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AI- 42393

Commissioners Court

Meeting Date:	01/09/2017
FY17 Maintenance Contract Renewal for Cisco Hardware
Submitted By:	Greg Elliott
Department:	Information Technology
Request Type:	CONSENT	Agenda Area:	Agreement

Information

Department Action

Information Technology is requesting award of the county Cisco maintenance agreement, a budgeted FY17 maintenance expense, as a three-year contract sold by Netsync Network Solutions and funded through Key Government Finance. Netsync Network Solutions has been evaluated as the best offer to Collin County for Cisco Maintenance based on a competitive quote process. This three-year contract arrangement is similar to the expiring maintenance agreement currently in effect for the county owned Cisco hardware. The cost of the maintenance contract will be $832,901.33, or $277,633.78 per year for three years. The payment schedule is:
Annual Payment Payment Date
$ 277,633.78 1/1/2017
$ 277,633.78 1/1/2018
$ 277,633.77 1/1/2019

The three-year agreement represents a savings of approximately $100,000 over the cost of a single year renewal plan and gives the county the ability to add and delete items to the maintenance agreement as equipment is added to or removed from our network.

As with any other multi-term agreement, non-appropriation clauses are in effect per state statute should the court elect not to fund our Cisco maintenance in future fiscal years.

Purchasing Department Action

Commissioners Court consideration and any action regarding approval to (1) award Collin County Maintenance for Cisco Hardware, COOP No. 2017-068 (solicitation was done using vendors on cooperative purchasing contracts) for a three (3) year period to Netsync Network Solutions, Inc. as the lowest and best bidder meeting specifications per the attached memo and (2) approval of agreement with Key Government Finance which allows the County to make three (3) equal payments over the three (3) year period and authorize Purchasing Agent to execute Payment Plan Agreement and County Judge to execute Purchaser's Certificate.

The department is recommending entering into a three (3) year agreement that will lock in the pricing for three (3) years. Payments will be split equally over that period of time per the attached Finance Agreement with Key Government finance, Cisco Systems Capital financing partner. Agreement includes a non-appropriation clause. The cost will be $277,633.78 each year for the three (3) year period at a zero percent interest rate to the county.

The Key Government Finance Agreement has been reviewed by legal counsel Greg Hudson and he will also give the Purchaser's Counsel Opinion and sign once approved by Commissioners Court. cw

HR and/or IT Action

Budget Department Action

Budgeted funds available for maintenance of the Cisco hardware. Contract is a three year term beginning on January 1, 2017 and going through December 31, 2019. General Fund (001)

Auditor's Office Action

Funds available in the General Fund.

Commissioners Court

Collin County Maintenance for Cisco Hardware (COOP No. 2017-068) to Netsync Network Solutions, Inc., approval of an agreement with Key Government Finance, Inc. and further authorize the Purchasing Agent to finalize and execute the Payment Plan Agreement and the County Judge to finalize and execute the Purchaser's Certificate, Information Technology.

Budget Information

Information about available funds

Budgeted:

Funds Available:

Adjustment:

Amount Available:

277,633.78

Unbudgeted:

Funds NOT Available:

Amendment:

Account Code(s) for Available Funds
1:	001-1001-411.75-03

Fund Transfers

Remarks:

Total for 3 years is $832,901.33. Payment will be made annually in the amount of $277,633.78 for the first 2 years and $277,633.77 for the third year.

Attachments
Court Order
Memo
Contract Data
Bid Tabulation
1295 Form