Report to: General Committee Date Report Authored: October 19, 2010
PREPARED BY: Sugun Rao, Ext. 4868
Rosemarie Patano, Ext. 2990
RECOMMENDATION:
1) THAT the report entitled “Purchase of desktops, laptops, tablets and monitors through the Ontario Provincial Government – Ministry of Government Services Desktop Management Services and Products Purchasing Agreement” be received;
2) AND THAT the Ontario Provincial Government – Ministry of Government Services supplier Compugen Inc. be the preferred supplier for the Town of Markham for a period of three (3) years effective January 1, 2011 at the same itemized prices as that of the Province with an option for an additional two (2) year extension for desktop, laptops, tablets and monitors;
3) AND THAT the Town’s Tender process be waived as the Ontario Provincial Government has undergone their own competitive process and in accordance with Purchasing By-Law 2004-341, Part II, Section 7 Non Competitive Procurement, item 1 (g) which states “Where it’s in the Town’s best interest not to solicit a competitive bid”;
4) AND THAT the total award of $1,218,505 inclusive of HST impact, be funded from the 2010 approved capital account 49-6150-10076-005 in the amount of $310,000 and the 2011 account funded from account 49-6150-11119-005 Core-Hardware Infrastructure in the amount of $908,505;
5) AND THAT the 2011 account 49-6150-11119-005 Core-Hardware Infrastructure be pre-approved for the 2011 capital budget in the amount of $908,505 for this award;
6) AND THAT the Chief Information Officer be authorized to approve any future desktop, laptops, tablets and monitor purchases during the duration of this contract (2011 to 2015) due to growth (new full-time employees and/or new sites) as long as the expenditure is within the approved budget;
7) AND THAT the Mayor and Town Clerk be authorized to execute a Desktop Management Services and Products Purchasing Agreement with the Ontario Provincial Government – Ministry of Government Services and Compugen Inc. in a form satisfactory to the Town Solicitor;
8) And THAT the Mayor and Town Clerk be authorized to execute further Ontario Provincial Government – Ministry of Government Services procurement agreements in relation to ITS requirements such as, cellular phone acquisition/plans, printing and imaging devices/services, server and computer acquisition etc, where it is in the Town’s best interest not to solicit an additional competitive bid where it is within an approved budget and upon receipt of the Chief Administrative Officer’s approval;
9) And THAT this report be brought forward to the December 14th, 2010 Council meeting;
10) AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution;
.
PURPOSE:
The purpose of this report is to obtain Council approval to award the contract for desktops, laptops, tablets and monitors through the Ontario Provincial Government – Ministry of Government Services Desktop Management Services and Products Purchasing Agreement.
BACKGROUND:
In 2003, Council approved contract 052-R-03 for PC (Personal Computers) Provisioning and Value Added Services to the highest ranked and lowest priced proponent IBM Canada Ltd. for a term of three (3) years with an option to extend for five (5) additional one (1) year periods. Since that time, Staff have been using this process for desktop replacement across the organization, and also to acquire any new additional computers for users as required.
The Town’s current computers have passed their useful lifetime of 6 years and are ready for replacement, and accordingly, Council has approved the initial funding as part of the 2010 budget. Additional funding to complete the rollout has been included in the 2011 Capital Budget submission.
Industry best practices recommend desktops and laptops be replaced after 4 years. The natural wear and tear on the parts results in slower operation and the build-up of dust over time impacts the performance of the cooling fan resulting in damaged or destroyed units. Over the last 3 years, the ITS service desk has seen an upward trend in the number of calls to fix or replace the units as the inventory has been aging. The number of service calls has continued to increase year over year and with each call requiring an average of 2.0 hours of service, the request to replace the current computers is being brought forward.
Computers (Desktops, Laptops, Tablets and Monitors
In late 2009, through a competitive bid process a Request For Proposal (RFP) was issued by the Ministry of Government Services on behalf of all Ontario Ministries, Offices of the Officers of the Legislative Assembly of Ontario, and agencies of the Province of Ontario Within this RFP was a clause to allow Broader Public Sector (BPS) agencies to utilize the pricing under this RFP and ultimately the final agreement between both parties.
BPS includes Municipalities as defined in the Municipal Affairs Act and the Municipal Act.
The RFP had all major Personal Computer (PC) manufacturers represented and the award/ evaluation process took months to complete with the official agreement between the “Ontario Provincial Government – Ministry of Government Services” and “Compugen Inc” being completed on March 16th, 2010.
The Provincial Government entered into a unique contract based on a geographical split of the provincial/client base. Compugen Inc. was awarded Zone two and three with Markham representing zone three of the RFP document and the award.
