Agenda Item Wording:
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Authorize the City Manager to enter into a sole source agreement with Telcion Communications Group to purchase Cisco hardware, software, and services, with competitive pricing utilizing the Merced County FOCUS Contract #2021106 in the amount of $1,554,788.
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Deadline for Action: 7/17/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:
John Howison, IS Manager, 559-713-4122
Renee Nagel, Finance & Technology Director, 559-713-4375
Department Recommendation:
Authorize the City Manager to enter into a sole source agreement with Telcion Communications Group to purchase Cisco hardware, software, and services, with competitive pricing utilizing the Merced County FOCUS Contract #2021106 in the amount of $1,554,788.
Background Discussion:
The City standardized on Cisco equipment for its core network, telephony, and infrastructure needs in 2001. Cisco equipment is the backbone of the City’s systems and is the devices that connect every building together, provide phones in every location, provide access to the internet, files, and applications, control the security of devices connecting to our network and filters malicious content coming from the outside. This infrastructure is essential for the City to operate and provide services to the public.
The Information Services Division has over 100 years of cumulative knowledge and experience with Cisco equipment. To leverage the City’s existing investment in equipment and staff expertise, and to maintain compatibility with equipment not being replaced, this proposed replacement is all Cisco equipment. Cisco does not sale direct and instead utilizes a preferred partner system to resell equipment and services. The City’s Cisco designated preferred partner is Telcion Communications Group. Telcion is located in Turlock, CA, and is located close enough to Visalia to respond in person for critical events and emergencies.
Core infrastructure is typically replaced every 6-7 years. A large portion of this project was last replaced in 2012. The City has received excellent value and longevity from the last Cisco purchase, but the current equipment has reached the end of its supported life and needs to be replaced.
As part of the project due diligence, IS staff evaluated solutions from Cisco competitors. Staff worked with those vendors to create a lab environment to test competitor switches and equipment. Staff tested equipment from Hewlett Packard, Brocade, and Aruba. Staff also requested pricing from these vendors and were surprised that there were little to no savings versus Cisco. The required interoperability with existing equipment, and the challenge in learning a new platform and syntax makes switching difficult and not cost effective. This is a complex and large project, involving the replacement of over 100 switches, 10 servers, multiple security devices, voice gateways and routers and it is key that we limit the total number of vendors, to minimize support issues, and take advantage of in-house knowledge.
This project is utilizing pricing from the Merced County FOCUS Contract #2021106, this is a competitively bid contract awarded to Telcion for Cisco equipment and services and managed by Merced County. As a customer for over 20 years, Cisco worked with IS department on the pricing to provide an additional discount of $147,000 on equipment and training.
This project is utilizing funding provided by the America Rescue Plan Act (ARPA). Telcion has agreed to follow all federal guidelines and has submitted certificates certifying their compliance. They have also provided the required bond for professional services.
Fiscal Impact:
Funds for this project were appropriated by Council on December 20, 2021. The following CIPs were established 6420-72000/EQ0186 (Replacement of City servers), 6420-72000/CP0506 (Network identity and security), 6420-72000/CP0508 (Replacement of all City network switches).
Prior Council Action:
On December 20, 2021, staff presented to Council the proposed ARPA funded projects, this included network security initiatives, server replacement, and switch replacement.
On January 17, 2012, Council authorized the purchase of Cisco network equipment.
Alternatives: Council could recommend an open bid or proposal procurement. This would delay the replacement of equipment by three to six months. The $147,000 in incentives provided by Cisco expire on July 31st.
Recommended Motion (and Alternative Motions if expected):
recommendation
Authorize the City Manager to enter into a sole source agreement with Telcion Communications Group to purchase Cisco hardware, software, and services, with competitive pricing utilizing the Merced County FOCUS Contract #2021106 in the amount of $1,554,788.
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Attachments:
City of Visalia - Telcion Infrastructure Proposal - Signed.pdf
City of Visalia - Telcion Infrastructure Labor Proposal - Signed.pdf
City of Visalia - Telcion - SOW.pdf