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CC SR 20260602 G - Arctic Wolf Agreement CITY COUNCIL MEETING DATE: 10/07/2025 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consider issuing a Purchase Order to CDW Government for Arctic Wolf Networks’ cybersecurity services for Fiscal Year 2026-27. RECOMMENDED COUNCIL ACTION: 1) Authorize the City Manager to issue a Purchase Order to CDW Government for Arctic Wolf Networks’ (AWN) Managed Detection and Response and Managed Security Awareness cybersecurity services in the amount of $30,000 for Fiscal Year 2026-27 in a form approved by the City Attorney. FISCAL IMPACT: The cost for cybersecurity services provided by AWN in Fiscal Year (FY) 2026-27 is $30,000. Sufficient funds are included in the Preliminary FY 2026-27 budget that is being considered by the City Council tonight as a separate agenda item. VR Amount Budgeted: $35,700 Additional Appropriation: N/A Account Number(s): 101-400-1470-5201 (General Fund / Information Technology - Data / Repair & Maintenance Services) VR ORIGINATED BY: Lukasz Buchwald, Information Technology Manager REVIEWED BY: Catherine Jun, Deputy City Manager CJ APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Arctic Wolf Services Quote from CDW Government (CDWG) (Page A-1) B. March 4, 2020 Staff Report (Linked) C. Arctic Wolf Acceptable Use Policy (Linked) D. Arctic Wolf Privacy Policy (Linked) E. Arctic Wolf Data Processing Addendum (Linked) F. Business Associate Addendum (Linked) G. CDWG’s State of California Software Licensing Program (SLP) Agreement and Amendments (Linked) 1 BACKGROUND: Cybersecurity threats are increasingly targeting public agencies, given that they maintain sensitive records and operate networks that are essential to daily municipal operations. A successful cybersecurity breach can disrupt City services and result in data and identity theft, ransom, and financial fraud. The City maintains a cybersecurity program to prevent or limit such threats, which consists of many separate layers: third-party identity authentication, vulnerability management, monitoring, and data backup. One of the critical parts of the City’s cybersecurity program is utilizing various cybersecurity partners to monitor for and respond to potential cyber threats. Since October 2019, the City has utilized Arctic Wolf Networks (AWN) for Managed Detection and Response (MDR) services, which provides 24/7 monitoring to detect, respond to, and recover from cyberattacks. It gathers security data from networks, endpoints, and cloud environments, and adds threat intelligence and vulnerability information to help identify risks. AWN also provides staff training and testing, which has been a valuable tool in helping staff learn how to spot and respond to cybersecurity threats and testing their knowledge through phishing tests. DISCUSSION: Given their satisfactory service, Staff recommend extending AWN’s services in FY 2026- 27 for a total cost of $30,000. A Purchase Order for this service is available under Attachment A. The pricing is guaranteed for a total of three years, and requests to approve services for years 2 and 3 will be submitted to City Council for consideration, as part of the Finance Department’s annual request to approve POs over $25,000. AWN continues to be one of the premier cybersecurity services in the industry and consistently ranks at the top for service capabilities and service delivery in Gartner’s Peer Insights survey. Gartner is a leading global research and advisory firm that serves as a guide for organizations evaluating and purchasing software, hardware, or consulting services. (Continued on next page) 2 Figure #1 Arctic Wolf Network – Peer Insight and Ratings (source: Gartner, Inc. - January 2026) The staff also considered and tested another