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CITY COUNCIL AGENDA MEMO |
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| | | | | | | | MEETING DATE: | 3/15/2022 | DEPARTMENT: | Technology Services | DIRECTOR: | Roger Wright, Chief Information Officer | AGENDA ITEM: | Extend and Establish New Computer Lease | RECOMMENDED ACTION: | Purchase from Existing Contract |
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| | | | | | | | ITEM SUMMARY To approve an extension of the existing computer equipment lease month-to-month for up to six months in an amount not to exceed $85,979 per month, lease of new citywide computer equipment for 36 months in the estimated total amount of $3,115,661, and purchase of peripheral equipment from the current lease for an estimated amount of $62,270 from Dell Financial Services, L.L.C.; and purchase of data wiping services for computers being returned off the current lease from Dell Marketing, L.P. in an estimated amount of $72,142, for an estimated total expenditure of $3,765,947, through an existing contract with the State of Texas Department of Information Resources; and authorizing the City Manager to execute all necessary documents. (DIR Contract No. DIR-TSO-3763) Approved |
| | | | | | | | PREVIOUS ACTION/PRESENTATION City Council approved the lease of citywide computer equipment from Dell Financial Services, L.L.C., on April 22, 2019. The Master Lease Agreement had an initial term of 36 months with the option to renew for two additional lease terms, enabling regular refresh of citywide computer equipment. |
| | | | | | | | BACKGROUND
With the approval of the 2019 contract to lease citywide computer equipment, the Technology Services department improved the approach to providing modern standardized desktop equipment to staff. The organization had previously purchased desktop technology with an average replacement timeline of 7-9 years. This desktop lease provides timely updates of desktop technologies on a 3-year replacement cycle.
This agenda item includes the following:
- The lease of new citywide computer equipment for 36 months in the estimated total amount of $3,115,661.04;
- The extension of the existing computer equipment lease month-to-month for up to six months in an amount not to exceed $85,979 per month;
- The purchase of peripheral equipment from the current lease for an estimated amount of $62,270 from Dell Financial Services, L.L.C.; and,
- The purchase of data wiping services for computers being returned off the current lease from Dell Marketing, L.P., in an estimated amount of $72,142.
Technology services recommends the extension of the existing citywide computer equipment lease for 36-months. This lease will replace over 2,500 desktop computer equipment to city staff to ensure the city’s everyday IT equipment remains standardized and refreshed.
The month-to-month lease extension will provide the window of time necessary for deployment teams to replace existing computers with new leased computers and account for any supply chain impacts. Technology Services will receive the new computers, prepare them for staff use, and the contractor will warehouse the computers in bulk until they are scheduled for deployment. The City plans to deploy replacement computers in June 2022 and estimates deployments to be completed in September 2022.
Technology Services evaluated the useful lifespan of peripheral devices, and found it to be more cost effective to purchase the monitors, docking stations, and keyboard/mice rather than continue to lease these types of devices as they can outlive the associated computers. As a result, Technology Services will purchase the peripherals currently leased from Dell Financial Services, L.L.C. at fair market value and those devices will continue to be used where they are deployed today.
The leased computers are utilized across the City, and several business units process sensitive data and is subject to regulatory restrictions. The computer hard drives must undergo data sanitization process via a 3 pass wipe to comply with established Federal Bureau of Investigation Criminal Justice Information Systems Policy.
Should the contract extension and renewal with Dell Financial Services, L.L.C., not be awarded, the City will need to purchase computers. It is unlikely that the City will be able to complete a competitive bid process, order, receive, prepare and deploy computers within the timeline without impacting services and support to Plano Citizens. If the lease extension is approved, yet the renewal option is not executed the City would need to initiate our competitive process and make a large upfront financial purchase rather than spread the costs over the lease term.
The City is authorized to purchase from the State Contract list pursuant to Chapter 271 Subchapter D of the Texas Local Government Code and by doing so satisfies any State Law requiring local governments to seek competitive bids for items. (DIR Contract No. DIR-TSO-3763 / City of Plano Contract No. 2018-0552-I) |
| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS Funding for this item will be available in the 2021-22 Technology Services Replacement Fund. This request is to approve a total amount of $3,765,947 for the extension of the existing citywide computer equipment lease for up to six (6) months, in the amount not to exceed $85,979 per month; the leasing of new citywide computer equipment for 36 months, in the estimated total amount of $3,115,661; and the purchase of peripheral equipment from the current lease, in the estimated amount of $62,270, from Dell Financial Services, LLC. In addition, this item includes the purchase of data wiping services for computers being returned from the current lease, in the estimated amount of $72,142, from Dell Marketing LP.
Funding for this item, in the estimated annual amount of $651,987, will be available in the 2021-22 Technology Services Replacement Fund Budget. Future year expenditures will occur within council approved appropriations, in the annual estimated amount of $1,296,491 for 2022-23, $1,038,554 for 2023-24, and $778,915 for 2024-25 in the Technology Services Replacement Fund Budget.
Approval of this agenda item supports the City's Strategic Plan Critical Success Factors of Excellent, Innovative, and Accountable City Government. |
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