Title
Recommendation to Authorize the City Manager to Execute a Three-Year Subscription of Darktrace Enterprise Immune System in an Amount Not-to-Exceed $428,475 to be Paid Annually at $142,825. (Information Technology 60626070)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Staff is requesting City Council approval of the renewal of the Darktrace Enterprise Immune System (hereinafter referred to as "Darktrace"). This software increases the City of Alameda’s (City) internal network systems’ security posture. Darktrace is used to monitor the entire network for anomalous security-related activity.
BACKGROUND
Darktrace is a cybersecurity system that increases the City’s internal network systems' security posture. Darktrace is used to monitor the entire network for anomalous security-related activity. On July 12, 2022, City Council approved a three-year subscription for Darktrace and approved an amendment to the subscription on October 18, 2022.
DISCUSSION
Internal networks are sometimes compromised through phishing emails or if users introduce infected USB drives to the network. Once inside the network, attackers are able to conceal their movement within the network. Darktrace is necessary to monitor these types of activities. As a robust network detection and response tool, Darktrace not only provides timely alerts to administrators regarding anomalous behavior, but also initiates appropriate mitigation measures either autonomously, through its AI-driven response capabilities, or via its dedicated 24x7x365 Security Operations Center (SOC).
With cybersecurity attacks on the rise, it is in the City’s best interest to continue implementing Darktrace on all applicable devices that can identify current threats and more importantly, agile enough to respond to new ones as they emerge. Quotes and licenses for Darktrace software are attached Exhibits 1-3.
ALTERNATIVES
• Authorize the City Manager to execute the renewal with Darktrace.
• Not authorize renewal of Darktrace. Staff has been satisfied with the performance of the Darktrace cybersecurity solution and a solution of this type is critical for the City’s defenses. If not renewed, staff would conduct a formal procurement process-such as issuing a Request for Proposals (RFP)-to secure a comparable replacement solution, in alignment with the City's cybersecurity objectives and procurement requirements. The time required to conduct the RFP could result in a gap in time when the City would be missing this layer of cybersecurity protection, leaving the City vulnerable to an attack.
FINANCIAL IMPACT
The costs for the Darktrace subscription renewal for three years, are as follows:
FY 25-26 total compensation shall not exceed $142,825
FY 26-27 total compensation shall not exceed $142,825
FY 27-28 total compensation shall not exceed $142,825
The cumulative cost over the three-year period is not-to-exceed $428,475. Funds to renew Darktrace are included in the Biennial Budget being presented at a June 2025 City Council meeting.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The action is consistent with the Alameda Municipal Code.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute a three-year subscription of Darktrace Enterprise Immune System in an amount not-to-exceed $428,475 to be paid annually at $142,825.
Respectfully submitted,
Demetrius Cagampan, Information Technology Director
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. Darktrace Quote 2025