AGENDA MEMORANDUM

Meeting Date: January 12, 2009

From:                          Mike Thornton, Purchasing Manager

Subject:                      Purchase requisition 40429 to Hewlett Packard for the purchase of replacement notebook and desktop computers

Staff Recommendation:

Staff recommends approval of purchase requisition 40429 to Hewlett Packard for a total amount of $150,990.00.

Analysis:

The Information Technology (IT) Department requested the purchase of 140 HP Desktop and 70 Notebook computers to replace existing aging computers.

SUMMARY OF PURCHASE

Item Description	Quantity	Unit Cost	Extended Cost
HP EliteBook 6930P Notebook	70	$1,075.00	$75,250.00
HP Compaq dc7900 Small Form Factor – KP721AV (Monitor not included)	140	$541.00	$75,740.00
Detailed price quotes are attached.		Total Price	$150,990.00

During the last two fiscal years, the IT Department has postponed the scheduled replacement of aging computers.  The City owns 330 PC’s and 170 laptops and normally replaces 20% of these each year. Within the last 48 months, the City has replaced only 74 PC’s and 75 laptops, which is less than half what was scheduled and has resulted in many computers being 6 to 8 years old. The IT Department has established a goal of a 5-year life cycle on desktop and notebook computers, and the 2008-2009 budget reflects this goal.  This purchase will bring the City within the 5-year life cycle on all desktop and notebook computers.

The City is using the State of Florida Purchasing contract number 250-040-08-1 for PC’s, Laptops, and Monitors to purchase this technology equipment directly from Hewlett Packard.  As with all State contracts, this contract was competitively bid and is made available to state agencies and municipalities for purchases.  Purchasing the Hewlett Packard brand will also be in line with the IT standardization on the HP product line.

Options:

1.  Approve purchase requisition 40429 to Hewlett Packard for $150,990.00; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Funding of $151,350.00 was approved in the 2008-2009 budget.  These funds are available in the capital account listed.  The actual purchase cost will be $360.00 lower than the budgeted amount for this purchase.

Submission Date and Time:    1/12/2009 8:22 AM____

Department: _Information Technology___ Prepared by:  _Mike Thornton________                      Attachments:         Yes__ __   No ______ Advertised:   ____Not Required __X___ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ___JB___ Finance  Dept. _____________JB___                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _001-1633-513.64-11__ Project No. __NA_______________ WF No. _____NA_______________ Project/Item Budget Budget  _____$151,350.00_________ Available ____$151,350.00_________ Account Line Item Budget  _____$182,350.00_________ Available ____$161,255.00_________