REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Five-Year Purchase Agreement to General Datatech LP in the Amount of $1,399,274.55 for SMARTnet Maintenance and Software Subscriptions (F25-148)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a five-year purchase agreement in the amount of $1,399,274.55 for SMARTnet maintenance and software subscriptions to General Datatech LP of Dallas, Texas. Approval is also requested to authorize the City Manager to increase the purchase agreement amount up to 10% to cover any potential new devices added during the terms of the agreement, subject to budget availability if pricing and service remain acceptable to the City.
EXISTING POLICY
Pursuant to Section 2.08.040(d) of the Sunnyvale Municipal Code (SMC), Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
Section 2.08.220(b) of the Sunnyvale Municipal Code authorizes the purchasing officer to direct the city’s participation with one or more governmental, public or quasi-public agencies in a cooperative agreement for the procurement of goods and/or services, provided that at least one of the agencies has solicited bids.
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(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The City operates a robust and secure communication network that connects the Civic Center campus, remote sites, and data center. This network provides connectivity for data, voice, and internet services across all locations for City staff.
Network hardware and software is used to support the network infrastructure which includes routers, switches, firewalls, and Wi-Fi devices. These components form the backbone of the City’s communication capabilities, providing reliable performance and robust security. To ensure reliable and continuous operations, the City contracts support and maintenance services for the Network Equipment manufacturer through an authorized vendor.
Hardware support and maintenance provides timely hardware replacements, technical assistance, and firmware updates. Software support and maintenance offer access to the latest software updates, enhanced features, and dedicated technical support. Together, these agreements are critical to sustaining the integrity and reliability of the City’s network infrastructure.
Staff is recommending a five-year agreement to secure support services through December 2029 at a fixed annual cost of $279,854.91 and totaling $1,399,274.55 over the five-year term. The most recent annual cost for these support services totaled $155,789.40, through a contract with General Datatech LP for $90,326.05 and a contract with Insight for $65,463.39. The increased cost of support under the new agreement is due to inflation and significant additions to the City’s network, including new equipment installed in the recently constructed City Hall and Emergency Operations Center (EOC) buildings, which require expanded infrastructure to meet operational demands, and at the Washington Swim Center and the City offices located on Kifer Road.
The pricing for this purchase originates from NASPO ValuePoint Agreement No. AR3227, and is available through an authorized seller, General Datatech LP. The City has used cooperative agreements to identify vendors and purchase IT-related maintenance and support, typically realizing better pricing and value than individually bidding these types of services using the City’s traditional process.
FISCAL IMPACT
Budget for network infrastructure is available in Fund 7027 - Technology & Communication Services under Program 15200 - Information Technology Services and Support. Information technology citywide services are funded through internal service charges based on operational use of the service. The FY 2024/25 cost increase will be absorbed by the current operating budget, and internal service charges to all City departments will be adjusted to accommodate the increased cost in future years.
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:
- Authorize the issuance of a five-year purchase agreement to General Datatech LP in an amount of $1,399,274.55 for SMARTnet maintenance and software subscriptions;
- Authorize the City Manager to execute the purchase agreement when all necessary conditions have been met; and
- Authorize the City Manager to increase the purchase agreement amount not to exceed 10%, subject to budget availability if pricing and service remain acceptable to the City.
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
An “X” 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
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Kathleen Boutté Foster, Chief Information Officer
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. NASPO ValuePoint Agreement No. AR3227
2. Quotes for SMARTnet maintenance and software subscriptions