DATE: November 6, 2018
SUBJECT:
Title
RESOLUTION AUTHORIZING PURCHASE ORDERS WITH DELL TECHNOLOGIES INC. AND INSIGHT PUBLIC SECTOR INC. IN AN AGGREGATE AMOUNT NOT TO EXCEED $1,400,000 FOR THE WORKSTATION REFRESH PROGRAM OVER THE NEXT FIVE YEARS, WITH A FIVE-YEAR TOTAL COST OF OWNERSHIP OF $1,400,000. FY2019 EXPENDUTURES ARE BUDGETED. FUNDS FOR FUTURE FISCAL YEARS WILL BE BUDGETED IN THE APPROPRIATE FISCAL YEAR, SUBJECT TO BOARD APPROVAL UPON ADOPTION OF EACH FISCAL YEAR’S BUDGET.
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EXECUTIVE SUMMARY:
The District currently employs approximately 700 workstations which take several forms including personal computers, laptops, and mobile terminals. Evolving technology requires that these computing devices be periodically refreshed to maintain compatibility with the software that end users need to use while conducting the District’s business.
Industry best practice encourages organizations to retire workstations somewhere between 3 and 5 years old. The District has currently standardized on both Microsoft and Dell manufactured workstations. Staff recommends the Board authorize purchase orders with Dell Technologies Inc., and Insight Public Sector Inc. to support the five-year costs of maintaining the Workstation Refresh Program.
RECOMMENDATION:
Recommendation
Adopt a Resolution authorizing purchase orders with Dell Technologies Inc., and Insight Public Sector Inc. in an aggregate amount not to exceed $1,400,000 for the Workstation Refresh Program over the next five years, with a total five-year cost of ownership of $1,400,000. FY2019 funds are budgeted. Funds for future fiscal years will be budgeted in the appropriate fiscal year, subject to Board approval upon adoption of each year’s fiscal budget.
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FISCAL IMPACT:
Funds for the first fiscal year of the Workstation Refresh Program are included in the FY 2019 budget within the Technology Management Program’s Equipment and Systems account. Funds required for future fiscal years will be budgeted in the appropriate fiscal year, subject to board approval upon adoption of each fiscal year’s budget.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A thriving and modern maritime seaport.
• A Port that is a safe place to visit, work and play.
• A Port with an innovative and motivated workforce.
DISCUSSION:
The District currently employs approximately 700 workstations which take several forms including personal computers, laptops, and mobile terminals. Constant evolving technology requires that these computing devices be periodically refreshed to maintain compatibility with the software that end users need to use while conducting the District’s business. This workstation refresh occurs on an annual basis and cycles the oldest workstations out by replacing them with newer devices. It provides a predictable process for retiring old technology and prevents technological obsolescence.
The threshold that determines when workstations are obsolete is a dynamic target that is guided by the increasing cost of maintaining older equipment and the level of risk and vulnerability introduced by older machines. These factors also vary greatly between manufacturers and types of equipment. Industry best practices encourage organizations to retire workstations somewhere between 3 and 5 years old.
The District has currently standardized on both Microsoft and Dell manufactured workstations which could also include, but is not limited to, peripherals such as monitors and docking/charging stations. Workstations purchased through Dell Technologies will leverage a cooperative agreement with the National Association of State Procurement Officials (NASPO) ValuePoint cooperative purchase program (Agreement Number MNWNC-108) through the State of Minnesota. This Agreement currently has a term of April 30, 2015 through March 31, 2020. Workstations purchased through Insight Public Sector Inc. will leverage the US Communities cooperative purchasing program (Agreement Number 440000664). This agreement currently has a term date of May 1, 2016 through April 30, 2021 and has the option to renew for two additional one-year periods.
The competitive requirements of Board of Port Commissioners’ Policy No 110 Section III. C.3.A.ii are met through these cooperative purchasing programs as authorized by section III.D of the same policy.
With an average cost per workstation of $2,000 (including monitors and peripherals), the total cost of ownership per year, over five years, is shown below. There is no external implementation, licensing, support, and maintenance costs for the Workstation Refresh Program, therefore the five-year total cost of ownership is as follows:
Staff recommends the Board adopt a Resolution authorizing purchase orders with Dell Technologies Inc. and Insight Public Sector Inc. for the Workstation Refresh Program.
General Counsel’s Comments:
The Office of the General Counsel has reviewed and approved this agenda as to form and legality.
Environmental Review:
The proposed Board direction or action, including without limitation, authorizing purchase orders for computer equipment does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
In addition, the proposed Board direction or action complies with Sections 21 and 35 of the Port Act, which allow for the Board to pass all necessary resolutions and to do all acts necessary and convenient for the exercise of its powers. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
The proposed Board direction or action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit Regulations. Therefore, issuance of a Coastal Development Permit or exclusion is not required.
Equal Opportunity Program:
Not Applicable.
PREPARED BY:
Chrissy Joslin
Senior Management Analyst
Information Technology