The city of Houston has approved a new set of computer equipment and services contracts with a combined maximum value of $79.1 million, giving departments a five-year purchasing vehicle for PCs, peripherals and other end-user technology.
The contracts are with Dell Marketing L.P., HP Inc. and Summus Industries Inc., doing business as Summus Technologies. The initial term is three years with two one-year renewal options that can extend the agreements through 2031.
Houston Information Technology Services officials told the City Council’s Technology and Innovation Committee during a Sept. 17 meeting that the $79.1 million figure represents projected use across departments during the life of the contracts, not money already appropriated or guaranteed to be spent.
Under the proposed allocation, Dell and HP each account for 40 percent of the total, or $31.6 million apiece, while Summus accounts for 20 percent, or $15.8 million. The city will retain the ability to shift spending among the vendors as needs change.
The contracts replace an expiring citywide computer agreement and are intended to support annual PC refreshes, new hires, public-facing library computers and equipment used by departments including Public Works, Houston Airports, police and fire.
Deputy CIO Bert Quarfordt told the committee that Houston is continuing to move toward a more mobile workforce. When he joined the city more than seven years ago, about 90 percent of employee computers were desktops and 10 percent were laptops, he said — now, it's close to even. Excluding the Houston Police Department, the mix is 66 percent laptops and 34 percent desktops.
The new contracts are also designed to support faster device deployment. Quarfordt said the city is working toward zero-touch and connected provisioning, with the goal of creating an “iPhone-like migration” when employees move from an old computer to a new one.
Pricing protections are another part of the contract structure. Assistant Director Sunny Coleman told the committee that hardware prices have been changing quickly enough in recent months that some vendor quotes have not remained valid through the city’s procurement process.
Houston negotiated 90-day price protection with Dell and HP. If prices fall during that period, the city can receive the lower price. Once a purchase order is issued, pricing cannot be increased.
Summus, which is not an original equipment manufacturer, is expected to give the city another option for larger-volume purchases through a scale-discount model. City officials said that could be useful for departmentwide PC refreshes and bulk purchases of rugged laptops used in police and fire vehicles.
The city also plans to use the agreements to standardize device procurement and configurations across departments, reduce compatibility issues and improve support and deployment.
City Council approved the three contracts as part of its Sept. 29-30 meeting after the Technology and Innovation Committee reviewed the item Sept. 17.
Houston Sets $79M Ceiling for New Citywide Computer Contracts
What to Know:
- Houston is using three vendors to give departments more flexibility on pricing, delivery and large-volume purchases.
- Dell and HP each receive a 40 percent allocation while Summus receives 20 percent, with Houston able to shift purchases among the vendors.
- The agreements include 90-day price protection and support Houston’s shift toward standardized equipment, more laptops and faster device deployment.
