Legislation Details

File #: 2026-5115    Version: 1 Name:
Type: Non-Consent Status: Final
File created: 9/23/2026 In control: ADMINISTRATION COMMITTEE
On agenda: 10/14/2026 Final action:
Title: SERVER HARDWARE REFRESH FOR INDUSTRIAL CONTROL SYSTEM AND ENTERPRISE OFFICE NETWORKS
Sponsors: Wally Ritchie
Attachments: 1. Agenda Report, 2. E-2026-743BD Equipment Contract

FROM:                     Robert Thompson, General Manager

                     Originator: Wally Ritchie, Director of Finance 

 

SUBJECT:

 

title

SERVER HARDWARE REFRESH FOR INDUSTRIAL CONTROL SYSTEM AND ENTERPRISE OFFICE NETWORKS

end

 

GENERAL MANAGER'S RECOMMENDATION

 

recommendation

RECOMMENDATION:  Recommend to the Board of Directors to:

A.       Approve an Equipment Contract to Nth Generation Computing, Inc. for the procurement of HPE vSAN Ready Nodes for the Enterprise and SCADA Environment, Specification No. E-2026-743BD for a total amount not to exceed $7,557,229 plus applicable sales tax; and

 

B.       Approve a contingency in the amount of $755,723 (10%).

body

 

BACKGROUND

 

Orange County Sanitation District (OC San) operates separate server infrastructure for its Industrial Control System (ICS) and Enterprise Office networks.  The ICS server hardware is approaching the end of its useful service life in July 2027, while the Office server hardware, purchased in February 2024, remains serviceable.  However, significant increases in licensing costs for both the virtualization and hyperconverged infrastructure platforms prompted IT to re-evaluate its infrastructure strategy.  IT determined that consolidating onto the existing virtualization platform, which now includes integrated storage capabilities, offers a more practical and cost-effective long-term approach while maintaining compatibility with existing systems.

 

RELEVANT STANDARDS

 

•                     Protect OC San assets

•                     Ensure the public’s money is wisely spent

•                     24/7/365 treatment plant reliability

•                     Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard

 

PROBLEM

 

The ICS server hardware will reach end of life in July 2027 and must be replaced to maintain a reliable, supported environment for critical operational systems. Although the existing Office server hardware remains serviceable, it does not meet the requirements of the selected consolidated infrastructure platform. Maintaining the current configuration would require OC San to continue licensing and supporting two separate platforms, leading to higher ongoing costs and greater infrastructure complexity.

 

PROPOSED SOLUTION

 

Staff recommends purchasing new server hardware for the ICS and Office environments to establish a common infrastructure platform while maintaining the required separation between the two networks.  This approach will replace aging ICS equipment, enable Office infrastructure consolidation, reduce ongoing licensing and support costs, and simplify future administration and maintenance.

 

The existing Office server hardware remains serviceable for approximately two more years; however, it does not meet the requirements of the selected consolidated infrastructure platform.  Maintaining the current configuration would require us to continue licensing and supporting two separate platforms, resulting in higher ongoing costs and additional infrastructure complexity.  As part of the consolidation, we will evaluate the existing Office server hardware for reuse in other appropriate applications to maximize OC San’s existing investment and reduce unnecessary equipment purchases.

 

TIMING CONCERNS

 

Adequate time is needed for equipment procurement, installation, system migration, and testing before July 2027 ICS hardware end-of-life date.  In addition, increased global demand for memory and other components, driven in part by growth in AI computing infrastructure, has extended server delivery lead times to three to six months.  Proceeding with the purchase will reduce the risk of supply-chain delays that could affect the planned implementation schedule.

 

RAMIFICATIONS OF NOT TAKING ACTION

 

Not purchasing the new hardware will keep the ICS environment operating on aging hardware beyond its planned service life, increasing the risk of equipment failure, limited manufacturer support, and potential service disruptions.  Additionally, OC San would need to maintain separate infrastructure platforms, resulting in higher ongoing licensing and support costs.

 

PRIOR COMMITTEE/BOARD ACTIONS

 

N/A

 

ADDITIONAL INFORMATION

 

An invitation for bid was issued on September 1, 2026, via OpenGov.  Bids were due on September 22, 2026, and OC San received three (3) bids.

 

The bid submitted by vPrime Tech Inc. was disqualified due to the absence of pricing information in OpenGov.  Although vPrime Tech Inc. provided a quote as an attachment, it did not include pricing for all required line items.

 

The protest period ended on 9/30/2026 at 4:00 PM.

 

Bid Results

The following is a list of the firms who submitted a bid.

 

Company Name

Bid

Determination

Nth Generation Computing, Inc.

$7,557,228.80

Responsive

Blue Source Group, Inc. 

$15,114,526.64

Responsive

vPrime Tech Inc.

$0.00

Non-Responsive

 

Recommendation
Based on these results, staff recommends approving the Equipment Contract to Nth Generation Computing, Inc.  The term of this Equipment Contract will begin upon effective date of the Notice to Proceed.

 

CEQA

 

N/A

 

FINANCIAL CONSIDERATIONS

 

This request complies with the authority levels of OC San's Purchasing Ordinance.  This item has been budgeted (Budget FY 2026-27 and 2027-28, Section 8, Pages 4 and 6, Information Management Systems) and the budget is sufficient for the recommended action.

 

ATTACHMENT

 

•                     Equipment Contract