Title
Resolution to Approve Contract with Sehi Computer Products, Inc. for Personal Computer Replacement and Deployment Services - ITB No. 3911 (Not to Exceed $363,342.00), Establish a Project Budget and a Supplemental Appropriation of Funds from the Information Technology Fund Reserves and a Budget amendment to FY2008 Information Technology Budget ($135,006.00) (8 Votes Required)
Memorandum
The attached resolution seeks authorization to execute a contract for personal computing equipment and services from Sehi Computer Products, Inc to replace 382 personal computers, including approximately 330 desktop and 52 laptops. Information Technology Services Unit is replacing existing computers that are off of warranty, power hungry, below minimum standards for current application loads, and are no longer capable of keeping up with employees' needs.
An Invitation to Bid, No. 3911, Personal Computer Replacement and Deployment Services was published on December 14th, 2007 and six responses were received by the Purchasing Unit on January 10th, 2008. The six bids were received and reviewed in detail and evaluated by the City's Information Technology Services Unit. The bids received covered the top three providers of personal computer equipment world-wide, including Dell, Hewlett Packard and Lenovo. The bid results are below:
Company |
Hardware Brand |
Final Bid |
*Sehi Computer Products, Inc. |
|
|
of Rochester Hills, Michigan |
Hewlett Packard |
$363,342 |
Hi-Tech System Services |
|
|
of Casco, Michigan |
Hewlett Packard |
$387,952 |
Technology Integration Group |
|
|
of Troy, MI and San Diego, CA |
Lenovo |
$395,694 |
Ricoh Americas Corporation |
|
|
of Southfield, MI and Atlanta, GA |
Dell |
$416,802 |
Dell Inc. of Round Rock, Texas |
Dell |
$428,246 |
Dynamic Edge of Ann Arbor, MI |
Dell |
$611,914 |
* Winning Bid
Sehi was selected as the lowest qualified bidder and also for their ability to meet the City's delivery schedule, with Hewlett Packard brand products. Contract pricing is per the Regional Educational Media Consortium contract, which Hewlett Packard provided Sehi access to for the bid. A project contingency amount of $36,658 is also budgeted.
The selected Hewlett Packard computers meet or exceed both Energy Star 4.0 and 80-PLUS energy efficiency requirements, reducing both overall energy usage and the amount of waste heat released into the environment. The desktop selected is also designated rated EPEAT Gold while the laptop rates EPEAT Silver.
Sehi will contract disposal of the City's old, surplus computers to Classic Computer Recovery, Inc who will be wiping the hard drives' data per Department of Defense specification including chain-of-custody specifications, documentation, and audit ability, and then reselling any equipment that can be re-used, returning any funds to the City.
In the FY2008, $264,994 was budgeted for the Personal Computer Replacements in the Information Technology Services Unit operating budget. A supplemental appropriation of funds from the Information Technology Fund Reserves and a budget amendment to FY2008 Information Technology Budget in the amount of $135,006 is required to accommodate the awarded response and address the current needs of the City.
Sehi Computer Products, Inc. received Human Rights and Living Wage Compliance, effective February 11, 2008.
We recommend that the attached resolution for the amount of $400,000 including a contingency amount of $36,658, be approved.
Staff
Prepared by: Phil Ristenbatt, Service Delivery Manager, IT Services Unit
Reviewed by: Dan Rainey, Director, IT Services Unit
Tom Crawford, Chief Financial Officer
Body
Whereas, The City's Information Technology Services Unit has identified 382 computers that are in need of replacement, due to age and technical obsolescence;
Whereas, Bids were solicited for personal computer replacement and deployment services on December 14, 2007 and six responses were received;
Whereas, After evaluation of all bids by ITSU it was determined that the lowest qualified bidder capable of meeting the requirements of ITB No. 3911 was Sehi Computer Products, of Rochester Hills, Michigan;
Whereas, The City has planned, approved and budgeted for significant personal computer replacements in FY2008;
Whereas, Sehi Computer Products, Inc., has received Human Rights and Living Wage Compliance, effective February 11, 2008.
RESOLVED, The City Council approve a contract with Sehi, Inc., for the purchase and deployment of personal computers for an amount not to exceed $363,342;
RESOLVED, That City Council establish a Project Budget in the amount of $400,000 inclusive of a contingency amount not to exceed $36,658 for change orders, if required;
RESOLVED, That City Council approve a supplemental appropriation of funds from the Information Technology Fund Reserves and a budget amendment to approved FY2008 Information Technology Budget in the amount of $135,006;
RESOLVED, That the Mayor and City Clerk are authorized and directed to execute the contract with Sehi, Inc. for services after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator is authorized to take all necessary administrative actions to implement this Resolution, including the authority to approve any change orders required within the approved contingency amount.