COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Information Services Department

DATE:

October 30, 2006

BOARD MEETING DATE:

November 14, 2006

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Chris Flatmoe, CIO/Director Information Services

SUBJECT:

Software license and support for the County Mainframe Server

RECOMMENDATION:

Adopt a resolution:

1)

Waiving the Request for Proposal process; and

2)

Authorizing the County Purchasing Agent to issue a purchase order to International Business Machines (IBM) to provide software licenses and support for the term of December 1, 2006 through November 30, 2007 with the option to extend for two additional one year terms with the total fiscal obligation not to exceed $300,000.

VISION ALIGNMENT:

Commitment: Responsive, effective, and collaborative government

Goal 22: County and local governments effectively communicate and collaborate in order to develop strategic approaches to issues affecting the entire County.

This purchasing Agreement contributes to this goal by maintaining the current high availability of the County’s mainframe, which hosts applications for the entire County to include: Adult Probation, Criminal Justice Information System (CJIS), and Payroll.

Performance Measure(s):

Measure

FY 2005-06
Actual

FY 2006-07
Projected

Availability

99.8%

99.8%

Major Outage

3

3

BACKGROUND:

Currently, ISD is in the execution phase of the mainframe elimination plan. Consistent with the plan, we have moved to a smaller and more cost effective mainframe which allows us to take advantage of sub-capacity pricing for IBM software as applications are migrated off the mainframe.

DISCUSSION:

This purchasing Agreement will use the IBM sub-capacity pricing model. Under the standard pricing model, the cost for IBM software would have been based on a fixed rate of $300,000 dollars per year. Using the sub-capacity pricing model, the County’s charges will be based on actual utilization of the mainframe. This means as applications migrate off the mainframe and utilization falls below 100%, the County’s monthly software cost will be reduced accordingly. Utilizing the sub-capacity pricing model is estimated to reduce the cost of IBM software by as much as 35%.

We are recommending that your Board waive the Request for Proposal process, as IBM is the only vendor able to provide license and support for the mainframe software in use in our County.

The Contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits.

FISCAL IMPACT:

The term of this purchasing Agreement is from December 1, 2006 through November 30, 2007 in an amount not to exceed $300,000. Funds are included in the ISD FY 2006-2007’s budget.