Explanation
BACKGROUND
This ordinance authorizes the Director of the Department of Technology to modify a not-for-profit service contract with OARnet/OSU for the VMware software licensing, maintenance, and support services contract.
The Department of Technology (DoT) uses VMware software to operate virtual servers that run critical applications for enterprise systems such as Accela, CUBS, and 311. Server virtualization is the conversion of one physical server into multiple individual and isolated virtual storage spaces. This industry standard was adopted by DoT in 2009 to reduce the costs of Data Center operations. This also reduces power consumption, cooling requirements, and provides further capabilities for recovery and availability of information systems.
Ordinance 1716-2010 authorized the Director of the Department of Technology to enter a contract with OARnet/OSU for VMware for software licensing, maintenance, and support services.
Ordinance 3005-2023, passed by City Council on November 13, 2023, authorized entering a two-year contract with OARnet/OSU, beginning on April 2, 2024, and ending on April 1, 2026.
Most recently, Ordinance 2987-2024, passed by City Council on November 25, 2024, extended that contract through July 30, 2027, at an additional cost of $596,791.16 to ensure on-going service provisions.
This ordinance authorizes the Director of the Department of Technology to modify the contract to add funds to pay for additional professional services and software licensing in the amount of $218,292.48.
1.1 Amount of additional funds to be expended:
The original contract amount: $916,566.52 (PO423161, PO485100, PO505140 Ord. 3005-2023)
Modification #1: $596,791.16 (PO505140 Ord. 2987-2024)
Modification #2: $218,292.48 (This ordinance)
The contract amount including all modifications: $1,731,650.16
1.2 Reasons additional goods/services could not be foreseen:
It was recently determined that additional funding is needed to purchase services required to license the city’s VDI infrastructure, which will enable the virtual desktop environments to function correctly. This modification will provide the necessary licensing to ensure peak functionality, proper maintenance, and support.
1.3 Reason other procurement processes are not used:
Through the State of Ohio Virtualization Program, OARnet/OSU offers significant discounts on VMware that are not available in the marketplace. As such, it is in the city’s best interests to procure VMware through OARnet/OSU, rather than another procurement process. The pricing offered to the city reflects the agreed upon public sector discounts available to all participants in the State of Ohio Virtualization Program. It is in the best interest of the city to modify this contract.
1.4 How cost of modification was determined:
The cost of this contract modification is based on the prices provided on a quote from the vendor.
CONTRACT COMPLIANCE
Vendor: OARnet/OSU
Vendor Account #: 006163
Expiration date: 6/10/2027
FISCAL IMPACT
Funding in the amount of $218,292.48 is budgeted and available in the Department of Technology, Information Services Fund, Fund 5100.
Title
To authorize the Director of the Department of Technology to modify an existing contract with OARnet/OSU for VMware software licensing, maintenance, and support, pursuant to Columbus City Codes sections relating to not-for-profit service contracts; and to authorize the expenditure of $218,292.48 from the Department of Technology, Information Services Fund. ($218,292.48)
Body
WHEREAS, Ordinance 1716-2010 authorized the initial contract for with OARnet/OSU for VMware software licensing, maintenance, and support; and
WHEREAS, Ordinance 3005-2023 authorized the Director of the Department of Technology to enter contract with OARnet/OSU for VMware software licensing, maintenance, and support; and
WHEREAS, Ordinance 2987-2024 authorized the Director of the Department of Technology to modify a contract with OARnet/OSU, adding funds in the amount of $596,791.16 and extending the contract through July 30, 2027; and
WHEREAS, this ordinance modifies the contract to add $218,292.48 in funding for VMware software licensing, maintenance, and support; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Technology to authorize the Director to modify a contract with OARnet/OSU for the purchase of VMware software licensing, maintenance to support the citywide virtual desktop environment for the preservation of the public health, peace, property, safety, and welfare; and health, peace, property and safety; 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 existing contract with OARnet/OSU for VMware software licensing, maintenance, and support, pursuant to Columbus City Codes sections relating to not-for-profit service contracts at a cost of $218,292.48 through July 30, 2027.
SECTION 2. That the expenditure of up to $218,292.48, or so much thereof as may be necessary, is hereby authorized as provided on the attachment to this ordinance. (See attachment 2800-2025EXP).
SECTION 3. That this agreement is being awarded under City Code section 329.30, which prescribes the method for contracting with not-for-profit organizations.
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 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 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.