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Strategic Sourcing Initiative Helps State Save More Than $50 Million on Data Storage Equipment.


SACRAMENTO, Calif. -- New Contracts with Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. , Verizon, TIG n. 1. A game among children. See Tag.
2. A capacious, flat-bottomed drinking cup, generally with four handles, formerly used for passing around the table at convivial entertainment.
, Western Blue and STA Offer Average Savings of 68 Percent, Will Aid Consolidation of Data Centers

The State of California plans to award seven statewide contracts for data storage devices that are projected to save taxpayers more than $50 million over the next three years, the Years, The

the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109]

See : Time
 Department of General Services announced today.

The three-year contracts, reached through the California Strategic Sourcing Initiative, offer discounts of 15 percent to 96.6 percent off the average prices previously paid by the State for comparable equipment. Overall, the State will save an estimated 68 percent in this category off its previous average pricing.

"Not only does this represent strategic sourcing's biggest success to date, it underlines the benefits of consolidating our State's data centers," said Fred Aguiar, Secretary of the State and Consumer Services Consumer Services refers to the formulation, deformulation, technical consulting and testing of most consumer products, such as food, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair products, household cleaners, [paints, plastics, metals, waxes, coatings, minerals,  Agency. "Instead of fighting each other for customers, our data centers are working together to cut costs and improve efficiency."

The heaviest discounts came in disk storage systems and storage area network (SAN) fabric. The successful bidders in those categories, Northrop Grumman and Verizon, are value-added resellers that bid EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies.  equipment. Northrop Grumman and Verizon will both receive awards for disk storage systems for both open environments and mainframes. The estimated value of those contracts is at least $4.9 million for both companies combined. Northrop Grumman will also provide SAN fabric under a separate contract with an estimated value of at least $1.2 million.

"Clearly, some technology firms are recognizing the tremendous business opportunity that is being created through strategic sourcing," said DGS Director Ron Joseph. "By offering aggressive discounts and strong service packages, companies can put their equipment in the hands of IT professionals across California."

The team of Sacramento-based Western Blue and Tustin, Calif.-based System Technology Associates won the bid for tape devices, bidding Hewlett-Packard equipment. The contract is projected to be worth more than $15.6 million. San Diego-based Technology Integration Group won the contract for network-attached storage See NAS. , bidding Dell equipment. The contract has an estimated value of more than $490,000.

Each of the vendors agreed to subcontract sub·con·tract  
n.
A contract that assigns some of the obligations of a prior contract to another party.

intr. & tr.v. sub·con·tract·ed, sub·con·tract·ing, sub·con·tracts
 at least 25 percent of the work to certified California small businesses. In addition, Northrop Grumman, Technology Integration Group and the team of Western Blue and System Technology Associates will subcontract at least 3 percent to certified disabled veteran business enterprises.

The contracts are especially important to the State's effort to consolidate its data centers. The new Department of Technology Services, created July 11 as part of the State and Consumer Services Agency, is in the process of merging the former Stephen P. Teale Data Center, Health and Human Services Noun 1. Health and Human Services - the United States federal department that administers all federal programs dealing with health and welfare; created in 1979
Department of Health and Human Services, HHS
 Data Center and DGS Office of Network Services into a single, more efficient provider of data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a  and telecommunications services.
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Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Sep 2, 2005
Words:465
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