REPORT TO COUNCIL
SUBJECT
Title
Action on Purchase Order with Dell Marketing LP for Citywide Hardware Refresh
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City relies on computers and technology to manage all City services and business activities. Currently, the City’s Information Technology (IT) Department manages approximately 800 desktop computers, 500 laptops with docks, and 2,000 monitors, all deployed to end-users for their daily work activities.
The generally accepted lifespan for these assets is five years for desktops and monitors, and three years for laptops. However, the City extends the use of its desktops and monitors to six years, and four years for laptops to maximize the value of the technology investment and align with budgetary considerations.
Due to unforeseen factors, such as the COVID-19 pandemic, the City delayed the replacement schedule leading to many assets nearing or exceeding their budgeted useful life. The IT Department is currently preparing for a citywide refresh of approximately 750 desktops, 400 laptops, and 1,800 monitors over the next few fiscal years, pending budget appropriations.
In preparation for this refresh, the IT Department worked closely with the Purchasing Division to determine the appropriate procurement process. This refresh will replace outdated hardware and upgrade operating systems from Microsoft Windows 10 to Windows 11.
DISCUSSION
Staff recommends issuing Purchase Orders (POs) to Dell Marketing LP for the purchase of Dell computers, laptops, and monitors under the authority of City Code Section 2.105.270(c) which states that the City may, without observing formal bidding requirements, “contract with a vendor under a contract awarded using preestablished cooperative purchasing agreements, when such agreement resulted from a competitive bid process that meets or exceeds the City’s competitive bid process.”
The Purchasing Division Manager has determined that the cooperative purchasing agreement with Dell Marketing LP, established through a competitive Request for Proposals process conducted by NASPO ValuePoint (with the State of Minnesota as the lead public agency), meets or exceeds the City’s competitive bidding process.
In addition, staff conducted its own competitive selection process among vendors participating in cooperative purchasing agreements. Staff requested and received the following bids:
|
Bidder |
Total |
|
Dell Marketing LP (Dell) |
$1,766,626 |
|
Granite Data Solutions |
$1,979,829 |
Based on this process, staff recommends awarding POs to Dell as the lowest-cost option among the vendors participating in cooperative purchasing agreements. Staff is requesting City Council authorization to issue POs to Dell under the NASPO ValuePoint Master Agreement No. 23004. This agreement is effective from July 14, 2023, to June 30, 2025, with the option to extend for up to an additional 36 months through June 30, 2028.
Through June 2028, the total aggregate amount of the POs shall not exceed $2,500,000, which includes $733,374 as contingency to cover applicable taxes and any additional purchases required by the City.
ENVIRONMENTAL REVIEW
The adoption of an ordinance of general policy or procedure/purchase of supplies 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 organizational policy making or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
In FY 2024/25, computer replacement funding of $428,605 is budgeted in the Information Technology Services Fund and $230,631 is budgeted in the Computer Replacement Project in the General Government Capital Fund, for total funding of $659,236. Funding for future fiscal years is subject to the annual appropriation of funds. In the Information Technology Services Fund, over $400,000 is assumed annually for computer replacement, with an additional $1.28 million expected over the next three fiscal years. This would bring total anticipated funding through June 30, 2028, to $1.94 million, if approved as part of the annual budget processes. Additional purchases may also be requested by departments with identified funding sources.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager or designee to issue Purchase Orders to Dell Marketing LP for the purchase of Dell computer, laptops, and peripherals for the citywide hardware refresh under the NASPO ValuePoint Master Agreement No. 23004, which is effective through June 30, 2028, if all options are exercised, with total aggregate maximum compensation not-to-exceed $2,500,000, subject to the appropriation of funds and in a final form approved by the City Attorney.
Staff
Reviewed by: Gaurav Garg, Information Technology Director/CIO
Approved by: Jōvan Grogan, City Manager