SUBJECT/RECOMMENDATION:
Title
Award a contract (purchase order) to lease desktop and laptop computers for three years from Hewlett-Packard Financial Services Company, Murray Hill, NJ for an amount not to exceed $1,125,000 in accordance with Sec. 2.564(1)(d) Code of Ordinances, under State Contract 250-WSCA-10-ACS; and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The City has leased computers for nine years. The benefits of leasing include operational savings for asset acquisition and maintenance, improved efficiency in user support and asset management, improved security for City systems and network, and improved performance for system users and employees.
This term of leasing includes all desktop (~1,250) and laptop (~350) computers within the City. The cost of this lease term is 8% higher than the previous term (2011-2014). The City's computers are upgraded over a 3-year cycle at approximately 33% per year.
Costs in the initial year (2014/2015) of the contract will be approximately $325,000. The maximum annual costs for this lease term will be approximately $400,000 in the second and third years.
This agreement includes a value added enhancement. Self-Maintainer Program which enables City staff to be trained at no additional costs to function as Hewlett-Packard certified technicians to expedite diagnostic and resolution actions (Hewlett-Packard tracks and pays (reimburses) for these services for every 15 minutes of work performed).
Quarterly payments will be budgeted in the Information Technology annual operating budget, and costs prorated to all departments based upon their respective computer counts, through the Administrative Services Fund charge back for Information Technology services.