December 6, 2022, Item #7
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT CityofPoway
December 6, 2022
Honorable Mayor and Members of the City Council
Aaron Beanan, Director of Finance ·~Q,,. k'M ~
Brad Rosen, Assistant Director of Finance Operations -~ (858) 668-4452 or [email protected]
CITY COUNCIL
Replacement of Citywide Network Switches and Appropriation of Funds Network switches are needed at City facilities to provide network connectivity for servers, computers, Wi-Fi hardware, cameras and other network attached equipment. Annually, as part of the City's Capital Replacement program, the City collects "rent" to be used to cover the eventual replacement costs of City equipment. The Capital Replacement Budget includes partial funding for the purchase and replacement of 26 network switches. Additional funding is needed for these replacements due to increased hardware manufacturer costs and additional requirements as detailed in the discussion section below. It is recommended the City Council approve the purchase of 26 network switches and associated components. The total estimated purchase price for the hardware including sales tax is $342,937.
Recommended Action:
It is recommended the City Council appropriate funds in the amount of $165,809 for the purchase of 26 network switches and associated components for a total estimated cost of $342,937 and authorize the City Manager to execute any necessary documents.
Discussion:
The City maintains network switches at all City facilities to provide connectivity to servers, computers, Wi-fi hardware, video cameras and other network attached devices. The City's Information Technology maintenance program plans for these devices to be replaced every five to seven years or when they reach end-of-support as determined by the manufacturer. Except for three switches, which are five years old, the remaining switches are currently seven years old. Additionally, the City has been notified by vendors that equipment delivery may be delayed due to global constraints on technology hardware. As such, existing devices will be even older at time of actual replacement.
The City issued a Request for Quotes (RFQ) on November 1, 2022 and received four quotes from Hewlett Packard Enterprise (HPE) authorized resellers. One quote was determined to be non responsive as it did not properly quote all the products required. Per the RFQ, the City has the ability 1 of 6
December 6, 2022, Item #7
to modify the counts of any of the line items included in the RFQ. The table below details the total price quotes from vendors for the items staff is recommending for purchase.
Vendor Quote*
Nth Generation Computing, Inc. $342,937.00
Newport West Technology Group $479,735.33
Technologent $524,034.00
Insight Public Sector Non-Responsive
*Includes reduced quantities from RFQ & sales tax
The Capital Replacement Budget includes partial funding for the purchase and replacement of 26 network switches. Rent collected on the existing devices was based on the technology available at that time and additional funding is needed due to the following factors:
a) Significant cost increases in the past few years for technology hardware. b) Enhanced hardware redundancy including dual power supplies for each switch. c) Future proofing hardware that can handle higher network speeds and connected device power requirements.
d) Most current models that will meet the five-to-seven-year expected lifespan and are not approaching end-of-life in the near future.
After evaluation of the quotes, staff is recommending the purchase of the replacement network switches from Nth Generation, Inc. who provided the lowest price for this hardware.
Environmental Review:
This action is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
The total cost to replace 26 network switches and associated components is $342,937. A total of $149,676 (115010-61212) has been collected in replacement rental charges and $27,452 (113010-61212) was included in the Fiscal Year 2023 budget for this purchase. When sufficient funds have not been set aside through the City's asset management replacement charges, the requesting department funds the difference. This helps ensure the financial sustainability of the replacement funds. Future year's asset management replacement charges will be based on-the new purchase price and will begin being collected next year.
As such, staff requests Council authorization to appropriate $165,809 to 113010-61212 (Information Technology -Computer Hardware) for the purchase or 26 network switches and associated components. Funding is available in the General Fund Unassigned Fund Balance (Fund 100) for the purchase of the network switches.
Public Notification:
None.
