Title
Recommendation to Authorize the Interim City Manager to Execute a One-Year Agreement with SHI International Corp. for CrowdStrike Services in an Amount Not-to-Exceed $83,803. (Information Technology 60626070-51040)
Body
To: Honorable Mayor and Members of the City Council
From: Adam Politzer, Interim City Manager
EXECUTIVE SUMMARY
Staff recommends that City Council authorize the Interim City Manager to execute a one-year agreement (Exhibit 1) with SHI International Corp. to renew the City’s CrowdStrike cybersecurity platform services. CrowdStrike provides the City with a comprehensive cybersecurity platform that includes endpoint protection, firewall management, threat intelligence, identity protection, and continuous monitoring designed to protect City systems, data, and digital services from increasingly sophisticated cyber threats. The City has utilized CrowdStrike services since 2023, and staff have been very satisfied with its performance, reliability, and effectiveness in protecting City technology systems. Executing a one-year agreement for the CrowdStrike security platform will ensure the City continues to maintain a strong cybersecurity posture, protect sensitive data, and support uninterrupted delivery of essential City services.
BACKGROUND
Cities across the nation continue to experience increasing levels of cyber threats, including ransomware, phishing attacks, and unauthorized attempts to access government systems. Local governments are frequent targets due to the critical services they provide and the sensitive data they maintain, including resident information, financial records, and operational systems.
To address these risks, the City implemented the CrowdStrike cybersecurity platform in 2023 as part of a broader effort to modernize and strengthen the City’s cybersecurity defenses. CrowdStrike is widely recognized as a leading cybersecurity solution used by governments, public agencies, and private organizations worldwide. CrowdStrike significantly enhances the City’s ability to identify suspicious activity, prevent intrusions, and quickly contain emerging threats. Since its implementation, the platform has performed reliably and contributed to measurable improvements in system stability, threat mitigation and alerting IT staff to potential threats before they can disrupt City operations.
The City now seeks to execute a one-year agreement with SHI International Corp. for CrowdStrike services to continue these services for an additional one-year term to ensure uninterrupted protection of the City’s technology infrastructure. By purchasing CrowdStrike through SHI using the OMNIA Partners contract, the City is getting compliant, competitively-bid contract pricing. OMNIA is a cooperative purchasing agreement that has already been publicly and competitively solicited. The pricing is compliant with the City’s public procurement requirements.
DISCUSSION
Staff recommends City Council authorize the Interim City Manager to execute an agreement with SHI International for CrowdStrike services because cybersecurity is an essential component of maintaining reliable government services. A successful cyberattack could disrupt operations, compromise sensitive information, or require significant resources to recover. The CrowdStrike cybersecurity platform provides multiple layers of protection that work together to safeguard the City’s technology environment. These services help detect, prevent, and respond to cyber threats in real time. CrowdStrike distinguishes itself from traditional cybersecurity tools through its use of artificial intelligence and behavioral analytics. For example, rather than relying solely on lists of known threats, which can quickly become outdated, CrowdStrike continuously learns and adapts, identifying suspicious behavior and stopping attacks that other solutions could miss.
Key components of the platform include:
• Proactive Threat Prevention: Falcon Prevent and OverWatch provide continuous monitoring and automated blocking of malicious activity before it can compromise City systems.
• Advanced Visibility and Analytics: Threat Graph and Falcon Insight give IT staff deeper insight into endpoint behavior, helping identify vulnerabilities and trends while improving incident response capabilities.
• Firewall and Identity Protection: Falcon Firewall Management and Identity Threat Protection strengthen defenses against lateral movement, credential‑based attacks, and unauthorized access to City data.
• Operational Efficiency: The cloud‑based architecture reduces system overhead and allows IT staff to manage and secure devices more efficiently across the organization.
Together, these capabilities provide proactive protection that allows City staff to identify and respond to threats before they impact City operations.
Since deploying CrowdStrike in 2023, the platform has successfully enhanced the City’s cybersecurity capabilities and provided improved visibility into potential threats affecting City systems. Staff have been pleased with its performance and reliability, and it has become a critical component of the City’s cybersecurity strategy. The City's investment in CrowdStrike is consistent with best practices recommended by the Cybersecurity and Infrastructure Security Agency (CISA), the National Institute of Standards and Technology (NIST), and other federal authorities that guide local government cybersecurity programs.
Executing a one-year agreement for the CrowdStrike security platform will ensure continued protection of City technology resources from existing/evolving threats and help maintain compliance with cybersecurity best practices.
ALTERNATIVES
• Approve a one-year agreement to continue cybersecurity services with CrowdStrike.
• Direct staff to evaluate and procure alternative cybersecurity protection platforms This approach would create gaps in coverage, require substantial resources to evaluate, migrate and re-train on new systems, and may increase overall costs. Given the proven performance of CrowdStrike with the City's technology systems since 2023, this option is not recommended.
FINANCIAL IMPACT
The cumulative cost over the one-year period is not-to-exceed $83,803. The total cost will be paid on an annual basis. Funds for this agreement are included in the City Council approved Fiscal Year 2025-27 Biennial Budget.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The action is consistent with the Alameda Municipal Code. This agreement also supports the City Strategic Plan project TIE 33 to implement increased cybersecurity measures under the Priority to Invest in Transportation, Infrastructure, Economic Opportunities and Historic Resources.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in 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 Interim City Manager to execute a one-year Agreement with SHI International Corp. for CrowdStrike Services in an Amount Not-to-Exceed $83,803.
Respectfully submitted,
Demetrius Cagampan, Information Technology Director
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. SHI Quote
2. CrowdStrike Partner Program Overview
3. CrowdStrike Partner Program Agreement
4. CrowdStrike Terms and Conditions