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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Alisha Garrett, Chief Enterprise Strategy Office |
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PRESENTER(S): |
Kyle Brimley, IT Director |
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TITLE:
title
Contract: Secondary Data Site (Tonaquint Data Centers, LLC DBA ValorC3 Data Centers)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute a 5-year contract with Tonaquint Data Centers, LLC, DBA ValorC3 Data Centers, in the not-to-exceed amount of $326,531.67.
BACKGROUND:
UTA is currently paying month-to-month for secondary data center services. Transitioning to a 5-year Tier III contract will lock in stable rates, prevent $33,628 in projected cost increases, and enhance long-term infrastructure planning. This move also protects against market volatility and ensures the critical capacity needed to support ongoing operations.
DISCUSSION:
This contract secures rack space, power, and fiber cross-connects at fixed rates, eliminating exposure to market-driven cost increases.
• The current month-to-month model incurs a 10% annual cost increase, eroding budget predictability and long-term fiscal efficiency.
• Delivers meaningful cost savings and procurement simplicity by eliminating the need for annual renewals.
• Strategically aligns with the IT Department’s roadmap for resilience, business continuity, and hybrid IT capability.
Because State Contract MA4577 currently has an expiration date of May 14, 2029, this agreement is only in effect until May of 2029 unless the State Contract is Extended, Renewed, or Replaced AND a Notice to Proceed is issued by UTA in writing. If Contract MA4577 is not extended, renewed, or replaced, ValorC3 Data Centers will in good faith work with UTA to issue a refund for the pro-rated amount of un-used services paid in advance.
CONTRACT SUMMARY:
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Contractor Name: |
ValorC3 Data Centers |
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Contract Number: |
State Contract: MA4577 Purchase Order: 20039139 |
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Base Contract Effective Dates: |
State Contract: June 26, 2024 - May 14, 2029 Purchase Order: August 1, 2025 - July 31, 2030 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$326,531.67 |
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Procurement Method: |
State Contract |
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Budget Authority: |
Approved 2025 Operating Budget |
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ALTERNATIVES:
Remain on Year-to-Year Contract (Not Recommended)
• Would incur 10% annual cost increases.
• Would result in an estimated $6,725 per year in additional costs, totaling $33,625 over the five-year period.
• Would introduce ongoing budget uncertainty and exposure to future market rate volatility.
FISCAL IMPACT:
Funding will come from Operations Expenditure Account 5200.50353.92
• 2025 Contract Total: $59,094.00
• 2026 Contract Total: $62,048.70
• 2027 Contract Total: $65,151.14
• 2028 Contract Total: $68,408.70
• 2029 Contract Total: $71,829.13
Contract not-to-exceed Total: $326,531.67
ATTACHMENTS:
• Contract: Secondary Data Site (Tonaquint Data Centers, LLC DBA ValorC3 Data Centers)
• Utah State Contract MA4577 (Link <https://bit.ly/USC_MA4577>)