SR - AGR-6539 - PURCHASE REPLACEMENT DESKTOP COMPUTERS1. SUBJECT
Award of Bid Number 178 -11 — Purchase of Replacement Desktop Computers
2. SUMMARY
In order to ensure that the City is utilizing technology to meet its business needs, reinvestment in
its technology resources is essential. Last year, the City made a large investment in replacing
many of its desktop computer monitors, as a majority were much past their useful life. The last
major replacement of desktop computers was in 2014. As a result of a comprehensive
assessment of the desktop inventory to evaluate operational deficiencies, staff had identified 350
desktop computers to be replaced. However, due to higher than anticipated prices, staff reduced
this figure to 335 replacements.
3. RECOMMENDED ACTION
Award Bid Number 178 -11 to CPAC, Inc. of Anaheim, California in the amount of $398,624.69,
and authorize the Mayor and City Clerk to execute the documents on behalf of the City.
4. FISCAL IMPACT
Funds are available for this purchase in the following account:
790.1601.56033.20282 Desktop PC Replacements $398,624.69
5. STRATEGIC PLAN GOAL(S)
2a. Be a fiscally healthy community- Expend fiscal resources responsibly.
4a. Provide outstanding public services- Enhance technology to improve public accessibility to
information and services.
6. GENERAL PLAN IMPLEMENTATION
Not applicable.
17. DISCUSSION and BACKGROUND
The City has an inventory of approximately 850 desktop ( "PC's) and portable computers being
used to support its business operations. This number includes those computers that are dedicated
to a specific employee /position or workstation, as well as those that are related to a certain
business function such as for public safety communications, public PC's in libraries, network
computers, and laptop computers.
As with any infrastructure owned and managed by the City, periodic reinvestment is required to
ensure its usefulness. In the past, the City had a goal of a four -year desktop replacement program
to ensure the computers were effective work tools and that the City remained consistent with
current technology. However, due to resource constraints related to IT staffing and other project
priorities, the City has not been able to fully reinvest in its PC inventory. The last two major
reinvestments in the PC inventory occurred in 2012 and 2014, when 125 and 201 PC's,
respectively, were replaced. Additionally, last year, the City replaced 653 desktop monitors, the
first major replacement of monitors the City had done in approximately twelve years. Since the
last major reinvestment in PC's, only certain PC's have been replaced in response to a specific
maintenance issue or technology need. As a result, approximately 350 PC's within the inventory
are well past their useful life in that they are not meeting the latest technology demands. In
addition to maintenance issues, many of these older PC's are not able to handle the demands of
newer software applications, such as Windows 10 and Office 2016, which the City will be
transitioning to later this fiscal year.
Based on a review of commercial grade desktop computers with similar specifications, staff
recommends the purchase of HP computers. This evaluation considered price, performance,
service, and reliability. Bid number 178 -11 solicited prices for 350 replacement PC's. The City
received 11 responses as follows:
CPAC, Inc.
$416,464.59
CDW -G
$421,998.52
OM Office Supply, Inc.
$426,151.25
Office Depot
$429,064.54
Hypertec USA, Inc.
$433,693.75
Data Impressions
$436,458.50
All Covered
$437,789.26
C3 Technology Services
$487,654.00
Clay Arwine
$731,176.00
Iconic Business Solutions
$749,577.00
Howard Technology Solutions
$796,488.00
ITEM 2 11/14/17
It should be noted that the bids from OM Office Supply, Inc. and All Covered did not include
sales tax. Their original bids were $395,500.00 and $406,372.00, respectively. The bid amounts
reflected above were modified to include sales tax, which is required for this purchase.
The Fiscal Year 2017 -18 budget includes $400,000 for the purchase of replacement PC's.
Because all bids received exceeded that amount, staff worked with the low bidder, CPAC, Inc.,
which agreed to hold their unit price for a reduced number of PC's. As a result, the revised
recommended award of bid is to CPAC, Inc., of Anaheim, in the amount of $398,624.69 for 335
PC's.
18. ATTACHMENTS
Bid Award 178 -11
ITEM 3 11/14/17