City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-02235 1/17/2023 Consent Item 5.
Cooperative Agreement: Purchase and Implementation of Unified Endpoint Management Software [Published for 10-Day Review on 1/5/2023]
File ID: 2022-02235
Location: Citywide
Recommendation:
Pass a Motion authorizing the City Manager or the City Manager’s designee to: 1) approve the use of cooperative purchasing agreements with the California State Contract 7-15-70-34-00 (and amendments)/EMC/WSCA/NASPO Cooperative Purchase Agreement MNWNC-108 for the purchase of VMware Unified Endpoint Management (UEM) software products, maintenance and subscription services; 2) execute a software license and subscription agreement to purchase VMware UEM software, maintenance and subscription services with AHEAD (DBA: Kovarus, Inc.), an authorized software reseller under the cooperative purchase agreement listed above, for a five year term for an annual amount not-to-exceed $322,000 per year and a total contract amount not-to-exceed $1.61 million.
Contact: Kirk Rexin, IT Manager, [email protected], (916) 808-7909, Cassy Vaioleti, Program Specialist, [email protected], (916) 808-8047, Darin Arcolino, Assistant IT Director, [email protected] , (916) 808-0403; Maria MacGunigal, Chief Information Officer, [email protected], (916) 808-7998, Information Technology Department.
Presenter: None
Attachments:
1-Description/Analysis
2-Software License & Subscription
Additional Description/Analysis
Issue Detail: The Information Technology (IT) Department has a need to UEM software to effectively manage over 8,000 end-user devices throughout the organization as the how, when and where City staff works has and continues to fundamentally change. Staff uses different form factors, applications, and hardware that are no longer tethered to their desks. The challenge is that traditional management tools (legacy tools) have not kept up. Our current computer and mobile device management systems are fragmented across multiple systems and domains (City, Police, and Fire).
File ID: 2022-02235 1/17/2023 Consent Item 5.
In the case of Personal Computer (PC) lifecycle management, it is difficult to manage devices and security using legacy tools. UEM tools are necessary for securely managing mobile and traditional endpoints, maintaining continuity of end-user computing operations, and delivering seamless IT administration in the era of expanded remote work.
In addition, COVID19 mandates over the past two years have required a fundamental change to the way the city does business with IT experiencing a 30% increase in workload overall and up to 80% in specific to meet the critical business needs of all departments, Citywide, business units have been forced to accelerate and transform their business operations into digital services ultimately creating operational efficiencies for both the business lines and customers.
The purchase of VMware Workspace One will be made through the California State Contract 7-15-70 -34-00 (and amendments)/EMC/WSCA/NASPO Cooperative Purchase Agreement MNWNC-108 with Ahead for an amount not-to-exceed $1.61 million for software and subscription services.
Policy Considerations: The recommendations in this report are in accordance with City Code: 1) section 3.56.240 which authorizes the City Manager, where advantageous to the City, to utilize cooperative purchasing agreements to purchase supplies or nonprofessional services through contracts of other governmental jurisdictions or public agencies without separate competitive bidding by the City; 2) section 3.56, Purchasing of Supplies and Services; and 3) section 3.56 and 3.64 concerning Council approval of agreements that are $250,000 or more.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on January 5, 2023, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations: No environmental review is necessary because the recommendations in this report involve the purchase of IT goods and services which are not considered to be a “project” as proscribed in California Environmental Quality Act Guidelines, (“CEQA”). (CEQA Guidelines section 15378(b)(2).)
Sustainability: This proposed purchase is consistent with the Information Technology Digital Strategy as it improves reliability; it is scalable and maintainable, which will enhance the ability to provide a secure and flexible environment for dynamic on/off site work it needs.
Commission/Committee Action: Not applicable.
File ID: 2022-02235 1/17/2023 Consent Item 5.
Rationale for Recommendation: Current IT legacy management systems are insufficient to meet the current and future demands, and maintenance of these systems requires extensive IT resources to sustain and support. Increased IT investments such as UEM are needed to support existing mission critical functions and the continued expansion and reliance on IT to support and enhance all city functions.
Financial Considerations: This is a five-year agreement with an annual not-to-exceed amount of $322,000 per year and a total contract amount not-to-exceed $1.61 million. Sufficient funding exists for the licensing and subscription expenditure in the Citywide IT Maintenance and Support. Contract extensions for subsequent years will only be approved if sufficient funding is available in the approved budget for the applicable fiscal years.
Local Business Enterprise (LBE):
The City’s LBE program does not apply to cooperative purchasing agreements that result from another public agency’s competitively bid process.
