The County of Santa Clara
California

Agreement/Amendment
97950

Approve Fifth Amendment to Agreement No. 5500002676 with HP, Inc., relating to providing personal computers, accessories, related maintenance and support and services, increasing the maximum contract amount by $15,610,946 from $23,489,054 to $39,100,000, and extending the agreement for a 12-month period through September 14, 2020, that has been reviewed and approved by County Counsel as to form and legality.

Information

Department:Office of the County ExecutiveSponsors:
Category:Agreement

Body

FISCAL IMPLICATIONS

There is no impact to the General Fund as a result of this Fifth Amendment. Technology Services and Solutions (TSS) has sufficient funds in their Fiscal Year 2019-20 Adopted Budget.

CONTRACT HISTORY

The award to HP Inc. resulted from the issuance of a full and open competitive Request for Proposals (RFP-PRO-FY15-0074) for personal computers, accessories, related maintenance, and support and services, issued by the Procurement Department on October 17, 2014.

On September 15, 2015 (Item No. 62), the Board of Supervisors approved and executed Agreement #5500002676 with HP, Inc. in an amount not to exceed $10,000,000 for period September 15, 2015 through September 14, 2018.

On November 14, 2017 (Item No. 49), the Board of Supervisors executed the First Amendment to the Agreement with HP, Inc., increasing the maximum contract amount to $16,000,000 with no change to the term of the agreement.

On April 1, 2018, the Chief Procurement Officer approved the Second Amendment to the Agreement in order to make business and administrative changes, allowing the County to access the latest favorable pricing of HP Products through the National Association of State Procurement Officials- Valuepoint (NASPO), Valuepoint NASPO is a cooperative purchasing program, which facilitates accessing competitively established contracts led by State agencies. In addition to securing favorable pricing, HP, Inc. is providing the County the benefit of an additional 3% discount on all purchases as of April 1, 2018. The cost savings should be $784,959 from April 1, 2018 through June 30, 2020.

On August 28, 2018 (Item No. 63), the Board of Supervisors executed the Third Amendment to the Agreement with HP, Inc., increasing the maximum contract amount to $23,250,000 and extending the agreement for a 12-month period through September 14, 2019.

On July 16, 2019, the County Executive executed the Fourth Amendment to the Agreement to account for recent contract spending associated with the County’s acquisition of two new hospitals from Verity Health Systems. This amendment increased the maximum contract amount to $23,489,054 and did not change the term of the agreement.

REASONS FOR RECOMMENDATION

The Fifth Amendment to the Agreement is being recommended to exercise the option to renew for a one-year period, and to increase the maximum contract value to allow for continued replacement of end-of-life hardware and other related advancements needed to maintain a healthy County Information Technology (IT) environment. Technology Services and Solutions (TSS) is requesting an increase in allocation in the amount of $13,100,000 for asset refresh and $2,494,046 to upgrade unsupported devices to Windows 10 for multiple County agencies. Windows 7 will reach its end of service life on January 14, 2020. All devices must be upgraded to Windows 10 by that date. This will ensure that aging and insecure hardware devices are removed from the County’s IT environment as leaving them connected to the County’s networks after this date would pose a significant security risk. Additionally, the County must replace end user devices at the two newly acquired hospitals as the devices currently in use cannot support the County’s standard operating system and software tools, Windows 10 and Microsoft Office 16, respectively. Upgrading these end user devices will unify the platforms supported by TSS Infrastructure and Operations, reducing end user device support needs, increasing overall security of the hospitals IT environment and enabling seamless integration of hospital applications.

The Chief Procurement Officer’s signature authority for goods and related services shall not exceed $5,000,000; therefore, Board approval and execution of the Amendment is required.

CHILD IMPACT

The recommended action will have no/neutral impact on children and youth.

SENIOR IMPACT

The recommended action will have no/neutral impact on seniors.

SUSTAINABILITY IMPLICATIONS

Bulk packaging options are available at no additional cost to the County in order to reduce the environmental impact of packaging materials and waste. In addition, all products offered are Energy Star compliant ensuring energy consumption is reduced.

BACKGROUND

The County of Santa Clara, being in the heart of the Silicon Valley, is surrounded by advanced technology enabling productivity and self-sufficiency, amongst other advantages. Personal computers have become so deeply embedded in day-to-day activities that they play a vital role in all County operations. HP Inc. is providing a majority of the laptops and accessories throughout the County as part of TSS’ mission to standardize and regularly replenish Information Technology (IT) hardware.

The County’s use of technology is changing rapidly. Today, laptop computers have replaced desktop computers for most users, increasing employee productivity and flexibility. Advancements in software applications, high definition graphics, and media usage have led to the need for more advanced and powerful configurations for many employees. TSS recommends a four-year refresh cycle for all computers. While this refresh cycle is longer than optimum, it balances acquisition cost with the cost to repair aging hardware.

CONSEQUENCES OF NEGATIVE ACTION

Failure to approve the recommended action would prevent continued purchasing of standardized desktops, workstations, laptops, notebooks, tablets, and monitors for County departments and pose security risks due to older equipment that cannot be upgraded to a secure operating systems remaining on the County network. Fixed pricing currently offered to the County would also be jeopardized.

STEPS FOLLOWING APPROVAL

Upon approval, the Clerk of the Board is requested to process a signed copy of the agreement by August 13, 2019 and notify Michael Fogelstrom in the Office of Countywide Contracting Management.

Meeting History

Aug 13, 2019 9:30 AM Video Board of Supervisors Regular Meeting
RESULT:APPROVED [UNANIMOUS]
MOVER:Cindy Chavez, Vice President
SECONDER:Susan Ellenberg, Supervisor
AYES:Mike Wasserman, Cindy Chavez, Dave Cortese, Susan Ellenberg, S. Joseph Simitian