Item 61/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Anand Rao
Dept:
City Manager Dept: Information Technology
Date: 2/24/2026
Subject: Authorization for the issuance of a purchase order to Knight Technology Group for the purchase of a backup storage server. (Cost: $31,659)(Action Item)
OBJECTIVE
To receive City Council authorization for the purchase of a backup storage server in the amount of $31,658.70 from Knight Technology Group.
BACKGROUND
The City currently utilizes several backup technologies to preserve data for IT systems to preserve changes, configurations, and backup copies of digital documents. One of the City systems uses a large file server to host various backups. The existing server was delivered May 2021 and is nearing the end of support and capacity. The City seeks to replace the existing system with a new, higher capacity server to accommodate added backup capacity, improved performance, and supported hardware. This newer configuration provides 130% growth capacity over the existing server (currently at 84% of capacity) and is expected to support the City through 2031.
DISCUSSION
The IT department solicited three quotes for a Supermicro Storage Server, storage drives, and extended manufacturer warranty and support. Three quotes were received with the same specifications. All quotes were reviewed and found to conform to specifications. The lowest quote was from Knight Technology Group. Due to recent tariff implementations and memory market conditions, server hardware prices have increased 15 -20% since initial budget estimates. All vendors confirmed these quotes reflect current market pricing and include tariff costs.
The quotes are as follows:
Vendor Price
Knight Technology Group $31,658.70
Item 61/2026
Vendor Price
Prestige Innovation Technology $36,392.05
Coastline Micro $32,516.25
The vendors further confirmed that prices are fluctuating depending on equipment availability and the effect of tariffs. Were the City to proceed with a formal bid due to the prices coming in exceeding the $25,000 formal bidding threshold, the City would most likely not receive any bids, or would receive bids at substantially higher prices. Consequently, staff rec ommends that the City Council find that it is in the best interests of the City to waive formal bidding and approve the issuance of the purchase order as requested following the informal bidding process undertaken by staff.
FINANCIAL IMPACT
Total cost for the purchase of the storage server is $31,658.70. $30,719.63 will be funded by the Fiscal Year 2024 COPS Office Technology and Equipment Program (TEP), which was awarded to the City on September 30, 2024. The TEP funding is to be used for the purchase and installation of IT equipment for cybersecurity enhancement. The balance of $939.07 will be paid from the Information Technology Internal Service Fund.
RECOMMENDATION
It is recommended that the City Council:
● Authorize the request to dispense of the form al bidding process in the best interest of the City pursuant to Garden Grove Municipal Code 2.50.060(G); and
● Authorize the Finance Director, or designee, to issue a purchase order in the amount of $31,658.70 including a 10% contingency, to Knight Technology Group for the purchase of a backup storage server.
ATTACHMENT(S)
1. Knight Technology Group Quote