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CC - CONSENT ITEM: (1) Approval of an Agreement with Logicalis for Network Software/Hardware Maintenance Support for the City’s Telephone and Data Networking Systems in an Amount Not-to-Exceed $145,942.00 for a Term from January 1, 2023 to December 31, 2023; and (2) Authorization to the City Manager to Approve Four Optional One-Year Extensions in an Amount Not-to- Exceed the Prior Year’s Cost by More than 15%.
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Meeting Date: January 9, 2023
Contact Person/Dept.: Jesus Ornelas-Guzman/Information Technology
Phone Number: 310-253-5958
Fiscal Impact: Yes [x] No [] General Fund: Yes [x] No []
Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (01/04/2023)
Department Approval: Michele Williams, Chief Information Officer (12/21/2022)
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RECOMMENDATION
Staff recommends the City Council (1) approve of an agreement with Logicalis for software/hardware maintenance support for the Cisco components of the city’s telephone and data network systems in an amount not-to-exceed $145,942.00 for a term from January 1, 2023 to December 31, 2023; and (2) authorize the City Manager to approve four optional one-year extensions in an amount not-to-exceed the prior year’s cost by more than 15%.
BACKGROUND
On July 20, 2009, the City Council approved the purchase of Cisco telephone system and network components to transition from an analog to a VoIP telephone PBX and data network system. Included in the purchase were Cisco maintenance agreements needed by the City to implement and maintain the systems during the first year. Cisco maintenance ensures that the City has access to hardware replacements, software system upgrades, and technical support on the devices and software now in production.
The City’s Cisco network and telephone equipment is covered for parts and technical support through a contract known as SmartNet. While Cisco is the ultimate provider of the services, the City is able to shop for the best price through the reseller community utilizing discounts available through preferential previously-bid pricing agreements.
In 2011 the City purchased SmartNet support through AT&T Telecommunications with authorization approved by the City Council on February 14, 2011. The City Council’s approval included authorization to renew the support agreement for an additional four years. On January 25, 2016, City Council approved Cisco Smartnet Maintenance with SigmaNet for the calendar year 2016 with four additional one-year extensions ending in calendar year 2020. Over the past few years, the City has worked with Network Integration Company Partners (NICP) on several network projects. Due to better pricing and a broader range of services the IT Department is requesting to move forward with Logicalis. Logicalis has provided Cisco SmartNet quotes based on the OMNIA pre-negotiated pricing contracts for governments entities to ensure competitive pricing. Specifically, Logicalis has quoted pricing based on the Omnia Contract #R200803.
DISCUSSION
Each year IT combines the contracts for Cisco equipment previously owned and in service with any newly purchased equipment to create a master renewal strategy for all the components. Staff reviews the usage patterns and needs and updates the support strategy to ensure that critical components and equipment are covered.
In remaining with the Cisco hardware and software, IT staff are able to leverage the acquired knowledge gained over the past 13 years that the current system has been in use. This system has proven to be reliable and robust in the feature set and the latest versions of Cisco security appliances, routers and firewalls are critical to deterring malicious network attacks from outside and inside the City’s network.
Staff recommends entering into a contract with Logicalis to continue Cisco Smartnet Maintenance which has been a critical support component of the City’s network and phone infrastructure.
This procurement is exempt from formal competitive bidding requirements, pursuant to:
• Culver City Municipal Code (CCMC) Section 3.07.045.B, as the equipment is a component for equipment or a system of equipment previously acquired by the City, and is necessary to repair, maintain or improve the City's utilization of the equipment;
• CCMC Section 3.07.055.E, as the items to be purchased are computer software, hardware maintenance services or software maintenance services); and
• CCMC Section 3.07.055.G (competitive bid procedures have already been utilized by the City, public agency, or joint power agency, and the goods or supplies are supplied to the City at the same or better price).
FISCAL ANALYSIS
The authorization to enter into a Cisco SmartNet maintenance contract with Logicalis would result in an expenditure of $145,942.00. Sufficient funds are included in the Adopted Budget for Fiscal Year 2022/23 in account 31016100.512400 (Non-Departmental - Communications) for the purpose of funding the annual maintenance of the telephone and data network systems.
Should the City Council approve this agreement, staff would request appropriate funding for future year extension renewals annually as part of the budget process.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve an agreement with Logicalis for support and maintenance for the City’s telephone and data networking systems in an amount not-to- exceed $145,942.00 for the term from January 1, 2023 to December 31, 2023; and
2. Authorize the City Manager to approve four optional one-year extensions in an amount not-to-exceed the prior year’s cost by more than 15%;
3. Authorize the City Attorney to review/prepare the necessary documents; and
4. Authorize the City Manager to execute such documents on behalf of the City.