solution provided by SentinelOne MDR, but ultimately recommend renewing with AWN as they provided the most competitive pricing with a renewal quote of $30,000 next year or $90,000 over three years. By renewing with AWN, the City would also save time and training costs that would be incurred by selecting an alternate cybersecurity partner. Quote and Purchase Order It should be noted that the pricing and Purchase Order is with CDW Government (CDWG), rather than AWN. AWN services can only be purchased through third-party sales partners such as CDWG, one of the most known and trusted re-sellers in the local government space. The quote from CDWG comes from a State of California Software Licensing Program (SLP) cooperative agreement that was competitively bid and is made available to other government agencies in need of the same services (Attachment G). To order the services, the City must issue a Purchase Order with CDWG for AWN’s services. As such, this new agreement with CDWG to purchase AWN’s service is exempt from competitive solicitation requirements as described in Section 2.44.060 of the Rancho Palos Verdes Municipal Code below: The City Manager may purchase services, supplies and equipment for which the city would normally follow its own bid procedures from a vendor awarded a bid by another public agency if said agency utilized procedures substantially the same as those normally used by the city. The amount of the purchase shall be based on the price bid in the other jurisdiction. 3 Terms and Conditions Because of the nature of the services provided, the City’s standard services agreement provisions do not apply to this purchase, and AWN’s standard service agreements and terms and conditions were used for the PO (Attachments C, D, E, F). Any pre-negotiated terms and conditions from the California SLP Program are also applicable. The City Attorney’s Office acknowledges this unique contractual arrangement and that the terms and conditions applicable to this agreement are typical for any cybersecurity and cloud security offerings CONCLUSION: Staff recommend authorizing the City Manager to issue a FY 2026-27 Purchase Order for $30,000 to CDWG for Arctic Wolf Networks’ Managed Detection and Response and Managed Security Awareness cybersecurity services. ALTERNATIVES: In addition to Staff’s Recommendations, the following alternative actions are available for the City Council’s consideration: 1) Direct the staff to look for alternative cybersecurity services partners or solutions. 2) Take other action as deemed appropriate. 4 Hardware Software Services IT Solutions Brands Research Hub QUOTE CONFIRMATION Thank you for choosing CDW. We have received your quote. LUKASZ BUCHWALD, Thank you for considering CDW•G for your technology needs. The details of your quote are below. If you are an eProcurement or single sign on customer, please log into your system to access the CDW site. You can search for your quote to retrieve and transfer back into your system for processing. For all other customers, click below to convert your quote to an order. This quote is subject to CDW's Third Party Cloud Services Order Form Terms and Conditions set forth at https://www.cdwg.com/content/cdwg/en/terms-conditions/third-party-cloud-services-order-form-term s-and-conditions-.html PricingandAvailabilityNotice Dueto ongoingsupply chain challenges, some hardware manufacturers cannot guarantee product availability orpricing until the productisshipped. Whilewe makeevery effort to honorquotedpricing, ifa hardware manufacturerincreases its priceto CDWaftera quoteis issuedororderis accepted,we mayneed to update yourquotedpriceto reflectthatchange irrespectiveofany timeframes orvalidityperiods set forth in the quote, includingup to thedate of shipment. In the event ofa price