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File #: 0556-2015    Version: 1
Type: Ordinance Status: Passed
File created: 2/18/2015 In control: Technology Committee
On agenda: 3/23/2015 Final action: 3/26/2015
Title: To authorize the Director of the Department of Technology to continue an agreement with OARnet/OSU, for exisitng VMWare software licensing, maintenance and support services; to waive the competitive bidding provisions of Columbus City Codes; to authorize the expenditure of $109,146.32 from the Department of Technology, Information Services Division, internal service fund; and to declare an emergency. ($109,146.32)
Attachments: 1. Bid Waiver Ord. 0556-2015 OAR, 2. QUOTE VMWare Maintenance 2015, 3. Attachment A for Ord. 0556-2015
Explanation
BACKGROUND:
This legislation authorizes the Director of the Department of Technology (DoT) to continue 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 0513-2014, passed March 31, 2014, through purchase order EL015745.  This ordinance will continue the agreement with OARNet to incorporate several one year terms of VMWare software maintenance and support renewals (Named licenses, quantities, and specific term periods applicable to each license are identified in Attachment A*).  The total cost associated with this ordinance is $109,146.32.
 
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 to 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 2013 and 2014 the Department of Technology legislated with OARnet/OSU, $64,956.03 and $222,728.58 respectively for VMware software licenses, maintenance fee, and associated services. This 2015 request in the amount of $109,146.32 is to cover the cost associated with the continuation of existing VMWare software licensing, maintenance and support 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 continue an agreement with OARnet/OSU, for exisitng VMWare software licensing, maintenance and support services; to waive the competitive bidding provisions of Columbus City Codes; to authorize the expenditure of $109,146.32 from the Department of Technology, Information Services Division, internal service fund; and to declare an emergency. ($109,146.32)
Body
 
WHEREAS, this legislation authorizes the Director of the Department of Technology (DoT) to continue an agreement with OARnet/OSU, a non-profit organization, for VMWare software licensing, maintenance and support services; 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 0513-2014, passed March 31, 2014, through purchase order EL015745; and
 
WHEREAS, this ordinance will continue the agreement with OARNet to incorporate several one year terms of VMWare software maintenance and support renewals (Named licenses, quantities, and specific term periods applicable to each license are identified in Attachment A*).  The total cost associated with this ordinance is $109,146.32; 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 Chapter 329 of the Columbus City Code to allow the Department of Technology to continue the maintenance and support service for existing VMWare software licensing, maintenance and support; 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 continue an agreement with OARnet/OSU for existing VMWare software licensing, maintenance and support, 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 continue an agreement with OARnet/OSU, a non-profit organization, for VMWare software licensing, maintenance and support services.  This ordinance will continue the agreement with OARnet/OSU to incorporate several one year terms of VMWare software maintenance and support renewals (Named licenses, quantities, and specific term periods applicable to each license are identified in Attachment A*).  The total cost associated with this ordinance is $109,146.32.  
 
SECTION 2: That the expenditure of $109,146.32 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: $109,146.32|
 
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 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 5:  That it is in the City's best interest to waive the competitive bidding provisions of the Columbus City Codes Chapter 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.