TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 20, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Issue purchase order and enter into an agreement with Oracle America, Inc. for Computer Software and Hardware Maintenance, Integration and Software Support Services for the District’s Enterprise (SAP) Servers, Laboratory Information Management System (LIMS) and Disaster Recovery Servers for a period of three (3) years, in an amount not to exceed $839,923.74, Accounts 101-27000-601170, 612810, 612820, Requisition 1302101
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with Oracle America, Inc. for computer software and hardware maintenance, integration and software support services for the District’s Enterprise (SAP) Servers, Laboratory Information Management System (LIMS) and Disaster Recovery Servers for a period of three (3) years at the Main Office Building. This purchase order will be effective from April 1, 2010 through March 31, 2012.
The initial annual payment amount of $280,299.24 for the Software Maintenance Support Services will be effective as of April 1, 2010, for a period of twelve (12) months.
After the expiration of the initial annual support period, the District will have at its discretion the option to continue the service provider’s services for each subsequent year thereafter for an additional one-year period.
Maintenance services provided under this request are for the District’s SunFire Servers and Storage Area Networks which are used for SAP Enterprise, Business Intelligence/Business Warehouse (BI/BW), Public Sector Budget Formulation (PBF), Disaster Recovery Systems and LIMS Systems. There has been a substantial investment made in computer hardware and software used to support the applications associated with these systems. In order to insure the reliability and integrity of the data used for operational and administrative purposes, the requested agreement allows the District to use Oracle America, Inc. services for technical support, computer equipment maintenance, and software support which includes upgrades to software, firmware, and documentation.
Oracle America, Inc., the sole service provider of supply for the support maintenance services required, has submitted prices for the services required. Inasmuch as Oracle America, Inc. is the only source of supply for the services required, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act).
Oracle America, Inc. is registered and in good standing with the State of Illinois.
The Multi-Project Labor Agreement is not applicable due to the specialized nature of the services required.
In view of the foregoing it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and enter into an agreement with Oracle America, Inc. in an amount not to exceed $839,923.74.
Funds for the 2010 expenditure, in the amount of $280,299.24, are available in Accounts 101-27000-601170, 612810, 612820. The estimated expenditure for 2011 is $280,299.24 and 2012 is $279,325.26. Funds for the 2011 and 2012 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Keith D. Smith, Director of Information Technology, KDS:EJ:DV:mh
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 May 20, 2010.