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CC - CONSENT: Approve Amendments to the Blanket Purchase Orders with Dell Computer Corporation for Fiscal Year 2022-2023 and Fiscal Year 2023-2024 in the Additional Annual Amount of $150,000 and a Total Amount Not-to-Exceed $250,000 per Fiscal Year for Each Blanket Purchase Order.
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Meeting Date: June 26, 2023
Contact Person/Dept.: Elizabeth Shavelson/Finance
Phone Number: (310) 253-6018
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [] No []
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/22/2023)
Department Approval: Lisa Soghor, Chief Financial Officer (06/22/2023)
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RECOMMENDATION
Staff recommends the City Council (1) approve an amendment to the Blanket Purchase Order with Dell Computer Corporation for Fiscal Year 2022-2023 in the additional amount of $150,000, for a total amount not-to-exceed $250,000; and (2) approve an amendment to the Purchase Order with Dell Computer Corporation for Fiscal Year 2023-2024 in the additional amount of $150,000, for a total amount not-to-exceed $250,000.
BACKGROUND/ DISCUSSION
Each year, the City purchases a variety of computers, laptops and hardware from Dell Computer Corporation (Dell) to meet the business needs of all Departments. As a government entity, the City is eligible to receive a reduced rate from Dell on these purchases. In recognition of the City’s ongoing technology needs and Dell’s favorable government pricing, the City Council has historically approved a blanket purchase order with Dell as part of the budget adoption process. For Fiscal Year 2022-2023, Council approved a blanket purchase order with Dell in the amount of $100,000.
As the economy has shifted to offer more robust online and remote services, the City’s demand for computers, laptops and hardware has increased significantly. At the same time, inflation and disruptions in the global supply chain have impacted prices and created delays. As a result of these shifts, the City has had to purchase more equipment at higher costs exceeding the blanket purchase order amount initially established to support the City’s evolving operational needs throughout the current fiscal year. Staff recommends the City Council increase the blanket purchase order with Dell for Fiscal Year 2022-2023 by $150,000 for a total amount not-to-exceed $250,000.
As these trends are anticipated to continue in the new fiscal year, staff is recommending a similar increase to the blanket purchase order established for Fiscal Year 2023-2024. On June 12, 2023, City Council approved a blanket purchase order with Dell as part of the Adopted Budget for Fiscal Year 2023-2024 in the amount of $100,000. As part of the Fiscal Year 2023-2024 Adopted Budget, Council also approved several capital initiatives that involve technology replacement and/or upgrades such as the implementation of permitting software that will require additional purchases from Dell to effectuate. Staff recommends that the blanket purchase order with Dell for Fiscal Year 2023-2024 be increased by $150,000 for a total amount not-to-exceed $250,000.
FISCAL ANALYSIS
Funding for computers, laptops and hardware is included in the Capital IT Equipment- Hardware Expense Account (Object Code No. 732150) for each Department. Funding for equipment is also included in CIP #PZ388 (Technology Replacement Fund). There is sufficient funding in both the Revised Budget for Fiscal Year 2022-2023 and the Adopted Budget for Fiscal Year 2023-2024 for these amendments.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve an amendment to the existing Purchase Order with Dell Computer Corporation for Fiscal Year 2022-2023 in the additional amount of $150,000, for a total amount not-to-exceed $250,000; and,
2. Approve an amendment to the existing Purchase Order with Dell Computer Corporation for Fiscal Year 2023-2024 in the additional amount of $150,000, for a total amount not-to-exceed $250,000; and
3. Authorize the Purchasing Officer to execute such purchase orders on behalf of the City.