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HomeMy WebLinkAboutItem 6e - Award Contract to CIO Solutions for Network Infrastructure Equipment Item 6e Department: Information Technology Cost Center: 1101 For Agenda of: 10/21/2025 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Josh Erquiaga, IT Manager David Anastasia, Network Services Supervisor SUBJECT: AWARD CONTRACT TO CIO SOLUTIONS FOR NETW ORK INFRASTRUCTURE EQUIPMENT RECOMMENDATION 1. Authorize the City Manager to award a contract to CIO Solutions for the purchase of Juniper Network Switches and Firewalls (Project #2000604-02, Firewall Replacement and #2000604-04, Network Switching Infrastructure Project); and 2. Waive formal bids and authorize the use of NASPO Agreement Number AR3232 as allowed under 03.24.060E of the City of San Luis Obispo Municipal Code. POLICY CONTEXT Per the Purchasing Policy, purchases up to $200,000 for general goods require approval from the City Council. Waiving formal bids and authorizing the use of NASPO Contract No. AR3232 to procure this purchase is consistent with City Purchasing Policy Section 204: No-Bid Purchasing, and Municipal Code Section 03.24.060E. This section permits staff to dispense with bidding requirements, “when the purchase will be made cooperatively with one, or more, other units of government, or from a local dealer within the city limit that can provide the same brand, model and configuration of item(s) identified in the cooperative purchase agreement(s) at or below the cooperative purchasing net cost within the same terms and conditions.” DISCUSSION Background The City currently utilizes Juniper network switching and firewall infrastructure as the foundation of its enterprise network. Over the years, the City has made a significant investment of resources in this platform, including staff training, professional certifications, and extensive engineering and configuration efforts. This investment has built a strong foundation of in-house expertise and operational familiarity, which supports efficient management and rapid response to network needs. Page 47 of 415 Item 6e Network switches serve as the backbone of internal communications, directing data traffic between devices such as servers, workstations, and printers. As these switches reach End of Life (EOL), they no longer receive firmware updates, security patches, or vendor support. This lack of support increases exposure to vulnerabilities and limits the ability to respond to emerging threats. Additionally, aging hardware is more prone to failure, which can result in service disruptions and increased maintenance costs. Older switches may also lack the performance capabilities required to support modern applications and higher bandwidth demands, making them a bottleneck to future growth and innovation. Similarly, the City’s Juniper SRX firewalls, which serve as a critical line of defense against external threats, are due for an upgrade. While they have provided reliable protection, newer models offer significantly enhanced capabilities. These include advanced threat detection, intrusion prevention, application-layer filtering, and integrated threat intelligence. Upgraded firewalls also deliver improved throughput and lower latency, ensuring that security enforcement does not compromise network performance. Improved throughput is needed on the City’s firewalls to make full use of the 10 gigabit Internet connection that the City receives as part of its Public-Private Partnership agreement with Astound Broadband. Keeping the City’s firewall infrastructure up to date is critical for maintaining compliance with regulatory standards. From a cybersecurity perspective, both switches and firewalls play a vital role in safeguarding sensitive data, maintaining service availability, and preventing unauthorized access. Operating outdated infrastructure increases risk of exposure to zero -day vulnerabilities, lateral movement by attackers, and potential data breaches or ransomware incidents. Proactively replacing EOL switches and upgrading our firewalls is a strategic investment that