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HomeMy WebLinkAboutStaff Report 2603-6190CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, June 08, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     7.Approval of Purchase Order C27197380 with Optiv Security, Utilizing a State of California Department of General Services Software Licensing Program (SLP) SLP-24-70-0184Z Contract, to Procure Varonis Systems for a Three-Year Term with an Annual Amount of $154,043 for a Total Not-To-Exceed Amount of $462,129. CEQA Status - exempt under CEQA regulation § 15061(b)(3). City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: IT Department Meeting Date: June 8, 2026 Report #:2603-6190 TITLE Approval of Purchase Order C27197380 with Optiv Security, Utilizing a State of California Department of General Services Software Licensing Program (SLP) SLP-24-70-0184Z Contract, to Procure Varonis Systems for a Three-Year Term with an Annual Amount of $154,043 for a Total Not-To-Exceed Amount of $462,129. CEQA Status - exempt under CEQA regulation § 15061(b)(3). RECOMMENDATION Staff recommends that City Council approve and authorize the City Manager or their designee to execute Purchase Order C27197380 with Optiv Security, utilizing the above-noted State of California Department of General Services Software Licensing Program SLP-24-70-0184Z1 contract to procure Varonis Systems over a three-year term (August 18, 2026 to August 17, 2029) with an annual amount of $154,043 and a total not-to-exceed amount of $462,129. BACKGROUND The City began using Varonis on August 18, 2023, under a three-year purchase order with annual payments of $146,000 and a total amount of $438,000. That purchase order also utilized a cooperative contract. Varonis is currently deployed across the City’s hybrid IT environment to provide centralized visibility and monitoring for Active Directory, the City’s file storage servers, and Microsoft 365, including email, SharePoint, and OneDrive. The City stores and processes critical and sensitive information, including personally identifiable information, financial records, human resources data, and public safety-related information. Because these systems span both on-premises and cloud environments, the City has an ongoing need for tools that provide centralized visibility and consistent security controls across platforms. 1 Software License Leveraged Procurement Agreement: https://caleprocure.ca.gov/PSRelay/ZZ_PO.ZZ_CTR_SUP_CMP.GBL?Page=ZZ_CTR_SUP_PG&Action=U&SETID=STAT E&CNTRCT_ID=SLP-24-70-0184Z This renewal supports the City’s ongoing investment in secure and reliable technology infrastructure and is intended to maintain the City’s current cybersecurity capabilities without interruption. ANALYSIS FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Date: 3/30/2026 Expiration: 6/23/2026 To: City of Palo Alto Information Technology Services Darren Numoto CIO / Director of It 250 Hamilton Ave Fl 2 Palo Alto, CA 94301-2531 US 650-329-2211 darren.numoto@cityofpaloalto.org Varonis - 3YR Renewal - Annual Payments CA SLP contract / SLP-24-70-0184Z - In order to be accepted the PO must be fully funded for the entire 3YR term. Annual payments are as follows: - Year 1: $154,042.75 / Net30 Year 2: $154,042.76 / Net30 Year 3: $154,042.76 / Net30 Quote#: 4613705-2 Payment Terms: Net 30 Tax ID: 43-1806449 Internal Reference#: Q-2689233 From: Eli Hudson eli.hudson@optiv.com YEAR 1 Line # Product Description Product Code Term QTY Customer Price Customer Extended Price 1 Varonis Systems: Varonis for Active Directory SaaS subscription for 12 Months VAD-1001-1500SA 2026-08-18 to 2027-08-17 1,201 USD 11.72 USD 14,075.72 2 Varonis Systems: Varonis for Windows/NAS + M365 SaaS Subscription VTWO-1001- 1500SA 2026-08-18 to 2027-08-17 1,201 USD 92.31 USD 110,864.31 3 Varonis Systems: Collector License CL-1-5OS 2026-08-18 to 2027-08-17 1 USD 1,458.53 USD 1,458.53 Page 1 of 3 Line # Product Description Product Code Term QTY Customer Price Customer Extended Price 4 Varonis Systems: Varonis for Exchange Online is a SaaS subscription add-on that extends protection to cover Exchange Online DAEO-1001- 1500SA 2026-08-18 to 2027-08-17 1,201 USD 20.35 USD 24,440.35 5 Varonis Systems: Extended Event Retention for 7 Years SaaS Subscription 4M Daily Events VER7-4SA 2026-08-18 to 2027-08-17 4 USD 800.96 USD 3,203.84 6 Varonis Systems: Varonis SaaS FedRAMP Moderate Add-On SaaS Subscription VFED-1001- 1500SA 2026-08-18 to 2027-08-17 1,201 USD 0.00 USD 0.00 YEAR 1 TOTAL:USD 154,042.75 YEAR 2 Line # Product Description Product Code Term QTY Customer Price Customer Extended Price 7 Varonis Systems: Varonis for Active Directory SaaS subscription for 12 Months VAD-1001-1500SA 2027-08-18 to 2028-08-17 1,201 USD 11.72 USD 14,075.72 8 Varonis Systems: Varonis for Windows/NAS + M365 SaaS Subscription VTWO-1001- 1500SA 2027-08-18 to 2028-08-17 1,201 USD 92.31 USD 110,864.31 9 Varonis Systems: Collector License CL-1-5OS 2027-08-18 to 2028-08-17 1 USD 1,458.54 USD 1,458.54 10 Varonis Systems: Varonis for Exchange Online is a SaaS subscription add-on that extends protection to cover Exchange Online DAEO-1001- 1500SA 2027-08-18 to 2028-08-17 1,201 USD 20.35 USD 24,440.35 11 Varonis Systems: Extended Event Retention for 7 Years SaaS Subscription 4M Daily Events VER7-4SA 2027-08-18 to 2028-08-17 4 USD 800.96 USD 3,203.84 12 Varonis Systems: Varonis SaaS FedRAMP Moderate Add-On SaaS Subscription VFED-1001- 1500SA 2027-08-18 to 2028-08-17 1,201 USD 0.00 USD 0.00 YEAR 2 TOTAL:USD 154,042.76 YEAR 3 Line # Product Description Product Code Term QTY Customer Price Customer Extended Price 13 Varonis Systems: Varonis for Active Directory SaaS subscription for 12 Months VAD-1001-1500SA 2028-08-18 to 2029-08-17 1,201 USD 11.72 USD 14,075.72 14 Varonis Systems: Varonis for Windows/NAS + M365 SaaS Subscription VTWO-1001- 1500SA 2028-08-18 to 2029-08-17 1,201 USD 92.31 USD 110,864.31 Page 2 of 3 Line # Product Description Product Code Term QTY Customer Price Customer Extended Price 15 Varonis Systems: Collector License CL-1-5OS 2028-08-18 to 2029-08-17 1 USD 1,458.54 USD 1,458.54 16 Varonis Systems: Varonis for Exchange Online is a SaaS subscription add-on that extends protection to cover Exchange Online DAEO-1001- 1500SA 2028-08-18 to 2029-08-17 1,201 USD 20.35 USD 24,440.35 17 Varonis Systems: Extended Event Retention for 7 Years SaaS Subscription 4M Daily Events VER7-4SA 2028-08-18 to 2029-08-17 4 USD 800.96 USD 3,203.84 18 Varonis Systems: Varonis SaaS FedRAMP Moderate Add-On SaaS Subscription VFED-1001- 1500SA 2028-08-18 to 2029-08-17 1,201 USD 0.00 USD 0.00 YEAR 3 TOTAL:USD 154,042.76 Subtotal:USD 462,128.27 Estimated Tax:USD 0.00 Estimated Shipping:USD 0.00 Grand Total:USD 462,128.27 Sales Quote Terms and Conditions This Sales Quote and the Client’s purchase of the Products listed in this Sales Quote are subject to and shall be governed by (i) the Sales Quote Terms and Conditions and (ii) the Data Processing Terms and Conditions, both available at http://www.optiv.com/agreements Optiv Security Inc., 1144 15th Street, Suite 2900, Denver, CO 80202 United States By signing below, client agrees to purchase the items listed above. Signature: \s1\ Date: \d1\ ______/______/______ Name (Print): \n1\ Title: \t1\ Quote: 4613705-2 Grand Total: USD 462,128.27 Page 3 of 3