Title
Consider a memorandum/resolution authorizing the procurement of computer hardware from GTS Technology Solutions in an amount not to exceed $299,807.93.
Summary
DATE: May 17, 2022
TO: Kent Cagle, City Manager
FROM: Willie Resto, Executive Director of Information Technology
SUBJECT: Procurement of Computer Hardware
BACKGROUND AND FINDINGS:
Many departments’ computers have exceeded their useful life (average 8 years) and have become inefficient in performing normal functions. These resources will wear, age, and become obsolete, causing performance degradation and an excessive need for support and repair. This results in a loss of reliability and productivity for staff and an increase in labor and equipment costs to maintain the environment at an acceptable level. While technology changes rapidly, these older computers eventually stop working and staff will not be able to locate compatible hardware needed for repairs.
Employees rely heavily on computers for their daily functions and slow computers hinder their efficiency. Moreover, new software requirements will not be compatible with the aged computers. To manage these issues, staff has implemented a cost-effective five-year replacement plan to upgrade the aged equipment.
THE ALTERNATIVES CONSIDERED:
1. Discontinue repairs and maintenance to existing computer hardware.
2. Authorize the purchase of computer hardware from GTS Technology Solutions using the Texas Department of Information Resources (DIR) contract TSO 3763R not to exceed $299,807.93.
Which alternative is recommended? Why?
Authorize the purchase of computer hardware from GTS Technology Solutions using the Texas DIR contract TSO 3763R not to exceed $299,807.93.
CONFORMITY TO CITY POLICY:
The Information Technology Department is seeking approval to purchase computer hardware from GTS Technology Solutions through the Texas DIR purchasing cooperative contract. Purchases made through a cooperative contract are exempt from the competitive bidding process as stated in the 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 expenditure in the current fiscal year? For future years?
Computer hardware and software purchases are projected to be $299,807.93. Future year projections will vary and are anticipated to exceed $50,000.
Is this a one-time or recurring expenditure?
This is a recurring expenditure.
Is this expenditure budgeted?
Yes, funds are available in the Information Technology Internal Service Fund account 627-2705-419.46-40.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
Staff recommends that City Council approve the procurement of computer hardware from GTS Technology Solutions using the Texas DIR contract not to exceed $299,807.93 and that the City Manager or designee be authorized to execute any change orders as permitted by state and local law.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Quote
Certificate of Interested Parties