May 30, 2006

SUBJECT: Award of Contract for Software Maintenance Services for the Integrated Financial System (F0505-85)

REPORT IN BRIEF

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

BACKGROUND

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.

DISCUSSION

Section 2.08.070 (b) of Sunnyvale Municipal Code exempts from competitive bidding those situations where the City’s requirements can be met solely by a single source. The Integrated Financial System software is proprietary to Tier Technologies, and it is the only organization that can provide upgrades and software support for its products.

FISCAL IMPACT

Software maintenance costs include:

Costs are the same as for the previous two years.  Payment will be made in FY 2006/2007, and funds have been budgeted in Information Technology Activity 778240 – Software Maintenance and Support Agreement Costs.

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 $82,359, to Tier Technologies, Inc., to provide 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

Attachments

1.  Software Maintenance Agreement (.pdf)

2.  Draft Blanket Purchase Order (.pdf)