HomeMy WebLinkAboutFIN-08-053 - T08-029 - Desktop Computers
Report To:
Mayor Carl Zehr & Members of Council
Date of Meeting:
2008-05-05
Prepared By:
Larry Gordon
Date of Report:
2007 -04- 22
Report No:
FIN 08-053
Subject:
T08-029 Desktop Computers
RECOMMENDA TION
That tender T08-029, Desktop Computers, be awarded to MDG Computers Canada Inc.,
Oakville, Ontario at their tendered price of $105,587.20., including P.S.T. & G.S.T., plus
optional upgrades of $3,616., including P.S.T & G.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 2008 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 $6. each. We have
also included the purchase of 160 Microsoft Comfort Curve Keyboards at $14. each. Optional
hardware upgrades amount to $3,616., including P.S.T. & G.S.T., and have been incorporated
into the financial information.
REPORT
Tenders were requested from eleven (11) 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 April 3rd, 2008, five (5) tenders had been
received. The tenders were reviewed by D. Murray, Manager of Client Services, and M. Palmer,
Buyer, who concur with the above recommendation.
The following tenders were received:
MDG Computers Canada Inc
Amsdell Inc.
Ciara Technologies Inc.
User Friendly Systems Inc.
Tigerdirect.ca Inc.
Oakville, ON
Richmond Hill, ON
Saint Laurent, PQ
Burlington, ON
Etobicoke, ON
$105,587.20 *
$112,819.20
$139,216.00
$143,826.40
$182,608.00
FINANCIAL IMPLICATIONS
Funding will be provided from index 338095 Computer Reserve Fund
FUNDING
Index 338095 at April 21, 2008
Additional Revenue Projected
TOTAL
$731,823.14
$614~532.86
$1,346,356.00
EXPENDITURES
Encumbrances
T08-029 including upgrades and taxes
Less G.S.T.
$19,480.74
$109,203.20
($ 4~832.00)
$104,371.20
$104,371.20
Projected Expenses (Unencumbered)
Total Expenditures Projected
$518~748.06
$642,600.00
Surplus
$703,756.00
The Computer Reserve Fund balance will be used to fund the upgrade and renewal of the many
components that make up the computing infrastructure at the City. In 2008, this will include a
significant purchase of LCD monitors to replace many of the aging CRT monitors currently in
use. The fund will also be used to purchase network infrastructure devices such as
switches/routers and files, application and database servers as required to keep the City's
information systems operating reliably.
The base price of a desktop CPU has dropped by approximately nineteen percent (19%) 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 April 21 , 2008 731 ,823.14
Additional Revenue Projected 614,532.86
Total Revenue Projected 1 ,346,356.00
Projected Expenditures
Tender Request (T08-029) 1 04,371 .20
Existing Encumbrances 19,480.74
Projected Expenses (Unencumbered) 518,748.06
Total Expenditures Projected 642,600.00
Projected Surplus 703,756.00
Note: All amounts above are net of GST rebates.
C:\Documents and Settings\lindak\Local Settings\Temporary Internet Files\OLKB3\Financiallnformation for
5/1/2008 Recommendation (3).xls April 08