REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Blanket Purchase Order to Insight, Inc. for Cisco Smartnet and FlexNet Support and Maintenance (F20-040)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a three (3) year blanket purchase order to Insight, Inc of Tempe, AZ for Cisco Smartnet and Flexnet support in a not-to-exceed amount of $561,359. Authorization is also requested for the City Manager to amend and renew the blanket purchase order for four (4) additional one-year periods, not-to-exceed budgeted amounts, if pricing and service remain acceptable to the City.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code (SMC), City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any transaction.
In accordance to SMC Section 2.080.120(a), the Purchasing Officer negotiated reasonable pricing with the sole bidder.
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 has a complex communication network which services the Civic Center campus, 11 remote sites, the colocation facility and the disaster recovery site. The network services allow connectivity across all sites by delivering data, voice and internet. Cisco hardware and software is used to support the network infrastructure which includes routers, switches, Wi-Fi devices, and phones used by staff.
To ensure continuous operations, the City purchases Cisco support and maintenance for all Cisco hardware and software through an authorized vendor. Historically, support has been purchased from different vendors on various purchase orders which required renewal throughout the year as the maintenance and support expired. The renewal process required multiple invitation for bids annually. In 2018, the annual support renewal combined all network equipment into one agreement. Equipment and services for VoIP were also combined, however this was on a separate purchase order. This year, Cisco changed its support structure with voice software support no longer through Smartnet services, but through a new program called FlexNet.
To provide support for the City’s network in the upcoming years, both maintenance contracts (SmartNet and FlexNet) have been combined into one purchase order for better efficiency and ease of management.
To solicit for these services, Purchasing issued an Invitation for Bids (IFB) through the City’s DemandStar public procurement network and directly provided to known authorized vendors on October 23, 2019. Thirteen (13) vendors requested bid documents and sealed bids were opened on November 8, 2019, with one (1) responsive bid received. Insight, Inc. was the sole responsive and responsible bidder with a bid in the amount of $704,712. The bid summary is contained in Attachment 1.
The cost of the support has increased due to multiple factors. The largest factor is related to equipment in the colocation data center. New equipment at this location included support and maintenance that will expire and co-term with the expiration dates of the City’s inventory. Additional equipment has been purchased to serve the various City locations with Wi-Fi access, address additional staff work stations, and to support the DPS Bodycams with switches, which will need to be supported during this three-year period.
After evaluating the submitted bid and increase in cost for maintenance and support, staff from the Information Technology Department and Purchasing Division negotiated with Insight Inc. to co-term some existing equipment support with the new expiration date of this purchase order on December 31, 2022. With this approach, the bid total reduced from $704,712 to $561,359.
FISCAL IMPACT
Budgeted funding is available in the Information Technology Operating budget within Fund 595/350.
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
Take the following actions:
- Authorize the issuance of a three (3) year blanket purchase order to Insight, Inc. for Cisco SmartNet and FlexNet support in substantially the same form as Attachment 2 to the report, in an amount not-to-exceed $561,359 and
- Authorize the City Manager to amend and renew the blanket purchase order for four (4) additional one-year periods, not-to-exceed budgeted amounts, if pricing and service remain acceptable to the City.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Kathleen Boutté Foster, Chief Information Officer
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Blanket Purchase Order