REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
August 18, 2026
FROM
DON LE, Chief Information Officer, Innovation and Technology Department
SUBJECT
Title
Contract with Presidio Networked Solutions Group, LLC for Cisco Systems, Inc. Enterprise Security Software and Cloud Services and Business Associate Agreement with Cisco Systems, Inc.
End
RECOMMENDATION(S)
Recommendation
1. Approve Contract with Presidio Networked Solutions Group, LLC, for Cisco Systems, Inc. enterprise security software licensing and cloud services, in an aggregate amount not-to-exceed $9,000,196, for the term of August 25, 2026 through August 24, 2029.
2. Approve non-financial Business Associate Agreement, including non-standard terms, with Cisco Systems, Inc. to ensure the security of protected health information, beginning on August 25, 2026 and continuing until expiration or termination of all contracts governing the Cisco services.
3. Authorize the Chief Information Officer or the Assistant Chief Information Officer to execute non-substantive amendments to the contract with Presidio Networked Solutions Group, LLC, as they pertain to changes to the use of Cisco Systems, Inc. enterprise security software licensing and cloud services, subject to review by County Counsel, provided the amendments do not increase the total not-to-exceed amount of $9,000,196, or extend the term of the contract.
4. Direct the Chief Information Officer to transmit any non-substantive amendments to the contract with Presidio Networked Solutions Group, LLC to the Clerk of the Board of Supervisors within 30 days of execution.
5. Authorize the Auditor-Controller/Treasurer/Tax Collector to post the necessary budget adjustments as detailed in the Financial Impact section (Four votes required).
(Presenter: Don Le, Chief Information Officer, 388-5501)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The Innovation and Technology Department’s (ITD) operating costs are recovered via service rates approved annually by the Board of Supervisors (Board). The total three-year cost for Cisco Systems, Inc. (Cisco) enterprise security software and cloud services purchased from Cisco authorized reseller Presidio Networked Solutions Group, LLC (Presidio) will include $8,444,638 for initial needs, paid annually, plus an additional $555,558 for additional licensing and cloud services needs that may arise during the three-year contract term, purchased on an as-needed basis, for a total not-to-exceed amount of $9,000,196. The additional $555,558 is based on ITD’s historical usage under the previous three-year Cisco Enterprise Agreement, during which additional license quantities were purchased.
ITD’s Computer Operations 2026-27 budget includes $1,190,434 for Cisco enterprise security software licensing and cloud services costs. A 2026-27 budget adjustment of $1,624,446 is requested to increase ITD’s Services and Supplies for additional Cisco enterprise security software licensing and cloud services. This adjustment will utilize Available Unrestricted Net Position as detailed below. Future appropriations will be included in ITD’s Computer Operations 2027-28 and 2028-29 recommended budgets.
|
Fund Center |
Commitment Item/GL Account |
Description |
Action |
Amount |
|
1201404048 |
52002115 |
Computer Software Expense |
Increase |
$1,624,446 |
|
1201404048 |
40909995 |
Residual Equity Transfer In |
Increase |
$1,624,446 |
BACKGROUND INFORMATION
ITD manages multiple enterprise systems and computer equipment that serve County departments, including the wide area network, server management services for physical and virtual servers, security solutions such as threat detection and response, monitoring and analytics, and multifactor authentication and support.
ITD utilizes various Cisco products for the management of the server environment, and wide area network. Cisco offers the use of their software, including enterprise security licensing and cloud services. These products are used to protect the County against malware and cyber threats; provide comprehensive analysis of network activity, detection and response solutions, and wireless systems to increase visibility and functionality; and for deployment and management systems for both Cisco network and server-based platforms.
On August 22, 2023 (Item No. 37) the Board approved End User License Agreement (EULA) No. 23-863, with Cisco, including non-standard terms, for the use of Cisco software and cloud services for the period commencing on the delivery date and continuing until expiration or termination of the entitlement, and non-financial Amendment No. 1 to Agreement No. 23-863 amending certain contract terms, as negotiated with Cisco, for Cisco Deal ID 68534263 or related Deal ID. The Board also approved non-financial Enterprise Agreement No. 23-864, Program Terms for End Users with Cisco, including non-standard terms, for enterprise security software and cloud services purchased from authorized reseller Presidio. Enterprise Agreement No. 23-864 became effective upon execution by the County and remains in effect until all suites and add-ons purchased in the initial order expire or are terminated. The EULA and Enterprise Agreement No. 23-864 will remain in effect alongside the contract with Presidio.
The Business Associate Agreement (BAA) is Cisco’s standard BAA, which includes terms that differ from the standard County Business Associate Agreement and omits certain County standard terms. Cisco is unwilling to negotiate these terms. The non-standard and missing terms include the following:
1. Cisco does not agree to be responsible for costs associated with a breach of ePHI.
• The County standard Business Associate Agreement requires the BA to be responsible for reasonable costs associated with a breach, including postage, alternative means of notice, media notification, and credit monitoring services.
• Potential Impact: The County may be liable for all costs associated with a breach of its ePHI caused by Cisco, which may exceed the total amount of the underlying purchase contract.
2. Cisco does not agree to indemnify the County.
• The County standard Business Associate Agreement requires the BA to indemnify, defend and hold the County harmless from claims and expenses (including costs for reasonable attorney fees) that are caused by the BA with respect to the use, access, maintenance or disclosure of ePHI.
• Potential Impact: The County may not contractually require Cisco to defend or reimburse the County for claims made against the County as a result of Cisco’s actions resulting in a breach of ePHI, which may exceed the total amount of the underlying purchase contract.
3. Cisco does not agree to provide appropriate liability insurance coverage.
• The County standard Business Associate Agreement requires the BA to provide appropriate liability insurance coverage to cover claims and demands made for loss to any person arising from the breach of the security, privacy, or confidentiality obligations of BA under the Business Associate Agreement and under HIPAA provisions.
• Potential Impact: The County has no assurance that Cisco will be financially responsible for claims that may arise under the BAA, which could result in expenses to the County that exceed the total amount of the underlying purchase contract.
ITD recommends approval of the new contract for continued purchases through Presidio to allow ITD to continue to utilize Cisco enterprise security software and cloud services. ITD also recommends authorizing the Chief Information Officer or Assistant Chief Information Officer to execute non-substantive amendments to the contract in Recommendation No. 1. New requirements or technical revisions may arise throughout the duration of the contract, which may require non-substantive amendments to be executed.
ITD also recommends approval of the Cisco BAA to ensure compliance with the Health Insurance Portability and Accountability Act when utilizing Cisco enterprise security software and cloud services that may create, receive, maintain, or transmit protected health information on behalf of the County.
PROCUREMENT
On May 1, 2026, ITD released ITB No. ISD126-TOPS-6389 via the County’s Electronic Procurement Network (ePro) for Cisco enterprise security software licensing and cloud services for a three-to-five-year period from Cisco authorized resellers. Only one bid was received from Presidio who was selected. No protests were received.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on July 27, 2026; Purchasing (Lisa Zhu, Buyer III, 388-0529) on July 27, 2026; Risk Management (Stephanie Pacheco, Staff Analyst II, 386-9039) on July 27, 2026; Auditor-Controller/Treasurer/ Tax Collector (Charlene Huang, Auditor-Controller Manager, 387-7022) on August 4, 2026; and County Finance and Administration (Lizveth Varela, Administrative Analyst, 387-4883) on August 3, 2026.