DATE: April 12, 2022
SUBJECT:
Title
RESOLUTION SELECTING AND AUTHORIZING AN AGREEMENT WITH Nth GENERATION COMPUTING, INC, FOR VMWARE VCLOUD SUITE SOFTWARE SUBSCRIPTION, IN AN AMOUNT NOT TO EXCEED $182,404.00, AND AUTHORIZING SUBSEQUENT SUBSCRIPTION LICENSE RENEWALS. FY22 EXPENDITURES ARE BUDGETED IN THE DISTRICT’S ECONOMIC RECOVERY PROGRAM CAPITAL OUTLAY APPROPRIATED ITEM AND EXPENDITURES FOR FUTURE SUBSCRIPTIONS WILL BUDGETED IN THE APPROPRIATE FISCAL YEAR’S BUDGET, SUBJECT TO BOARD APPROVAL UPON ADOPTION OF EACH FISCAL YEAR’S BUDGET.
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EXECUTIVE SUMMARY:
The District’s enterprise server environment uses virtualization technology as part of its standard set of operations. This technology allows the District to extend the life of the hardware as well as reduce the physical footprint and power requirements of the datacenter. The District relies on VMware technology to provide these services.
Incorporating a monitoring solution delivers intelligent operations management, with application-to-storage visibility across the virtual infrastructure. Any performance degradation or unavailability of those servers can severely impact the entire business infrastructure resulting in outages and loss of productivity. This tool is essential for IT to identify the root cause of an issue and receive proactive alerts and recommendation for remediation. It will allow staff to implement policy-based monitoring and compliance enforcement.
The District issued Request for Bids number 21-35SN-R (RFB No. 21-35SN-R) on January 13th, 2022, and allowed for a two week submission period. The District publicly posted the request for bids and it was engaged by 14 bidders. Nth Generation was found to be responsive, responsible, and the lowest bidder.
This equipment is funded through the District’s Economic Recovery Program Capital Outlay Appropriated item.
RECOMMENDATION:
Recommendation
Adopt a Resolution authorizing an agreement with Nth Generation Computing, Inc, for VMware vCloud Suite Software Subscription, in an amount not to exceed $182,404.00, and authorize subsequent subscription license renewals, with a five-year total cost of ownership of $617,820.00.
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FISCAL IMPACT:
Funds for this expenditure are budgeted in the Economic Recovery Program Capital Outlay.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A thriving and modern maritime seaport.
• A Port with a healthy and sustainable bay and its environment.
• A Port that is a safe place to visit, work and play.
• A Port with an innovative and motivated workforce.
• A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
The District’s enterprise server environment uses virtualization technology as part of its standard set of operations. This technology allows the District to extend the life of hardware as well as reduce the physical footprint and power requirements of the datacenter. The District relies on VMware technology to provide these services.
The current VMware environment has never incorporated a monitoring solution, which poses several issues for District staff trying to proactively manage this virtualization. Typically, monitoring solutions track resource utilization and performance like CPU and memory across an array of machines in real time. They also provide essential statistics regarding the health of the virtual environment allowing dashboard views of current and historical performance for optimization analysis. Perhaps most importantly, these tools provide alerts for aberrant behaviors allowing staff to respond more quickly.
Incorporating a monitoring solution delivers intelligent operations management, with application-to-storage visibility across the virtual infrastructure. Any performance degradation or unavailability of those servers can severely impact the entire business infrastructure resulting in outages and loss of productivity. This solution will allow staff to implement policy-based monitoring and compliance enforcement.
The District issued Request for Bids number 21-35SN-R (RFB No. 21-35SN-R) on January 13th, 2022 where Nth Generation Computing, Inc. was the lowest bidder. The initial subscription agreement is for two years and funded through the District’s Economic Recovery Program Capital Outlay appropriated item. Subsequent subscriptions, if exercised by the District,are estimated in the below Total Cost of Ownership table and include a 19% increase in year 3 to account for expected increased licensing demands. Funds required for future fiscal years will be budgeted in the appropriate fiscal year's budget, subject to board approval upon adoption of each fiscal year's budget.
Procurement Details:
The District issued RFB No. 21-35SN-R on January 13th, 2022 and allowed for a 14 business day submission period, closing on February 1st, 2022. The District publicly posted the request for bids using the following Category and Commodity Codes:
1. 20447 - Integrated Hardware-Software I.T. Solution (Microcomputer)
2. 20655 - Integrated Hardware-Software I.T. Solution (Mini/Mainframe Computer)
3. 92045 - Software Maintenance/Support
This resulted in 806 firms being notified, of which 31 downloaded the solicitation and ultimately fourteen bids were received. With the evaluation criteria of lowest bid, Nth Generation was found to be responsive and responsible and selected as the lowest bidder.
General Counsel’s Comments:
The General Counsel’s Office has reviewed the agenda sheet and attachments, as presented to it, and approves them as to form and legality.
Environmental Review:
The proposed Board action 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.
The proposed Board action complies with Sections 35 and 81of the Port Act, which authorizes the Board to do acts necessary and convenient for the exercise of its power; and to use funds for necessary expenses of conducting the District. 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.
Finally, the proposed Board 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.
Diversity, Equity, and Inclusion Program:
Due to limited known sub opportunities, no SBE goal was established for this RFB. Of the fourteen (14) bids received: ten (10) identified as SBE, MBE, or WBE. Nth Generation is an SBE/WBE.
PREPARED BY:
Javier Medina
Infrastructure Supervisor, Information Technology
Attachment(s):
Attachment A: Draft_PO 4500023736 & Purchase Agreement with Nth Generation Computing, Inc. for VMware vCloud Suite.pdf
Attachment B: Cash Flow Table vCloud.pdf