Explanation
BACKGROUND:
This legislation authorizes the Director of the Department of Technology (DoT) to renew and modify an agreement with OARnet/OSU, a non-profit organization, for VMWare software maintenance and support services, providing service at a cost of $12,173.85 and $8,615.02 to purchase 12 additional VMWare licenses at a cost of ($6,250.32) with one year of maintenance and support at ($2,364.70) for a combined total cost of $20,788.87. The original agreement (EL011737) was authorized by ordinance 1716-2010, passed December 13, 2010 and was modified by ordinance 1084-2011, passed July 25/2011 to accommodate a price increase (EL012111) and a renewal/modification under ordinance 1850-2011 for software upgrades and maintenance and support (EL012283) for the term December 24, 2011 to December 23,2012. This ordinance will renew and modify the agreement with OARnet to incorporate another year of VMWare software maintenance and support service for the period December 24, 2012 to December 23, 2013 in addition to the purchase of 12 licenses with one year of maintenance and support effective on the date of a purchase order certified by the Auditor's Office.
As maintenance and support is due to expire for the VMWare software licenses, this renewal and modification is needed to ensure continued maintenance and support and sufficient licenses to meet the need for further VMWare capacity, for Oracle servers and remote servers. While the need for continued maintenance and support was known when the original agreement with OARnet was executed in 2010, the need for additional licenses with maintenance and support was not known. Through the State of Ohio Virtualization Program, OARnet offers significant discounts on VMWare that are not available in the market place. So it is in the City's best interests to procure VMWare through OARnet, instead of through another procurement process. The pricing offered the City reflects the agreed upon public sector discounts available to all participants in the State of Ohio Virtualization Program.
VMWare software is needed in order to operate virtual servers. Server virtualization has been adopted by the Department of Technology to reduce the costs of data systems, reduce power consumption and cooling requirements, and provide further capabilities for recovery and availability of information systems. The initial phase of the virtualization project was completed in 2009. The project is ongoing, and will allow the Department of Technology to further reduce costs of software licensing and hardware purchases, and realize power consumption savings.
This ordinance also requests to waive the competitive bidding provisions in accordance with section 329 of the Columbus City Code. OARnet pricing discounts for VMWare are greater than can be achieved through the bid process. This has been confirmed most recently through solicitation SO037822, published in July 2011.
EMERGENCY:
Emergency designation is requested as to avoid interruption in the performance of services necessary in the usual daily operation, and to facilitate contract execution and related payment for services.
FISCAL IMPACT:
In 2010 and 2011 the DoT legislated with OARnet/OSU $170,831.53 and $30,614.29 respectively for VMware software licenses, training, and associated services and in mid-year of 2012 expended $11,954.84 (ED046792) for additional licenses and services needed. This renewal and modification request in the amount of $20,788.87 is to cover the cost associated with the new VMware licenses and, annual renewal of maintenance and support services for the period December 24, 2012 to December 23, 2013. Funds to cover these costs are budgeted and available within the Department of Technology, Information Services Division, internal services fund. The aggregate contract total including this request is $234,189.53.
CONTRACT COMPLIANCE:
Vendor: OARnet/OSU, 1224 Kinnear Rd Ste. 130, Columbus, OH 43212 CC#/FID#: 31-6025986 (105) Non Profit Organization (NPO)
Title
To authorize the Director of the Department of Technology to renew and modify an agreement with OARnet/OSU, for annual maintenance and support services and the purchase of additional VMWare licenses; to waive the competitive bidding provisions of Columbus City Codes; to authorize the expenditure of $20,788.87 from the Department of Technology, Information Services Division, internal service fund; and to declare an emergency. ($20,788.87)
Body
WHEREAS, this legislation will authorize the Director of the Department of Technology to modify an agreement with OARnet/OSU for the purchase of additional VMWare software licenses with maintenance and support, and renew for the period of December 24, 2012 to December 23, 2013 existing maintenance and support services due to expire, at a cost of $20,788.87; and
WHEREAS, the total cost of this renewal/ modification includes $8,615.02 for the purchase of additional software licenses with one year of maintenance support and $12,173.85 for renewal of an additional year of maintenance and support. As maintenance and support is expiring for the VMWare software purchased in 2008 and newer versions of VMWare have become available, this modification is needed to ensure continued maintenance and support. The pricing offered the City reflects the agreed upon public sector discounts available to all participants in the State of Ohio Virtualization Program; and
WHEREAS, this ordinance requests approval to waive the competitive bidding provisions of the Columbus City Codes (Section 329.07) to allow the Department of Technology to purchase additional licenses and to continue the maintenance and support service for VMWare software; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Technology in that it is immediately necessary for the Director of the Department of Technology to renew and modify the agreement with OARnet/OSU, for the purchase of additional VMware software licenses with maintenance and support, and the renewal of maintenance and support services on existing licenses, for the preservation of the public health, peace, property, safety and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1: That the Director of the Department of Technology (DoT) be and is hereby authorized to renew and modify an agreement with OARnet/OSU in the amount of $20,788.87, to purchase additional VMware licenses with one year of maintenance and support effective on the date of a purchase order certified by the City Auditor's Office, and renew for one year the existing maintenance and support services agreement for the period December 24, 2012 to December 23,2013.
SECTION 2: That the expenditure of $20,788.87 or so much thereof as may be necessary is hereby authorized to be expended from:
Dept./Div. 47-02| Fund 514| Sub-fund: 001| |OCA Code: 470202| Obj. Level 1: 03| Obj. Level 3: 3369| Amount: $12,173.85| (renewal - term 12/24/2012 - 12/23/2013)
Dept./Div. 47-02| Fund 514| Sub-fund: 001| |OCA Code: 470202| Obj. Level 1: 03| Obj. Level 3: 3358| Amount: $6,250.32 |(new licenses)
Dept./Div. 47-02| Fund 514| Sub-fund: 001| |OCA Code: 470202| Obj. Level 1: 03| Obj. Level 3: 3369| Amount: $2,364.70 }(1yr. maintenance & support on new licenses)
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4: That the City Auditor is authorized to make any changes to revise the funding source for any contract or contract modifications associated with this ordinance.
SECTION 5: That the competitive bidding provisions of the Columbus City Codes Section 329.07 are hereby waived for good cause shown.
SECTION 6: That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.