CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 3 Section Name: {{section.name}} Account Number: 10-6611 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Information Technology Department
MEETING DATE: January 02, 2024
SUBJECT:
Library Personal Computer Replacements – Purchase
RECOMMENDATION:
Adopt a Resolution to approve an alternative purchasing procedure and approve a Master Purchasing Agreement with Lenovo Inc. for the purchase of personal computers for the City’s libraries in an amount not-to-exceed $93,074.86; establish a contingency reserve in the amount of $13,961.23, for a total amount of $107,036.09; and authorize the Director of Information Technology to execute the agreement in substantially the form presented and issue change orders within the contingency amount.
BACKGROUND:
The City’s personal computer (PC) replacement strategy is to replace PCs after five years of service to mitigate maintenance issues and support problems, and to keep equipment within industry standards. The PC replacement fund is based on this amortization schedule with approximately 60 PCs currently identified as due for replacement for the City’s libraries.
On November 20, 2023, Council approved the previous cycle of PC replacements. A not-to-exceed purchase agreement with a preferred vendor was also approved, providing benefits over a fixed bid purchase for Lenovo brand PCs. This purchase agreement represents a continuation of these established PC replacement purchasing practices.
Staff obtained the quotation for the proposed purchase through a national government purchasing cooperative known as the National Cooperative Purchasing Alliance (NCPA). NCPA contracts allow participants to pay less through competitively solicited, evaluated, and awarded contracts that leverage the cooperative buying power of local government agencies.
During this process, a lead agency issued a Request for Proposals for the establishment of a Master Agreement, and vendors are selected through a competitive process. Lenovo Inc. (Lenovo) is a participating vendor under NCPA contract # 01-146. A quotation from Lenovo is provided for reference as Attachment 3. The continued use of Lenovo products is recommended due to Lenovo’s customer support and service quality, efficient warranty and replacement policy, and because Lenovo products have proven to be of high quality, stable and reliable, with a low hardware failure rate. In addition to the Lenovo quote, staff recommends a 15 percent contingency reserve to account for changes in PC models during the replacement cycle or any unforeseen changes in departmental needs.
Municipal Code section 3.60.070(h)(3) provides that the City may use any purchasing procedures approved by the City Council if the City Council makes a finding concurrent with the award of the contract that the procedures are in the best interest of the City. The NCPA procurement service offers competitively priced contracts for goods and services, avoiding costs normally associated with the development of highly technical bid specifications, while assuring that competitive prices were received. Based on the above, staff recommends approving the purchase of 60 PCs pursuant to the Master Purchasing Agreement with Lenovo for an amount not to exceed $93,074.86 and a contingency reserve of $13,961.23, for
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a total amount of $107,036.09.
BUDGET IMPACT:
Funds have been accrued and are available through the Computer Replacement Fund for this purchase. The total amount of the purchase will be an amount not-to-exceed $107,036.09.
ENVIRONMENTAL DETERMINATION:
This Council action is not a project subject to CEQA, because it can be seen with certainty that there is no possibility the purchase of replacement personal computers may have a significant effect on the environment. (CEQA Guidelines Section 15061(b)(3).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Proposed Resolution
Att 2 - Master Agreement
Att 3 - Lenovo Inc. pricing quote
STAFF CONTACT
Curtis Joe, Customer Service Manager
[email protected]
(650) 522-7075
Pete Owen, Director, Information Technology
[email protected]
(650) 522-7074