strengthens security posture, enhances operational resilience, and ensures that the City’s network is prepared to meet current and future demands. Information Technology staff track this equipment and its expected useful life, and this replacement is part of the ongoing Information Technology Capital Improvement Plan forecasting and budgeting process. City staff recommend the use of the NASPO (National Association of State Procurement Officials) ValuePoint contract for this purchase. NASPO ValuePoint is a cooperative purchasing program facilitating public procurement solicitations and agreements using a lead-state model. NASPO is is a non-profit organization of state and local government procurement officials that provides resources, training, and cooperative purchasing programs to enhance efficiency, transparency, and value in public procurement across the United States. Using NASPO contracts allows the City to ensure it is getting excellent pricing on technology products by leveraging the increased buying power of a much larger organization. Previous Council or Advisory Body Action The City Council approved the original purchase of network infrastructure equipment as part of the consent agenda at the Regular City Council meeting on July 1, 2014. The City Council approved upgrades for core network infrastructure as part of the consent agenda at the Regular City Council meeting on September 6, 2022. Page 48 of 415 Item 6e Public Engagement This item is on the agenda for the October 21, 2025 City Council meeting and will follow all the required posting and notification. The public may comment on this item at or before the meeting. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended actions in this report, because the action does not constitute a “project” under CEQA guidelines Sec 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2023-24, 2024-25 Funding Identified: Yes Fiscal Analysis: Attachment A - CIO Solutions quote is a quote for hardware and warranty services to replace the end-of-life networking equipment, with a total cost of $453,826.01. This replacement was planned for in the Information Technology capital improvement plan as Project #2000604-04. Attachment B - CIO Solutions quote is a quote for hardware and warranty services to replace the end-of-life firewalls, with a total cost of $320,912.20 . This replacement was planned for in the Information Technology capital improvement plan as Project #2000604 - 02. Firewall Replacement, Project # 2000604-02 Network Switching Infrastructure Project, Project # 2000604-04 Project # 2000604-02 $205,921 $- $17,042 $17,905 $7,212 $1,079 $842 Project # 2000604-04 $- $453,198 $29,777 $50,379 $10,825 $4,996 $625 Funding Source* Capital Outlay Fund Info Tech Repl Fund Water Fund Sewer Fund Parking Fund Transit Fund Whale Rock Fund Project Total Costs Fund # 401 403 601 602 611 621 705 CIO - Juniper Firewall $205,921 $58,695 $21,875 $22,984 $9,101 $1,385 $951 $320,912 CIO - Juniper Switches $0 $374,087 $24,579 $41,585 $8,935 $4,124 $516 $453,826 Contingencies $0 $0 $0 $0 $0 $0 $0 $0 Total for Construction $205,921 $432,782 $46,454 $64,568 $18,037 $5,509 $1,467 $774,738 Construction Management: $0 $0 $0 $0 $0 $0 $0 $0 Materials Testing: $0 $0 $0 $0 $0 $0 $0 $0 Public Relations: $0 $0 $0 $0 $0 $0 $0 $0 Page 49 of 415 Item 6e Printing: $0 $0 $0 $0 $0 $0 $0 $0 Total Project Cost $205,921 $432,782 $46,454 $64,568 $18,037 $5,509 $1,467 $774,738 Current Project Balance: $205,921 $453,198 $46,819 $68,284 $18,037 $6,075 $1,467 $799,800 Additional Funding: $0 $0 $0 $0 $0 $0 $0 $0 Post Project Remaining Balance: $0 $20,416 $364 $3,716 $0 $566 $0 $25,062 The 2023-25 Financial Plan identified $799,800 in funding for this capital improvement project (Project #2000604-02, Firewall Replacement and #2000604-04, Network Switching Infrastructure Project). These projects have sufficient balance to support this capital improvement project and will leave a remaining balance of $25,062. ALTERNATIVES 1. Deny awarding the project. The existing network and firewall equipment have reached end-of-life status with the manufacturer and will no longer be eligible for service, support, and security upgrades at the end of the City’s current maintenance contract, ending June 21, 2025. Denying the award of the project would leave the City in a position that would be difficult to recover from should the end-of-life hardware start to fail or be discovered to have a major security vulnerability. 