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APPROVE MOTION TO AUTHORIZE PURCHASE OF REPLACEMENT DATA STORAGE EQUIPMENT FOR 400 E MAIN DATA CENTER
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RECOMMENDATION
Staff recommends the City Council approve a motion:
1. Authorizing the purchase of replacement data storage equipment for the 400 E. Main data center, in the amount of $179,293.06 (Attachment A).
2. Approving findings for an exception to the competitive bidding process; and
3. Authorizing the City Manager to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The Information Technology Department is preparing to replace the existing data storage equipment at 400 E. Main. The necessity to refresh this equipment is balanced with the goal to improve access to the City’s applications and the eventual need to migrate from 400 E Main, a leased facility, to a permanent City owned location. Council is requested to authorize the procurement of replacement data storage equipment for the 400 E. Main data center.
DISCUSSION
Background
The City of Stockton has two data centers; one in the Stewart Eberhardt Building (SEB) and the other is located at 400 E. Main. The equipment that provides data center storage at both data centers has passed its useful life.
To maintain operational integrity of the City of Stockton’s data center, the Information Technology Department is embarking on a data center modernization program. This program will provide the City of Stockton with increased capability, reduced technology risk, and prepare for the migration away from 400 E Main, a leased facility, to a permanently City owned facility such as SEB or the Waterfront Towers. The early phases of the program will focus on updating data center storage, simplifying the management of the network, and current security tools.
Present Situation
The data storage solutions for both City of Stockton data centers were purchased over 7 years ago. Data center industry practice is to replace data storage equipment every 5 years. A 60-month replacement cycle allows the purchaser to capitalize on technology enhancements such as greater electrical power efficiency, capacity, and speed. Another major benefit is the avoidance of overpriced hardware maintenance costs as they inflate after the fifth year of ownership.
The IT Department has sized an enterprise class data storage frame that can handle large volumes of data and large numbers of concurrent users. Dell offers an enterprise class data storage frame that provides the capacity (and needed growth) that will support the City’s applications.
The equipment to be purchased, via Korarus Inc., is a Dell storage frame with a capacity of 150 terabytes. This storage frame is designed to be more resilient and has a greater vendor support capability than a replacement of the current HP equipment. The Dell storage frame in comparison to a HP solution was cheaper, more reliable, has greater vendor support, and provides administrative training to City staff. Overall it is the best priced, greatest value solution for the City. Kovarus is a local, third-party reseller and platinum solution partner for Dell Enterprise-Class Storage.
This report is to authorize the procurement of replacement data storage equipment for the 400 E. Main data center. The agreement with Kovarus, Inc. is in the amount of $179,293.06.
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 proposed findings are as follows:
1. Dell Enterprise-Class Storage is a market leader for medium sized organizations less than 5,000 employees. The storage solution for purchase is adequate to provide the capacity and performance for the City’s near-term and long-term needs.
2. The State of California Department of General Services has established a cooperative purchase agreement with Kovarus, Inc. as part of a cooperative purchasing process for the purpose of pooling various agencies’ purchasing volume to directly reduce the costs.
3. The State of California Department of General Services established these cooperative purchase agreements pursuant to a competitive bidding process.
4. The State of California Department procurement process has been assessed by Purchasing as compatible to the City of Stockton standards with regard to the formal process, lowest pricing, awarded contract, and “available for use” language allowing public agencies such as cities and counties to save costs of a formal bid process and still receive competitive pricing.
5. By using the Department of General Services cooperative purchasing agreement with Kovarus, Inc. for the purchase of the replacement storage equipment for 400 E. Main data center, the City will realize substantial savings.
FINANCIAL SUMMARY
The purchase agreement with Kovarus, Inc. is for the replacement of storage equipment at the 400 E. Main data center, in the amount of $179,293.06.
There is budget available for this purchase in the Computer Equipment Internal Service Fund, account number 502-5101-670.
Attachment A - City of Stockton Cooperative Purchasing Agreement with Kovarus, Inc.