Purchase of Computers Cost Analysis
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1 Purchase of Computers Cost Analysis Presented to: Audit, Business and Technology Committee By: Business Services and Information Technology Divisions October 20, 2005
2 Major Points Strategic sourcing benefits Technical specifications Strategic partners Ordering process for schools and offices Concerns regarding price disparity 2
3 Benefits of Strategic Sourcing Reduce hardware cost through competitive bidding Reduced total cost of ownership Improve quality of service Achieve standardization 3
4 District s Computer Specifications Established by ITD to address: Minimum computer life cycle 3 years for laptops 5 years for desktops/servers Minimum hardware/software performance requirements Enhanced maintenance response time 24hr repair or replace onsite (no depot) warranty Obtain better computer asset information 4
5 Value Added Specifications Asset management (e.g. comprehensive equipment inventory database with serial numbers and location installation) Integration services (e.g. deliver and install equipment, configure system, resolve software conflicts) Dunnage removal Rapid restore software Technical support (e.g. toll free live operators and technicians available Mon Fri, 7:30 am 6:00pm) Extended warranty 3 years for laptops; 5 for desktops/servers 24 hour on-site repair or replace Laptop security Tracking software for stolen laptops Etched District logo and identification 5
6 Value Added Specification 6
7 Current Computer Contractors Three strategic partners with master contracts: Apple Computers Apple products Arey Jones Educational Solutions IBM products Gateway Company Gateway products 7
8 Ordering Process for Schools/Offices Contract notification Reference guide Inside LAUSD Order development Contractor website Dedicated account team Order Placement Schools issue RX Purchasing Branch issue purchase order Ordering discretion for low value transactions Imprest funds P-Card ASB discretion 8
9 Price Disparity Concern Concern raised by Verdugo Hills HS teacher (PC contract pricing) District s contracts vs. retail market District s lower contracted price Concerns raised regarding Apple contract pricing 9
10 Comparative Price Analysis PC LAPTOPS Vendor Description Price (before tax) Arey Jones IBM Thinkpad R series $1,118.64¹ Gateway Gateway M250 $1,078.00² Fry s Electronics Compaq laptop V2310US $1,229.98³ ¹ Laptop configuration adjusted for comparative purposes to meet lower specifications provided by teacher. ² Laptop configuration adjusted for comparative purposes to meet lower specifications provided by teacher. ³ Pricing does not include critical LAUSD specifications. Vendor does not meet District specifications. 10
11 Comparative Price Analysis PC DESKTOPS Vendor Description Price (before tax) Arey Jones IBM Thinkcentre A50 $1, Gateway Gateway E-2300 $1, Dell Dell Optiplex 520MT $1,717.93¹ ¹ Based on Dell California Multiple Award Schedule pricing found in for California K-12 Districts. 11
12 Comparative Price Chart Apple Notebooks ibook Ghz Super Powerbook Ghz Combo Apple Desktops imac Ghz Combo Powermac G5 Dual 2.7Ghz Super Apple Store Price Apple K-12 Price LAUSD Contract Price $1,299 $1,199 $1,450 $1,999 $1,799 $2,169 Apple Store Price Apple K-12 Price LAUSD Contract Price $1,299 $1,199 $1, $2,999 $2,699 $3,054 12
13 Apple Notebook ibook Ghz Super/512/60 Value Added Services: Customer Driven Mfg. Set-up Additional Software (e.g. MS Office; recovery media) Integration services Apple Care Protection Plan (3yrs) Security SW/Etching Total Comparative Price Analysis Apple Notebooks Apple Store Price Apple Ed/Gov. Price LAUSD Contract Price $1,299 $1,199 $ Plus: Not Available Not Available Not Available $249 Not Available $1,548* Plus: $47.48 $63.67 $93.00 $ $99.00 $1, (19% Discount) Plus: $38.46 $51.57 $75.33 $ $80.19 $1, *The price of $1,548 does not include the 4 other District requirements included in the $1, price. 13
14 Apple Notebook imac Ghz Super/1GB/160 Comparative Price Analysis Value Added Services: Customer Driven Mfg. Set-up Additional Software (e.g. MS Office Acad; recovery media) Integration services Apple Care Protection Plan (5yrs) Total Apple Desktops Apple Store Price Apple Ed/Gov. Price LAUSD Contract Price $1,399 $1,289 $1, (15% Discount) Plus: Not Available Not Available Not Available $169 (only 3 yrs) $1,568* Plus: $47.48 $63.67 $93.00 $ $1, Plus: $40.36 $54.12 $79.05 $ $1, *The price of $1,568 does not include the 3 other District requirements included in the $1, price a 5 year Apple Care Protection Plan. 14
15 Conclusion LAUSD computer contracts provide the lowest comparable cost Established minimum performance specifications Reduced total cost of ownership Improved quality of service Support the educational process by minimizing downtime of computers Shift burden of support/repair to warranty providers 15
16 Questions? 16
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