TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 8, 2013
COMMITTEE ON Procurement
Mr. David St. Pierre, Executive Director
Title
Authority to decrease purchase order and amend the agreement with Oracle America, Inc. for the purchase of new and replacement computer hardware, software, and maintenance for the District's SAP enterprise servers, the Laboratory Information Management System, and the disaster recovery servers for a period of three years in an amount of $538,583.62, from an amount of $1,579,919.71, to an amount not to exceed $1,041,336.09, Accounts 101-27000-601170, 612810, 612820, 623810 and 634810, Purchase Order 3066321
Body
Dear Sir:
On November 4, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Oracle America, Inc. for the purchase of new and replacement computer hardware, software, and maintenance for the District's SAP enterprise servers, the Laboratory Information Management System (LIMS), and the disaster recovery servers for a period of three years, in an amount not to exceed $1,579,923.74. The contract expired on June 30, 2013.
The contract has no prior change orders.
Due to the expiration of this contract, the purchase order currently provided under the pricing structure of the Midwestern Higher Education Compact (MHEC) is being reduced and closed. A new agreement, under the pricing structure of the National Association of State Procurement Officials (NASPO) was approved by the Board of Commissioners on March 21, 2013 for the continued maintenance and support of the District's SAP, GIS, LIMS and disaster recovery servers.
This change order is in compliance with the Illinois Criminal Code since the change is due to circumstances not reasonably foreseeable at the time the contract was signed, and is in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to decrease and close the purchase order and amend the agreement in an amount of $538,583.62 (34% of the current contract value), from an amount of $1,579,919.71, to an amount not to exceed $1,041,336.09.
Funds will be restored to Accounts 101-27000-601170, 612810, 612820, 623810 and 634810.
Requested, Ellen Barry, Acting Director of Information Technology, EB:CLG
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 8, 2013.