AGENDA MEMORANDUM

 

 

Meeting Date:           December 20, 2010

 

From:                          Mike Thornton

 

Subject:                      Purchase request 43097 to Clover Systems of Orlando for the purchase and installation of upgrades to the City's IBM iSeries computer system in the amount of $73,709.00.

 

 

Staff Recommendation:

Staff recommends approval of purchase request 43097 to Clover Systems of Orlando for the purchase and installation of upgrades to the City’s IBM iSeries computer system for a total amount of $73,709.00.

 

Analysis:

The Information Technology Department requested this purchase to upgrade the City’s IBM iSeries mini-mainframe computer system (formerly known as the AS/400).  This system is primarily used to run all the Enterprise Resource Planning (ERP) software for the City’s business functions.  The purpose of an ERP system is to consolidate all business operations into a uniform and enterprise-wide system environment.

 

The City uses ERP software from SunGard Public Sector for the majority of our business operations.  Every department is touched by these applications.  Functions such as accounting, purchasing, payroll, human resources, utility billing, customer service, work orders, and building permits, as well as others, all run on this computer.

 

The IT Department budgeted for and intended to make this purchase last fiscal year.  An uncertain fiscal climate caused this purchase to be postponed to the current 2010-11 budget year.  The existing iSeries is at a critical point in several areas that increase the risk of system failure, increased maintenance costs, and degrading performance.  The existing system is running out of hard disk storage space and the speed with which the processor runs is becoming slower as the number of operations on the system increases.  The slower speed increases response time and reduces staff and system efficiency.  The annual maintenance costs charged by IBM will begin to escalate exponentially as the system ages.  As computer systems age, maintenance increases and replacement parts become scarce.  The last upgrade to this system was approved by the Commission November 13, 2006.

 

The IBM iSeries family of computers is the industry’s most reliable platform.  However, parts do fail and the City cannot afford to have the iSeries down for an extended period of time should a failure occur.  This would cripple customer service, utility billing, as well as most other City functions critical to providing uninterrupted service to our citizens.

 

This purchase is termed an upgrade because the entire system is not replaced.  The components that make up an iSeries computer are installed in a rack or cabinet.  When you purchase a ‘new system’, the older components are removed from the rack and replaced with the new components.  Any additional components such as hard drive storage are added to the existing rack.

 

When purchasing computer hardware of this nature, the cost of the hardware is fixed and set by IBM.  IBM uses authorized Value Added Resellers or VAR’s to sell, install, and provide training for their systems.  When purchasing a system, it is important to select a VAR that is an expert in the field providing reliable services at a fair price.  Clover Systems of Orlando is an IBM VAR that meets these criteria.  They are an awarded vendor on the State of Florida technology contract 250-000-09-1.  The State permits local municipalities and government agencies to purchase off the competitively bid and awarded contracts.

 

The City has used Clover Systems for all past iSeries service and sales dating back to 1996.  This company is a very knowledgeable and reputable firm having provided upgrades and installations in the past without incident.  A cost breakdown of the goods and services being purchased are provided for your review.

 

ITEM DESCRIPTION

ITEM COST

IBM iSeries Computer System - 8203-E4A Power 6, 4300cpw, 32Gb RAM, (12) 139.5Gb disk drives, High Speed Raid Controller, 4 port 1gb NIC Ethernet, Expansion, 1 Processor Activated, DVD-RAM, Redundant Power Supply, Hardware Management Console (HMC), Unlimited i5OS user license, 2 Logical Partitions, LTO4 Multi-Cartridge Tape Library, PowerVM Software for Virtual LPAR management, P10 tier.

$61,651.00

 

IBM Annual Maintenance (Software & Hardware) – Year 1 (recurring cost)

$6,058.00

 

Installation Services & Staff Training (40 hours)

$6,000.00

GRAND TOTAL

$73,709.00

 

Options:

1.  Approve the purchase to Clover Systems of Orlando for $73,709.00; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

The Information Technology budget includes $90,000 for this purchase.  The lower actual cost of $73,709.00 will provide a savings of $16,291.00.

 

Submission Date and Time:    12/17/2010 4:41 PM____

 

Department: _Information Technology____

Prepared by:  _Mike Thornton________                     

Attachments:         Yes____   No __X___

Advertised:   ____Not Required __X___                      

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. _____JB___________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _001-1633-513.64-10__

 

Project No. ___________________

 

WF No. ______________________

 

Budget  _____$90,000.00_________

 

Available ____$90,000.00_________