Explanation
BACKGROUND:
This legislation authorizes the Director of the Department of Technology (DoT), to modify and increase an existing contract with OARnet/OSU, established through ordinance 1716-2010, passed by Columbus City Council December 13, 2010; and established purchase order EL011737 (certified by the City Auditor on 6/8/11) to acquire VMware software licenses, training and maintenance support services for a three (3) year term period. This purchase was to provide a recovery platform in case of any outage at the primary data center, provide software to establish lower cost database platforms, and establish a virtual desktop platform to better utilize existing desktop computing resources within the city.
However, VMware had a price increase on the the software licenses that took effect February 1, 2011. The Department of Technology could not place an order until after the associated purchase order (EL011737) was certified, June 8, 2011. As such, OARnet/OSU, a value added reseller of VMware products and services, could not fill the order utilizing the previous software license pricing.
-The contract modification amount is $11,066.58.
-The need for additional funds could not be foreseen because the legislation had already passed when DoT was
notified about the price increase.
-Other procurement methods would not be an option as it has been demonstrated through previous bids that OARnet
pricing discounts for VMware software are greater than can be achieved through the bid process. With the price increase taken in consideration on the VMware license purchase, OARnet pricing remains 40% lower than the lowest bid response; which is a projected savings of over $105,000.00 on this purchase.
-The new/additional prices were set by VMware. The State of Ohio is utilizing an existing Ohio Revised Code as
their purchase authority for VMware (ORC 127.16(D)(23)).
This contract modification will also allow the three (3) year contract term period dates established via EL011737 to be revised to reflect the date the original purchase order was certified; June 8, 2011 through June 7, 2014.
This ordinance also requests to waive the competitive bidding provisions in accordance with section 329 of the Columbus City Codes. This purchase with OARnet includes pricing discounts for VMware software that are greater than can be achieved through the bid process.
EMERGENCY:
Emergency action is requested to expedite the contract and ensure that the needed services are not delayed.
FISCAL IMPACT:
In 2010 the Department of Technology legislated $170,831.53 with OARnet/OSU for VMware software licenses, training and associated services. This modification request in the amount of $11,066.58 is to cover the cost increase of the VMware software licenses. Funds to cover the additional cost are available within the Department of Technology, Information Services Fund 2011 Budget as a result of cost savings from other contract expenditure being lower than budget. The aggregate contract total including this request is $181,898.11.
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 modify and increase an existing contract with OARnet/OSU, for the purchase of VMware software licenses, training and maintenance support services to cover an increase on the cost of the licenses; to waive the competitive bidding provisions of Columbus City Codes; to authorize the expenditure of $11,066.58 from the Department of Technology, Information Services Fund; and to declare an emergency. ($11,066.58)
Body
WHEREAS, this legislation will authorize the Director of the Department of Technology to modify and increase an existing contract with OARnet/OSU, established through ordinance 1716-2010, passed by Columbus City Council December 13, 2010; which established purchase order EL011737 (certified by the City Auditor on 6/8/11), to acquire VMware software licenses, training and maintenance support services for a three (3) year term period, and
WHEREAS, VMware had a price increase on the price of their software licenses that took effect February 1, 2011. The Department of Technology could not place an order until after the associated purchase order (EL011737) was certified, June 8, 2011; which was after the price increase. As such, OARnet/OSU, a value added reseller of VMware products and services, could not fill the order utilizing the previous software license pricing, and
WHEREAS, the purchased software will be utilized to provide improved recovery and availability for City of Columbus Information Systems, such as 311, Geographical Information Systems (GIS), Email, Accela, and WAM, which are critical to the operations of city agencies, and
WHERAS, this contract modification to cover the cost increase of VMware software licenses will also allow the three (3) year contract term period dates established via EL011737 to be revised to reflect the date the purchase order was certified; June 8, 2011 through June 7, 2014, and
WHEREAS, this ordinance requests approval to waive the competitive bidding provisions of the Columbus City Codes (Section 329.07), 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 modify a contract with OARnet/OSU, to increase funding for the purchase of VMware software 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 modify and increase an existing contract with OARnet/OSU in the amount of $11,066.58, for the purchase of VMware software licenses, for a three (3) year term period, June 8, 2011 through June 7, 2014.
SECTION 2: That the expenditure of $11,066.58 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: 3358| Amount: $11,066.58 Software License Fees
SECTION 3: 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 4: That this ordinance requests to waive the competitive bidding provisions of the Columbus City Codes Section 329.07.
SECTION 5: That for the reasons stated in the preamble hereto, which is made part hereof, this ordinance is hereby declared 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.