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SR 12-12-2023 5J City Council Report City Council Meeting: December 12, 2023 Agenda Item: 5.J 1 of 5 To: Mayor and City Council From: Christopher Smith, Acting Chief Information Officer, Information Services Department Subject: Accept Bid with vCloud Tech for Proofpoint Cybersecurity Software Licenses Recommended Action Staff Recommends that the City Council 1. Award Bid #4471 to vCloud Tech to provide Proofpoint's Intelligent Classification and Protection, Enterprise Data Loss Prevention, and Web Security solutions, associated licensing, and services as required by the Information Services Department; 2. Authorize the Procurement Manager to issue a purchase order with vCloud Tech for Proofpoint's Intelligent Classification and Protection, Enterprise Data Loss Prevention, and Web Security solutions, associated licensing, and services in the amount not to exceed $506,826 for an initial two-year term, with one additional one-year renewal option to extend on the same terms and conditions for a total amount not to exceed $799,918, with future year funding contingent on Council budget approval; and 3. Adopt a finding of Categorical Exemption pursuant to Section 15061(d)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. Summary Ensuring the security and integrity of data and technology systems is critical to the delivery of City services and operations. Every function of City business relies on technology in some way. In 2021, the Information Services Department (ISD) was awarded funding totaling $692,153 as a part of the annual U.S. Department of Homeland Security (DHS), Federal Emergency Management Agency's Urban Area Security Initiative (UASI) grant to be used on cybersecurity program enhancements. The City again received UASI grant funding in the amount of $370,000 in the 2022 grant 5.J Packet Pg. 363 2 of 5 cycle to support the City’s information security efforts. ISD will utilize the grant funding to issue a purchase order with vCloud Tech to implement solutions from Proofpoint to monitor and safeguard the City’s data stored with cloud-based providers, strengthen identity management, and provide greater cybersecurity risk prioritization to aid in cyberattack prevention. Discussion The City of Santa Monica’s Information Services Department manages a technology environment that includes over 300 software systems, 2,000 computers, a data center, several cloud-hosted solutions, a disaster recovery environment, fiber networks connecting City facilities and assets, and public-facing webpages and portals used by City customers. It is vital this technology and the data stored in them is maintained in such a way to provide resilience and to protect the confidentiality, integrity, and availability of the City’s operations. Selecting Proofpoint’s intelligent classification and protection, data loss prevention, and web security solution is part of ISD’s strategic plan aimed at fortifying the City’s cybersecurity posture. The comprehensive capabilities of Proofpoint’s solution provide robust protection against data breaches and cyber threats. Intelligent Classification and Protection ensure sensitive information is appropriately handled, reducing the risk of data leaks. The data loss prevention features offer an additional layer of defense, preventing unauthorized access and safeguarding critical business data. Coupled with advanced web security measures, Proofpoint’s solution not only mitigates cybersecurity risks but also promotes a secure online environment for City staff and the public. Ultimately, choosing Proofpoint aligns with City’s commitment to maintaining the highest standards of data security and safeguarding the integrity of City operations. The City has used Proofpoint information security tools since 2019. The addition of Proofpoint's Intelligent Classification and Protection, Enterprise Data Loss Prevention, and Web Security solutions will integrate with the City's existing information security tools to ensure more secure monitoring and protection of the City's technology and allows ISD staff to address the full spectrum of people-centric data-loss scenarios. 5.J Packet Pg. 364 3 of 5 These tools also ensure more secure computing by staff, whether in the office or working remotely and adds additional security to protect sensitive data stored in City systems. Vendor Selection Bidder Recommendation Best Bidder vCloud Tech, Inc. Evaluation Criteria Price; the ability, capacity and skill of the bidder to perform or provide the materials or services. The City shall have absolute discretion in determining the applicability and weight of the criteria listed above. The City is not required to select the bid with the lowest price. Municipal Code SMMC 2.24.180 Submittals Received Vendor Total 3 Year Pricing Vendor Total 3 Year Pricing vCloud Tech $799,918 Wave Strong $821,934 Axelliant LLC $803,150 Smart IT Pros Inc $837,944 Phaeton Solutions LLC $811,475 Bid Data Date Posted Posted On Advertise In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 10/18/2023 City's Online Bidding Site Santa Monica Daily Press 22 11/17/2023 Best Bidder Justification Staff recommends vCloud Tech, Inc. as the best bidder to provide Proofpoint's Intelligent Classification and Protection, Enterprise Data Loss Prevention, and Web Security solutions, associated licensing, and services. vCloud Tech offered the best overall pricing for licensing and has successfully provided Proofpoint licensing for the City as well as being a trusted vendor. Past Council Actions Meeting Date Description 5/10/2022 (attachment A) Authorization to accept the 2021 Urban Area Security Initiative (UASI) Grant Funds for Homeland Security Projects and enter into a Subrecipient agreement with the City of Los Angeles Environmental Review The bid award to provide Proofpoint's Intelligent Classification and Protection, Enterprise Data Loss Prevention, and Web Security solutions, associated licensing, and services is exempt from the California Environmental Quality Act (CEQA) pursuant to 5.J Packet Pg. 365 4 of 5 Section 15061(b)(3) of the CEQA Guidelines. The award agreement is covered by the common sense exemption which states that CEQA does not apply, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Financial Impacts Staff seeks authority to approve available funding from the Miscellaneous Grants Fund to award a purchase order to vCloud Tech to provide Proofpoint's Intelligent Classification and Protection, Enterprise Data Loss Prevention, and Web Security solutions, associated licensing, and services. Future year funding is contingent on Council budget approval. 5.J Packet Pg. 366 5 of 5 If future grant funds are not awarded to the City to cover the costs of continuing the subscription beyond this three-year period, staff will seek alternative funding opportunities or discontinue its use of these tools. Purchase Order Request FY 2023-24 Request Amount Future Years Amount Account # Total Contract Amount $477,692 $0 20140001.55518F $477,692 $29,134 $293,092 20140001.55518G $322,226 $506,826 $293,092 TOTAL $799,918 Prepared By: Christopher Smith, Acting Chief Information Officer Approved Forwarded to Council Attachments: A. 2021 Urban Area Security Initiative (UASI) Grant Funds for Homeland Security Projects (Web Link) B. vCloud - FY23-24_Oaks_Initiative_Disclosure_Form 5.J Packet Pg. 367 CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period. Name(s) of persons or entities receiving public benefit: vCloud Tech Inc. Name(s) of trustees, directors, partners, and officers: Muhammad Khan (CEO) 49% Nadia Khan (President) 51% Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: Muhammad Khan Title: CEO Signature: Date: 11/07/2023 Email: vcloud@vcloudtech.com Phone: (310) 870-1235 FOR CITY USE ONLY: Bid/PO/Contract # Permit # Muhammad Khan (CEO) 49%Nadia Khan (President) 51% 5.J.b Packet Pg. 368 Attachment: vCloud - FY23-24_Oaks_Initiative_Disclosure_Form (6067 : Award Bid with vCloud Tech - Proofpoint Cybersecurity Software)