, $200,000 with EnPoint, $200,000 with Nth
Generation, and $150,000 with PCMG each year, for an amount not to exceed
$3,500,000 over the next five years. Staff will continue to competitively bid these
purchases and comply with the City's purchasing guidelines to ensure the City received
the best pricing and service possible.
Financial Impacts & Budget Actions
Hardware and software purchases are funded from various budgets, including
department operational budgets, grants and capital improvement projects. Staff seeks
Council approval to make necessary purchases of hardware and software technology in
an amount not to exceed $150,000 with CDWG, $200,000 with EnPoint, $200,000 with
Nth Generation, and $150,000 with PCMG each year, resulting in a total not to exceed
$3,500,000 for the period between FY 2013/14 and FY 2017/18. Software and hardware
will only be purchased if funds are available. Funds for purchases in FY 2013 -15 have
been included in the FY 2013 -15 Proposed Budget, pending Council approval. Budget
authority for subsequent years will be requested in each budget cycle for Council
approval. Future funding is contingent upon Council approval and budget adoption.
Prepared by: Christopher Smith, Sr. Administrative Analyst
roved:
Forwarded to Council:
ory g Rod Gould
C ef. nformation Officer, City Manager
formation Systems
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