BOARD MEETING DATE: April 3, 2009
AGENDA NO. 10

PROPOSAL:

Authorize Purchase of Maintenance and Support Services for Mini Computer Hardware and Software

SYNOPSIS:

Mini computers are used by most enterprise-level software applications at the AQMD and currently support a suite of client/server and web-based applications known collectively as the Clean Air Support System. These applications are used to support all of the AQMD core activities. Maintenance support for these computers expires April 30, 2009. This action is to obtain approval for the sole source purchase of mini computer hardware and software maintenance and support services from Hewlett Packard Company for one year. Funds ($215,000) for this expense are included in the FY 2008-09 Budget.

COMMITTEE:

Administrative, March 13, 2009. Less than a quorum was present during the discussion of this item; the members present communicated their concurrence and recommended that this item be forwarded for Board consideration.

RECOMMENDED ACTION:

Authorize the Procurement Manager to purchase one year of maintenance and support services for the AQMD mini computer systems from Hewlett Packard Company at a cost not to exceed $215,000, which is allocated in the FY 2008-09 Budget.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Alpha Server mini computer systems support several production programs such as CLASS, NSR, Emission Fee Billing, Finance, Compliance, Facility Permits, PeopleSoft, Telemetry, Permit Processing, Source Testing, and Subscription Services. Hardware and software maintenance and support services are required to ensure the continued operation of these programs with minimum interruption. Maintenance and support services for these computers expire on April 30, 2009.

In January 6, 2006, the Board approved release of an RFQ to select a vendor capable of providing the most cost-effective hardware and software maintenance and support services for mini computers. Only one vendor, Hewlett Packard (HP), submitted a bid and is currently supporting AQMD’s mini computers. With the acquisition of Compaq Computer Corporation, HP has been servicing the mini computers for the past five years. HP is the sole manufacturer and provider of the software, and the only source for maintenance support licensing agreements. HP also provides the AQMD with substantial discounts through the WSCA (Western States Contracting Alliance) cooperative agreements.
 

Sole Source Justification

Section VIII.B.2 of the Procurement Policy and Procedure identifies circumstances under which a sole source purchase award may be justified. These requests for a sole source award are made under provision VIII.B.2.c.(2) The project involves the use of proprietary technology; and (3) The contractor has ownership of key assets required for project performance. Hewlett Packard Company is the sole provider of this software and therefore the only source for its maintenance and support licensing agreements.
 

Proposal

Staff recommends the purchase of one year of maintenance and support services for mini computer hardware and software from Hewlett Packard Company at a cost not to exceed $215,000.
 

Resource Impacts

Sufficient funds are included in the FY 2008-09 Budget.