Explanation
BACKGROUND:
This legislation authorizes the Director of the Department of Technology to renew an agreement with Netraid for extended warranty services on Hewlett Packard servers and EMC data storage equipment for the term period of July 1, 2016 to June 30, 2017 at a cost of $80,000.00. The Department of Technology procured this service in 2015 through solicitation SA005798 with an option to renew annually for one additional term by mutual agreement and approval of proper City authorities. The latest contract was by authority of ordinance 1524-2015, passed July 13, 2015, through purchase order EL017349.
This ordinance also authorizes the Director of the Department of Technology to modify the current contract term period of July 1, 2015 through June 30, 2016 to increase funds by $10,645.00 to pay for additional equipment requiring coverage under this contract. The aggregate total of the ordinance for funding is $90,645.00.
The Department of Technology requires these services to ensure reliable operations in the City data center. This agreement will provide cost-effective extended warranty service on critical data center equipment and software that has aged out of manufacturer warranty.
1. Amount of additional funds to be expended: $10,645.00
Original contract amount: $62,268.00
Modification 1: $10,645.00
Amount of original contract and modification: $72,913.00
2. Reason additional goods/services could not be foreseen:
The contract does allow for the Department of Technology to add new equipment purchased as manufacturer warranty expires and remove de-commissioned equipment as needed throughout the term period of the contract.
3. Reason other procurement processes are not used:
Netraid has the current contract to provide this service through SA005798, authorized under ordinance 1524-2015, therefore it would not be in the best interests of the City to procure these services from another vendor.
4. How cost of modification was determined:
The vendor is charging the same prices as identified in the original agreement with all other terms and conditions remaining the same.
EMERGENCY:
Emergency action is requested to expedite authorization of this contract in order to initiate services from the supplier at the prices proposed.
FISCAL IMPACT:
In 2015 the Department of Technology legislated $62,268.00 (ord.#:1524-2015) for these services provided by Netraid. The 2016 total cost of this ordinance is $90,645.00. Funds for this purchase are budgeted and available within the Department of Technology, Information Services Division, Information Services Operating Fund. Including this request, the aggregate contract total amount is $152,913.00.
CONTRACT COMPLIANCE:
Vendor Name: Netraid (DAX Acct#: 009999) CC#: 73-1702250 Expiration Date: 04/15/2017
Title
To authorize the Director of the Department of Technology to modify and renew a contract with Netraid, for the purchase of HP and EMC Extended Warranty Services for the City's data center systems; and to authorize the expenditure of $90,645.00 from the Department of Technology, Information Services Division, Information Services Operating Fund; and to declare an emergency. ($90,645.00)
Body
WHEREAS, this legislation authorizes the Director of the Department of Technology, to modify and renew a contract agreement with Netraid for the purchase of HP and EMC Extended Warranty Services for the City's data center systems, in the amount of $80,000.00 for the term period from July 1, 2016 through June 30, 2017 and to increase the existing contract amount by $10,645.00 for term period 07/01/2015 through 06/30/2016; and
WHEREAS, the Department of Technology exercised due diligence by undergoing a formal competitive bid process and procured this service in 2015 through solicitation SA005798 and last renewed it by authority of ordinance 1524-2015, passed July 13, 2015, through purchase order EL017349; and
WHEREAS, the initial term of the contract is for one year, however subject to mutual agreement and approval by proper City authorities, this contract can be extended for one (1) more additional term under the same terms and conditions, at the same pricing and escalator clause for a total contract term of up to three years.
WHEREAS, an emergency exists in the usual daily operations of the City of Columbus, Department of Technology, in that it is immediately necessary to authorize the Director of the Department of Technology to modify and renew a contract with Netraid for the purchase of HP and EMC Extended Warranty Services for the City's data center systems in order to avoid interruption in daily operations, 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 renew a contract with Netraid for the purchase of HP and EMC Extended Warranty Services for the City's data center systems in the amount of $80,000.00 with a coverage term period from July 1, 2016 through June 30, 2017 and to modify the existing contract (term period 07/01/2015 through 06/30/2016) to increase funds by $10,645.00. The aggregate total of the ordinance for funding is $90,645.00. Subject to mutual agreement and approval by proper City authorities, this contract can be extended for one (1) more additional term under the same terms and conditions and at the same pricing and escalator clause for a total contract term of up to three years.
SECTION 2: That the expenditure of $90,645.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating Fund, is hereby authorized as follows (see attachment 0804-2016 EXP):
Dept.: 47| Div.: 47-02|Obj Class: 03 |Main Account: 63260|Fund: 5100|Sub-fund: 510001|Program:IT005|Section 3:470201| Section 4:IT01|Section 5:IT0102|Amount: $10,645.00|
Dept.: 47| Div.: 47-02|Obj Class: 03 |Main Account: 63260|Fund: 5100|Sub-fund: 510001|Program:IT005|Section 3:470201| Section 4:IT01|Section 5:IT0102|Amount: $80,000.00|
SECTION 3: 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 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 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.