County approves 5-year VMware support purchase order with termination-for-convenience clause

Kootenai County commissioners voted Oct. 7 to approve a five-year VMware support agreement while giving IT staff time to evaluate other vendors.

Grant Kinsey, speaking for the county’s information-technology team, told commissioners the vendor initially proposed a jump from about $20,000 a year to roughly $100,000; negotiations reduced the first-year price to $60,000 but the contract would escalate annually to $72,000, $87,000, $104,000 and $125,000 in later years. He said the purchase order that must be written covers the full five-year total of $450,000 but the county can terminate the contract for convenience.

The county will proceed with the year‑one payment but plans to spend the coming year evaluating VMware’s product against competitors and may terminate the agreement if the product does not provide the expected value. Kinsey described the termination clause as stronger than a non‑appropriation clause because it allows the county to end the agreement for its convenience.

Kinsey said he does not expect to keep paying through the full five years unless VMware demonstrates clear value. “We will be replacing it with something,” he said, adding the county lacks time to overhaul its data center immediately and needs breathing room to evaluate alternatives.

Motion to approve the agreement passed unanimously. The board recorded aye votes from Commissioner Abernathy, Commissioner Duncan and Chair McAllen.

The action authorizes IT to issue the purchase order subject to the signed agreement and the termination-for-convenience language; commissioners did not adopt additional budget changes during the meeting.