HomeMy WebLinkAbout2005-04-26 - AGENDA REPORTS - DELL COMPUTER CONTR (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
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Agenda Item: -b
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
April 26, 2005
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AWARD CONTRACT TO DELL COMPUTERS FOR THE
PURCHASE OF 180 DESKTOP COMPUTER SYSTEMS
Administrative Services
RECOMMENDED ACTION
City Council waive the City's Purchasing requirements, appropriate $110,000 from the
Technology Services Replacement Fund (Fund 601) to the Technology Services Replacement
Account (Account No. 2311-8601), and award contract to Dell Computers in the amount of
$109,993 for the purchase of 180 desktop computer systems.
BACKGROUND
On April 21, 2005, City staff was contacted by our representative at Dell Computers and
presented with an opportunity to purchase a large quantity of desktop computers from Dell
Computers at a price that is approximately 27% below the California Municipal Award Schedule
(CMAS) Contract price that the City normally receives for these types of purchases. These
specific units were built and prepared for shipment for another client, who unexpectantly
canceled their order. For inventory purposes, Dell has an immediate need to move these units
and thus made them available to the City at a significant cost savings.
The opportunity to purchase these units at such a deep discount will generate approximately
$65,000 in cost savings to the organization and allow the City to acquire forty (40) additional
desktop computers for less then what comparable units would cost the City if purchased through
its CMAS Contract with Dell. As the cost of these computer units are less than what is provided
for in the City's CMAS Contract with Dell, the City Council is being asked to waive the City's
purchasing requirements in order to award this contract.
P luipH
OWED
In order to acquire these units at this time and realize these significant cost savings, as part of this
action it is necessary for the City Council to appropriate monies from the City's Technology
Replacement Fund. The allocation of these funds will allow staff to procure these replacement
computers in the current fiscal year and reduce the total request for appropriation of Technology
Replacement monies in the Fiscal Year 2005/06 budget.
ALTERNATIVE ACTIONS
1. Do not approve the award of this contract.
2. Other alternatives as identified by Council.
FISCAL IMPACT
The award of this contract will require the City Council to appropriate $110,000 from the City's
Technology Replacement Fund. This potential purchase will provide staff with an earlier
opportunity to replace computers that were identified for replacement in Fiscal Year 2005/06. In
the event that the City Council approves this request, staff will reduce its total budget request for
Fiscal Year 2005/06 Technology Replacement Funds by the same amount.