REPORT TO THE CITY COUNCIL
FROM: BRYON HORN, Chief Information Officer
Information Services Department
SUBJECT
Title
Approve the purchase of laptops, docking stations, and desktops from Dell Technologies (Dell) in an amount not to exceed $2,525,100, utilizing NASPO Contract MNWNC-108/7-15-70-34-003 for year two of the Citywide Computer Replacement Plan (Plan).
Body
RECOMMENDATIONS
Staff recommends that City Council approve the purchase of laptops, docking stations, and desktops from Dell Technologies in an amount not to exceed $2,525,100 utilizing NASPO Contract MNWNC-108/7-15-70-34-003.
EXECUTIVE SUMMARY
On March 10, 2022, the City Council approved AAR No. 2021-178 to appropriate $500,000 for the newly established Citywide Computer Replacement Plan. In the FY23 and FY24 approved budgets, $1.6 million and $2.525 million were allocated, respectively, from fixed revenues to fund the citywide replacement plan. The first order of year two is projected to be $1.454 million and is for 500 laptops, 500 docking stations, and 100 desktops from Dell, replacing the oldest city computers in the 5-year replacement cycle. Due to the fluctuating cost of technology and possible supply issues, we are asking for an amount not to exceed $2,525,100 for any potential increases. Funding for this contract is available within the adopted FY24 budget and pricing is based on NASPO Contract MNWNC-108/7-15-70-34-003.
BACKGROUND
The Plan was put in place to establish predictable technology replacement cycles. In past years, budget constraints have resulted in continued use of outdated equipment which, in turn, has increased our cyber security risk. The Information Services Department (ISD) believes that computer replacements should not be considered one-time costs but rather an ongoing expense of running the City. Creating predictable replacement cycles will keep the City’s business operations running effectively, allow departments to easily plan for computer replacement costs, while also enabling ISD to manage these replacements in a secure, methodical, and cost-effective way.
Beginning in FY23, departments began contributing to the fund, annually, through yearly fixed charges. ISD has organized the City’s 4,261 computer assets (not including vehicle computers for PD and Fire) by their purchase date/end of warranty date and identified which computers need to be replaced each year. In FY24, citywide fixed charges for the computer replacement plan were $2,525,100 (excludes PD/Fire vehicle replacement monies).
The Telework Technology Upgrade, which used CARES funding to mobilize the City’s workforce, via the deployment of over 1,500 laptops during the COVID-19 pandemic, helped to modernize the City’s computers. ISD plans to continue this work by deploying laptops when possible. This pending order, year two of the Plan, will prioritize replacing outdated devices with laptops. Desktops are only deployed with a valid use case such as a front counter, lab, kiosk or shared workstations. Further orders will be placed as ISD continues to have discussions with departments about devices that best fit their needs. We also expect some of the replacement plan funds to be used to supplement the cost of specialized computers that were up for replacement. Specialized devices require a 10X to be submitted and ISD will supplement the cost of those devices.
ISD has had ongoing communications with Dell to identify a model that would support user needs and deliver a blend of performance and value over its life. With technology advancements, these conversations will be ongoing as we continue to refresh the City’s devices in a 5-year rotation.
After a thorough review, ISD decided that ordering 600 devices and 500 peripherals (docking stations) through the Dell NASPO contract pricing provides the best value and quality to the City.
ENVIRONMENTAL FINDINGS
The approval of this agreement is not a project for the purposes of the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference was not implemented because this item is a cooperative purchase and is being procured utilizing the NASPO Contract MNWNC-108/7-15-70-34-003.
FISCAL IMPACT
Funding is available in the Information Services Department’s (ISD) Computer Replacement Fund.
ATTACHMENTS
RESOLUTION_50th AAR Computer Replacement Fund
Dell Quote #3000158215176.4
Dell Cooperative Purchase Agreement - Signed
Exhibit A - MN Computers Released RFP
Exhibit B - Computer Equipment CA Dell Executed - PA