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AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH INSIGHT PUBLIC SECTOR, INC., AND FOR THE EXPENDITURE OF FUNDS
Staff Contact: Chuck Murphy, Chief Information Officer, Innovation and Technology
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a Linking Agreement with Insight Public Sector Inc., for a term commencing June 30, 2016 and ending on June 30, 2017, and to authorize the City Manager, at their discretion, to renew the agreement for four additional one-year periods until June 30, 2021. Under the terms of the agreement, Insight Public Sector Inc. (Insight) will provide products and services to the city using a cooperative agreement with the State of Arizona. This request also includes approval of expenditure authority in an amount not to exceed $1,700,000 over the life of the agreement
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Background
Maintaining City infrastructure is crucial to all City functions and services. Insight Public Sector, Inc. is a provider of technology software, hardware, software maintenance, support and technical services, and provides the City best pricing through Cooperative purchasing.
City communications of both data and voice rely on network equipment to transfer that information from one location to the next. Network equipment exists throughout the city; however, there are certain components that are common to all network communications known as the “Core.” The Core network equipment comprised of firewalls, routers, and switches is critical to daily city operations. The approval of this expenditure request enables the Innovation & Technology department to quickly order replacements for non-functioning equipment, and hardware that is no longer supported.
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
Analysis
Information Technology regularly compares pricing among vendors to ensure the City is getting the best possible value. Insight is a large volume supplier and provides a wide array of products and services at lower contract pricing as compared to other cooperative contract vendors. The city’s network infrastructure is dominated by CISCO networking technology due to the quality, reliability, and service options they provide. Based on their product breadth and pricing, the City will continue to purchase network products and services from Insight.
Previous Related Council Action
On February 25, 2014, City Council approved the Linking Agreement (C-8820) with Insight Public Sector, Inc., and expenditure authority in the amount of $136,642.92 per year.
On April 14, 2015, City Council approved an amendment to Linking Agreement C-8820 to increase expenditure authority in the amount of $340,000 per year.
Community Benefit/Public Involvement
Maintaining the city’s networking infrastructure is crucial to ensure services can be provided to the public efficiently while minimizing system downtime. Purchasing from cooperative contracts provides both competitive pricing for equipment and services.
Budget and Financial Impacts
The amount budgeted in the Technology Replacement Fund will fluctuate based on annual budget capacity and replacement needs. It is estimated to be $340,000 per year.
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Cost |
Fund-Department-Account |
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$340,000 |
2591-18401-551400, Technology Replacement Fund |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?