REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Contract Purchase Agreement with Dell Marketing L.P. for Computer Equipment (F22-039)
Report
REPORT IN BRIEF
Approval is requested to issue a contract purchase agreement to Dell Marketing L.P. of Round Rock, TX, through December 31, 2022 in the not to exceed amount of $800,000 for ongoing, scheduled replacements of computers, monitors, servers and associated equipment. Approval is also requested to authorize the City Manager to renew the agreement for four additional one-year periods, not-to-exceed annual budgeted amounts and, subject to the continuation of the NASPO ValuePoint Agreement.
Staff recommends the approval of the purchase agreement using a cooperative procurement agreement with Dell NASPO ValuePoint MNWNC-108 | Dell Technologies US to take advantage of large volume discounts and reduce the procurement cycle time.
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.
Further, Section 2.08.220(a) 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 considers 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 standardized its computer hardware manufacturer selection about 15 years ago. However, in 2012 the City selected another manufacturer via a competitive process that resulted in increased outages and additional costs with limited-to-no stability. Therefore, the City piggy-backed on state contracts and returned to standardizing on Dell Marketing L.P. (Dell) because of their ability to meet the feature needs and provide consistent quality and support service. This selection continues to be the right choice based on service and hardware performance; it also aligns with the strategic direction to standardize hardware platforms to ensure compatibility and integration with existing equipment.
Standardization is a key element of efficiency in a public agency. Considering the large number of computers in the inventory and relatively small number of Information Technology staff to maintain them. Dell offers some key features and services that meet the City’s needs:
1. Dell computers are commercial grade, constructed of high-quality components that have been proven to continue functioning over an extended lifespan with a minimum of component failure.
2. Dell has a service organization that responds to the City to repair problems onsite with minimal supervision by City staff.
3. Dell maintains a parts inventory and can replace broken parts with like components well into a device’s projected lifespan to avoid having to replace systems prematurely. Like components are important because many unlike components require software changes to function properly.
4. Dell products provide the features needed to address the City’s business needs, specifically with computer servers and end-user mobility.
Additionally, maintaining an inventory of systems that are as similar as possible provides efficiencies in system support and allows staff to utilize automated methods of managing the systems.
The City frequently uses cooperative agreements to obtain better pricing compared to bidding the goods/services individually. Utilizing a cooperative contract saves time researching product specifications and allows the City to benefit from established pricing. Staff recommends utilizing the current National (NASPO) ValuePoint Agreement with Dell (MNWNC-108) to establish the contract purchase agreement. Use of the NASPO agreement will allow the City to obtain up to a 17.5% discount from Dell’s retail pricing.
Purchases are expected to include the replacement of existing desktop computers, laptops, tablets and servers coming to end of life. New laptops and desktops are budgeted for the Lakewood Library, Water Pollution Control Plant, and the Emergency Operations Center. New monitors for conference and training rooms are planned for the upcoming Civic Center and Emergency Operations Center. Many departments are continuing to upgrade from desktops to laptops and are adding new mobility devices to provide staff with resources for effective remote work, including work from home and field work.
FISCAL IMPACT
Device replacement costs are budgeted in the Technology and Communications Sub-Fund and in respective capital or IT projects for project needs. The full 20-year financial plan includes the replacement costs based on device life cycles; therefore, the costs will vary annually.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, Sunnyvale Public Library and Department of Public Safety. In addition, the agenda and report are available at the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Authorize the issuance of a contract purchase agreement utilizing the terms included as Attachment 1 to the report to Dell Marketing L.P. in the amount up to $800,000 through December 31, 2022; and
- Authorize to the City Manager to renew the contract purchase agreement for up to four (4) additional one-year periods, not-to-exceed annual budgeted amounts, subject to the continuation of the NASPO ValuePoint Agreement.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Kathleen Boutté Foster, Chief Information Officer
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. NASPO ValuePoint Agreement with Dell