COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Information Services Department

DATE:

12/1/2003

BOARD MEETING DATE:

12/16/2003

TO:

Honorable Board of Supervisors

FROM:

Chris Flatmoe, CIO\Director of Information Services Department

SUBJECT:

Agreement with Denver Solutions Group for IBM proprietary mainframe operating system software maintenance and support.

RECOMMENDATION:

Adopt a resolution to:

1) Waive the Request for Proposal process; and

2) Authorize County Purchasing Agent to issue a two-year purchase order with Denver Solutions Group for IBM proprietary mainframe operating system software at a cost not to exceed $151,000 annually with a total cost of $302,000 plus applicable taxes.

BACKGROUND:

Your Board adopted at the July 15,2003 meeting Board Resolution 66133 approving waiving the Request for Proposal Process; extending the support umbrella agreement with IBM Corporation for IBM proprietary mainframe software and related services per Board Resolutions 60298, 61946 and 63761 in a additive amount of $829,896; and authorizing the CIO/Director of Information Services to approve modification, additions, deletions or upgrades, within the total amount authorized by this Resolution, but not to exceed a total of $100,000 in any one fiscal year unless approved by the County Manager. The ongoing maintenance for operating system software for our mainframe server is packaged as an Enterprise Group Option (EGO) and can only be procured by purchase order through IBM Corporation or Denver Solution Group (DSG).

DISCUSSION:

EGO is a package offering of IBM operating system software for the IBM H series mainframe servers, such as the mainframe server used by the County.

EGO includes the operating system and 4 software feature sets which includes storage management services, Info-print server, real-time performance monitoring and print queue services. EGO software can be price-protected with a two-year procurement strategy with Denver Solution Group. Since the County has purchased a Central Processing Unit (CPU) with a reduced instruction set capable of running both LINUX and z/VM operating systems from DSG, IBM has authorized DSG to offer the County maintenance and support of the EGO. No other authorized IBM re-seller can sell EGO to the County. DSG can provide the County with annual EGO maintenance and support for $151,000 with a subsequent optional year at the same price. If the County should elect not to purchase the EGO through DSG the only other option would be a month-to-month lease with IBM Corporation at the rate of $13,900 per month an annual cost of $166,800. A two-year procurement through DSG would save the County an estimated $15,800 annually.

VISION ALIGNMENT:

Executing an agreement with DSG keeps the commitment to responsive, effective and collaborative government, specifically vision goal number 22: County and local government effectively communicate and collaborate in order to develop strategic approaches on issues affecting the entire County. The recommended action address' this County visioning goal through multiple County applications concurrently supported on a single mainframe server: the CJIS integrated criminal justice system (severing all justice agencies in the County), the Case Data System (supporting most Country Human Services programs) and all County departments through the integrated Personnel/Payroll system.

FISCAL IMPACT:

The recommended action will authorize the County Purchasing Agent to issue a purchase order for EGO maintenance and support for fiscal years 2003-04 and 2004-05. The amount required for 2003-04 and 2004-05 have been included in the budget.