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HomeMy WebLinkAboutContract 33236 CITY SECRETARY a�a�- CONTRACT NO. , PROFESSIONAL SERVICES AGREEMENT This PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into by and between the CITY OF FORT WORTH (the "City"), a home rule municipal corporation situated in portions of Tarrant, Denton and Wise Counties, Texas, acting by and through Richard Zavala, its duly authorized Assistant City Manager, and CORNERSTONE SYSTEMS, INC. ("Consultant") a Texas corporation and acting by and through Dave Chittum, its duly authorized Vice President. 1. SCOPE OF SERVICES. Consultant hereby agrees to provide the City with professional consulting services for the purpose of purchasing and installing an IBM Z890 and DS6800 mainframe computer. Attached hereto and incorporated for all purposes incident to this Agreement is Exhibit A describing the Hardware Agreement, Exhibit B Scope of Work Hardware Installation and Exhibit C Addendum for Custom Services. 2. TERM. This Agreement shall commence upon the date that both the City and Consultant have executed this Agreement ("Effective Date") and shall continue in full force and effect until terminated in accordance with the provisions of this Agreement or when the City provides Consultant with written notice that Consultant has fulfilled its obligations under this Agreement and that Consultant's services are no longer required. 3. COMPENSATION. The City shall pay Consultant an amount not to exceed $1,040,415.00 in accordance with the provisions of this Agreement. Consultant shall not perform any additional services for the City not specified by this Agreement Unless the City requests and approves in writing the additional costs for such services. The City shall not be liable for any additional expenses of Consultant not specified by this Agreement unless the City first approves such expenses in writing. 4. TERMINATION. 4.1. Written Notice. The City or Consultant may terminate this Agreement at any time and for any reason by providing the other party with 30 days written notice of termination. 4.2 Non-appropriation of Funds. In the event no funds or insufficient funds are appropriated by the City in any fiscal period for any payments due hereunder, City will notify Consultant of such occurrence and this Agreement shall terminate on the last day of the fiscal period for which appropriations were received without penalty or expense to the City of any kind whatsoever, except as to the portions of the payments herein agreed upon for which funds shall be been appropriated. :46 . 4.3 Duties and Obligations of the Parties. In the event that this Agreement is terminated prior to the Expiration Date, the City shall pay Consultant for services actually rendered as of the effective date of termination and Consultant shall continue to provide the City with services requested by the City and in accordance with this Agreement up to the effective date of termination. 5. DISCLOSURE OF CONFLICTS AND CONFIDENTIAL INFORMATION. Consultant hereby warrants to the City that Consultant has made full disclosure in writing of any existing or potential conflicts of interest related to Consultant's services and proposed services with respect to the Scope of Services. In the event that any conflicts of interest arise after the Effective Date of this Agreement, Consultant hereby agrees immediately to make full disclosure to the City in writing. Consultant, for itself and its officers, agents and employees, further agrees that it shall treat all information provided to it by the City as confidential and shall not disclose any such information to a third party without the prior written approval of the City. 6. RIGHT TO AUDIT. Consultant agrees that the City shall, until the expiration of three (3) years after final payment under this contract, have access to and the right to examine at reasonable times any directly pertinent books, documents, papers and records of the consultant involving transactions relating to this Contract. Consultant agrees that the City shall have access during normal working hours to all necessary Consultant facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this section. The City shall give Consultant reasonable advance notice of intended audits. Consultant further agrees to include in all its subcontractor agreements hereunder a provision to the effect that the subcontractor agrees that the City shall, until expiration of three (3) years after final payment of the subcontract, have access to and the right to examine at reasonable times any directly pertinent books, documents, papers and records of such subcontractor involving transactions related to the subcontract, and further that City shall have access during normal working hours to all subcontractor facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this paragraph. City shall give subcontractor reasonable notice of intended audits. 7. INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Consultant shall operate as an independent contractor as to all rights and privileges granted herein, and not as agent, representative or employee of the City. Subject to and in accordance with the conditions and provisions of this Agreement, Consultant shall have the exclusive right to control the details of its operations and activities and be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors and subcontractors. Consultant acknowledges that the doctrine of respondeat superior shall not apply as between the City, its officers, agents, q 2 �� servants and employees, and Consultant, its officers, agents, employees, servants, contractors and subcontractors. Consultant further agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between City and Consultant. 8. LIABILITY AND INDEMNIFICATION. CONSULTANT SHALL BE LIABLE AND RESPONSIBLE FOR ANY AND ALL PROPERTY LOSS, PROPERTY DAMAGE ANDIOR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, TO THE EXTENT CAUSED BY THE NEGLIGENT ACT(S) OR OMISSION(S), MALFEASANCE OR INTENTIONAL MISCONDUCT OF CONSULTANT, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. CONSULTANT COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNIFY, HOLD HARMLESS AND DEFEND THE CITY, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO CONSULTANT'S BUSINESS AND ANY RESULTING LOST PROFITS) ANDIOR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR MALFEASANCE OF CONSULTANT, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. 9. ASSIGNMENT AND SUBCONTRACTING. Consultant shall not assign or subcontract any of its duties, obligations or rights under this Agreement without the prior written consent of the City. If the City grants such consent, the assignee or subcontractor shall execute a written agreement with the City under which the assignee or subcontractor agrees to be bound by the duties and obligations of Consultant under this Agreement. 10. INSURANCE. Consultant shall provide the City with certificate(s) of insurance documenting policies of the following minimum coverage limits that are to be in effect prior to commencement of any work pursuant to this Agreement: 10.1 Coverage and Limits Commercial General Liability $1,000,000 Each Occurrence $1,000,000 Aggregate Automobile Liability $1,000,000 Each accident on a combined single limit basis or $250,000 Property damage $500,000 Bodily injury per person per occurrence Coverage shall be on any vehicle used by the Consultant, its employees, f s agents, representatives in the course of the providing services under this Agreement. "Any vehicle" shall be any vehicle owned, hired and non- owned Worker's Compensation Statutory limits Employer's liability $100,000 Each accident/occurrence $100,000 Disease - per each employee $500,000 Disease - policy limit This coverage may be written as follows: Workers' Compensation and Employers' Liability coverage with limits consistent with statutory benefits outlined in the Texas workers' Compensation Act (Art. 8308 — 1.01 et seq. Tex. Rev. Civ. Stat.) and minimum policy limits for Employers' Liability of $100,000 each accident/occurrence, $500,000 bodily injury disease policy limit and $100,000 per disease per employee 10.2 Certificates. Certificates of Insurance evidencing that the Consultant has obtained all required insurance shall be delivered to the City prior to Consultant proceeding with any work pursuant to this Agreement. All policies shall be endorsed to name the City as an additional insured thereon, as its interests may appear. The term City shall include its employees, officers, officials, agent, and volunteers in respect to the contracted services. Any failure on the part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirement. A minimum of thirty (30 ) days notice of cancellation or reduction in limits of coverage shall be provided to the City. Ten (10) days notice shall be acceptable in the event of non-payment of premium. Such terms shall be endorsed onto Consultant's insurance policies. Notice shall be sent to the Risk Manager, City of Fort Worth, 1000 Throckmorton, Fort Worth, Texas 76102, with copies to the City Attorney at the same address. 11. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS. Consultant agrees to comply with all applicable federal, state and local laws, ordinances, rules and regulations. If the City notifies Consultant of any violation of such laws, ordinances, rules or regulations, Consultant shall immediately desist from and correct the violation. 4 12. NON-DISCRIMINATION COVENANT. Consultant, for itself, its personal representatives, assigns, subcontractors and successors in interest, as part of the consideration herein, agrees that in the performance of Consultant's duties and obligations hereunder, it shall not discriminate in the treatment or employment of any individual or group of individuals on any 'basis prohibited by law. If any claim arises from an alleged violation of this non-discrimination covenant by Consultant, its personal representatives, assigns, subcontractors or successors in interest, Consultant agrees to assume such liability and to indemnify and defend the City and hold the City harmless from such claim. 