REPORT TO COUNCIL
SUBJECT
Title
Award of Contract for Cisco Equipment to Upgrade the City Network Infrastructure (F15-22)
Report
REPORT IN BRIEF
Approval is requested to award a contract to NetXperts, Inc. of San Ramon in the amount of $241,377, excluding sales tax, for Cisco equipment and related network components to upgrade the City's network infrastructure, for the Information Technology Department (ITD).
ENVIRONMENTAL REVIEW
N/A
BACKGROUND/DISCUSSION
The Information Technology Department is in progress of upgrading the City's network infrastructure as part of the routine equipment replacement program designed to replace equipment at its end of life, as well as improve the communications services to accommodate current and future demands. In its current state, the City's network infrastructure is technologically obsolete and will no longer provide an acceptable level of performance in many locations or accommodate normal growth in demand for network services. In order to effectively address these issues, ITD has developed and is implementing a network infrastructure plan which will provide sustainable network services to City facilities, improve network stability and facilitate the conversion to Voice Over Internet Protocol (VoIP) telephony.
ITD has completed the purchase and installation of the central core network switches, approved by City Council in September 2013 (RTC 13-225). The scope of work for this project builds on that foundation, replacing network switches local to each building that are at their end of life. These local network switches provide the direct connections for business applications, file and printer sharing, email, and eventually telephone services.
Bid specifications were prepared by the Department of Information Technology. Purchasing staff issued Invitation for Bids (IFB) F15-22, which was broadcast to potential suppliers through the City's Onvia DemandStar public procurement network. The bid specifications included a trade-in for existing Cisco equipment scheduled for replacement. Six sealed bids were received and publicly opened on October 22, 2014, with the lowest responsive bid received from NetXperts. The bid tabulation in Attachment 2 contains the details for the base bid total and trade-in value.
FISCAL IMPACT
The total cost of the contract is $241,377, excluding sales tax. This includes the purchase of hardware and one-year warranty. After the first year warranty, an annual contract for maintenance and support will be competitively bid and issued under the City Manager's contract award authority (the IFB included optional pricing for two additional years of maintenance and support, but NetXperts did not submit the lowest bid). Budgeted funds for the current purchase and ongoing maintenance are available in the Information Technology Department Equipment Replacement Account.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Approve the award of a contract in the amount of $241,377, excluding sales tax, to NetXperts Inc., in substantially the same form as the draft purchase order attached to the report.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director of Finance
Reviewed by: David Jensen, Director of Information Technology
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Draft Purchase Order
2. Bid Summary