HomeMy WebLinkAboutFIN-07-068 - T07-048 - Desktop Computers
Report To:
Mayor Carl Zehr & Members of Council
Date of Meeting:
2007 -06-11
Prepared By:
Larry Gordon
Date of Report:
2007 -06-05
Report No:
FIN 07-068
Subject:
T07 -048 Desktop Computers
RECOMMENDA TION
That tender T07-048, Desktop Computers, be awarded to Amsdell Inc., Richmond Hill, Ontario
at their tendered price of $111,360., plus optional upgrades of $5,920.., plus G.S.T. & P.S.T., and
further that Council authorize a contingency purchase of up to forty (40) additional computers,
including options, at current fair market price during the term of the contract.
BACKGROUND
Desktop Renewal Strate2V
Desktop computers are currently being upgraded on a five-year renewal cycle. We currently
have approximately 750 computers used as a business tool for City employees. We generally
aim to renew approximately one-fifth of this fleet on a yearly basis. This year we plan to renew
160 computers during the 2007 PC rollout project.
Desktop Contin2encv Plan
The purpose of the contingency amount is to ensure that we have a standard platform of PCs for
a period of time. This helps to reduce support costs (staff familiarity with hardware, dealing with
one vendor for repairs, etc). The contingency PCs will be used to provide upgraded PCs for
unanticipated reasons such as new staff hires, hardware failures, and required upgrades as a
result of new systems (IIMS replacement, Finance System, etc). The contingency PCs are most
often funded from various departmental or project budgets although some may be funded from
the Computer Reserve Fund as well.
Optional Hardware Up2rades
We have included the purchase of 160 Microsoft Optical Mice at a cost of $12. each. We have
also included the purchase of 160 Microsoft Comfort Curve Keyboards at $25. each. Optional
hardware upgrades amount to $5,920., plus P.S.T. & G.S.T., and has been incorporated into the
financial information.
REPORT
Tenders were requested from twelve (12) potential bidders, advertised publicly in The Record,
on the City of Kitchener website and the Ontario Public Buyers Electronic Tendering
Information System. By the closing date of Thursday May 3rd, 2007, four (4) tenders had been
received. The tenders were reviewed by D. Murray, Manager of Client Services, and S. Rudak,
Buyer who concurs with the above recommendation.
The following tenders were received:
Reason Computers
Amsdell Inc.
Ederick Associates Inc.
MDG Computers Canada Inc.
Burnsville, Minnesota, USA
Richmond Hill, ON
Mississauga, ON
Oakville, ON
$108,480.
$111,360. *
$116,320.
$119,840.
The low bidder, Reason Computers, did not meet specifications in the following areas and was
rejected. The bidder is not ISO 9001:200 registered in Assembly, Sales, and Servicing of
Desktop Computers. The bidder would subcontract the build and the servicing to a third party.
FINANCIAL IMPLICATIONS
Funding will be provided from index 338095 Computer Reserve Fund
FUNDING
Index 338095 at June 6, 2007
Additional Revenue Projected
TOTAL
$ 720,150.65
$ 396~841.52
$1,116,992.17
EXPENDITURES
Encumbrances
T07-048 inc. upgrades and taxes $133,699.20
Less G.S.T. ($ 7~036.80)
$126,662.40
$ 69,263.05
$ 126,662.40
Projected Expenses (Unencumbered)
Total Expenditures Projected
$ 377~049.56
$ 572,975.01
Projected Surplus
$544,017.16
The Computer Reserve Fund balance will be used to fund the ongoing renewal of the network
infrastructure, desktop computers and database servers as required.
The base price of a desktop cpu has dropped by approximately eighteen percent (18%) from the
previous tender.
Larry Gordon
Director of Purchasing
Purchasing Tender - Desktop Computers
Funded from Index 338095 - Computer Reserve Fund
$
Funding Sources
Current Balance 338095, as at June 6, 2007 720,150.65
Additional Revenue Projected 396,841 .52
Total Revenue Projected 1,116,992.17
Projected Expenditures
Tender Request 126,662.40
Existing Encumbrances 69,263.05
Projected Expenses (Unencumbered) 377,049.56
Total Expenditures Projected 572,975.01
Projected Surplus 544,017.16
Note: All amounts above are net of GST rebates.
C:\Documents and Settings\lindak\Local Settings\Temporary Internet Files\OLKB3\Financial Report for
6/7/2007 Recommendation.xls Jun607