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File #: 2456-2012    Version: 1
Type: Ordinance Status: Passed
File created: 11/1/2012 In control: Technology Committee
On agenda: 12/3/2012 Final action: 12/5/2012
Title: To authorize the Director of the Department of Technology to modify an agreement with SecureWorks, Inc., for additional managed technology security services; to waive the competitive bidding provisions of Columbus City Code; to authorize the expenditure of $58,336.76 from the Department of Technology, Information Services Division, internal service fund; and to declare an emergency. ($58,336.76)
Attachments: 1. Bid Waiver Form Ord. No. 2456-2012, 2. DellSecureWorks_City of Columbus Exchange CTU 11-08-12
Explanation
BACKGROUND:  
This ordinance authorizes the Director of the Department of Technology to modify an agreement with SecureWorks, Inc., for additional managed technology security services at a cost of $58,336.76.  The original agreement (EL011963) was authorized by ordinance 0818-2011, passed June 13, 2011.  The agreement was most recently renewed by authority of ordinance 1220-2012, passed July 9, 2012, through purchase order EL013343.  The original agreement allows for modifications by mutual agreement and approval of proper City authorities.  
 
This modification will provide an additional managed security service that include threat intelligence service, providing the City with advanced warning of emerging technology security threats with a term coverage period to be effective from date of service activation through August 25, 2013.  Also included is an expansion of existing network monitoring services for the period December 1, 2012 through August 25, 2013  from 50 to 150 devices; and an expansion of internal scanning services from 256 IP addresses to 512 IP addresses.  The need for this additional service was anticipated with the original agreement, but was not included because the Department of Technology wanted to gain experience with the vendor on a smaller scale before expanding the scope of service.  Services from SecureWorks have proved valuable, so expansion of the existing service is appropriate at this time.  As SecureWorks technology and services are already imbedded within the City's technology infrastructure, it is not in the City's best interests to procure additional service through alternate procurement methods; doing so with another vendor would involve significant additional and unnecessary transition costs.  The cost of the additional service was negotiated with SecureWorks.
DoT requires services from a managed security provider in order to comply with federal and state regulatory requirements.  These requirements include IRS tax information security guidelines, federal information processing standards, payment card industry data security standards, and the Health Information Portability and Accountability Act (HIPPA).  Complying with these regulations requires advanced expertise and tools not available with current staff and systems.  
 
SecureWorks was awarded a contract through their amended offer to solicitation SA003789.  Given the amendment to the original bid offer and the need to increase the contract for additional services, this ordinance requests a waiver of competitive bidding requirements of Columbus City Code, in accordance with section 329.27.
 
FISCAL IMPACT:  
In 2011 and 2012, the Department of Technology legislated $96,739.02 and $82,039.56 respectively with SecureWorks, Inc. for managed technology security services.  This ordinance authorizes $58,336.76 to modify the agreement for additional managed technology security services with SecureWorks, Inc.  Funding for this service was budgeted and  is available within the Department of Technology, Information Services Division, internal services fund.  The aggregate contract total including this renewal is $237,115.34.
EMERGENCY:  
Emergency action is requested to expedite authorization of this contract in order to continue with the services being provided without a break in service from the supplier at the prices proposed.
 
CONTRACT COMPLIANCE:   
Vendor Name:    SecureWorks, Inc.                               C.C.#/FID#:  26 - 2032356                               Expiration Date: 5/5/2013
 
Title
To authorize the Director of the Department of Technology to modify an agreement with SecureWorks, Inc., for additional managed technology security services; to waive the competitive bidding provisions of Columbus City Code; to authorize the expenditure of $58,336.76 from the Department of Technology, Information Services Division, internal service fund; and to declare an emergency. ($58,336.76)
 
Body
WHEREAS, the Department of Technology (DoT) requires services from a managed security provider in order to comply with federal and state regulatory requirements; these requirements include IRS tax information security guidelines, federal information processing standards, payment card industry data security standards, and the Health Information Portability and Accountability Act (HIPPA); and
WHEREAS, the original agreement (EL011963) was authorized by ordinance 0818-2011, passed June 13, 2011 and that agreement allowed for an annual renewal by mutual agreement and approval of proper City authorities that occurred via authority of ordinance 1220-2012, passed July 9, 2012, through purchase order EL013343; and
WHEREAS, this ordinance authorizes the Director of the Department of Technology to modify the agreement with SecureWorks, Inc., for expanded managed technology security services of existing network monitoring services from 50 to 150 devices; and an expansion of internal scanning services from 256 IP addresses to 512 IP addresses for the period December 1, 2012 through August 25, 2013, and additional threat intelligence service with a term coverage period to be effective from date of service activation through August 25, 2013, at a cost of $58,336.76; and
WHEREAS, this ordinance requests approval of the services provided by SecureWorks, Inc., and to waive the competitive bidding provisions of Columbus City Code, Section 329.06; 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 an agreement with SecureWorks, Inc., for  expanded/additional managed technology security services and to authorize this expenditure or so much thereof as required, thereby preserving 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 be and is hereby authorized to modify an agreement with SecureWorks, Inc., for expanded managed technology security services on existing network monitoring services from 50 to 150 devices; and an expansion of internal scanning services from 256 IP addresses to 512 IP addresses for the period December 1, 2012 through August 25, 2013, and additional threat intelligence service with a term coverage period to be effective from date of service activation through August 25, 2013 in the total amount of $58,336.76.  
 
SECTION 2: That the expenditure of $58,336.76 or so much thereof as may be necessary is hereby authorized to be expended from:
Div.: 47-02|Fund: 514| Subfund 001|OCA Code: 472415|Obj. Level 1: 03|Obj. Level 3: 3336|Amount: $58,336.76
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 accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5: That this ordinance requests and hereby waive the competitive bidding provisions of Columbus City Code, Section 329.
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.