CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 25-066, Palo Alto Firewall Upgrade, to Continental Resources for an amount not to exceed $919,904 and for a five-year term
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Electric Utility (Utility) uses Palo Alto firewalls to monitor and filter network traffic, prevent unauthorized access, defend against malware, and ensure the security of its network and data.
The existing Palo Alto firewall hardware and support can no longer fully meet the Utility’s firewall requirements. Additionally, the rising costs of maintaining and supporting the aging equipment now exceed the investment required for new hardware, making an upgrade more cost-effective.
Upgrading to the latest technology will provide enhanced security, improved performance, and long-term cost savings. The benefits of an upgrade will position the Utility to meet current and future demands effectively.
In February 2025, the Utility issued Bid 25-066, Palo Alto Firewall Upgrade, to purchase the firewall hardware, subscription/support for the hardware, and professional service to implement three high-availability pairs of Palo Alto firewalls.
DISCUSSION:
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Advertisement Date: |
02/26/25 |
Notices Sent: |
326 |
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Opening Date: |
03/17/25 |
Planholders: |
20 |
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Proposals Received: |
1 |
Bids were received from the following vendors:
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Vendor Name |
Proposed Cost |
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Continental Resources |
$919,904 |
The bid received only one response, as Continental Resources was the only company willing to spread the full cost of the Palo Alto five-year support into annual payments. This approach allows the Utility to recognize its costs in the year of support, rather than paying the full amount upfront at the time of purchase.
This procurement includes hardware for three pairs of Palo Alto firewalls, along with a five-year subscription/support plan for the hardware (paid annually). The Utility will also award an option for professional services to assist with the firewall implementation.
The Palo Alto migration and implementation are expected to be completed by June 30, 2025. The contract for annual support services will run from the date of award through April 1, 2029.
FISCAL IMPACT:
CIP #: EU080
The Palo Alto firewall upgrade is expensed to the Infrastructure account listed below. This upgrade is being done in association with EU080, Utility Infrastructure Upgrades, which has a budget of $1,950,000 in 2025. The initial expense can be accommodated within the 2025 budget and staff will ensure proper funding is included in future budgets to accommodate the costs associated with the annual support services.
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Account Number |
Fund Description |
Total Budget Amount |
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40251300-551502 |
Electric Utility Fund |
$27,261,400 |