13. NOTICES. Notices required pursuant to the provisions of this Agreement shall be conclusively determined to have been delivered when (1) hand-delivered to the other party, its agents, employees, servants or representatives, (2) delivered by facsimile with electronic confirmation of the transmission, or (3) received by the other party by United States Mail, registered, return receipt requested, addressed as follows: To THE CITY: To CONSULTANT: City of Fort Worth/IT Solutions Cornerstone Systems, Inc. 1000 Throckmorton 420 Exchange Fort Worth TX 76102-6311 Irvine, CA 92602 Facsimile: (817) 392-8654 Facsimile: 714-368-8198 14. SOLICITATION OF EMPLOYEES. Neither the City nor Consultant shall, during the term of this agreement and additionally a period of one year after its termination, solicit for employment or employ, whether as employee or independent contractor, any person who is or has been employed by the other during the term of this agreement, without the prior written consent of the person's employer. 15. GOVERNMENTAL POWERS. It is understood and agreed that by execution of this Agreement, the City does not waive or surrender any of its governmental powers. 16. NO WAIVER. The failure of the City or Consultant to insist upon the performance of any term or provision of this Agreement or to exercise any right granted herein shall not constitute a waiver of the City's or Consultant's respective right to insist upon appropriate performance or to assert any such right on any future occasion. 5 1 17. CONSTRUCTION. This Agreement shall be construed in accordance with the internal laws of the State of Texas. If any action, whether real or asserted, at law or in equity, is brought on the basis of this Agreement, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. 18. SEVERABILITY. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 19. FORCE MAJEURE. The City and Consultant shall exercise their best efforts to meet their respective duties and obligations as set forth in this Agreement, but shall not be held liable for any delay or omission in performance due to force majeure or other causes beyond their reasonable control (force majeure), including, but not limited to, compliance with any government law, ordinance or regulation, acts of God, acts of the public enemy, fires,'strikes, lockouts, natural disasters, wars, riots, material or labor restrictions by any governmental authority, transportation problems and/or any other similar causes. 20. HEADINGS NOT CONTROLLING. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 20. REVIEW OF COUNSEL. The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or exhibits hereto. 21. ENTIRETY OF AGREEMENT. This Agreement, including the schedule of exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Consultant, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. [Signature Pages Follow] 6 IN,WITNESS '" EREOF, the parti s hereto have executed this Agreement in multiples this rday of , 200 . CITY OF FORT WORTH: CORNERSTONE SYSTEMS, INC. By: By: F sistant City Manager (name)MiCV-1,0 F. WCXCIVINI M12-0105 (title) c •r. c. ATTEST: ATT T: By: By: City Secretary APPROVED AS TO FORM AND LEGALITY: Assists t City Attorney M&C: 7 EXHIBIT A CITY OF FORT WORTH(BUYER) CORNERSTONE SYSTEMS,INC. (SELLER) HARDWARE AGREEMENT This Agreement is made by and between Cornerstone Systems,Inc.,having its principal place of business at 420 Exchange,Suite 150,Irvine,CA 92602(SELLER),and City of Fort Worth,having its principal place of business at 1000 Throckmorton Street,Fort Worth,TX 76102 (BUYER). In consideration of the mutual undertakings herein contained,SELLER and BUYER agree as follows: SELLER agrees to sell and BUYER agrees to purchase from SELLER a(n)IBM z890 Processor as detailed below. PROCESSOR DESCRIPTION QTY PRICE 2086-A04 z890 IBM EServer z890 1 $222,000.00 DS6800 Disk Sora e 1 $100,389.00 34600 Optica Converter 8 $19,000.00 3490-C2A Used IBM Magnetic Tae Subs st 1 $130,103.00 3494-1318 Used`LIC' Virtual Tae Server 1 Incl above 3494-D12 Used`LIC' Drive Unit 1 Incl above 3494-D14 Used`LIC'Drive Unit 1 Incl above 3494-L10 Used Tape Library Datasery1 Incl above 3590-A60 Used Ma star Tae Control Unit 1 Incl above 3590-HIA Used Ente rise Tae Drive 4 Incl above 3590-HIA Used Ente rise Tae Drive 4 Incl above Total Hardware Purchase Price $471,492.00 IBM Hardware Maintenance: BUYER agrees to purchase a three (3) year, IBM 24x7 Maintenance Contract, for the equipment listed above. BUYER will be invoiced $210,035.00. IBM Installation Services: BUYER agrees to purchase IBM Services for the cables, shipping, preinstallation support, and complete IBM CE installation of the z890. BUYER will be invoiced$6,500.00 by SELLER. IBM Installation Services: BUYER agrees to purchase IBM Services for the shipping and installation of the used ATLNTS. BUYER will be invoiced at an hourly rate of$200.00 plus shipping charges by the SELLER. These estimated charges are$9,400.00. Cornerstone Systems,Inc.: BUYER agrees to purchase TechStart Services per the SOW. SELLER will invoice BUYER$47,000.00. BUYER agrees to Data Migration services from the SELLER per the SOW. SELLER will invoice the BUYER $27,000.00. IBM Software: BUYER agrees to purchase IBM Base operating software for three years. Invoicing will be on each twelve (12) month anniversary of this agreement. Pricing may vary from year to year and will be based on the then current IBM pricing. Prices are only valid for the indicated machine and any changes due to change in equipment or feature additions to the licensed programs will be passed through to the Client and the Program Supplement modified accordingly. The first year is$89,971.00.Cornerstone