2. Deny awarding the project to CIO/Juniper. Council may request staff to seek additional proposals. Staff research into alternative solutions and providers in the market indicates that going out to other vendors would increase the cost of the project, potentially doubling the amount currently quoted. Additionally, this would lead to a scenario in which the City would have multiple different hardware platforms or support vendors, thereby increasing the complexity of supporting the City’s IT infrastructure. ATTACHMENTS A – CIO Solutions Quote EE034107 B – CIO Solutions Quote EE034129 Page 50 of 415 A quote prepared for City of San Luis Obispo Quote #EE034107 by the team at CIO Solutions 5425 Hollister Ave #150, Goleta, CA 93111 805.692.6700 eengmyr@ciosolutions.com www.ciosolutions.comPage 51 of 415 Prepared For Prepared By City of San Luis Obispo Eric Mortensen 990 Palm St. San Luis Obispo, CA 93401-3249 emortensen@slocity.org www.ci.san-luis-obispo.ca.us Eric Engmyr Phone: 805-692-6700 Email: eengmyr@ciosolutions.com Discounts meet or exceed. NASPO ValuePoint Data Communications contract AR3232 ExtendedQtyPriceQFX Juniper QFX5120-48Y AC Airflow in $9,151.00 8 $73,208.00 Juniper 5 yr Adv2 license for Class 1 QFX5K $11,436.00 8 $91,488.00 JNPR Care SD Support QFX5120-48Y-2 5 Year $5,523.00 8 $44,184.00 5 Year Wired Assurance & VNA subscription for EX2300/EX3400/EX4000/EX4100-F/EX4100/EX4400/EX4650/QFX5120- 48Y/QFX5120-48YM/QFX5120-48T/QFX5110-48S 48-port switches. Includes software updates, upgrades, cloud subscriptions, network insights. $885.00 8 $7,080.00 QFX Subtotal $215,960.00 ExtendedQtyPriceEX4100's Juniper EX4100-F-12P 12-Port Fanless 10/100/1000BaseT PoE+, 2x 1G/2.5G/10GBaseT Uplink ports, 4x 10G SFP+ Stacking/Uplink ports (optics sold separately) with Standard SW. PoE++ Powered. $1,528.00 33 $50,424.00 Rack Mount Kit for EX4100-F-12P and EX4100-F-12T Switches Only $87.00 33 $2,871.00 3 Year Wired Assurance & Virtual Network Assistant (VNA) subscription for EX-8, EX-12 port switches including JTAC Support. Includes Juniper Care Core support for EX4000-8/EX2300-C-12/EX4000-12/EX4100-F- 12/EX4100-H-12 port switches. $294.00 33 $9,702.00 EX4100-24MP 24-Port Multi-Gig with 16x 1G, 8x 1G/2.5G/5G/10G PoE+ +, 4x 10G SFP+ Uplink ports, 4x 25G SFP28 Stacking/Uplink ports, redundant fans, 1 AC PSU JPSU-920-AC-AFO included (optics sold separately) with Standard SW. $2,878.00 10 $28,780.00 3 Year Wired Assurance & Virtual Network Assistant (VNA subscription for EX-24 port switches including JTAC Support. Includes Juniper Care Next Day support for EX2300/EX3400/EX4000/EX4100-F/EX4100- H/EX4100/EX4400 24-port switches. $447.00 10 $4,470.00 EX4100 and EX3400 920W AC Power Supply, Front-to-Back airflow (power cord needs to be ordered separately) $562.00 2 $1,124.00 Juniper EX4100-24T-DC 24-Port 10/100/1000BaseT, 4x 10G SFP+ Uplink ports, 4x 25G SFP28 Stacking/Uplink ports, 1 DC PSU JPSU-150- DC-AFO included (optics sold separately) with Standard SW. $2,060.00 5 $10,300.00 EX3400 150W DC Power Supply, front-to-back airflow (power cord needs to be ordered separately) $395.00 5 $1,975.00 August 29, 2025 City of San Luis Obispo Quote #EE034107 Page 2 of 4Page 52 of 415 ExtendedQtyPriceEX4100's 3 Year Wired Assurance & Virtual Network Assistant (VNA subscription for EX-24 port switches including JTAC Support. Includes Juniper Care Core support for EX2300/EX3400/EX4000/EX4100-F/EX4100- H/EX4100/EX4400 24-port switches. $447.00 5 $2,235.00 Juniper EX4100-48MP 48-Port Multi-Gig with 32 x 1G, 16 x 1G/2.5G PoE++, 4x 10G SFP+ Uplink ports, 4x 25G SFP28 Stacking/Uplink ports, redundant fans, 1 AC PSU JPSU-920-AC-AFO included (optics sold separately) with Standard SW. $4,537.00 14 $63,518.00 Power