June 15, 2004

SUBJECT: Award of Contract for Hewlett-Packard Hardware and Software Support for Various Financial Systems (#F0306-79)

Approval is requested for the award of a one-year contract to Hewlett-Packard Company of Roseville for combined hardware and software system support and consulting services for the City’s HP9000 Unix systems for the Information Technology Department.

Hewlett-Packard offers "Personalized System Support" which is a combined hardware, software, and consulting service package under a single contract.

If approved by Council, the equipment supported under this package would include the HP9000 Unix Server Systems used for the production and testing of the City’s Integrated Financial System and Internet Procurement System.

Section 2.08.070 (b) of the Sunnyvale Municipal Code exempts from competitive bidding contracts for which the City’s requirements can be met solely by a single proprietary article or process available from a single source. In this case, parts for the HP9000 series computer systems are proprietary and are not available through general distribution channels.

Total cost to the City for a one-year contract will be $72,216 (plus tax), an $18,868 decrease from last year’s cost of $92,084. The decrease is a result of a change in the level of support for the Financial System Test System from 24X7 support to Monday -Friday, 8 a.m. – 5 p.m., next day response.

Funds are available in Information Technology Service Delivery Plan No. 764240 – Operate Central Computing Systems.

RECOMMENDATION

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 $72,216 (plus tax) to Hewlett-Packard Company for "Personalized System Support" for HP computer equipment and systems.

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. HP Terms & Conditions of Sale and Service (.pdf format)