SAN DIEGO -- The city began soliciting bids from private companies Tuesday to compete against Data Processing Corp. to perform San Diego's information technology services.

The contract with DPC, a nonprofit quasi-city agency with its own board and employees, has managed San Diego's information technology services for the past 30 years. The contract with DPC is worth about $45 million annually.

DPC is charged with maintaining the city's 9,200 desktop computers, 1,200 laptops and 10,000 telephones, providing technical support and operating San Diego's Web site and database servers.

"To ensure that the city is receiving the best possible service at the absolute lowest cost to taxpayers, the city will release a request-for-proposals later today that will allow private-sector companies to compete against DPC for the right to provide those services," Mayor Jerry Sanders said.

The city will seek bids for the work in phases, beginning with the help desk and desktop support. The city hopes to have a contract in place at the start of the next fiscal year, which begins on July 1.

The second phase, which includes the city's telephone service, is scheduled to start by next summer or fall. The final bid will be for the operation of the city's data center and Web site hosting. Sanders hopes to put the final phase out to bid once the first two are under way by late next year. Sanders said the cost savings from allowing private companies to bid on DPC's work isn't yet known.

"What we do know is this -- regardless of who wins the right to provide these services, whether it is DPC or a private-sector company, taxpayers will win because competition guarantees we'll get the most bang for our buck," Sanders said.

Because DPC is separate from the city and its workers are not part of San Diego's municipal labor unions, allowing private companies to compete for its services does not fall under the managed-competition program.

Managed competition, which was approved by San Diego voters in 2006, but since largely stymied by the unions, allows private companies to compete for work now performed by city employees.

DPC drew the ire of the mayor's office earlier this year for budgeting $600,000 in raises and bonuses for its employees as San Diego's workers were being asked to take cuts. In 2004, the agency was criticized for lavish spending by some of its executives on dinners, drinks and other perks.

Sanders said the city is not concerned with the level of service it is now receiving from DPC, only that it likely could be done more cheaply.