To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Purchase Order with Computacenter United States Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute on behalf of the Health Services Director, (1) a purchase order with Computacenter United States Inc. in an amount not to exceed $1,963,779 for VMware licenses for the period from June 30, 2025, through June 29, 2028 and (2) execute the Foundation Agreement with Broadcom Government Solutions LLC for virtual server licenses and support.
FISCAL IMPACT:
This action will result in expenditures of up to $1,963,779 over a three-year period and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
Contra Costa Health (CCH) has utilized VMware since 2016. Following Broadcom's acquisition of VMware, Computacenter United States Inc. continues to serve as one of its authorized partners. VMware is a leading platform for virtualization and cloud computing, enabling businesses to optimize their IT infrastructure. Its comprehensive suite of technologies supports server virtualization, multi-cloud management, security enhancements, and digital workspace solutions.
On March 25, 2025, the Board of Supervisors approved agenda item C.78 to execute on behalf of the Chief Information Officer, a purchase order with Computacenter United States Inc. in an amount not to exceed $71,000 for a subscription agreement with CA/Broadcom for VMware licensing for the period of April 1, 2025, through March 31, 2028.
On June 23, 2020, the Board of Supervisors approved agenda item C.65 to execute on behalf of the Health Services Director, a contract with Groupware Technology. Inc. in an amount not to exceed $1,999,950 for the purchase of VMWare software licenses and support for the period from June 30, 2020, through July 1, 2025.
CCH IT Procurement received the renewal request on February 14, 2025. Processing was delayed due to the requirement of a formal bidding process. A Request for Proposal (RFP) was conducted to solicit bids for VMware licenses. After a thorough evaluation Computacenter United States Inc. was selected as the preferred vendor under #RFP_F-Contr-0000000055 and a Notice of Intent to Award was issued on May 9, 2025. Additional delays occurered due to extended negotiations regarding the governing agreement. IT Procurement is actively collaborating with the vendor and stakeholders to submit renewal requests at least 180 days in advance of expiration to prevent future delays.
Under the Foundation Agreement, Broadcom Government Solutions LLC’s (Broadcom) liability is limited to the amount the County has paid Broadcom in the twelve months preceding the claim. Under the Foundation Agreement the County is obligated to indemnify Broadcom for bodily injury or death that arises out of County’s performance of the Agreement, and against any claim that any data, materials, items, or information supplied by County under the Agreement infringes any U.S. patent, copyright, or trademark.
CONSEQUENCE OF NEGATIVE ACTION:
Failure to approve this action may result in the loss of technical support, security updates, and software enhancements. Subscription-based services may be discontinued, that could also lead to service disruptions and constraints related to the department’s IT infrastructure.