May 17, 2005

SUBJECT:   Award of Contract for Hewlett-Packard Hardware and Software Support for Various Financial Systems (F0404-62)

REPORT IN BRIEF

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.

BACKGROUND

Hewlett-Packard offers “Personalized System Support” which is a combined hardware, software, and consulting service package. It is essential that the HP9000 Unix Server Production System remain operational to ensure that the integrated financial system is available to Finance as well as other City staff who access the system on a continuous basis.  Therefore, the requested support package provides twenty-four hours per day, seven days per week support for this system.  The non-critical Financial Testing System will have Monday-Friday, 8 a.m. – 5 p.m. coverage.

DISCUSSION

Section 2.08.070 (b) of 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.

FISCAL IMPACT

Total cost to the City for a one –year contract will be $74,028 (plus tax), a $1,812 increase from last year’s cost of $72,216.

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 $74,028 (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

Attachments