June 8, 2004

SUBJECT: Award of Contract for Oracle Database Software Licenses and Technical Support (F0305-76)

Approval is requested for the award of a one-year contract to DLT Solutions, Inc., of Herndon, Virginia, for Oracle database user software licenses and technical support for the Information Technology Department.

In 1996, the City purchased one hundred concurrent Oracle user licenses and technical/software support for the Integrated Financial System which runs on an Oracle database. In 1998, the City purchased an additional one hundred concurrent Oracle user licenses for other applications that use the Oracle database, including the Public Safety Computer Aided Dispatch (CAD) and Records Management System (RMS) and the Public Works Maximo Work Order Management System. At that time, the City also migrated its licenses from a server-based program to a network-based program. This migration made it possible to use the Oracle database on servers with up to five different operating systems and distribute the City's two hundred concurrent users in any manner necessary. Subsequently, other applications, such as iProcurement and Human Resources/Payroll, have been added. As a result, two hundred concurrent user licenses are no longer adequate to support the City's needs.

The Information Technology Department staff met with Oracle to review all alternatives for licensing the Oracle database for use on multiple servers for multiple applications. Oracle advised the City that the network-based licensing program is no longer available and recommended that the City migrate its existing two hundred concurrent users to processor and user-based licenses. Under this recommended licensing program, there could be unlimited users and the City would not be restricted to the current five operating system platforms.

Section 2.08.070 (b) of the Sunnyvale Municipal Code exempts sole source goods and/or services from competitive bidding. The subject software is proprietary to Oracle; and user licenses as well as ongoing software maintenance and support is available only from DLT Solutions, the only authorized Oracle reseller for the required products and services.

Total cost to the City will be $40,734 (tax included) for a one-time fee to migrate the City's existing concurrent users to processor and user-based licenses. This cost is based upon a 63% discount available to the City through the use of a State of California contract. As the result of migrating the licenses, annual support costs will be $38,126 (tax included) which is approximately $17,500 less than the previous year's costs.

Funds are available in Information Technology Operating Account 766090 – Maintain Application Maintenance and Support.

It is recommended that Council award a contract, in substantially the same form as the attached draft and in an amount not to exceed $78,860, to DLT Solutions, Inc., for Oracle database license migration and annual software support services.

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

Draft Blanket Purchase Order No. 27153-B (.pdf format)