The Information Technology Solutions (ITS) Department will use these purchase Agreements to purchase new and replacement hardware, technology services, maintenance and support services, new equipment, software and asset recovery and support services from Dell Marketing, L.P. (Dell), for all City departments on an as needed basis.
ITS works with each City department to manage replacements for laptops, computers and servers to reduce the risk of disruption or loss of productivity due to equipment obsolescence or failure. In addition, Dell acquired EMC in 2017. The City also purchases EMC disk storage and virtualization software for data center operations.
In the previous year, the authorization and expenditures were in the amount of $4,800,000.00 and Staff anticipates using the same amount this year.
PRICE ANALYSIS - The Department of Information Resources (DIR) contract offers fixed discounts ranging from three to14 percent less than Dell's current retail price list. There is an additional minimum discount for equipment purchased through the State of Texas online store. Staff reviewed the pricing and determined it to be fair and reasonable.
COOPERATIVE PURCHASE - State law provides that a local government purchasing an item under a cooperative purchasing Agreement satisfies any state law requiring that the local government seek competitive bids for purchase of the item. DIR Contracts are competitively bid to increase and simplify the purchasing power of government entities across the State of Texas.
M/WBE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.
SUCCESSOR CONTRACTS - To facilitate planning and budgeting staff would prefer to have annual Agreements that align with the Fiscal Year. However, the DIR Agreement is out of alignment with the City's Fiscal Year and its current term will expire January 10, 2018. In order for this purchase to align with the City's Fiscal Year, adoption of this M&C technically authorizes (i) a series of purchase Agreements, each of which will align to a term of the DIR Agreement to ensure legal authority exists for the contract, and (ii) an annual spend amount, future years of which would be subject to City Council appropriation. In the event the DIR Agreement is not renewed, staff would cease purchasing at the end of the last purchase Agreement coinciding with a valid DIR Agreement. If the City Council were to not appropriate funds for a future year, staff would stop making purchases when the last appropriation expires, regardless of whether the then-current purchase Agreement has expired.
The City will initially use DIR Contract 1951 to make purchases authorized by this M&C. As noted, that Agreement is set to expire on January 10, 2018. If DIR Contract 1951 is extended, this M&C authorizes the City to purchase similar equipment and supplies under the extended contract. If DIR Contract 1951 is not extended but DIR executes a new cooperative contract with Dell and with substantially similar terms as DIR Contract 1951, this M&C authorizes the City to purchase the equipment and supplies under the new DIR contract.
AGREEMENT TERM - Upon City Council's approval, this Agreement will commence upon execution by both parties and continue in accordance with the terms and conditions of DIR Contract No. DIR-SDD-1951 or applicable successive DIR contracts for the same services.
RENEWAL OPTIONS - This Agreement may be renewed for up to three additional one-year terms at the City's option. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term. Staff anticipates the cost for renewal years will be the same as for the first year.