title
PURCHASE REPLACEMENT CISCO NETWORK EQUIPMENT
recommended action
RECOMMENDATION
Staff recommends the City Council adopt a motion:
1) Approving findings which support and justify an exception to the competitive bid process for the purchase of replacement Cisco network equipment by authorizing the City Manager to execute an agreement with CDW Government, LLC (CDW-G) in the amount of $322,513 using our membership in the National Intergovernmental Purchasing Alliance Company (National IPA) and accessing the contract terms through the City of Tucson cooperative purchasing agreement with CDW-G (Attachments A and B); and
2) Authorizing additional purchases from CDW-G for technology equipment through the City of Tucson cooperative purchasing agreement with CDW-G, in an amount not to exceed $500,000 annually for fiscal years 15/16, 16/17 and 17/18, using our membership in the National IPA and accessing the contract terms through the City of Tucson cooperative purchasing agreement with CDW-G, including any extensions of those agreements; and
3) Authorizing the City Manager to take appropriate actions to carry out the purpose and intent of this motion
body
Summary
Information Technology supports all City of Stockton Departments over a local area network. There are more than 2,000 computers, printers, servers, mobile devices, and other technology supported on the network. All this equipment is supported and secured using Cisco network equipment. At this time the City needs to begin a three-year cycle to replace the majority of equipment purchased between 2006 and 2008. The purchase of replacement Cisco network equipment will ensure that the equipment being replaced will be supported and warranted by the manufacturer. Currently the equipment being replaced has reached its end of life and is now reaching end of support. Once the equipment reaches end of support, the City can no longer purchase a maintenance agreement to cover any problems or issues that may arise with the equipment.
DISCUSSION
Background
Due to budget cuts and the City’s financial problems, the Information Technology Department has been limited in its ability to replace and update the network equipment. As a result, the majority of the City’s network infrastructure is at or near end of life.
A normal replacement schedule for network equipment has been three to five years. A majority of the network equipment being replaced is between eight to ten years old.
Present Situation
City of Stockton, IT Department, supports all data communications throughout the City. This infrastructure is what allows users access to email, software applications (Word, Excel, HTE, CAD, RMS, etc.), G: drive, H: drive, and the Internet.
Over the next three years, a majority of our Cisco network equipment will be at end of support (See table below). The manufacturer will no longer be able to provide support for these devices. Software and operating system security patches or upgrades will no longer be available. If a device should have issues or fail, the manufacturer will no longer fix or replace the device. Equipment failure could lead to an extended period of downtime until a replacement is purchased. The current support contract replaces critical devices within four hours and non-critical devices next day.
CISCO NETWORK EQUIPMENT REPLACEMENT SCHEDULE
|
Description |
Quantity |
Last Date of Support |
2014/15 |
2015/16 |
2016/17 |
2017/18 |
|
Switch |
103 |
7/31/2015 |
X |
|
|
|
|
Access Point |
13 |
6/18/2014 |
X |
|
|
|
|
Network Processing Engine |
2 |
9/8/2015 |
X |
|
|
|
|
Router |
66 |
10/31/2016 |
|
X |
|
|
|
Network Processing Engine |
2 |
2/28/2017 |
|
|
X |
|
|
Wireless Service Modules |
4 |
9/30/2017 |
|
|
X |
|
|
Route |
4 |
9/30/2017 |
|
|
X |
|
|
Bridge |
2 |
1/31/2018 |
|
|
|
X |
|
Switch |
135 |
1/31/2018 |
|
|
|
X |
|
Estimated Total Cost |
|
|
$324,147 |
$500,000 |
$500,000 |
$500,000 |
Information Technology staff requested quotes from three major Cisco resellers and recommend awarding the purchase to the low bidder, CDW-G. CDW-G has provided their bid based on the use of the National Intergovernmental Purchasing Alliance (National IPA) agreement and the competitively bid contract with City of Tucson, Arizona.
Findings:
Stockton Municipal Code section 3.68.070 provides an exception to the competitive bidding process in cases where the City Council has approved findings that support and justify the exception. The findings are as follows:
1. National IPA through the City of Tucson, has established a cooperative purchase agreement with CDW-G and offers all members the same Terms and Conditions, the same price and for the same effective period.
2. National IPA through the City of Tucson established these cooperative purchase agreements pursuant to a competitive bidding process.
3. The bid specifications used by National IPA through the City of Tucson, have been assessed by Purchasing as compatible to the City of Stockton standards with regards to the formal process, lowest pricing, awarded contract, and cooperative purchasing language allowing public agencies to avail of such process and pricing.
4. The National IPA offers a wide variety of commodities, non-IT services and information technology products and services at prices which have been assessed to be fair, reasonable and competitive.
5. By using the National IPA and the City of Tucson cooperative purchasing agreement with CDW-G for the purchase of Cisco network equipment, the City will realize substantial savings.
FINANCIAL SUMMARY
There is available FY 14/15 appropriation in the Computer Internal Service Fund, account number 502-5101-571, for the cost of $322,513. The FY 15/16 Council approved budget includes funding for the second year of the replacement schedule. Additional planned purchases in subsequent fiscal years will be included in the annual budget process.
Attachment A - National Intergovernmental Purchasing Alliance Company (National IPA) through the City of Tucson, cooperative purchasing agreement with CDW-G, Contract No. 130733
Attachment B - Contract between the City of Stockton and CDW-G, Inc.