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December 6, 2022, Item #7
Attachments:
A. Nth Generation, Inc. Quote to the City of Poway
Reviewed/Approved By:
Wend aserman
Assistant City Manager
3 of6
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
Chri~
City Manager
December 6, 2022, Item #7
~h
,.,,.G-ENERATION
Account Manager: Carol Herr
Inside Sales: Mifi Stewart
Email Orders To: [email protected]
Project #: 112754 Quote Date: 11/17/2022
Quoted to:
Brad Rosen
City of Poway
13325 Civic Center Drive
P.O. Box 789
Poway, CA 92064-0789
Ship to:
Email: [email protected]
Email: [email protected]
Phone: 858-451-2383x172
Quote Expires: 12/17/2022 Quote#: 154329
Aruba Network Switch Solution with 4 years of support
HPE Aruba 24 Port Switches
JL660A 3 Aruba 6300M 24SR5 CL6 PoE 4SFP56 $8,174.00 $24,522.00 y Swch
JL670A:ABA 6 Aruba X372 54VDC 1600W PS U.S. -$1,077.00 $6,462.00 y English localization
$30,984.00
HPE Aruba 40 Port Switches
JL659A 23 Aruba 6300M 48SR5 CL6 PoE 4SFP56 $9,326.00 $214,498.00 y Swch
JL670A:ABA 46 Aruba X372 54VDC 1600W PS U.S. -$1,077.00 $49,542.00 y English localization
$264,040.00
HPE zl2 Module
J9993A 3 HP 8p 1 G/1 0GbE SFP+ v3 zl2 Mod $2,995.00 $8,985.00 y 17055 Camino San Bernardo, San Diego,CA 92127 858-451-2383 nth.com Page 1 of 3 4 of6 ATTACHMENT A
December 6, 2022, Item #7
a#th
.IJITG-ENERATION
Account Manager: Carol Herr
Inside Sales: Mifi Stewart
Email Orders To: [email protected]
Project#: 112754 Quote Date: 11/17/2022
Quoted to:
Brad Rosen
City of Poway
13325 Civic Center Drive
P.O. Box 789
Poway, CA 92064-0789
Ship to:
Email: [email protected]
Email: [email protected]
Phone: 858-451-2383x172
Quote Expires: 12/17/2022 Quote #: 154329
Aruba Network Switch Solution with 4 years of support
I PART# ---~ -----------QTY DESCRIPTION UNIT PRICE -Eif -PRIC~X $8,985.00
HPE DAC Cables & Transceivers
R0M46A 11 Aruba 50G SFP56 to SFP56 0.65m $177.00 $1,947.00 y DAG Cable
R0M47A 1 Aruba 50G SFP56 to SFP56 3m DAG $265.00 $265.00 y Cable
J9150D 25 Aruba 1 0G SFP+ LC SR 300m MMF $482.00 $12,050.00 y XCVR
$14,262.00
17055 Camino San Bernardo, San Diego,CA 92127 858-451-2383 nth.com Page 2 of 3 5 of6
December 6, 2022, Item #7
a#th
,,,.G-ENERATION
Account Manager: Carol Herr Email: [email protected]
Email: [email protected]
Phone: 858-451-2383x172
Inside Sales: Mifi Stewart
Email Orders To: [email protected]
Project#: 112754 Quote Date: 11/17/2022 Quote Expires: 12/17/2022 Quote #: 154329 Quoted to:
Brad Rosen
City of Poway
13325 Civic Center Drive
P.O. Box 789
Poway, CA 92064-0789
Ship to:
Aruba Network Switch Solution with 4 years of support
Quote Subtotal
Tax Rate 7.750%
Est. Shipping *
Payment Terms
$318,271.00
$24,666.00
UNDER REVIEW
TOTAL DUE $342,937.00
* Thank you for allowing Nth Generation to provide you with the above quotation. Charges for Shipping and insurance will be additional. If you require an estimated shipping cost prior to issuing a purchase order, please contact your sales or inside sales rep. This quotation is the sole property of Nth Generation Computing, Inc. and is intended as an offer to sell goods and services to the client named in this quote. This document may not be reproduced, or provided to parties outside this organization, without written consent of Nth Generation Computing, Inc.
Remit to: Same Address
DUNS#: 78-1123211
Federal ID#: 33-0451285
CAGE Code: 0YVL 1
FOB: Destination
Ship Via: Fedex Ground/UPS/ Your designated carrier
Terms: Net 30 (On Approved Credit)
17055 Camino San Bernardo, San Diego,CA 92127 858-451-2383 6 of6
nth.com Page 3 of 3