To: Board of Supervisors
From: Kristin Connelly, Clerk-Recorder
Report Title: Purchase Order with Computacenter for VMware licensing
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Purchasing Agent, on behalf of the Clerk-Recorder, to execute a purchase order with Computacenter United States, Inc. in an amount not to exceed $339,221 for VMware server maintenance subscription for the period of August 1, 2026, through July 31, 2031.
FISCAL IMPACT:
100% General Fund. The annual subscription fee will be $67,844.20. The expense will be reimbursed where applicable through grant funding and is within the Department’s operating budget.
BACKGROUND:
The Contra Costa County Clerk-Recorder-Elections department is requesting Board approval of a purchase order with Computacenter for a subscription service agreement for VMware. Due to VMware’s acquisition by Broadcom, the subsequent changes to VMware’s licensing and pricing structure have changed. Broadcom significantly revised VMware’s product portfolio and moved customers from the traditional perpetual licensing and support model to subscription-based licensing. Broadcom discontinued the sale and renewal of perpetual licenses and Support and Subscription (SnS) agreements for affected products, requiring organizations to transition to new subscription offerings.
As a result of these changes, the Department’s VMware renewal costs have increased beyond the amount originally budgeted. While the annual fee can be absorbed within the Department’s Fiscal Year 26/27 budget, the most cost-effective way to proceed is to enter into a five (5)-year service agreement for an amount not exceeding $339,221.
The Department is also requesting the Board accept the Terms and Conditions of the purchase agreement, in which the County and Computacenter each agree to indemnify the other for third-party claims arising from their own negligence, misconduct, or unauthorized actions, including certain IP-infringement claims tied to service deliverables. If a Deliverable is claimed to infringe, Computacenter must secure usage rights, replace or modify it, or allow termination with a prorated refund where applicable. Separately, Computacenter’s overall liability is capped at the greater of the prior 12 months of service fees or $10,000, except for a few specific excluded categories. The VMware licensing is being sought via single source justification for business continuity.
Approval will allow staff to maintain continuity of operations while evaluating longer-term strategies to manage VMware costs, including infrastructure optimization, licensing alternatives, and potential technology transitions.
CONSEQUENCE OF NEGATIVE ACTION:
Not using VMware for this project could result in higher costs, longer implementation timelines, increased security risks, and potential compatibility issues. Given its existing integration within the department's infrastructure, VMware remains the most efficient, secure, and reliable choice for the department.