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RTC#03-179

June 3, 2003

SUBJECT:

Award of Contract for Software Maintenance Services for the Integrated Financial System (F0205-98)(RTC#03-179)

REPORT IN BRIEF

Approval is requested for the award of a contract to Tier Technologies, Inc., of Walnut Creek (formerly KPMG Consulting, LLC) for software maintenance services for the Integrated Financial System for the Information Technology Department.

BACKGROUND

In October 1995, Council awarded a contract to KPMG Peat Marwick for the licensing of an Integrated Financial System. Subsequently, Council has awarded annual contracts to this firm for software maintenance and support in order to obtain system enhancements and new releases of the accounting, asset management, purchasing and cost allocation modules.

Tier Technologies, Inc., acquired the Government Solutions Center from KPMG Consulting in April 2002.

DISCUSSION

The requested software maintenance agreement with Tier Technologies will include maintenance services (M-F 8:30 am-5:30 pm), technical support, software updates and corrections, and new releases, as available.

Section 2.08.070(b) of the Sunnyvale Municipal Code exempts sole source goods and/or services from competitive bidding. The software is proprietary to Tier Technologies, and it is the only organization that can provide upgrades and software support for their products.

 FISCAL IMPACT

Software maintenance costs include:

1.

Accounting

$30,769

2.

Asset Management

$10,906

3.

Purchasing

$26,659

4.

Cost Allocation

$14,025

 

Total Costs

$82,359

Funds are available in Information Technology Account #766090 - Maintain Vendor Contracts for Applications Software.

RECOMMENDATION

It is recommended that Council award a contract in substantially the same form as the attached draft in the amount of $82,359 to Tier Technologies, Inc., for software maintenance services for the City's Integrated Financial System.

Prepared by:
Elaine Wesely
Purchasing Officer

Reviewed by:
Mary J. Bradley
Director, Finance

Shawn Hernandez
Director, Information Technology

Approved by:
Robert S. LaSala
City Manager

Attachment:
  1. Software Maintenance Agreement

 

 

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