City Reaches Tentative $66M Deal With Xerox

The city of San Diego reached a tentative agreement with Xerox to provide new voice and data networks, and the deal will go before the City Council for approval on Monday, according to documents posted online Thursday.

The five-year $66.1 million deal is the final part of the city's move away from the Data Processing Corp., which handled all of its information technology services over the past 30 years.

Mayor Jerry Sanders said the city needed new vendors because its technology is "stuck in the 1970s." He projected that two similar deals already approved by the City Council will save as much as $20 million over the life of the contracts, and more if the contracts are extended.

Those contracts went to Atos IT Solutions and Services and CGI Technologies and Solutions, which will perform software development and maintenance and provide help-desk support for city employees, among other services.

According to the city, the tentative agreement with Xerox State & Local Solutions Inc. would save as much as $11.1 million over five years. The firm will also hire 15 DPC staffers in an effort to limit job losses.

-City News Service