Title
Resolution to Approve a Purchase Order to Dell Marketing L.P. for Replacing Server Equipment ($97,036.12)
Memorandum
Attached for your consideration is a resolution authorizing a purchase order to Dell Marketing L.P. for Server equipment replacement (seven servers and related accessories) for $97,036.12 plus a ten percent contingency ($106,739.73 total).
Fiscal/Budget Impact: This expenditure is planned for and budgeted in the FY2020 Information Technology Services Fund budget.
Dell servers will be procured under the MiDEAL Extended Purchasing Program, a program allowing use of state contracts to buy goods and services for Michigan Cities and other nonprofit entities. Dell, through agreements such as MiDEAL, has consistently provided the lowest price for servers and has been providing server equipment to the City of Ann Arbor for over fifteen years.
Information Technology utilizes software virtualization technology and Dell Servers to maximize the efficiency and effectiveness of the City’s data center by providing, performance, scalability and high availability for City operations within a virtual server environment.
Computing hardware advancements coupled with software virtualization technology allows the City to run a vast majority of mission critical systems (greater than 95%) within a virtual server environment, reducing operational costs and the total number of physical server acquisitions required.
The Dell Servers currently running the City’s virtual server environment are mission critical, nearing end of life, and require replacement. The City’s Technology Plan calls for the replacement of servers after five (5) years of service in accordance with industry best practice.
Five of these servers will be installed in our primary data center to provide central server computing capacity. Two of these servers will be installed at Wheeler Service Center to support Engineering Signs and Signals operations.
Attached for your review is the quote for equipment for $97,036.12. A contingency of 10% ($9,703.61) is being requested to cover any potential changes to components or accessories.
The accompanying resolution authorizes the creation of a purchase order to Dell in the amount of $97,036 plus a ten percent contingency ($106,739.73 total) for replacement of server equipment as described above.
Staff
Prepared by: Jennifer Grimes, Senior Infrastructure Lead, Information Technology
Reviewed by: Tom Shewchuk, Director, Information Technology and Tom Crawford, Financial Services Area Administrator and CFO
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The Dell Servers currently running the City’s server virtualization environment are mission critical, nearing end of life, and require replacement;
Whereas, Dell has provided mission critical server equipment to the City of Ann Arbor for over fourteen years through competitive pricing agreements such as MiDEAL;
Whereas, The attached quote was procured through the MiDEAL cooperative purchasing arrangement in accordance with City Code section 1:316(2); and
Whereas, Funding for this expenditure is planned for and budgeted for in the FY2020 Information Technology Budget;
RESOLVED, That City Council approve a purchase order to Dell Marketing L.P. for the attached quote, as a supplier of mission critical server equipment in the amount of $97,036.12 from the FY2020 Information Technology Budget;
RESOLVED, That the City Council approve a ten percent (10%) contingency to be expendable from the FY20 Information Technology Server Replacement Plus Storage project budget, subject to City Administrator approval; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this Resolution, including execution of any changes or amendments that do not exceed the contingency amount.