Report to Mayor and City Council
Tuesday, September 17, 2024
Consent
SUBJECT:
Title
CONSIDERATION OF APPROVAL OF CONTRACT FOR IT EQUIPMENT WITH DELL MARKETING, L.P. (CITY COUNCIL)
Body
I. SUMMARY
On March 28, 2024, the Purchasing Division released a Request for Proposals RFP (No. 24-005) for Computer Equipment and Lifecycle Management Services. The city is establishing the IT best practice of adhering to a scheduled computer equipment replacement cycle in lieu of the previous ad hoc replacements when technical issues resulted in inoperable outdated equipment. The city is standardizing Dell computer equipment, including several models of laptop and desktop computers, monitors, and computer peripherals such as wireless keyboard, wireless mouse, and laptop sleeve options. The majority of the city’s computers, estimated at over 80%, will be laptops to enable a modern, mobile work experience within City Hall, parks, and citywide. In addition to supporting collaborative team meetings within conference rooms, onsite meetings to manage public works projects, temporary and permanent assigned work areas, laptop deployment will support a more efficient computer replacement and support model. This City is purchasing a limited number of desktops for conference room computers, public computing centers, and shared computer assignments for locations where a fixed computer is more appropriate.
Computer specifications for desktops and laptops are assigned based upon user profile and include several component options including processor options: Intel Core i7, Intel Core Ultra 7, Intel Core Ultra 9, and Intel Core 14th Gen i9; memory options: 16GB RAM, 32GB RAM, 64GB RAM; storage options: 256GB, 512GB, 1TB, 2TB graphics card: NVIDIA GeForce RTX 4090, Intel Arc Graphics; and wireless card options: Intel Killer Wi-Fi 7/Bluetooth wireless card, and Intel Killer Wi-Fi 6E/Bluetooth wireless card. Microsoft Windows 11 software licenses are included for all computers.
All laptops and monitors include a 3-year hardware warranty, and next business day support. Desktop computers include a 4-year hardware warranty and next business day support. Computer peripherals including monitor arms, laptop sleeves, and wireless keyboard with mouse are also included in the order.
The RFP closed on April 25, 2024, and two (2) bids were received. One bidder provided a bid entirely comprised of computer equipment not included in the City’s specifications. The second bidder only provided a bid for generic laptop sleeves and no computer equipment. The city’s Procurement Officer rejected all bids due to both bidders’ failure to comply with RFP requirements.
City staff then requested a quote from the Original Equipment Manufacturer Dell Marketing, L.P. with specifications outlined in the RFP. Dell Marketing, L.P. was selected as the vendor that will provide the IT equipment.
City Council approved the initial contract with Dell Marketing, L.P. at the June 18, 2024, Council meeting. While conducting final review for contract signature, Dell Marketing, L.P. senior legal counsel identified a discrepancy between the proposed contract language and the language Dell Marketing, L.P. agreed to as terms in the NASPO cooperative purchasing program with the State of Minnesota Master Agreement #23004, upon which the State of California entered into a Participating Addendum No.7-23-70-55-01. The State of Minnesota and State of California Agreements provide an opportunity for the City of Carson to execute a “Piggyback Agreement” to obtain significant discounts on hardware pricing if the City is acceptable to the terms and conditions of the State of Minnesota Master Agreement and State of California Addendum. City Staff propose execution of the new Piggyback Agreement to obtain competitive pricing from Dell Marketing, L.P. for computer equipment.
II. RECOMMENDATION
Recommendation
1. APPROVE a contract with Dell Marketing, L.P. for hardware, software, warranty, maintenance and support for an amount not to exceed $2,186,114.07 for a total term expiring June 30, 2029; and
2. AUTHORIZE the Mayor to execute the contract after approval as to form by the City Attorney.
Body
III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The City of Carson is in the process of replacing its outdated computer inventory and establishing a computer replacement cycle, replacing laptops every 3 years and desktops every 4 years. The update of the computer inventory will ensure city staff are able to utilize modern software technologies without repeated operational issues common to low memory and outdated processors.
