Title
Consider a memorandum/resolution authorizing the purchase of Cisco SmartNet support and maintenance using the Texas DIR-TSO-4167 contract, in an amount not to exceed $274,495.90.
Body
DATE: February 20, 2024
TO: Kent Cagle, City Manager
FROM: Willie Resto, Executive Director of Information Technology
SUBJECT: Authorize the Purchase of Cisco SmartNet Support and Maintenance
BACKGROUND AND FINDINGS:
The City of Killeen’s network is comprised of switches, routers, and security appliances used to provide reliable and secure network connectivity. This includes the City’s phone system which are a critical piece of support and provides firmware updates. We are using Cisco equipment as our network backbone, and this will allow us to keep patches and updates to ensure that our network is secure and in compliance with the Criminal Justice Information Systems requirements. The initial purchase of equipment provided a 12-month period of SmartNet support; this request is for a continuation of the support for the next 36 months. SmartNet service provides escalated assistance, emergency support, and software installs/updates for all Cisco systems and devices. Information Technology requested 36-month pricing plans from a Cisco reseller to attain the best pricing available. This quote is provided by Insight Public Sector through the Texas Department of Information Resources purchase program, a cooperative that satisfies the City’s bidding requirements pursuant to Texas Local Government Code section 271.102.
The cost of hardware equipment support and maintenance is $274,495.90 over a three-year period. The cost per fiscal year is indicated in the table below:
|
Payment Due Date |
Installment Payment |
|
03/15/2024 |
$91,498.64 |
|
03/15/2025 |
$91,498.63 |
|
03/15/2026 |
$91,498.63 |
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
Insight Public Sector is a preferred Cisco product reseller on the Texas Directory of Information Resources (DIR) TSO 4167 contract. Purchases made through a cooperative contract are exempt from the competitive bidding process as stated in Texas Local Government Code (TLGC) section 271.102, subchapter F; a local government that purchases goods or services under this subchapter satisfies any state law requiring the local government to seek competitive bids for the purchase of goods or services.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The amount of the expenditure for fiscal year 2024 is $91,498.64. Fiscal years 2025 and 2026 will be $91,498.63.
Is this a one-time or recurring revenue/expenditure?
The maintenance and licensing are annually recurring expenditures.
Is this revenue/expenditure budgeted?
Yes, funding is available in the Information Technology Internal Service Fund account 627-2705-419.61-40.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
Staff recommends that the City Council approve the purchase of Cisco SmartNet support and maintenance from Insight Public Sector in the amount not to exceed $274,495.90 using the Texas Department of Information Resources (DIR) TSO 4167 contract, and that the City Manager or designee be expressly authorized to execute any and all change orders within the amounts set by state and local law.
DEPARTMENTAL CLEARANCES:
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Quote
Contract Verification
DIR Summary
Presentation