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BOARD MEETING DATE: April 9, 1999 AGENDA NO. 12

PROPOSAL:

Amend Contract with Avnet Computer Upgrade Business and Development Computers

SYNOPSIS:

In February 1996, AQMD entered into a five-year Technology Management Maintenance Service (TMMS) lease with Avnet Computer to acquire DEC Alphaserver 8400 and 2100 computers. The DEC 8400 is the business computer system which supports defined production programs such as CLASS, NSR, compliance, permits, and finance. The DEC 2100 computer system supports development of new applications prior to implementation as production systems on the DEC 8400. This action is to amend the contract with Avnet Computer to exercise the upgrade option (currently valued to be $343,541) in the TMMS agreement to increase storage, backup and processors.

COMMITTEE:

Administrative, March 19, 1999, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Executive Officer to execute an amendment to Contract No. 960961 with Avnet Computer to exercise the upgrade option in the TMMS agreement to increase storage, backup and processors.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Under the five-year TMMS lease agreement with Avnet Computer, the AQMD is entitled to a technology credit of $343,541 to be used to obtain new technology after the 37^th month of the term lease (March 1999). Staff has evaluated the current resource utilization of the business (DEC Aphaserver 8400) and development (DEC Alphaserver 2100) computers and recommends taking advantage of this option to acquire increased storage, backup and processing capabilities as listed below:

1. Replace the SW800 storage array connected to the DEC Alphaserver 8400 with an ESA 1000 storage array;
2. Add a tabletop 350/700 GB DLT library for backups; and
3. Replace the DEC Alphaserver 2100 and SW500 storage array with a DEC Alphaserver 4100 and an RA 7000 storage array.

The recommended exchange includes increasing the storage and backup capacity of both the business and development computers, and replacing the development computer with a DEC Alphaserver 4100. The storage capacity of both systems is currently near maximum utilization and should be increased to support current and future applications. The increased storage capacity will double the current capacity of both computers with room for further expansion by simply adding more drives. The increased backup capability is needed to match the increased storage capacity. The replacement of the development computer with a DEC Alphaserver 4100, including faster processors, will decrease the time required to compile software, increase the computer throughput, and reduce the time it takes to deliver an application to the end-users.

The current lease term of five years, with monthly lease payments of $19,878, does not change. The technology credit of $343,541 is reduced to $0. At the end of the term of the lease, AQMD will have the option of purchasing the equipment at the fair market value or acquiring new computer systems. Without an exchange at this time, the technology credit will be reduced over time to $237,336 at the completion of the five-year lease. However, a refund of any unused technology credit funds is not allowed.

Staff recommends exercising the upgrade option and amending the original TMMS Contract No. 960961 to reflect the decrease in technology credits.

Resource Impacts

No additional cash outlay cost is involved in the contract amendment, since the value of the technology credit is being used.

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