DATE: June 4, 2024
TO: Board of Supervisors
SUBMITTED BY: Edward Hill, Chief Operating Officer/Interim Director of Internal Services/Chief Information Officer
SUBJECT: Agreement with Sable Computer Inc. dba KIS
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a retroactive Agreement with Sable Computer Inc. dba KIS for continued subscription licensing of VMware’s vSphere Foundation’s enterprise level workload platform and Horizon Universal platform, effective January 19, 2024, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $2,023,357.
REPORT
There is no additional Net County Cost associated with the recommended action, which will allow the Internal Services Department, Information Technology Division (ISD-IT) to contract with Sable Computer Inc. dba KIS (KIS) for subscription licensing for VMware’s vSphere Foundation’s enterprise level workload platform, and for Horizon Universal platform, which provide a virtualized environment used to create server systems and virtual desktops for the County. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, ISD-IT would not be able to continue to provide a virtualized environment used to create server systems and virtual desktops for the County, which would negatively impact servers and desktops Countywide, by causing servers and 400 virtual desktops to go offline until a new virtualized environment can be procured and implemented.
RETROACTIVE AGREEMENT:
The recommended agreement is retroactive to January 19, 2024, due to the manufacturer (VMware) being sold to Broadcom in November of 2023. This transition process caused the County significant administrative delays in working with the manufacturer. These administrative delays resulted in the cancelation and rebid of the informal Request for Quotation (RFQ) and an extension of the bid close date. As a result, contract negotiations were also delayed. The recommended agreement is retroactive due to the length of time required to prepare the agreement, and have it approved by KIS.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The maximum amount payable under the potential five-year term is $2,023,357. Sufficient appropriations and estimated revenues are included in the ISD-IT Org 8905 FY 2023-24 Adopted Budget and will be included in subsequent annual budget requests.
DISCUSSION:
On January 22, 2024, the Internal Services Department, Purchasing Division (Purchasing) released an informal Request for Quotation (RFQ) No. 24-035 on behalf of ISD-IT. Quotations were requested from qualified vendors with the intention of creating a Board agreement to provide continued subscription licensing for VSphere Foundation and Horizon Universal systems, also inclusive of maintenance and support. RFQ No. 24-035 closed on February 9, 2024, with three bids provided by Purchasing from SHI International Corp, Ahead Inc. dba Kovarus Inc., and KIS.
KIS was the lowest bidder for both VMware VSphere Foundation and Horizon Universal systems. After reviewing the bid tab and bid responses provided by Purchasing, ISD-IT recommended proceeding with the execution of an agreement with KIS.
The recommended agreement has a potential five-year term, which includes a three-year base term and two optional one-year extensions. The maximum compensation for the initial three-year term of the agreement is $1,306,658. If the agreement is extended into years four and five, the total maximum compensation will increase to $1,656,267and $2,023,357, respectively, total not to exceed $2,023,357 for the potential five-year term of the agreement. The total maximum compensation over the potential five-year agreement includes $888,344 for the VMware vSphere Foundation subscription licensing, maintenance, and support, $797,786 for the VMware Horizon Universal subscription licensing, maintenance, and support, and $337,227 for additional licensing and/or products.
Approval of the recommended action will allow ISD-IT to contract with KIS to continue to provide subscription licensing for VMware’s VSphere Foundation and Horizon Universal platform systems, such that ISD-IT can continue to provide a virtualized environment used to create server systems and virtual desktops to the County.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with Sable Computer Inc.
CAO ANALYST:
Ahla Yang