Council Approves $66M Xerox IT Contract

An agreement for a Xerox subsidiary to provide the city of San Diego with new voice and data networks was unanimously approved Monday by the City Council.

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 agreements 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 agreement with Xerox State & Local Solutions Inc. will 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