REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Agreement with Escape Velocity Holdings DBA Trace3 for Network Firewall Hardware Equipment and a Storage System Upgrade (F25-056)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a purchase agreement to Escape Velocity Holdings DBA Trace3 of Irvine in the amount of $990,112.32 to purchase a network firewall upgrade with a management appliance and dashboard, and a storage system upgrade for a five (5) year term.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
In accordance with Sunnyvale Municipal Code Section 2.08.220(b), the purchasing officer may authorize the procurement of goods and/or services through a contract initiated by another governmental, public or quasi-public agency, provided that the original parties to the contract agree, the contract was awarded within 36 months of the date of city authorization to utilize the contract, the contract is for identical or nearly identical goods and/or services, and the contract resulted from competitive bids methods similar to those set forth in Sunnyvale Municipal Code Section 2.08.060.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organization or administration activity that will not result in direct or indirect physical changes in the environment.
BACKGROUND AND DISCUSSION
The City’s network security infrastructure is critically dependent on network perimeter-edge firewalls and storage systems to protect against external threats and ensure data integrity. The current network design uses firewalls configured in a redundant high-availability setup, along with a storage system that provides strong data management and security features, ensuring continuous protection and operational stability. However, these firewalls and storage systems are also network appliances that require regular patches, security updates, and vendor support.
It is essential for the City to maintain and keep current, its network and storage infrastructure in order to provide proper security measures and useful life of the equipment. For this reason, the City must procure and install replacements for existing firewalls and upgrade the storage system to comply with the manufacturer’s support life cycle. Updating the current systems will allow the city to continue maintaining the security of City network systems and protect it from data security risks and vulnerabilities.
Trace3 is a value-added reseller for the City’s current network hardware which offers modern solutions that meet the City’s requirements. The proposed replacement firewalls and storage systems are designed to better support the City’s current needs, as the existing infrastructure was implemented prior to the transition to a hybrid workforce model, offering performance improvements for handling telework traffic, video conferencing, and data storage efficiency. Furthermore, remaining with the same manufacturer will simplify the migration process, limit downtime, and ensure a smooth transition.
The pricing for these products originates from an OMNIA Partners Cooperative Agreement which is in effect through September 30, 2025. The quote was acquired and evaluated by staff and deemed to be fair and reasonable. The total cost is $990,112.32 which entails: $553,221.43 for the Network Firewall Upgrade, including a management appliance and dashboard; and $436,890.89 for the Storage System Upgrade.
FISCAL IMPACT
The total cost to the City will be $990,112.32 which includes the purchase of network firewall and upgraded network storage systems hardware, five (5) years maintenance and support (M/S), installation support, and training. Sufficient budget is available in the Equipment Replacement Fund in the Technology and Communications internal service fund. Funds are provided through internal service charges to user departments.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Award a five (5) year contract purchase agreement to Escape Velocity Holdings DBA Trace3 in the amount of $553,221.43 for Network Firewall Upgrade, including a management appliance and dashboard;
- Award a five (5) year contract purchase to Escape Velocity Holdings DBA Trace3 in the amount of $436,890.89 for Storage System Upgrade;
- Authorize the City Manager to execute the contracts when all necessary conditions have been met;
- Authorize the City Manager to renew the contracts for up to two (2) additional one-year periods based upon available funding, need, acceptable pricing and service; and
- Authorize the City Manager to increase the contracts up to available budgeted amounts.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
A check or “Y” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_ _ Competitively bid contract
___ Labor or personal employment contract
___ General policy and legislative actions
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Kathleen Boutte’ Foster-Gee, Director of Information Technology
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Tim Kirby, City Manager