June 1, 2004

SUBJECT: Award of Contract for Software Maintenance Services for the Integrated Financial System (#F0305-74)

Approval is requested for the award of a one-year contract to Tier Technologies, Inc., of Walnut Creek for software maintenance services for the City’s Integrated Financial System for the Information Technology Department.

The City’s Integrated Financial System was purchased in 1995. Subsequently, Council has awarded annual contracts for software maintenance and support to obtain system enhancements and new releases of the accounting, asset management, purchasing and cost allocation modules.

The requested software maintenance agreement with Tier Technologies will include maintenance services, 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 its products.

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

Costs are the same as for the previous year. Funds are available in Information Technology Account 765060 – Maintain Application Maintenance and Support.

It is recommended that Council award a one-year contract, in substantially the same form as the attached draft and in an amount not to exceed $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

Reviewed by:

Shawn Hernandez
Director, Information Technology

Approved by:

Amy Chan
City Manager

Attachment

A. Software Maintenance Agreement (.pdf format)