Systems,Inc.is not responsible for any price increases as a result of changes made by IBM to the program conwrslone Syrstemv Inc. Return 7060-1-130 Processor.: BUYER agrees to return to IBM the 7060-1-1300 processor,serial number I OEB6,when the machine is removed from production.,that date to be no later than sixty(60)days after code 20 of the new new processor. I. The sales price of the Equipment,Maintenance, Software,IBM Services,and CSI Services is$861,398.00 excluding sales tax,which BUYER shall pay to SELLER on the date of delivery of the Equipment. If payment as specified is not received by SELLER within thirty(30)days of the delivery date of the Equipment,BUYER shall,to the extent permitted by law,pay on demand as a late charge,an amount equal to 2%of the amount then due for each thirty days or portion thereof that the overdue payment is not made. If BUYER is financing this purchase,then BUYER's financial institution is responsible for payment and any associated charges. 2. SELLER shall deliver and BUYER shall accept delivery of the Equipment at premises on a date to be mutually agreed upon,such date to be no later than December 31,2005. BUYER shall bear the risk of damage and destruction from every cause once the Equipment has been delivered to BUYER or BUYER'S agent. The BUYER shall pay for all shipping,handling and transit insurance charges for the Equipment to the delivery location that SELLER may incur in excess of those covered by shipment from the manufacturer. BUYER shall inspect the Equipment upon delivery,and BUYER shall be responsible for notifying SELLER of any defect or damage to the Equipment or of any claim arising hereunder within 7 days of the delivery of the Equipment. BUYER's failure to advise SELLER of such defect,damage or claim within the specified time period will release SELLER from any liability for damages thereafter. 3. The BUYER shall pay all normal installation charges that may incur in excess of those covered by shipment from manufacturer. BUYER shall provide and pay for a suitable place of installation,any necessary electrical power outlets and air conditioning required for operating the Equipment as provided in the manufacturer's installation manual,and all unusual installation charges,including but not limited to required structural alterations and electrical work. 4. Title to the Equipment shall vest in BUYER upon delivery and payment in full of the purchase price and costs required to be paid pursuant to Paragraphs 2,3,4,and 7 hereof. BUYER hereby grants to SELLER and its successors and assigns a security interest in the Equipment and all proceeds thereof to secure the prompt payment by BUYER when due of all amounts payable to SELLER and all other obligations of BUYER contained in this Agreement. Upon SELLER's request,BUYER will execute such financing statements as may be necessary to evidence SELLER's security interest. 5. If the Equipment on delivery contains any features not specified in this Agreement,SELLER,at its own expense,may remove them. Removal shall be performed by the manufacturer(or other party reasonably acceptable to BUYER),upon the request of SELLER and at a time responsibly convenient to BUYER. 6. BUYER will be responsible for and shall pay when due all taxes,fees,withholdings or other charges(including any interest and penalties),if any,imposed by reason of the sale. 7. SELLER may terminate this Agreement if: (1.)BUYER refuses or is unable to accept delivery of any item of Equipment by the date specified in Paragraph 3 hereof;(2.)BUYER becomes insolvent or the subject of proceedings under any law relating to bankruptcy or the relief of debtors;(3.)BUYER fails to perform any other provision of this Agreement. SELLER's right to terminate shall be exercised by written notice to BUYER,whereupon SELLER shall be entitled to immediate possession of the Equipment,without liability for entering BUYER's premises for such purpose,and to retain all moneys paid hereunder as an effect to SELLER's damage. The right of SELLER to terminate this Agreement and recover the Equipment shall not be the exclusive remedies available to it and is in addition to any other rights and remedies provided by law or this Agreement,including but not limited to the right to recover damages from BUYER. 8. If SELLER is unable to deliver the Equipment because of an act of God or other cause beyond the control of SELLER(including manufacturer shipment delays),SELLER shall not be liable for such failure during the period of and to the extent of the disability. If the disability prevents or interferes with the shipment of the 2 ConieWone systems,Inc. Equipment by the carrier which SELLER would ordinarily have used,shipment shall not be made by a more costly carrier unless BUYER advises SELLER that it will assume the additional costs. 