City of Columbus - File #: 1084-2011

• File #: 1084-2011
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 6/28/2011
• In control: Administration Committee
• On agenda: 7/25/2011
• Final action: 7/26/2011
• Title: To authorize the Director of the Department of Technology to modify and increase an existing contract with OARnet/OSU, for the purchase of VMware software licenses, training and maintenance support services to cover an increase on the cost of the licenses; to waive the competitive bidding provisions of Columbus City Codes; to authorize the expenditure of $11,066.58 from the Department of Technology, Information Services Fund; and to declare an emergency. ($11,066.58)

Date	Ver.	Action By	Action	Result
7/26/2011	1	MAYOR	Signed
7/26/2011	1	CITY CLERK	Attest
7/25/2011	1	Columbus City Council	Approved	Pass
7/25/2011	1	COUNCIL PRESIDENT	Signed
7/8/2011	1	FINANCE DIRECTOR	Reviewed and Approved
7/8/2011	1	Technology Drafter	Sent for Approval
7/8/2011	1	Auditor Reviewer	Reviewed and Approved
7/8/2011	1	CITY AUDITOR	Reviewed and Approved
7/8/2011	1	Technology Drafter	Sent for Approval
7/8/2011	1	CITY ATTORNEY	Reviewed and Approved
7/8/2011	1	Technology Drafter	Sent to Clerk's Office for Council
7/7/2011	1	Finance - Purchasing Reviewer	Reviewed and Approved
7/6/2011	1	ODI DIRECTOR	Reviewed and Approved
7/6/2011	1	Technology Drafter	Sent for Approval
7/6/2011	1	Finance Reviewer	Reviewed and Approved
7/6/2011	1	Finance Reviewer	Reviewed and Approved
7/6/2011	1	Finance Reviewer	Reviewed and Approved
7/5/2011	1	EBOCO Reviewer	Sent for Approval
7/1/2011	1	Technology Drafter	Sent for Approval
6/30/2011	1	TECHNOLOGY DIRECTOR	Reviewed and Approved
6/29/2011	1	Technology Drafter	Sent for Approval

Explanation

BACKGROUND:
This legislation authorizes the Director of the Department of Technology (DoT), to modify and increase an existing contract with OARnet/OSU, established through ordinance 1716-2010, passed by Columbus City Council December 13, 2010; and established purchase order EL011737 (certified by the City Auditor on 6/8/11) to acquire VMware software licenses, training and maintenance support services for a three (3) year term period. This purchase was to provide a recovery platform in case of any outage at the primary data center, provide software to establish lower cost database platforms, and establish a virtual desktop platform to better utilize existing desktop computing resources within the city.


However, VMware had a price increase on the the software licenses that took effect February 1, 2011. The Department of Technology could not place an order until after the associated purchase order (EL011737) was certified, June 8, 2011. As such, OARnet/OSU, a value added reseller of VMware products and services, could not fill the order utilizing the previous software license pricing.
-The contract modification amount is $11,066.58.
-The need for additional funds could not be foreseen because the legislation had already passed when DoT was
notified about the price increase.
-Other procurement methods would not be an option as it has been demonstrated through previous bids that OARnet
pricing discounts for VMware software are greater than can be achieved through the bid process. With the price increase taken in consideration on the VMware license purchase, OARnet pricing remains 40% lower than the lowest bid response; which is a projected savings of over $105,000.00 on this purchase.
-The new/additional prices were set by VMware. The State of Ohio is utilizing an existing Ohio Revised Code as
their purchase authority for VMware (ORC 127.16(D)(23)).

This contract modification will also allow the three (3) year contract term period d...