Subject
title
Award and authorize the City Manager to execute a five-year (5) agreement for the purchase of software subscription and services with CDW Government LLC for virtual servers at various locations, in the amount not-to-exceed $1,496,768.
end
Department
IT
Recommendation
Staff recommend the Mayor and Council award and authorize the City Manager to execute the CDW (Sourcewell) Rider Agreement with CDW Government LLC for virtual servers at various City locations, in the amount not-to-exceed $1,496,768.
Discussion
Information Technology is recommending the execution of a five-year contractual agreement with CDW Government LLC in the amount of $1,496,768. The contract would remain valid from August 6, 2026, through August 5, 2031. This is a cooperative rider through Sourcewell Contract # 121923 and CDW Government LLC.
Sourcewell awarded the contract to CDW Government LLC, on March 13, 2024, and will expire on February 27, 2028. Sourcewell Contract #121923 allows up to three additional one-year extensions upon the request of Sourcewell and written agreement by Supplier.
This contractual agreement will allow Information Technology to maintain its existing virtual servers while providing high availability, distributed resource management, improved hardware utilization, scalability, simplified management, and enhanced disaster recovery.
Mayor and Council History
This is the first time this item has been brought before the Mayor and Council.
Procurement
Sourcewell (formerly known as NJPA-National Joint Powers Alliance) is a national cooperative with more than 50,000 member agencies throughout the United States. Sourcewell has over 40 years of service helping government, education and nonprofit agencies operate more efficiently, seeking quality products and services for the best possible price. National cooperatives, like Sourcewell, with its competitively solicited contract process, are considered to be fair and reasonable contracting vehicles, providing government agencies with quality goods and services at equitable cost. The City has been a member of Sourcewell since approximately 2010 and has previously utilized Sourcewell contracts for various products and services.
Sourcewell posted the Request for Proposal #121923, for the procurement of certain technology products and services on December 18, 2023. The contractor submitted a response to RFP#121923 agreeing to provide Sourcewell, and its participating entities technology products and services, including the VMWare License.
Sourcewell Contract#121923 provides participating agencies with competitively solicited access to highly competitive pricing on goods and services. The City is able to benefit from high volume discount pricing through utilizing Sourcewell’ s competitive solicitation for technology products and services.
Sourcewell Contract #121923 initial term began on March 13, 2024, and expires on February 27, 2028, the contract allows up to three additional-one-year extensions.
CDW Government, LLC is a non-Minority, Female, or Disabled or Veteran (non-MFD-V) business.
To view the draft contract, please see attachment 1.
To view all contract documents, please click the links below:
1. Sourcewell Agreement #121923 <https://rockvillemd.legistar.com/View.ashx?M=AO&ID=179413&GUID=76ab7f0b-c019-44cc-88a9-f05387d6513c&N=QWdlbmRhIDIyLTIyOTIgU291cmNld2VsbCBDb250cmFjdCB3aXRoIENEVy1Hb3Zlcm5tZW50>
2. CDW-Government Quote# PXQC688 <https://rockvillemd.legistar.com/View.ashx?M=AO&ID=179414&GUID=9d9f5307-1fba-4392-bfb8-c8f3335a511d&N=QWdlbmRhIDIyLTIyOTIgQ0RXLUcgUXVvdGUjIFBYUUM2Njg%3d>
Fiscal Impact
The agreement is effective when signed and the terms align with the underlying contract through August 5, 2031. The FY 2027 operating budget estimated this expense at $211,500, which is $82,196 less than the actual renewal. Staff will work to identify savings to support the current year expense, but notes that future years appropriations may need to be increased in the IT Department, IT Operations Division, to support the annual costs associated with this award.
Annual Cost Allocation by Fiscal Year:
FY27: $293,696
FY28: $296,192
FY29: $299,520
FY30: $302,016
FY31: $305,344
All future year budget appropriations are subject to Mayor and Council approval.
Next Steps
Upon the Mayor and Council approval, the Procurement Department will complete the execution of the Rider Agreement, and issue a Purchase Order to CDW Government, LLC., for software services.