Title
Software Value-Added Reseller Services - State of Arizona Cooperative Contract (B) (Ordinance S-47903)
Description
Request to authorize the City Manager, or his designee, to add additional expenditures and extend the terms for Contract 144228 with CDW Government LLC and Contract 151721 with SHI International Corporation to purchase software, volume licenses, and enterprises license agreements through Aug. 30, 2022. The total amount will not exceed $24,675,000 for purchases made from these contracts. Further request authority to grant an exception to the indemnification and limitation of liability provisions of Phoenix City Code section 42-18 for software and services agreements under these contracts. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The City utilizes the Software Value-Added Reseller Services State Cooperative Contract to purchase software and services for all City departments. The amount requested is based on a recent citywide strategic initiative to more accurately reflect technology investment costs from all departments. Departments indicated which purchases would be made utilizing this cooperative contract during the current fiscal year. Additional term and funding are requested because the State of Arizona extended the term of the current cooperative contract. Most purchases under these contracts are for annual ongoing license and maintenance costs for current business solutions, and approximately 75 percent of the spend under these contracts is for software and services that support citywide technologies managed by the Information Technology Services Department. Some of the largest and most critical software solutions purchased under these contracts are for email, the internet and intranet, software for servers and other IT infrastructure, database software, and critical security tools for protecting, monitoring, and responding to threats to the City’s network or data.
In addition to providing cost savings from volume discounts, utilizing the value-added reseller contract provides the City with additional benefits for implementing and upgrading software solutions, including providing evaluation copies, product comparisons, proofs-of-concept, needs analysis, product information and application recommendations.
This request includes approval to enter into software and service agreements requiring an exception to the indemnification and limitation of liability provisions set forth in the City Code section 42-18. As software companies provide increasingly complex products, such as Software as a Service (SAAS) and cloud-based software, providers will not agree to fully indemnify the City nor accept unlimited liability. Instead, the vendors offer terms that align to standard IT industry practices. Granting an exception would authorize the City to negotiate indemnification and assumption of liability provisions when necessary to best protect the City while still being acceptable to the vendors.
This item has been reviewed and approved by the Information Technology Services Department.
Contract Term
Upon approval the contract terms will be extended through Aug. 30, 2022.
Financial Impact
With the $24,675,000 in additional funds, the contract's revised aggregate value is approximately $83.3 million. The amount requested is based on a recent citywide strategic initiative to more accurately reflect technology investment costs from all departments. Funds are available in City departments' budgets with the most expected usage from the Information Technology Services, Police, Water, Aviation, Public Transit and Fire departments.
Concurrence/Previous Council Action
These contracts were originally approved by City Council on Dec. 14, 2016; and additional expenditures were authorized on Jan. 20, 2020.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.