Whitehorse Daily Star

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Michael Reyes

Potential sole-sourced contract stirs concerns

Council is once again considering a sole-sourced contract that would be worth more than $100,000.

By Whitehorse Star on March 22, 2017

Council is once again considering a sole-sourced contract that would be worth more than $100,000.

The recommendation to sole-source a data storage contract to CDW Canada comes just three weeks after council voted in favour of sole-sourcing a $1.7-million contract to Nova Bus for the supply of two new 12-metre low-floor city buses.

At Monday’s council meeting, Michael Reyes, of the city’s Department of Business and Technology Systems, proposed the contract award.

Two councillors, however, quickly voiced their concerns over sole-sourcing a contract.

“I’m definitely concerned,” said Coun. Samson Hartland after noting, as Coun. Jocelyn Curteanu had as well, that he’s not a fan of sole-sourced contracts.

He noted he would rather see more opportunities for local procurement. Reyes, however, said he’s not sure it could be provided locally.

In his report to council, Reyes said it was in 2012 that CDW was awarded the first contract – through a request for proposals process - for Enterprise Data Storage.

Two storage units that were purchased under that contract hold 34 Terabytes of data, which he described as about 60 times larger than a typical computer hard drive.

The city also has a unit purchased in 2013 which holds 24 Terabytes of data.

“These are critical because they store the city’s financial data, GIS mapping data, data for the (Canada Games Centre), emails and others,” Reyes said.

“Aside from nearing end of life for the two Nimble units from 2012, the 2013 unit is also projected to be at 73 per cent to 89 per cent capacity around the second or third quarter of 2017.”

The department is now looking to purchase a Nimble storage unit that would have a capacity of more than 100 Terabytes of data with faster network speed.

The purchase would have three benefits for the city:

• replacing aging equipment with a newer unit that will ensure the integrity of the data;

• allow for capacity planning for future data storage needs; and

• helping to lessen administrative overhead.

“Due to the very specific nature of this technology investment and the desire to ensure compatibility and prevent corruption of critical data, (business and technology systems) prefers to continue utilizing Nimble as the city’s Enterprise Data Storage platform,” Reyes noted in his report.

“Having mixed storage platforms is not ideal.”

While the standard cost for the 100-plus Terabyte unit is $245,000, with negotiated discounts, applied credits and government funding, the cost to the city through Nimble is down to $108,000.

Any sole-sourced contract of more than $100,000 has to go through council approval.

Under questioning by Coun. Roslyn Woodcock, Reyes said once data are transferred from the older units to the newer one (a task that would be done by city staff), the old units would be used for running tests.

After they’re no longer usable for testing, the parts would likely be recycled or provided to a program like Computers for Schools.

Council will vote on the contract next week.

Comments (12)

Up 11 Down 1

Willard on Mar 26, 2017 at 11:07 am

If there is any problem with how to sole source any of these contracts I would consult with S. Hazard as he is an expert and the only reason you need is that the chosen benefiting contractor has to recommend higher speeds.
Concerning the replacement of two of the buses, it is my understanding talking with a mechanic who used to maintain these is that you can expect 800,000 miles out of them or around twenty years of service. What is the service life on units being replaced please?

Up 15 Down 4

Mitch on Mar 24, 2017 at 8:14 pm

More "cheechakos" trying to buy in their buddies from abroad. Time to address the elephant in the room. This territory needs to develop the means to care for itself, no easy task... Start with cutting down on outsourcing grossly overpriced garbage such as this!

Up 29 Down 4

M. McPhee on Mar 23, 2017 at 11:23 am

Sole Sourcing any contract is just the wrong way to proceed. Companies in the Yukon should be at least be given the opportunity to bid on City, NGO, and Yukon Government contracts. Without tendering contracts there is no way of knowing whether or not there are other, less expensive options available.

Up 18 Down 2

IT Guy with enterprise experience on Mar 23, 2017 at 10:09 am

This is a standard enterprise-level problem that most folks won't have an idea about. A $120 "enterprise/NAS" drive from a retailer like NCIX or TigerDirect that holds 1TB is actually sold at about $2000+ from a data storage provider like EMC or NetApp. Different physical hardware, different firmware, different controller, different support, different licensing.

A local provider cannot provide any benefit to the government other than a 15%-25% markup, because they are using the same retailers that the end-consumer would directly. This is a standard procurement problem with I.T. now. It used to be that the local provider would retain hardware for same-day replacement, and local expertise to do the actual physical replacement. That doesn't happen any more. There is ZERO added benefit to the end-client.

The city should have simply done a competition inviting local vendors to compete with the folks they sole-sourced it to. Local folks (in this case) have nothing to offer other than a markup... as a taxpayer and a person who has had to cry looking at invoices I can appreciate any savings they could get.

Up 23 Down 3

better spent on Mar 23, 2017 at 1:01 am

I run three backup servers in a Gov IT dept that have 42TB of storage each and the cost is less than $15k each

Up 25 Down 1

Carl on Mar 22, 2017 at 7:05 pm

CDW is a large wholesaler of IT products, they are not the manufacturer of this storage solution nor it's only reseller. Most of the local guys use CDW as their wholesale source. This sole-source request is an attempt to circumvent the local resellers from bidding on it. How does Reyes know that CDW is offering the lowest possible price for this product? This obviously should be publicly tendered.

Up 10 Down 10

City transit services buses should be electric driven on Mar 22, 2017 at 6:57 pm

This most liberal government can't see it and could save $12 million on the other project. The liberals don't listen to tax payers.

Up 20 Down 1

Where is that math coming from? on Mar 22, 2017 at 4:29 pm

200 Terabytes is in the 60k range + the cost to do the transfer isn't included.
Sounds like a deal!

Up 17 Down 2

curious on Mar 22, 2017 at 4:27 pm

uh, 65 grand too much

Up 20 Down 4

not this company? on Mar 22, 2017 at 4:26 pm

http://www.resellerratings.com/store/CDW

so.. tigerdirect ?
ncix?

the joy of living with people who are abysmal with computers... they don't have a clue.
Why doesn't the city switch to SSD's and set them up in a server rack. Your cost through dell.ca
Unless I'm reading this wrong HPE (Hewlett Packard), not very well known for its hard drives, now owns nimble.

For adding storage, just tap in some new drives...
http://www.dell.com/ca/business/p/powervault-md1220/pd
so I can add 200 Terabytes for about $64,000 (wonder who is scoring on that extra money... 100 Terabytes would be 32,000 ... so someone pockets 68K... Whoo hoo!)
and the city has to do all of the work anyways. Sweet! With that savings you can stop the LIC charge to Hillcrest. You can thank me later.

Up 25 Down 3

More options on Mar 22, 2017 at 4:17 pm

Even if they cannot source this locally, there are more companies than CDW out there that can likely provide this product. They should tender for best price.

Up 23 Down 9

spud on Mar 22, 2017 at 3:29 pm

I recall from my working days with computers, if you have stumbled on a system that actually works STICK WITH IT AND UPGRADE AS REQUIRED. Nothing in this area is cheap and we should not be fretting on a few thousand dollars exceeding 100,000. We could easily have purchased a half dozen units with the money being peed away on severance pays to high income frauds.

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