Title
Computer Hardware and Support - State of Arizona Contract (Ordinance S-44407)
Description
Request to authorize the City Manager, or his designee, to add additional expenditures through March 31, 2020 for State of Arizona computer hardware and support citywide contracts with Dell Marketing LP, Hitachi Data System Corporation, Transource Services Corp., NetApp, Inc., Lenovo, Inc., Hewlett Packard, Inc., International Business Machines Corporation (IBM), Hewlett Packard Enterprises, Sirius Computer Solutions, QCM Technologies, Inc., and Apple Computer, Inc., for citywide departments in an amount of $15 million. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The computer hardware and support contracts provide a wide variety of technology needs for all City departments. The amount of $15 million of additional authority is based primarily on historical spend and information from departments on future needs. The additional funds are for normal replacement and support and replacement of computer equipment including end user devices, laptops, tablets, monitors, rack mounts, power cables and other end of life user devices. This authorization would also support planned projects including additional storage to avoid disruption of business services, regional computer aided dispatch/automatic vehicle location system software and equipment and security event management software. Additionally, City departments require funds for annual licenses, maintenance and support agreements and core system upgrades necessary for security and data integrity.
This item has been reviewed and approved by the Information Technology Services Department.
Procurement Information
The State of Arizona cooperative contracts were awarded on July 1, 2015 through a competitive process consistent with the City's procurement processes as set forth in the Phoenix City Code Chapter 43. This request seeks to continue authorizing purchases under the State's cooperative contracts. Utilization of cooperative contracts allows the City to benefit from national government pricing and volume discounts.
Financial Impact
This request is to approve additional funds through March 31, 2020. With the $15 million in additional funds, the contracts' revised aggregate value is now $41 million (including applicable taxes), with new estimated annual expenditures of $8.2 million. Funds are available in City departments' budgets, with the most expected usage from the Information Technology Services, Police, Water Services, Public Transit and Aviation departments.
Concurrence/Previous Council Action
These State of Arizona citywide contracts were approved by Formal Council action on Sept. 9, 2015, with an original aggregate value of $8 million approved through March 31, 2017. Council direction required staff to come back to City Council to request approval to fund additional contract years. Formal council action on Oct. 19, 2016 approved additional funding of $18 million through March 31, 2020.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher, Deputy City Manager Mario Paniagua, and the Finance and Information Technology Services departments.