Large State Contracts Up For Grabs?

There has been some buzz lately around a few of California's large strategic sourcing contracts that are to expire in September and rightfully so--these are huge deals. However, there are some renewals available, so what is the potential opportunity here? This is what we know:

IT Hardware - Enterprise Contracts (Storage)

  • 7 contracts set to expire on 9/25/2008
  • 2007 purchases: Approximately $12.3 million for all 7 contracts
  • There are 2 optional renewals available

The Skinny:

We know that general practice is to renew but the contract administrator tells us that there is a work team in place that is evaluating the option of going out to bid. A clause will be put into the renewal contract allowing the state to opt out within 30 days of notice--if the option is chosen, we should expect to see a bid opportunity in the next several months.

IT Hardware - Enterprise Contracts (UNIX-based Servers)

  • 3 contracts set to expire on 9/25/2008
  • 1 contract set to expire on 9/27/2008
  • 2007 purchases: Approximately $11.3 million for 4 contracts
  • There are 2 optional renewals available

The Skinny:

There is no work team is in place; the contract administrator indicates that these contracts will be renewed.

As we hear more we'll keep you updated and add any opportunities to Navigator.

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