Authorize Purchase Agreement with International Business Machines Corporation in the Amount Up to $207,369.00 for Mainframe Software Licenses and Services Using a Cooperative Contract for the Information Technology Solutions Department (ALL COUNCIL DISTRICTS)

It is recommended that the City Council authorize a Purchase Agreement with International Business Machines Corporation in the amount up to $207,369.00 for mainframe software licenses and services, using the General Services Administration Contract No. GS-35F-4984H for the Information Technology Solutions Department for the first year.  

The Information Technology Solutions Department (ITS) will use this Purchase Agreement (Agreement) for mainframe software licensing that is part of the City's mainframe operating environment. The City's mainframe operating environment is the central computing platform for many departments including the Financial Management Services and Human Resources departments.

PRICE ANALYSIS - The prices were obtained using GSA contract number, GS-35F-4984H. The prices shown are net discounts; basic discounts have been deducted. ITS reviewed the pricing and determined it to be fair and reasonable.  

COOPERATIVE PURCHASING - State Law provides that a local government purchasing an item under a cooperative purchasing Agreement satisfies state laws requiring that the local government seek competitive bids for purchase of the items. The General Services Administration contracts have been competitively bid to increase and simplify the purchasing power of local government entities.  

M/SBE - A waiver of the goal for M/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/SBE Office because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.

ADMINISTRATIVE CHANGE ORDER - An Administrative Change Order or increase may be made by the City Manager for the Purchase Agreement in an amount up to $50,000.00 and does not require specific City Council approval as long as sufficient funds have been appropriated.

AGREEMENT TERMS - Upon City Council's approval, this Agreement shall commence on August 8, 2012 and shall expire on September 30, 2012 to coincide with the expiration date of the GSA contract.  

RENEWAL OPTIONS - This Agreement may be renewed for up to five successive one-year terms at the City's option and in accordance with the terms of the GSA Contract. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term. Staff anticipates that the costs for renewal years will be the same as the first year.