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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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INFORMATION SERVICES
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DATE:
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October 7, 2004
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BOARD MEETING DATE:
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October 19, 2004
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TO:
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Honorable Board of Supervisors
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FROM:
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Chris Flatmoe, CIO/Director Information Services
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SUBJECT:
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Adopt a Resolution For A Master Lease Agreement For Three Years with Dell Marketing, LP For Personal Computers To County Departments.
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RECOMMENDATION:
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Adopt a Resolution authorizing the Purchasing Agent to execute a Master Lease Agreement with Dell Marketing, LP for the provision of personal computers to County Departments from October 19, 2004 to October 18, 2007.
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BACKGROUND:
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In March, the Information Services Department released a Request for Proposals (RFP) for Personal Computer (PC) acquisition. The primary goal of the procurement and contract process is to leverage the county’s collective purchasing power to enable the acquisition of microcomputers at lower costs than would otherwise be the case. Secondary goals include providing an improved budgeting model for PC acquisition and a more efficient post acquisition PC support model. The RFP focused on the most common workstation configurations being purchased by the County and stressed the need to provide maximum flexibility for how departments might actually acquire PCs, including the option of leasing PCs in addition to purchasing them.
The RFP, vendor mailing list and evaluation process was developed with the assistance of the Purchasing Division of EPS. Four proposals were received. A proposal review committee consisting of IT representatives from the Human Services Agency, the Probation Department, the Sheriff’s Office, the Superior Courts and ISD agreed that Dell Computer Corporation is the preferred contractor. Following proposal selection, ISD, Purchasing, and Dell Computer Corporation negotiated the final terms and conditions of the Master Lease Agreement.
The Resolution before the Board authorizes execution of the Master Lease Agreement (MLA). Based upon the terms and conditions of the MLA, the Purchasing Division will develop individual department acquisitions and lease schedules.
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DISCUSSION:
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The County has 5,500 PCs deployed throughout the various departments. PC acquisition is typically approached through one of two models. Either a department replaces it PCs all at once, or the department replaces a percentage of its PCs each year so that all PCs are replaced every three to five years. The first approach produces significant spikes in department budgets in the year of PC acquisition. The second approach levels out the acquisitions spikes but creates an inefficient service and maintenance model, as support staffs are required to support multiple hardware and software platforms. Leasing allows departments to replace PCs in quantity, creating the opportunity for more efficient support models while also providing a sustainable, predictable budget model without acquisition spikes.
The proposed Master Lease Agreement is for three years and may be extended for two additional years by mutual agreement. The Master Lease Agreement is an umbrella agreement under which individual department lease schedules may be secured through the Purchasing Division. To support differing department PC replacement models, the Master Lease Agreement provides for both three and four-year leases. Equipment price changes that may result from new equipment models are linked to initial Dell proposal rates. These rates were seventeen percent less than ISD’s most recent PC purchase of the same hardware configuration. Interest rates changes are tied to US Treasury indexes. Dell meets both the County’s equal benefits and non-discrimination requirements. The agreement has been reviewed and approved as to form by the County Counsel and Purchasing.
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VISION ALIGNMENT:
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This Agreement keeps the commitment of responsible, effective, and collaborative government through visioning goal number 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.
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FISCAL IMPACT:
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The Master Lease Agreement is an enabling document and there is no cost associated with the MLA itself. Actual expenditures are dependent on the number of PCs being leased in any given month.
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