FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
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RENEW VMWARE SOFTWARE ENTERPRISE LICENSE AGREEMENT, SPECIFICATION NO. S-2026-732BD
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Purchase Order Contract to Nth Generation Computing, Inc. for the purchase of the VMware Software Enterprise License Agreement (ELA) Subscription, Specification No. S-2026-732BD, for a five (5)-year term, with a total amount not to exceed $3,565,600 plus applicable sales tax; and
B. Approve a contingency in the amount of $356,560 (10%).
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BACKGROUND
Orange County Sanitation District's (OC San) current VMware Enterprise License Agreement (ELA) is ending in August 2026. VMware is used at OC San for server and desktop virtualization in both Office and Industrial Control System computing environments. Virtualization is a technology that creates virtual representations of servers, storage, networks, and other physical machines. It provides high availability and resiliency, increases efficiency, and reduces expenses.
This purchase order contract represents a significant increase in cost over the prior period. The VMware product was purchased by Broadcom which packaged the product differently and raised the price for the more complete product offering. The competitors in this product space matched this product packaging strategy. In response OC San has chosen VMware for both virtualization and related storage management as it is still the most cost-effective solution.
RELEVANT STANDARDS
* 24/7/365 treatment plant reliability
* Ensure the public's money is wisely spent
* Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard
* Protect OC San assets
PROBLEM
The current VMware ELA expires in August 2026. A lapse in coverage could impact OC San's production computing envir...
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