adjustment, we will notify you priorto shipment. Anyprice adjustment wouldonlyoccurif the hardwaremanufacturerincreases its pricingto CDW. Convert Quote to Order QUOTE #QUOTEDATE QUOTE REFERENCE CUSTOMER #GRANDTOTAL PWQS301 5/15/2026 PVCQ643 6638711 $29,997.17 QUOTE DETAILS ITEM QTY CDW#UNIT PRICE EXT.PRICE Arctic Wolf Core User License - Silver 125 7971177 $121.76 $15,220.00 Mfg. Part#: AW-CORE-USER-SILVER Electronic distribution - NO MEDIA Contract: California AEPA-026D S&L Gov (026-D) Arctic Wolf Core Server License - Silver 35 7971806 $121.57 $4,254.95 Mfg. Part#: AW-CORE-SERVER-SILVER Electronic distribution - NO MEDIA Contract: California AEPA-026D S&L Gov (026-D) Arctic Wolf MDR Log Retention 160 6124471 $8.38 $1,340.80 Mfg. Part#: AW-MDR-1YR Electronic distribution - NO MEDIA Contract: CA DGS SLP Arctic Wolf SLP-23-70-0025V (SLP-23-70-0025V) Arctic Wolf 100 Series Sensor 3 5745581 $868.32 $2,604.96 Mfg. Part#: AW-MDR-1XX-S Electronic distribution - NO MEDIA Contract: CA DGS SLP Arctic Wolf SLP-23-70-0025V (SLP-23-70-0025V)A-1 Page 2 of 3 QUOTE DETAILS (CONT.) Arctic Wolf Managed Detection and Response - remote monitoring 1 5745583 $1,736.66 $1,736.66 Mfg. Part#: AW-MDR-2XX-S Contract: CA DGS SLP Arctic Wolf SLP-23-70-0025V (SLP-23-70-0025V) Arctic Wolf Managed Detection and Response - remote monitoring - for Micros 125 5744235 $13.03 $1,628.75 Mfg. Part#: AW-MDR-O365 Electronic distribution - NO MEDIA Contract: CA DGS SLP Arctic Wolf SLP-23-70-0025V (SLP-23-70-0025V) Arctic Wolf Managed Security Awareness Plus 125 6781758 $24.29 $3,036.25 Mfg. Part#: AW-MSAT-MAP Electronic distribution - NO MEDIA Contract: CA DGS SLP Arctic Wolf SLP-23-70-0025V (SLP-23-70-0025V) Arctic Wolf Platform Base Platform - remote monitoring 1 7040196 $174.80 $174.80 Mfg. Part#: AW-PLATFORM-BASE Electronic distribution - NO MEDIA Contract: CA DGS SLP Arctic Wolf SLP-23-70-0025V (SLP-23-70-0025V) ARCTIC WOLF 36MO COMMITTED TERM 1 9030795 $0.00 $0.00 Mfg. Part#: AW-36MO-COMMIT Electronic distribution - NO MEDIA Contract: MARKET These services are considered Third Party Services, and this purchase is subject to CDW’s Third Party Cloud Services Terms and Conditions, unless you have a writtenagreement withCDW covering yourpurchaseof productsandservices, in whichcase thispurchaseis subjectto such other written agreement. The third-party Service Provider will provide these services directly to you pursuant to the Service Provider’s standard terms and conditions or such other terms as agreed upon directly between you and the Service Provider. The Service Provider, not CDW, will be responsible to you for delivery and performance of these services. Except as otherwise set forth in the Service Provider’s agreement, these services are non-cancellable, and all fees are non-refundable. SUBTOTAL $29,997.17 SHIPPING $0.00 SALES TAX $0.00 GRANDTOTAL $29,997.17 PURCHASER BILLING INFO DELIVER TO Billing Address: CITY OF RANCHO PALOS VERDES ACCOUNTS PAYABL 30940 HAWTHORNE BLVD RANCHO PALOS VERDES, CA 90275-5351 Phone: (310) 377-0360 Payment Terms: Net 30-Expired Shipping Address: CITY OF RANCHO PALOS VERDES LUKASZ BUCHWALD 30940 HAWTHORNE BLVD RANCHO PALOS VERDES, CA 90275-5351 Phone: (310) 377-0360 Shipping Method: DROP SHIP-GROUND Pleaseremitpaymentsto: A-2 Page 3 of 3 CDW Government 75 Remittance Drive Suite 1515 Chicago, IL 60675-1515 Sales Contact Info Aidan Hyde | 800.808.4239 | aidan.hyde@cdwg.com NeedHelp? MyAccount Support Call 800.800.4239 About Us |Privacy Policy | Terms and Conditions This order is subject to CDW's Terms and Conditions of Sales and Service Projects at http://www.cdwg.com/content/terms-conditions/product-sales.aspx For more information, contact a CDW account manager. © 2026 CDW•GLLC, 200 N. Milwaukee Avenue, Vernon Hills, IL 60061 | 800.808.4239 A-3