This contractor is not thinking straight when he says 'OS does not need protection as viruses are stopped at the desktop level and by MailSweeper.' Yes, Mailsweeper will scan all incoming email. Yes, individual desktops will stop any viruses at the individual desktop level. Is he assuming that the server is not connected to the network, or that you never install any software by floppy or CD-ROM? Viruses can be introduced to the system by many means, and the server needs to be afforded the same protection as individual desktops.
My original answer was not meant to suggest otherwise. If this contractor is worried about rsponse issues on your server, I would take a serious relook at its specs. If running an anti-virus program will cause server overload, I suspect that the server isn't properly sized.