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, and training services in the amount of $163,448.26. 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 0254-2013, passed February 11, 2013, through purchase order EL013970. The term period for this agreement renewal covers a timeframe starting March 4, 2014 through January 3, 2016. Named licenses, quantities, and specific term periods applicable to each license are identified in Attachment C*.
This ordinance will authorize a renewal of the agreement with OARnet to incorporate several one year terms of VMWare software maintenance and support renewals at a cost of $61,346.62. VMWare recently renamed numerous licenses the City uses. (Please see Attachment C* for renamed licenses and term periods of VMWare software maintenance and support renewals.)
This ordinance will also authorize a modification of the agreement to purchase new licenses, maintenance fees and training services at a total cost of $102,101.64. This cost includes: $58,298.34 for new VMWare licenses, $22,803.30 for 1st year maintenance for these new licenses with a term to start from the date of a certified purchase order by the City Auditor, and $21,000.00 for training. These new licenses and training are needed to support the expansion of the current virtual environment. 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 2012 and 2013 the Department of Technology legislated with OARnet/OSU, $161,133.71 and $64,956.03 respectively for VMware software licenses, maintenance fee, and associated services. This renewal and modification request in the amount of $163,448.26 is to cover the cost associated with the renewal of existing licenses maintenance fee, and the purchase of additional VMWare software licensing, maintenance and support, and training services. Funds to cover these costs are budgeted and available within the Department of Technology, Information Services Division, internal services fund.
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 exisitng VMWare software licensing, maintenance and support services and to purchase additional VMWare licenses, maintenance support and training; to waive the competitive bidding provisions of Columbus City Codes; to authorize the expenditure of $163,448.26 from the Department of Technology, Information Services Division, internal service fund; and to declare an emergency. ($163,448.26)
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 exisitng VMWare software licensing, maintenance and support services, and to purchase additional VMWare licenses, maintenance support and training at a total cost of $163,448.26; and
WHEREAS, 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 0254-2013, passed February 11, 2013, through purchase order EL013970; and
WHEREAS, at a cost of $61,346.62 the term period for the renewal agreement covers a timeframe starting March 4, 2014 through January 3, 2016. Named licenses, quantities, and specific term periods applicable to each license are identified in Attachment C*; and
WHEREAS, this ordinance will also authorize a modification of the agreement to purchase new licenses, maintenance support, and training services at a total cost of $102,101.64 consisting of ($58,298.34 for new VMWare licenses, $22,803.30 for 1st year maintenance for these new licenses with a term to start from the date of a certified purchase order by the City Auditor, and $21,000.00 for training); and
WHEREAS, 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; 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 to waive the competitive bidding provisions in accordance with section 329 of the Columbus City Code to allow the Department of Technology to continue the maintenance and support service for existing VMWare software licenses and to purchase additional licenses, maintenance and training 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 an agreement with OARnet/OSU, for existing VMWare software licensing maintenance fees and the purchase of additional VMWare software licensing, maintenance and support, and training services 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, a non-profit organization, for existing VMWare software licensing maintenance fees, and the purchase of additional VMWare software licensing, maintenance and support, and training services in the amount of $163,448.26. The renewal term period for this agreement covers a timeframe starting March 4, 2014 through January 3, 2016. Named licenses, quantities, and specific term periods applicable to each license are identified in Attachment C*. The term coverage for the 1st year maintenance on the new licenses will be for one year from the date of a certified purchase order by the City Auditor.
SECTION 2: That the expenditure of $163,448.26 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: $61,346.62| (VMWare maint. & support renewals)
Dept./Div. 47-02| Fund 514| Sub-fund: 001||OCA Code: 470202| Obj. Level 1: 03| Obj. Level 3: 3358| Amount: $58,298.34| ( new licenses)
Dept./Div. 47-02| Fund 514| Sub-fund: 001||OCA Code: 470202| Obj. Level 1: 03| Obj. Level 3: 3369| Amount: $22,803.30|( new licenses 1 yr. maintenance fee)
Dept./Div. 47-02| Fund 514| Sub-fund: 001||OCA Code: 280735| Obj. Level 1: 03| Obj. Level 3: 3331| Amount: $21,000.00| (Training Credits)
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.