CITY COUNCIL STAFF REPORT
Meeting Date: November 04, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-24 AUTHORIZING THE CITY
MANAGER TO EXECUTE A THREE-YEAR AGREEMENT WITH
SABLE COMPUTER, INC. FOR THE PURCHASE AND
IMPLEMENTATION OF DARKTRACE MANAGED DETECTION AND
RESPONSE CYBERSECURITY SERVICE
SYNOPSIS
Cyber threats and ransomware attacks are increasing from year to year. City staff is mindful of the ongoing need for visibility into all areas of the City’s network and server infrastructure along with the ability to quickly respond and neutralize anomalous activity. Staff requests the City Council authorize the City Manager to execute a three-year agreement with Sable Computer, Inc. (dba KIS) for the purchase and implementation of DarkTrace managed detection and response cybersecurity service.
DISCUSSION
Background
The annual average cost of cybercrime is predicted to hit more than $23 trillion in 2027, up from $8.4 trillion in 2022, according to data cited by Anne Neuberger, U.S. Deputy National Security Advisor for cyber and emerging technologies. The human element is the most common threat vector and was the root cause of 74 percent of data breaches, according to Verizon's "2023 Data Breach Investigations Report." Humans also played a role in phishing attacks and stolen credentials. Phishing attacks are often delivered via email and attempt to trick users into clicking on links or providing information that can lead to exploitation. Ransomware attacks are a constant threat affecting all sectors. Ransomware affected 66 percent of respondents' organizations, according to Sophos' "The State of Ransomware 2023" report. Meanwhile phishing attacks increased by 1,265 percent in 2023, due to the growth of generative AI (GenAI), according to "The State of Phishing 2023" report from SlashNext. The Anti-Phishing Working Group (APWG) observed almost 1.3 million phishing attacks in the second quarter of 2023, representing the thirdhighest quarterly total ever observed by the group.
An immediate response is critical to combat the spread of ransomware. Some of the most significant ransomware attacks have targeted local governments, which resulted in encryption of critical data and crippling of vital services. Ransomware campaigns are designed to specifically identify and exploit the weaknesses of their targets and spread across networks in a matter of seconds. The speed and sophistication of the attacks give Information Technology departments almost no time to react before the damage is done.
City staff desires an ability to quickly respond to a threat event, and DarkTrace, available by purchase through Sable Computer, Inc., would satisfy the City's needs in this area.
Analysis
Staff evaluated and obtained quotes from four vendors, including DarkTrace, who offered similar cybersecurity detection and management solutions. Staff selected DarkTrace because it offered the best comprehensive solution and a unique approach to detecting and neutralizing possible threats through a proprietary artificial intelligence-enhanced cybersecurity system.
The services provided by DarkTrace include email, cloud, and a network defense system. The services will enhance the City's existing cyber-threat monitoring with active autonomous response, which can intercept and neutralize cyber-attacks, including insider threats, ransomware, and Internet of Things (IoT) attacks without the need for human intervention. Leveraging Artificial Intelligence (AI) and machine learning is necessary to keep pace with today’s advanced persistent threats.
DarkTrace’s AI takes intelligent and informed actions to isolate an attack within seconds - all without disrupting the City's critical IT systems and public services. DarkTrace has a proprietary cybersecurity system that not only detects but also intelligently defends against in-progress attacks in real-time.
DarkTrace's Enterprise Immune System is a fundamentally unique AI technology that detects and responds to cyber-threats in real time, while providing unprecedented visibility to active threats of the City's network, cloud, and email infrastructure.
The City was able to negotiate a price with Sable Computers, Inc. (dba KIS) that is lower than what is available through a cooperative purchasing arrangement, specifically the California Multiple Award Schedules (CMAS) contract, and satisfies the City’s purchasing bid requirements.
Other neighboring cities, specifically Richmond and Pittsburg, have employed DarkTrace to enhance their cyber-threat monitoring.
FISCAL IMPACT
This agreement is for a three-year term for $55,681.40 paid annually with the total cost not to exceed $167,044.20. Funding for this project is included in the Information Technology Budget for fiscal years 2024/2025 in the City Hall and Police Department Technology Funds. The Finance Division has confirmed that adequate funds are available to fund this request.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department.
The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the attached resolution authorizing the City Manager to execute a three-year agreement with Sable Computers, Inc. (dba KIS) for the purchase and implementation of DarkTrace for its managed detection and response cybersecurity service.
ALTERNATIVES TO RECOMMENDED ACTION
The City Council could reject the proposed action and provide direction to staff.
ATTACHMENT(S):
Proposed Resolution
Proposed Agreement
Prepared by: Ling King, Chief Technology Officer
Reviewed by: Ethan Bindernagel, City Manager
Approved by: Ethan Bindernagel, City Manager