Submitted By: Christopher Ramos
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Presentation By: Christopher Ramos
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Department: Information Technology
FORMAL TITLE:
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Five-year renewal with Davenport Group for server virtualization software, VMware, maintenance and support in an estimated expenditure of $171,648
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
In 2021, Ocala Electric Utility (OEU) completed a capital improvement project to replace server hypervisors and network switches with the Dell VxRail system for the Electric SCADA network. The implemented hardware utilizes virtualization technology software.
Virtualization is a technology that allows multiple virtual machines to run on a single physical computer, enabling more efficient use of resources by partitioning the hardware. This means that different operating systems and applications can operate independently on the same machine, improving flexibility and reducing costs.
Due to this network's mission-critical nature, newer and more redundant architecture was established to increase the system's availability, resiliency, security, and reliability. The systems were provisioned with an initial three-year hardware and software warranty.
FINDINGS AND CONCLUSIONS:
The previous contract with VMware is coming to an end, and a continuing software maintenance agreement must be renewed for the City to continue utilizing the existing virtualization software and hardware. These systems are mission-critical to the City’s ability to provide safe and reliable power to citizens. Broadcom acquired VMware from Dell in 2024 and previous licensing models for software maintenance are no longer renewable. Broadcom now requires, upon renewal of licensing, that all customers change to their new platform with a 5-year subscription.
As a political subdivision of the state of Florida, the City of Ocala qualifies as an eligible user of cooperative purchasing agreements like the General Service Administration’s (GSA) Multiple Award Schedule (MAS). GSA contracts are negotiated by the federal government with the intent of securing “most favored customer” pricing plus a discount offered to GSA and other authorized purchasers. The underlying agreement (GSA Contract No. 47QSWA18D008DF for IT Hardware and IT Outsourcing) is valid through August 21, 2028, and Davenport Group, an authorized dealer of Carahsoft products, was evaluated and determined by Information Technology Department stsff to be cost-effective and to afford the City best value.
FISCAL IMPACT:
Funds for this purchase are budgeted/encumbered in account 457-032-277-531-53-52050 and will be charged to Munis Contract #260393. The previous 1-year contract was approved on 2/18/2025 at the amount of $40,354.26.
Year 1: $57,216.00
Year 2: 26,608.00
Year 3: 26,608.00
Year 4: 26,608.00
Year 5: 26,608.00
All subsequent years will utilize the same account and Munis contract for tracking.
Staff recommends approval of this agreement.
PROCUREMENT REVIEW:
These goods and services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
N/A. The City’s standard and approved Purchase Order Terms will be utilized for this purchase.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny