The city of San Diego stands to save $7.4 million over the next five years thanks to new IT contracts.
In an April 17 announcement, Mayor Jerry Sanders said this was the first time in about three decades the city’s IT services had been put to a comprehensive bidding process.
“In an effort to reduce our costs and bring our IT system out of 1970s era technology, my administration last year launched a fair and open process that allows private companies an opportunity to bid for the right to provide the city with a variety of IT services,” Sanders said.
So far, two five-year contracts have been awarded, one for $47 million and one for $70.6 million. The contracted companies will provide software development and maintenance, as well as help desk support for government workers. Other IT contracts will be finalized in the near future, according to the mayor's office.
If approved by the City Council, the new IT vendors will begin providing services as of July 1.
San Diego officials estimate the transition to new vendors will cost about $12 million, but the city is expected to break even in three years, according to local Fox affiliate KSWB.