As noted above, Compugen Inc. was the successful bidder in this competitive bid process for zone three and is now the primary PC products/service provider to the Ontario Provincial Government for the following categories:
· Desktop PC’s (HP*)
· Notebook (Laptop) PC’s (HP*)
· Rugged mobile PC’s (Panasonic)
· Monitors (HP*)
· Peripherals
*These products are (HP) Hewlett-Packard
The above product categories are complimented with the following services:
· Configuration services
· Imaging
· Image management
· Delivery
· Installation
· Warranty Services
Protocol for Purchasing of Goods and Services
As part of the option available to the Broader Public Sector (“BPS”) the Town of Markham can purchase desktop management services and products (“DMSP”) from Compugen Inc. under the Agreement between Her Majesty the Queen in right of Ontario as represented by the Ministry of Government Services (MGS) and Compugen Inc. if the following conditions are met. Steps 1 through to 6 are sequential.
1. The non-Ontario organization must contact Infrastructure Technology Services (“ITS”), the IT division in MGS and indicate its interest in writing to purchase DMSP Products or Services under the Agreement. (COMPLETED)
2. ITS will provide the non-Ontario organization and the eligible Supplier with a copy of the draft DMSP Purchasing Agreement template. (COMPLETED)
3. The non-Ontario organization must obtain pricing information directly from the Supplier that has been awarded the business in the applicable zone. (COMPLETED)
4. If the non-Ontario organization is interested in obtaining pricing information from MGS of Products and Services provided by the Supplier under the Agreement, the non-Ontario organization must obtain a prior written consent from the Supplier in the same form and content as the “Supplier’s Consent” attached to the DMSP Purchasing Agreement as Schedule “A”. (COMPLETED)
5. The non-Ontario organization and the Supplier(s) must sign the DMSP Purchasing Agreement as provided by ITS prior to MGS signing the document.
(TO BE COMPLETED – AFTER APPROVAL)
6. The non-Ontario organization and the Supplier(s) will enter into a Non-Ontario Agreement which sets out the terms and conditions of their transaction but is in accordance with the Agreement and the DMSP Purchasing Agreement.
(TO BE COMPLETED – AFTER APPROVAL)
OPTIONS/ DISCUSSION:
The Town’s RFP process is the standard approach used for retaining a vendor to provide computer replacement for all users. It is worth noting that although such a process provides the Town with competitive pricing, the amount/volume of equipment purchased is not significant enough to be an incentive for large price reduction by vendors. The Province of Ontario, as the largest Government body in the Province with over 68,000 employees, will be a better alternative for many municipalities particularly in the areas of technology acquisition. Through its provisioning for the Broader Public Sector in Ontario, the Provincial Government offers an opportunity for municipalities to benefit from its purchasing power, if they choose to do so, by including such a provisioning in its agreement particularly with technology vendors.
Regarding the opportunity to purchase computers through the Province, there have been many non-Ontario organizations that have shown interest and are in the process of engaging/ working with the vendor, however none have formally signed an Agreement when this report was prepared.
Further ITS requirements (printing plans and imaging devices /cellular phone acquisition/ /plans/server acquisition)
Printing and Imaging Devices Acquisition
Similar to the computer procurement the Ministry of Government Services at the Province of Ontario went through a competitive process to retain vendors for the provision of Printing and Imaging Technology Services that was finalized in early 2010. The selected vendor(s) of record(s) are Compugen Inc. and Ricoh Canada Inc. that are also available to all Broader Public Sector Entities (BPS) for acquiring all of the deliverables contained in the agreement. The Contract objectives include a green print imaging strategy to reduce, reuse and recycle as well as to reduce the cost of acquiring the Equipment and Services while providing more efficient, cost effective service to the Ontario Public Services and Broader Public Sector Clients. This particular award covers multi-functional devices, printers, and mobile printers. As staff go through the replacement process for these imaging devices at the Town, it would be financially beneficial to use the opportunity available to us through this Provincial Agreement. This will also avoid significant staff time required to go through a competitive process managed by internal staff.
Cellular Phone Acquisition/Plans
Another competitive process that the Province recently undertook is in regards to Wireless Cellular/Paging Services & Devices. This process resulted in the Province negotiating with all three carriers: Bell Mobility Inc., Rogers Communications Inc. and Telus Mobility Inc, - a service that is also available to the Broader Public Sector through their designated dealers. Staff’s assessment of the current plans and the fees to be obtained through the Province indicates enhanced features for both data and voice plans for less monthly cost. This approach will provide value with discounted pricing, better services (Features such as Voice plan, Data Plan) and avoids significant staff time required to go through a competitive process managed by internal staff.
