REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
July 26, 2022
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Agreements with Edge Solutions & Consulting, Inc. and Nutanix, Inc. for License, Hardware and Software to Install and Implement Storage Infrastructure Solution
End
RECOMMENDATION(S)
Recommendation
1. Approve Agreement with Edge Solutions & Consulting, Inc. for the purchase of hardware and software, and installation and implementation of a storage infrastructure solution in the amount not to exceed $2,000,000, for the five-year contract period of July 26, 2022 through July 25, 2027.
2. Approve License and Services Agreement with Nutanix, Inc., including non-standard terms, for software referenced in Recommendation No. 1, for the five-year contract period from July 26, 2022 through July 25, 2027.
(Presenter: William L. Gilbert, Director, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The agreement with Edge Solutions & Consulting, Inc. (Edge) with a cost not to exceed $2,000,000, includes the cost of the software license with Nutanix, Inc. (Nutanix), and is funded by State Medi-Cal, Federal Medicare, private insurances, and other departmental revenue. Adequate appropriation and revenue have been included in the Arrowhead Regional Medical Center (ARMC) 2022-23 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
These agreements will allow ARMC to purchase Nutanix hardware and software from Edge, an authorized reseller, which includes installation and implementation of the Nutanix server and storage infrastructure software solution. The Nutanix server and storage environment will be physically located at ARMC and will be dedicated for ARMC systems that utilize the internet. This added infrastructure would support ARMC’s implementation of its new electronic healthcare record system by allowing ARMC to implement Virtual Private Network technology to establish a protected network connection to encrypt ARMC’s internet traffic.
The Nutanix License and Services Agreement (LSA) is Nutanix’s standard commercial contract, which includes terms that differ from the standard County contract and omits certain County standard contract terms. While the parties negotiated certain contract terms to County standards, Nutanix would not agree to certain standard terms. The non-standard terms include the following:
1. Nutanix’s maximum liability to the County is limited to $500,000, excluding indemnification, gross negligence, willful misconduct, fraud, personal injury, and liability pursuant to an applicable legislation that does not permit to limit or exclude any liability.
• The County standard contract does not include a limitation of liability.
• Potential Impact: Claims could exceed the liability cap leaving the County financially liable for the excess.
2. There is no termination for convenience.
• The County standard contract gives the County the right to terminate the contract, for any reason, with a 30 day written notice of termination without any obligation other than to pay amounts for services rendered and expenses reasonably incurred prior to the effective date of termination.
• Potential Impact: The County can only terminate the LSA during the term of an uncured breach by Nutanix. Any attempted termination by County without cause could result in payment liability for the full contract amount, which could result in payment liability where no funds are available due to lack of allocation or loss of funding.
ARMC recommends approval of the Nutanix LSA, including the non-standard terms, to provide for the health and safety of County residents by ensuring the hospital has the capacity to continue to provide services utilizing necessary encrypting technology.
Edge is a certified Women's Business Enterprise certified by the Women's Business Enterprise National Council since 1999, as well as the Supplier Clearinghouse for the Utility Supplier Diversity Program of the California Public Utilities Commission.
PROCUREMENT
On May 13, 2021, Request for Proposal (RFP) ARMC121-ARMC-4107 for hardware and software for ARMC to implement the Nutanix server and storage infrastructure was released through San Bernardino County’s Electronic Procurement Network. ARMC received proposals from the following companies:
|
Proposer |
Location |
Cost |
|
Edge Solutions & Consulting, Inc. |
Agoura Hills, CA |
$1,913,950 |
|
ePlus Technology, Inc. |
Irvine, CA |
$1,813,939 |
Evaluation of the proposals was completed by a committee comprised of representatives from the ARMC Information Management Department. Proposals were evaluated based on qualifications and experience, cost, and references. The evaluation committee recommended that Edge, an authorized reseller, be awarded an agreement as it best meets the needs of ARMC.
On May 23, 2022, the other proposer was notified in writing they were not the recommended proposer for contract award and no protests were received.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Deputy County Counsel, 387-5455) on June 3, 2022; Innovation and Technology Department (Larry Ainsworth, Chief Information Officer, 388-5501) on June 30, 2022; Purchasing (Ariel Gill, Buyer III, 777-0722) on July 1, 2022; ARMC Finance (Chen Wu, Finance Budget Officer, 580-3165) on July 1, 2022; Finance (Jenny Yang, Administrative Analyst, 387-4884) on July 6, 2022; County Finance and Administration (Diana Atkeson, Deputy Executive Officer, 387-5423) on July 7, 2022.