HomeMy WebLinkAboutFIN-20-024 - T20-093 Dell HardwareREPORT TO:Committee of the Whole
DATE OF MEETING:2020-05-11
SUBMITTED BY:Ryan Scott,Manager of Procurement,519-741-2200 ext. 7214
PREPARED BY:Brad Kowaleski,Procurement Specialist,519-741-2200 ext. 7063
WARD (S) INVOLVED:N/A
DATE OF REPORT:2020-04-29
REPORT NO.:FIN-20-024
SUBJECT:T20-093Dell Hardware
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RECOMMENDATION:
That Tender T20-093Dell Hardware, be awarded to Technology Integration Group,Kanata,
Ontario, at their tendered price of $639,722.84,plus H.S.T. of $83,163.97, for a total of
$722,886.81.
BACKGROUND:
Why this is critical to proceedahead: Standardization of server hardware used to
support critical services as well as projected cost savings.
Technology Innovation and Services (TIS) division purchases and manages computer
server hardware to provide technology services to the city such as file storage, database,
application servers and web servers. These technology services are critical to the operation of
AMANDA,PeopleSoft and GIS systems as well
as all the general computingneeds of City departments. This hardware has a planned five (5)
year lifecycle and must be replaced and upgraded to add capacity as computing needs continue
to grow.server storage system has only 8% capacity remaining.
In late 2019, when facing asignificantnumber of serversystems coming due for replacement,
TISconducted an assessmentof all serverhardware infrastructurewith the intent ofreducing
up-front capital costs and annual maintenance costs, improve operational efficiency of TIS staff,
improve business continuity capabilityand to further standardize server and storage hardware
where possible.Advances in server hardware technology and the use of server virtualization
software for all our systems allows us to achieve these goals.
The server hardware inthis tender includeshost computing servers, storage area network
systems, and required network hardwarefor both City Hall and KOF data centrelocations.The
were purchased in
2014. The storage system will be shared among all server systems at the City and will improve
performance and increase storage capacity.This system will also allow the City to performdata
replication of all critical systems to ensure we can meet business continuity objectives in the
***This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
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event of an interruption at either data centrelocation (e.g. fire, natural disaster, power loss).
There will be additional future purchasesto add capacity for growing server and storage needs
but these will be incremental upgrades to the existing server and storage platform.
Staff analysis of this proposed consolidated hardware approach has shownthatthis new
approach will lower our server hardware costs over the next five years by $298,000 and also
lower our maintenance costs over the 5year lifecycle by another $100,000.
Server hardware standardization will reduce costs, improve staff efficiency by allowing us to
quickly troubleshoot common problems, monitor capacity, perform quicker upgrades, and
improve business continuity capabilities.
REPORT:
Tenders were advertised publiclyonthe City of Kitchener website. Documents were downloaded
by ten(10) interested parties and by the closing date of FridayApril 17, 2020,two(2) tenders
had been received.
The following tenders were received:
Bid Price
Technology Integration GroupKanata,ON$722,886.81*
Central Technologies Services CorporationOakville, ON$ 1,923,618.76
The tenders were reviewed by C.Hassarajani,Manager, Digital Infrastructure and Support,who
concurswith the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
the delivery of core service.
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FINANCIAL IMPLICATIONS:
The net cost for this tender (A), is fair and reasonable for a project of this scope and the upset
limit is within the funding available (B) for this project. Funding for this project is included within
the approved capital budget. The estimated surplus will be closed out to the Technology
Infrastructure Reserve to fund future purchases.
T20-093
Dell Hardware
Estimated Cost for this Phase of Work
Proposal T20-093 costs, including HST
$ 722,866.61
less: HST rebate (83,163.97)
Net Cost Being Awarded 639,702.64 A
Projected Costs
Total Estimated Cost for this Phase of Work$ 639,702.64 C
Budget
Amanda Public Portal 50,000.00
Enhancements to SAP Capital Account 350,000.00
Technology Infrastructure Reserve 250,000.00
Total Budget $ 650,000.00 B
Estimated Surplus/(Deficit) for this Phase of Work (B -C) 10,297.36 D
Estimated Surplus/(Deficit) from previous phases -
Total Estimated Surplus/(Deficit) 10,297.36 E
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
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