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 licensing, maintenance and support services. The original agreement (EL011737) was authorized by ordinance 1716-2010, passed December 13, 2010. The agreement was most recently renewed and modified by authority of ordinance 2362-2012, passed December 3, 2012, through purchase order EL013777. This ordinance will renew the agreement with OARnet to incorporate several one year terms of VMWare software maintenance and support renewals: August 16, 2013 to August 15, 2014 for VMWare ThinApp (5,002 licenses); November 3, 2013 to November 2, 2014 for vSphere (4 licenses); December 24, 2013 to December 23, 2014 for vCenter (1 license); December 29, 2013 to December 28, 2014 for vSphere (20 licenses); and January 4, 2014 to January 3, 2015 for vSphere (12 licenses). The total cost of these renewals is $50,135.95.
This ordinance will also modify the agreement to purchase eight (8) new licenses of vSphere with one year of maintenance and support, at a total cost of $14,820.08. These new licenses are needed to virtualize servers previously managed by the Police Division. The need for these new licenses was not known at the time of the original agreement. 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:
There is an immediate need to purchase new licenses for servers previously managed by the Police Division. 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 2011 and 2012 the DoT legislated with OARnet/OSU, $30,614.29 and $161,133.71 respectively for VMware software licenses, maintenance fee, and associated services. This renewal and modification request in the amount of $64,956.03 is to cover the cost associated with the purchase of new VMware licenses and the annual renewal of maintenance and support services for the period August 16, 2013 to January 3, 2015 (which incorporates several one (1) year terms of VMWare software maintenance and support renewals). Funds to cover these costs are budgeted and available within the Department of Technology, Information Services Division, internal services fund. This ordinance is contingent on the passage of the 2013 City of Columbus Operating Budget.
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, the purchase of additional VMWare licenses and to also incorporate several one year terms of VMWare software maintenance and support renewals; to waive the competitive bidding provisions of Columbus City Codes; to authorize the expenditure of $64,956.03 from the Department of Technology, Information Services Division, internal service fund; and to declare an emergency. ($64,956.03)
Body
WHEREAS, 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 licensing, maintenance and support services; and
WHEREAS, this ordinance will renew the agreement with OARnet to incorporate several one year terms of VMWare software maintenance and support renewals: August 16, 2013 to August 15, 2014 for VMWare ThinApp (5,002 licenses); November 3, 2013 to November 2, 2014 for vSphere (4 licenses); December 24, 2013 to December 23, 2014 for vCenter (1 license); December 29, 2013 to December 28, 2014 for vSphere (20 licenses); and January 4, 2014 to January 3, 2015 for vSphere (12 licenses). The total cost of these renewals is $50,135.95; and
WHEREAS, this ordinance will also modify the agreement to purchase eight (8) new licenses of vSphere with one year of maintenance and support, at a total cost of $14,820.08. These new licenses are needed to virtualize servers previously managed by the Police Division. The need for these new licenses was not known at the time of the original agreement; and
WHEREAS, 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; 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 $64,956.03, 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 August 16, 2013 to January 3, 2015 (which incorporates several one (1) year terms of VMWare software maintenance and support renewals).
SECTION 2: That the expenditure of $64,956.03 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: $4,544.80| ( 1 yr. maint. & support; new licenses)
Dept./Div. 47-02| Fund 514| Sub-fund: 001||OCA Code: 470202| Obj. Level 1: 03| Obj. Level 3: 3358| Amount: $10,275.28| (new licenses)
Dept./Div. 47-02| Fund 514| Sub-fund: 001||OCA Code: 470202| Obj. Level 1: 03| Obj. Level 3: 3369| Amount: $50,135.95| (VMWare Renewal - 1yr. maint. & support)
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.