Ahead, Inc. which will do business in the state of California as Kovarus, Inc. Ahead Client Director: Ahead Quote Number 401 Michigan Avenue Bob Jamieson AHD2021136646 - 9
Suite 3400 (650) 823-9302 Reference Number:
Chicago, IL 60611 [email protected]
Shipping Address:
City of Sacramento
915 I Street FLOOR 3
Sacramento CA 95814
Quote Date:
12/8/2022
Billing Address: Client Operations Specialist Expiration Date:
Cheryl Strong 1/26/2023
City of Sacramento (402) 304-0536
915 I St. [email protected] Contract Number:
Sacramento CA 95814
916.808.8842
MNWNC-108
PA# 7-15-70-34-00
MPA: Expiration Date:
2/28/2023
Payment Terms: Contract Link:
Net 30 https://www.dell.com/en-
us/dt/industry/state-local-
government/contracts/naspo-
computer/california.htm
QTY Part Number Description Unit Price Extended Price
Maintenance 15343 AA995822 VMWARE-ELA Includes: $94.50 $1,449,913.50 5650 - Workspace ONE Desktop Essentials, Device-Based, Production Support, 5 Year Term 2650 - Workspace ONE Mobile Essentials, Device-Based, Production Support, 5 Year Term 8300 - Workspace ONE Assist Add On, Device-Based, Production Support, 5 Year Term Maintenance 1 AC326734 IB Renewal - vCenter Server Standard for vSphere 8 (Per Instance), 1 Year (5 Year Co-Term) - Qty $13,525.60 $13,525.60 Maintenance 1 AC326720
9.0625 to Co-Term to Jan 31, 2028
IB Renewal - vSphere Standard for 1 processor, 1 Year (5 Year Co-Term) - Qty 54 to Co-Term to $18,510.66 $18,510.66 Jan 31, 2028
Maintenance 1 AC326716 IB Renewal - vSphere Enterprise Plus for 1 processor, 1 Year (5 Year Co-Term) - Qty 136.875 to $125,092.80 $125,092.80 Co-Term to Jan 31, 2028
Total Investment: $1,607,042.56
1. Same annual cost for additional Workspace ONE Essentials and Assist licenses throughout the 5-year ELA when purchased through AHEAD. a. Workspace ONE Essentials Desktop License = $33.72/yr b. Workspace ONE Essentials Mobile License = $25.68/yr
c. Workspace ONE Assist License = $3.78/yr
2. Total cost for additional Workspace ONE Essentials and Assist licenses will be prorated to end of the ELA 5-year term.
3. An Option to purchase a 3-year renewal is available at the end of the 5-year ELA term.
4. The annual cost of the 3-Year Renewal Option will be capped at a 5% on price increase of the annual cost of the 5-year ELA Annual Payment Solution:
1. Customer MUST insert the following on its associated Purchase Order (PO):
“Quote # AHD2021136646 – 9, dated 12/08/2022, with all terms and conditions, is hereby incorporated by reference in this PO. The PO and Quote shall supersede all previous Quotes for this opportunity. Any additional purchase order terms and conditions applicable to this PO shall apply only to Vendor or Contractor and not to the payment commitment to DFS contained in the Quote. Customer will remit all Payments to P.O. BOX 5292, Carol Stream, IL 60197 -5292.”
2. This Quotation is a sale of goods and is not a services contract. Customer’s purchase order must be received by AHEAD no later than 01/26/2023 .
3. Acceptance of the products stated on this Quotation shall occur upon receipt.
4. Failure to make any one payment will require Customer to discontinue using all Software licenses and certify it has uninstalled and is no longer using the Software or related services on this Quotation. Early termination by Customer is only permitted in the event that fiscal funding is eliminated for the project with which the above products are associated. Furthermore, termination for lack of fiscal funding may only occur at the annual anniversary date of this Quotation. Customer agrees that continued use of this Software after declaring a non-appropriation will require Customer to continue to pay for the Software, so Customer does not violate the Takings Clause of the US Constitution and other applicable state and local laws.
5. The total purchase price for the items set forth above shall be payable in the following periodic payment installments (each a "Due Date" and each installment amount a "Payment") as outlined below. Payment must be received by the due date or a late fee will be assessed in accordance with any applicable prompt payment act. AHEAD assigns its rights to the Payments and any applicable late charge hereunder to Dell Financial Services L.L.C. ("DFS") and DFS may invoice Customer for the Payments, and Customer shall make Payments to DFS in accordance with these provisions.
All Payments s hall be made to AHEAD, PAYMENT PROCESSING CENTER, P.O. BOX 5292 Carol Stream, IL 60197-5292.
6. Customer agrees that notwithstanding anything in the Agreements, DFS and its successors and assignees may at any time and without notice further assign the Payment, in whole or in part.
Payment Amount Payment Due Date
$321,408.52 03/01/2023
$321,408.51 03/01/2024
$321,408.51 03/01/2025
$321,408.51 03/01/2026
$321,408.51 03/01/2027
DocuSign Envelope ID: 467931E9-5A63-4605-87FC-B4F43264AC86
DocuSign Envelope ID: 467931E9-5A63-4605-87FC-B4F43264AC86
AHEAD, INC
Director of Sales Operations
Jeremy Brown
Cassy Vaioleti (Dec 29, 2022 12:21 PST)
Audreyell A Anderson (Jan 4, 2023 11:46 PST)
Sr. Deputy City Attorney