COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Assessor-County Clerk-Recorder

DATE:

February 10, 2003

BOARD MEETING DATE:

February 25, 2003

TO:

Honorable Board of Supervisors

FROM:

Warren Slocum, Assessor-County Clerk-Recorder

SUBJECT:

Appropriation Transfer Request and Waiver of Request for Proposal Process for Sole Source Purchase Orders

Recommendation

Authorize an appropriation transfer request (ATR) and approve a resolution waiving the request for proposal process and authorizing the County Purchasing Agent to issue two purchase orders for computer hardware and software.

Background

Board Resolution No. 065742, adopted January 7, 2003, approved an appropriation transfer request to fund a number of planned information technology upgrades and initiatives. A subsequent change in market conditions has led us to an alternate upgrade package, at the same cost, that now includes equipment accountable as fixed assets, so a new ATR is required.

Two of the hardware/software acquisitions identified in the January ATR are valued above $100,000 each. State and County law require a formal request for proposal (RFP) process in such cases, absent a finding by this Board that a waiver would best serve County's interests.

Discussion

We recommend a waiver of the RFP process to authorize the County Purchasing Agent to make a sole-source purchase of both items, for the reasons stated below for each purchase.

1. Power Vault & Disk Upgrade from Dell Computer Corporation ($266,568)

The power vault equipment that now houses images of recorded documents was last upgraded three years ago. We purchased it from Dell Computer Corporation, which now maintains it under the terms of the purchase agreement. Vault performance and Dell service has been commendable. Since then, the Recorder Division has witnessed such growth in the number of recordings that the equipment cannot now store all of the images online and ready for retrieval. To meet this need, we wish to buy a Dell upgrade package that will improve performance and increase image storage capacity sufficient to meet anticipated needs for the next three years.

The "all upgrade" package and price we had negotiated with Dell prior to our January ATR contained no items accountable as fixed assets. Pending this RFP waiver request, that custom package became unavailable. However, for the same price, we have negotiated the current alternate package which: (1) is equally compatible with the existing system; (2) provides some new hardware components along with "upgrade" components; and (3) provides additional data handling techniques. The new hardware will extend the overall effective life of the system, and provide a platform that will simplify the next, inevitable upgrade process.

The new equipment's fixed asset value is $156,396. We seek an ATR to transfer to the fixed asset account that portion of the sum previously authorized in the ATR of January 7, 2003.

Such upgrades require complete compatibility for successful implementation and operation. Only Dell has the requisite knowledge of our facility, deep price discounts, and direct delivery capability that we require in our operational environment where minimal "down time" is essential. The upgrade complies with County technology standards.

2. Document Management Software from FileNET ($149,491)

The FileNET application captures, stores, and retrieves document images. We bought the software and related maintenance services in 1997 (Agreement No. 6440-2446). Since then, we have installed other systems that rely on electronic documents, and we have further developed and updated our enterprise-wide document handling strategies. Concurrently, a number of other County departments have successfully implemented FileNET applications.

We wish to purchase a FileNET add-on upgrade that will improve image capture and retrieval functionality and increase the scalability of the FileNET platform in order to sustain the planned growth of our document management strategies. Again, compatibility is critical to functionality. FileNET is the only vendor that distributes and maintains this software. Further, installing a "comparable" add-on program from a different maker would likely hamper the full functionality of the underlying application. The add-on complies with County technology standards.

These purchases and the requested waiver of the RFP process will keep County's commitment of "responsive, effective and collaborative government" and serves County's goals of "government decisions based on careful consideration of future impact rather than temporary relief" and "supporting and integrating the County vision and goals into the delivery of services." These high-yield investments will significantly increase operational efficiency and data security, and will support our development of additional e-government services.

Fiscal Impact

There will be no Net County Cost, as existing funds have been allocated from the Recorder's Modernization Trust Fund.