Cord, AC, US/Canada, C13, 15A/125V, 2.5m, Straight $27.00 14 $378.00 EX4100 and EX3400 920W AC Power Supply, Front-to-Back airflow (power cord needs to be ordered separately) $562.00 14 $7,868.00 3 Year Wired Assurance & Virtual Network Assistant (VNA) subscription for EX-48 port switches including JTAC Support. Includes Juniper Care Core support for EX2300/EX3400/EX4000/EX4100-F/EX4100/EX4400 48 -port switches. $646.00 14 $9,044.00 EX4100's Subtotal $192,689.00 ExtendedQtyPriceExisting Switch Support 3 Year Wired Assurance & Virtual Network Assistant (VNA subscription for EX-24 port switches including JTAC Support. Includes Juniper Care Next Day support for EX2300/EX3400/EX4000/EX4100-F/EX4100- H/EX4100/EX4400 24-port switches. $429.00 22 $9,438.00 3 Year Wired Assurance & Virtual Network Assistant (VNA) subscription for EX-48 port switches including JTAC Support. Includes Juniper Care Next Day support for EX2300/EX3400/EX4000/EX4100- F/EX4100/EX4400 48-port switches. $588.00 25 $14,700.00 Existing Switch Support Subtotal $24,138.00 Recap Amount QFX $215,960.00 EX4100's $192,689.00 Existing Switch Support $24,138.00 Subtotal $432,787.00 Tax $21,039.01 Total $453,826.01 August 29, 2025 City of San Luis Obispo Quote #EE034107 Page 3 of 4Page 53 of 415 • Quotes expire after 30 days. • All software sales are final and non-refundable. Vendors do not accept software returns. • Prices of high-demand products may fluctuate between when a quote is made, and the order is placed – tariffs may affect this as well. • CIO Solutions reserves the right to amend the final invoice to reflect any vendor price changes. If change is less than 20% it will be processed with the updated cost. CIO Solutions will consult with client if the price changes by more than 20%. • Equipment orders over $10,000 may require a 50% (pre-tax) deposit prior to ordering. • Vendor shipping fees may vary from the quoted amount. • Labor hours quoted are an Estimate and quotes allow for 15% overage of scoped hours. • Labor will be billed separately. Acceptance City of San Luis Obispo CIO Solutions Signature Signature: Printed Name:Eric Mortensen Printed Name: Title:Title: Date:Date: August 29, 2025 City of San Luis Obispo Quote #EE034107 Page 4 of 4Page 54 of 415 A quote prepared for City of San Luis Obispo Quote #EE034129 by the team at CIO Solutions 5425 Hollister Ave #150, Goleta, CA 93111 805.692.6700 eengmyr@ciosolutions.com www.ciosolutions.comPage 55 of 415 Prepared For Prepared By City of San Luis Obispo Eric Mortensen 990 Palm St. San Luis Obispo, CA 93401-3249 emortensen@slocity.org www.ci.san-luis-obispo.ca.us Eric Engmyr Phone: 805-692-6700 Email: eengmyr@ciosolutions.com Discounts meet or exceed. NASPO ValuePoint Data Communications contract AR3232 ExtendedQtyPriceSRX Juniper 5yr,SRX4300AC,IDP,AppSec,ATP $97,449.00 2 $194,898.00 Juniper AC PWR CBL-PATCH CORD,10A/250V,2.5M $27.00 2 $54.00 Juniper 850W AC AFO Power Supply $948.00 2 $1,896.00 JNPR Care ND Supt SRX4300 60 Months $53,420.00 2 $106,840.00 SRX Subtotal $303,688.00 Recap Amount SRX $303,688.00 Subtotal $303,688.00 Tax $17,224.20 Total $320,912.20 • Quotes expire after 30 days. • All software sales are final and non-refundable. Vendors do not accept software returns. • Prices of high-demand products may fluctuate between when a quote is made, and the order is placed – tariffs may affect this as well. • CIO Solutions reserves the right to amend the final invoice to reflect any vendor price changes. If change is less than 20% it will be processed with the updated cost. CIO Solutions will consult with client if the price changes by more than 20%. • Equipment orders over $10,000 may require a 50% (pre-tax) deposit prior to ordering. • Vendor shipping fees may vary from the quoted amount. • Labor hours quoted are an Estimate and quotes allow for 15% overage of scoped hours. • Labor will be billed separately. Acceptance City of San Luis Obispo CIO Solutions Signature Signature: Printed Name:Eric Mortensen Printed Name: Title:Title: Date:Date: August 29, 2025 City of San Luis Obispo Quote #EE034129 Page 2 of 2Page 56 of 415