On March 28, 2024, the Purchasing Division released a Request for Proposals RFP (No. 24-005) for Computer Equipment and Lifecycle Management Services. The IT equipment includes several models of laptop and desktop computers, monitors, and computer peripherals such as wireless keyboard, wireless mouse, and laptop sleeve options.
The bid opening was held in the City Clerk’s Office on April 18, 2024. There were two (2) bid responses. The city’s Procurement Officer rejected all bids due to both bidders’ failure to comply with RFP requirements. City staff then requested a quote for computer equipment from the Original Equipment Manufacturer Dell Technologies, Inc. per the active Dell NASPO Computer Equipment contract for the state of California government agencies. A temporary Computer Equipment and Lifecycle Committee was formed to evaluate, interview, and rank the bid. Dell Marketing, L.P. was selected as the vendor that will provide the computer equipment.
Section 2611(g) of the City’s Municipal Code (CMC) allows City, through its Purchasing Manager, to dispense with competitive bidding processes to purchase materials, supplies, equipment, or services by utilizing a cooperative purchasing program engaged in by any local, county, State, or Federal public entity or entities, even if the contracts and implementing agreements entered into by the participating entity or association under those cooperative purchasing programs were not entered into pursuant to a process that resulted in the contract being awarded to the lowest responsible and responsive bidder under CMC 2610(i); provided, that the selected bidder was selected in compliance with the competitive bidding or proposal process requirements of any participating entity or association within three years of City’s approval of the City contract entered into with the selected bidder via cooperative purchasing. The City Council has made a determination that the benefits to City of utilizing cooperative purchasing outweigh any incremental higher price that may be paid by City in certain instances as a result of not soliciting directly utilizing the lowest responsible and responsive bidder standard under CMC 2610(i).
The State of Minnesota is part of the NASPO Value Point cooperative purchasing program through which it entered into a contract with Dell Inc. (“Master Agreement #23004”) after engaging in a competitive bidding process, whereby it now receives discounted pricing for certain Dell computers, equipment hardware, accessories, managed services, and configuration, including those described in Master Agreement #23004. Master Agreement #23004, awarded July 14, 2023, was subsequently assigned by Dell Inc. to Dell Marketing L.P. with new contract number 23026 (“Master Agreement 23026”). The State of California, Department of General Services has entered into Participating Addendum No. 7-23-70-55-01, which incorporates Master Agreement 23026 (the “State Contract”).
The City’s Purchasing Manager has determined that the competitive bidding or proposal process utilized by the State of Minnesota and adopted by the State of California complies with the requirements of Section 2611(g) of the CMC and has therefore, waived the formal bidding process for procurement of the Dell equipment.
Dell Marketing L.P.’s proposed costs were reasonable and within the City’s budget at $1,567,862.75 for laptop and desktop computer equipment costs including Microsoft Windows 11 software licenses, 3-year warranty and maintenance on laptop computers, 4-year warranty and maintenance on desktop computers, $430,096.00 for computer peripherals, environmental fee of $6,750.00, taxes of $181,405.32, for a total cost of $2,186,114.07.
V. FISCAL IMPACT
The cost associated with the 5-year contract with Dell Marketing, L.P. is not to exceed the amount of $2,186,114.07. The computer equipment cost including warranty, maintenance, and software licenses of $1,567,862.75, environmental fee of $6,750.00, computer peripheral cost of $430,096.00, and $181,405.32 for taxes. The total cost of $336,325.24 for a quantity of 100 computers and related computer peripherals is included in the current Information Technology & Security Department FY2023-24 budget. Computer replacement phases for the remaining 550 computers and peripheral equipment will be included in the proposed FY2024-25 and subsequent fiscal year budgets.VI. EXHIBITS
1. Contract with Dell Marketing, L.P. (pgs. 5 - 16)
2. Purchasing Waiver. (pg. 17)
Prepared by: Gary Carter, Director, Information Technology&Security Department