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CC - Authorization to Purchase a Cisco Network Software/Hardware Maintenance Support Subscription through SIGMAnet for the City’s Telephone and Data Networking Systems in an Amount Not-to-Exceed $49,307.43 for a Term from December, 2015 to December 31, 2016 with Four Optional One-Year Extensions for Amounts Not-To-Exceed the Prior Year’s Cost by More than 15%, Subject to the Approval of the City Manager.
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Contact Person/Dept: David Leuck/IT
Phone Number: (310) 253-5961
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (01/21/16)
Department Approval: Michele Williams, Chief Information Officer (01/14/16)
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RECOMMENDATION:
Staff recommends that the City Council authorize the purchase of software/hardware maintenance support through SIGMAnet for the Cisco components of the City’s Telephone and Data Network Systems in an amount not-to-exceed $49,307.43 for a term from December, 2015 to December 31, 2016 with four optional one-year extensions for amounts not-to-exceed the prior year’s cost by more than 15%, subject to the approval of the City Manager.
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 digital telephone 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 replacements, system upgrades, and technical support on the devices and software now in production.
The City completed the transition to the new digital telephone systems and data network systems in the spring of 2010 with final acceptance of the completed systems in January 2011. The City maintains the systems using Cisco’s SmartNet hardware/software support for the components and licensed modules. Since 2011 the City purchased the 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.
DISCUSSION:
Cisco network and telephone equipment is covered for parts, labor, 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 the discounts available through CMAS and other preferential previously-bid pricing agreements. The Information Technology Department (IT) has rebid the pricing with several top-tier resellers each year to confirm the City received the best price.
Each year IT combines the contracts for Cisco equipment previously owned and in service with any new equipment to create a master renewal strategy for the components. Staff reviews the usage patterns and needs and updates the support strategy to ensure that critical components and public safety site equipment are covered.
For this renewal, IT shopped for the best price for SmartNet contracts. Four vendors were invited to bid:
• SIGMAnet
• CDWG
• NexisIS
• AT&T Telecommunications
IT separated the bidding into four categories matching the four functional areas where the City uses Cisco products:
1. Voice/Telephone software licensing
2. Voice/Telephone hardware
3. Security and Data communications equipment
4. Wireless technology
This was to allow the possibility that individual vendors might be able to supply unique discounts on one area but not the others. All four vendors were responsive and provided competitive bids.
SIGMAnet was able to supply a significant discount on the license portion of the bid which was over $11,000 lower than the competitors this year. Their pricing on the other areas was nearly equal to the competition. IT recommends SIGMAnet to process the complete package; their total bid being: $49,307.43
Staff recommends contracting for the maintenance of the Cisco equipment with SIGMAnet.
The proposed maintenance agreement complies with Culver City Municipal Code Section 3.07.045 (E) & (G), which permit the City to award contracts without complying with formal bid requirements when (E) items to be purchased are computer software, hardware maintenance services or software maintenance services, or (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 contract the Cisco SmartNet maintenance would result in an expenditure of $49,307.43. Sufficient funds are included in the City Council Adopted Budget for Fiscal Year 2015/2016 in account 31016100.512410 for the purpose of funding the annual maintenance of the telephone and network systems.
ATTACHMENTS:
None.
RECOMMENDED MOTION(S):
That the City Council:
1. Authorize the purchase of support and maintenance Cisco SmartNet contracts for from SIGMAnet for the City’s Telephone and Data Networking Systems in an amount not-to-exceed $49,307.43 for a term from December, 2015 to December 31, 2016 with four optional one-year extensions for amounts not-to-exceed the prior year’s cost by more than 15%, subject to the approval of the City Manager; and,
2. Authorize the City Attorney to review/prepare any necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.