Server Acquisition
A similar opportunity is available for purchasing servers as a result of an RFP process that was completed by the Ministry of Government Services of Ontario and has been made available to the Broader Public Sector in June 2010 with the selection of a Vendor of Record, Compugen Inc. This option provides municipalities such as the Town of Markham a tremendous value in terms of the financial benefits within a short timeframe and with very minimal effort.
In summary, the opportunity to acquire technology equipment and services through the Ministry of Government Services of Ontario for the Broader Public Sector – to which the Town of Markham belongs - provides tremendous value to the Town in terms of accessing well tested technology standards for the Town. The Town would realize measurable financial benefits through this approach due to the Province’s purchasing power, as well as save significant time and effort required to complete a competitive process using internal resources. Based on these factors, staff recommend the Town use vendors retained by the Ministry of Government Services – Ontario, to acquire technology equipment and services that may be needed for the Town of Markham in the future as required. The Province has gone through a competitive process in selecting vendor of record for products and services.
Price Comparisons
Substantial savings can be achieved through a standardized desktop service contracting model and associated best pricing/price creep protection. The prices under the Ontario Provincial Government – Ministry of Government Services Desktop Management Services and Products Purchasing Agreement are up to 40% lower than the current marketplace.
Computers (Desktop)
The previous roll out of desktops beginning in 2003 was split approximately 80% standard models and 20% higher performance models dependant on internal requirements. When comparing the standard desk top model under the Town’s 2003-2010 contract to this Provincial Proposal, the savings is $485 per unit or 41% as noted below. Staff will review with clients and departments their requirements prior to deciding on the roll out of the new desktops under this agreement.
|
DESKTOP Including Mouse, Keyboard, Warranty, Monitor |
Province of Ontario (Pricing) |
Previous Town contract (Pricing) |
||
|
Standard Option |
Performance Option |
Standard Option |
Performance Option |
|
|
$705.00 |
$1,006.00 |
$1,190.00 |
Not Available |
|
Computer (Laptop)
The previous roll out of laptops was split approximately 85% standard and 15% higher performance models. When comparing a standard laptop model under the Town’s 2003-2010 contract with this Provincial Proposal, the savings on the majority of the Town’s requirements (standard) is $379 per unit or 22% as noted below. Staff will review with clients and departments their requirements prior to deciding on the roll out of the new desktops under this agreement.
|
LAPTOP Including Mouse, Keyboard, Warranty, Monitor, Dock + PS, Carrying Case |
Province of Ontario (Pricing) |
Previous Town contract (Pricing) |
||
|
Standard Option |
Lightweight / Performance Option |
Standard Option |
Performance Option |
|
|
$1,375.00 |
$1,775 - $1,975.00 |
$1,754.00 |
Not Available |
|
Tablets
Included with the Ontario Provincial Government – Ministry of Government RFP was pricing for tablets. These tablets are PC’s that are touch screen and fully rugged for the field work environment which provides the power and flexibility of tablet computing for various departments (Waterworks, By-laws). When comparing a similar tablet unit under the Town’s 2009/10 contract with this Provincial Proposal, the savings is $1,394.75 per unit or 36% as noted below.
Disposal of Computers
The disposal of the old computers will be done in accordance with Purchasing By-Law 2004-341, Part V and shall be disposed by means of public auction, tender, quotation, donation or recycling after approval has been received from the Chief Administrative Officer and the Treasurer. If disposal is required, Staff will work with the Senior Manager of waste management to recycle these computers in the most environmentally approved methodology and will pursue any stewardship funding for the recycling of these computers.
FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)
|
|
Project Name |
Account # |
Capital Budget |
Amount to Allocate to this Award |
Budget Remaining |
|
|
|
Core – 2010 Base Architecture (ITS) |
49-615010076005 |
$370,000 |
$310,000 |
$60,000 |
|
|
|
Core – 2011 Hardware Infrastructure (ITS)* |
49-615011119005 |
$1,359,000 |
$908,505 |
$450,495 |
|
|
|
Totals: |
|
$1,729,000 |
$1,218,505 |
$510,495** |
|
* Project#11119 will be pre-approved for the 2011 Capital Budget for this award; and the amount of $908,505 will be spent in 2011.
** Remaining budget will be spent on other hardware infrastructure replacements as indicated in the original capital project submission, such as AV equipment, Firewall and printers.
HUMAN RESOURCES CONSIDERATIONS
Not Applicable
ALIGNMENT WITH STRATEGIC PRIORITIES:
Not Applicable
BUSINESS UNITS CONSULTED AND AFFECTED:
Not Applicable
RECOMMENDED BY:
