Approval is requested for the award of a contract to Dell Computer Corporation of Round Rock, Texas, for the purchase of 320 personal computers with installed software and peripherals for the Information Technology Department (ITD).

The City currently has IBM-compatible personal computers using Microsoft Windows 95 operating system and connected to Novell 4.x network servers to access desktop applications. The IT Department is in the process of upgrading the operating system from the Windows 95 platform to the Windows NT 4.0 system which requires the replacement of the equipment.

The City currently uses a majority of computer systems that have inadequate processors and memory for the NT operating system. In most cases, the existing motherboards in the PCs do not support faster processors or the voltage required by the faster processors. In addition, the old style 72-pin memory modules are difficult to find and are very expensive. The minimum memory requirement for applications used by the City is now 128 MB RAM, and the minimum processor speed is 200 MHz. Therefore, it is not cost effective to upgrade the memory on systems that cannot support a faster processor.

There are several IBM-PC clones available. IT staff request that the City standardize on one particular brand which will make it possible to quickly configure new PCs by using imaging software. Certain repairs could also be completed in minutes instead of hours by using the same imaging software. This is not possible if several types of PCs are in use since the imaging software is unique to the type of PC. Standardization on one brand will allow cost effective stocking, standardized documentation and training, and the ability to share components among systems. If upgrades are required, standardizing on one PC will allow for cost effective, quick and easy upgrades.

The personal computers provided by Dell Computer Corporation have proved to be reliable computer systems. Dell’s prices are very competitive and deliveries have been as scheduled without any delays. Dell also provides a 3-year next business day on-site warranty which is a benefit to the City.

On November 1, 1998, the Department of General Services awarded a California Multiple Award Schedule (CMAS) contract to Dell Computer Corporation. Included in this contract are Dell personal computers, desktops, laptops, monitors, printers, network systems, workstations and software.

In the past several months, the Purchasing Division has solicited informal quotations each time a purchase requisition was generated by ITD for the purchase of a limited number of Dell personal computer equipment. Dell Computer has consistently been the low bidder by providing CMAS pricing.

Because CMAS contracts are not competitively bid, Purchasing recently conducted an informal survey of pricing available from other sources for 320 Dell personal computers, peripherals and installed software. Due to the large volume purchase, Dell provided a discount which was better than the CMAS pricing. Dell’s pricing was $35,736 less than their competitors. Dell is also offering to install the PCs free of charge. Ordinarily, there is a $109 charge per PC for this service. This increases the cost savings to the City by $34,880 for a total savings of $70,616 below their competitors.

Section 2.08.030 of the Municipal Code exempts from competitive bidding those situations where calling for bids, in the opinion of the City Manager, is impracticable, unavailing or impossible. In this case, calling for bids would be unavailing because the City’s past experience and a recent pricing survey has shown Dell’s contract pricing to be lower than the prices of other sources offering Dell equipment.

Total cost to the City will be $655,000. Funds are available in the Information Technology Department’s Account #021100-5050.

It is recommended that Council award a contract in an amount not to exceed $655,000 to Dell Computer Corporation of Round Rock, Texas, for personal computers, peripherals and installed software and authorize the Purchasing Officer to issue a purchase order to that effect.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary Bradley
Director of Finance

Reviewed by:

Shawn Hernandez
Director of Information Technology

Approved by:

Robert S. LaSala
City Manager