ADMINISTRATIVE REPORT

Date: May 4, 1999
Author/Local:BCampbell/

331-4070

RTS No. 693
CC File No. 1805

Council: May 18, 1999

TO: Vancouver City Council

FROM: Vancouver Public Library Board

SUBJECT: Contract Award for Vancouver Public Library Microcomputers

RECOMMENDATION

THAT LOGICORP Data Systems Ltd. be awarded the contract to supply and install microcomputers and such other computer software and peripherals as deemed necessary by the Library at an initial cost of $498,542, source of funding to be Information Technology Infrastructure - 1998 Expansion and Replacement Program ($150,000), and the balance from the Library portion of the Information Technology Infrastructure Fund;

FURTHER THAT the Finance Director of Vancouver Public Library, in consultation with the Director of Legal Services, sign the contract on behalf of the Library Board;.

AND THAT a Systems Support Technician - Library position be created at an estimated annual cost of $47,900 including benefits, and the source of funds be the Library’s operating budget.

COUNCIL POLICY

Library contracts over $300,000 require the approval of the Library Board and Council Contracts are to be awarded on the basis of best value.

City Council approves the establishment of new positions and has directed, whenever possible, that they be funded from existing budgets.

PURPOSE

The purpose of this report is to recommend the award of the contract for the supply and installation of new microcomputers and other computer software and peripherals for theVancouver Public Library. The contract will be for a twenty-four (24) month period and may be extended for one or two additional twelve (12) periods by mutual agreement between the Library and the successful Vendor.

BACKGROUND

Vancouver City Council approved the Technology Infrastructure Replacement Financing Plan in July 1996 and the 1998 Information Technology Infrastructure 1998 Expansion and Replacement Program in October, 1998. All microcomputer purchases will come from these already allocated funds or existing Vancouver Public Library Computer Equipment Reserve Funds.

DISCUSSION

Vancouver Public Library has purchased microcomputers on its existing Contract for four (4) years. Over the next three (3) years, over 1100 microcomputers and terminals will be upgraded. A new tender was therefore deemed necessary to assure the Library was receiving best value for cost.

The Request for Proposal (RFP) was advertised in the Vancouver Sun and all vendors who had previously expressed interest in providing the Library with microcomputers were notified by phone. Requirements for competing firms included extensive corporate information, a list of references from previous large installations, and a willingness to provide a high level of installation and maintenance service. The RFP indicated a strong desire for microcomputer manufacturers listed in the Federal or Provincial Master Standing Offer. Fifteen (15) vendors picked up the RFP and five (5) submitted proposals.

Only an initial minimum order of 300 microcomputers is guaranteed for 1999. Future purchases will only be made based on funds allocated in the City of Vancouver Infrastructure Funds or allocated within the existing VPL budget.

The selected equipment is based on the Seanix P II 400 microcomputers with 64 Megabytes (MB) of Random Access Memory (RAM) and 4.3 Gigabytes (GB) of disk storage.

In addition to their microcomputer bid, each Vendor indicated the fixed margin which would be applied to future miscellaneous purchases and future microcomputer orders as well as their hourly rate for non-warranty service.

The following list outlines the submissions from the Vendors:

Company	Cost (GST incl.)
BUSINESS PRO+	$ 514,529
ISLAND KEY COMPUTER+	$ 567,600
LOGICORP	$ 498,542
MICROSERVE	$ 518,661
SOVO	$ 493,674

+ Both these companies bid a Cleron 400, a lesser microcomputer than the PII 400 standard selected.

The total cost above is based on the initial 1999 purchase of 300 microcomputers. Future years contracts will be negotiated on the basis of fixed margins.

The Library believes that better value can be achieved by adding a staff person rather than purchasing a three year on-site parts and labour warranty for each replacement cycle of 300, 200 in the last year, over the next four years. A three years parts and labour depot warranty will still be in place. VPL is currently seriously under staffed in the computer services area and the VPL Board has made upgrading staff a priority. SST’s at the library trouble shoot equipment, administer the Dynix Integrated Library System, manage the telecommunications and CD-ROM networks as well as administer warranty programs.

A Systems Support Technician - Library position at Step 3 with benefits would cost $47,900. Over the next four years, VPL will be replacing 1,100 microcomputers and terminals. Adding a staff position and eliminating on-site warranty is a more efficient use of funds.

CONCLUSION

On the basis of best value and compliance with the proposal requirements, particularly as it relates to service, technical staff and maintenance levels, it is recommended that LOGICORP be awarded the Contract in the initial amount of $498,542.

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(c) 1998 City of Vancouver