9. SELLER warrants that it will be the owner of the Equipment when it is delivered,free and clear of any liens and encumbrances,with the full right to sell the Equipment to BUYER. SELLER further warrants that the Equipment will be eligible for the manufacturer's standard maintenance agreement,providing BUYER contracts for such maintenance from the manufacturer prior to installation of the Equipment. BUYER, recognizing that SELLER is not the manufacturer of the Equipment,expressly waves any claim against SELLER based upon any infringement or alleged infringement of any patent,copyright or trademark with respect to the Equipment. THE FOREGOING REPRESENTATIONS AND WARRANTIES ARE EXPRESSLY IN LIEU OF ANY OTHER EXPRESS OR IMPLIED WARRANTIES,INCLUDING ANY IMPLIED WARRANTY OF MERCHANT ABILITY OR FITNESS FOR A PARTICULAR PURPOSE,AND OF ANY OTHER OBLIGATIONS ON THE PART OF SELLER. THE BUYER ACKNOWLEDGES THAT IT HAS MADE THE SELECTION OF SAID EQUIPMENT BASED ON ITS OWN JUDGMENT AND EXPRESSLY DISCLAIMS ANY RELIANCE UPON STATEMENTS MADE BY SELLER. BUYER AGREES THAT SELLER WILL IN NO EVENT BE LIABLE FOR SPECIAL,INCIDENTAL,OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATEVER. 10. Any notice with regard to this Agreement shall be in writing and sent by registered or certified mail,postage prepaid,addressed as set forth in the first paragraph of this Agreement,or to any other address to which notice has been given. Notice shall be effective upon receipt or three days from the date of mailing,whichever occurs first. 11. Miscellaneous: A. This Agreement is effective only when accepted in m bnauthorized officer of SELLER at its office I OLi as described above. This Agreement is made in E ra"u on acceptance,and it shall be governed by w5f- and construed in accordance with its laws,including all matters of construction,validity,performance,and enforcement. B. This Agreement may not be assigned in whole or part by BUYER without prior written consent of SELLER,and any attempted assignment without consent shall be void. C. If this Agreement is executed by SELLER prior to being executed by BUYER,the SELLER may void the Agreement at anytime after 10 days after the date of SELLER's execution,unless SELLER by then receives a copy executed by BUYER. D. This Agreement contains the entire understanding between the parties and supersedes any prior understanding and agreements between them concerning its subject. There are no other oral or written representations,agreements,or understandings between them. This Agreement may be amended,and rights under it may be waived,only in writing. E. This Agreement may be executed in multiple counterparts,each of which shall be deemed to be an original and of equal force and effect. IN WITNESS WHEREOF,the parties have caused this Agreement to be signed by their respective duly authorized representatives. SELLER: BUYER: Cornerstone Systems',,Inc. City of Fort rtt By: "{v F 6-11 By: M1ct�acl F. kicv-eo C•F•o. 3 MRConrrcl'slone S, Inc. Name: Name: ('OL Title: Title$�/ �l��L� Date: Date: beceiz,4,'i- For your information, please submit payments to: APRQVED AS TO FORM AND i,ECALI`I'Y: Cornerstone Systems, Inc. P.O. Box 51746 Los Angeles, CA 90051-6046 Assistant Ci y Attorney Federal Tax ID: 95-4313244 4 Coirrerslone Systems,Inc. EXHIBIT' � � J f z890 and DS6800 Hardware Installation Statement of Work Presented to City of Fort Worth December 7, 2005 www.esihome.com Cornerstone Systems,Inc. Enterprise Solutions 420 Exchange, Suite 150 Irvine,California 92602 714.368.8100 Premier Ell Cornerstone snsinett ms,Inc. Partner TABLE OF CONTENTS TECHSTART SERVICES OVERVIEW....».................................................................»....1 TECHSTARTSERVICES...............................................»........»..........................................3 SCOPE.. .................................................................................................................................3 PRornccTASKS.....................................................................................................................4 TIMEFRAME...........................................................................................................................7 DELIVERABLES......................................................................................................................7 CORNERSTONE SYSTEMS,INC.RESOURCES AND RESPONSIBILTITES......................................7 CITY OF FORT WORTH RESOURCES AND RESPONSIBILI17Es................................................. 12 TECHSTARTCUSTOM................................»..:..»............»....................................».»..14 ASSUMPTIONS AND CONSIDERATIONS..............»...........».................................»..... 16 TECHSTARTPRICING.»......».........».........................»....................»..........................».. 18 STATEMENT OF CONFIDENTIALITY..................................................................19 SIGNATURE PAGE.........».....»........»......»..........»............................»........................—.20 APPENDIX A-SOLUTION ASSURANCE INFORMATION......................................21 APPENDIX B-PROJECT CHANGE CONTROL.PROCEDURE...............................22 12/07/1005 Pagel Confidential Information of Cornerstone Systems,Ina Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to my third party without prior written consent from Comerstom Systems,Inc. unless otherwise required by law 01 Systems,►r>n.C*tMe=toiae tws<ness Partner TechStart Services Overview This agreement is between Cornerstone Systems, Inc. and City of Fort Worth. Throughout this contract City of Fort Worth will be referred to as the Client. Installing new hardware or software can ultimately enhance efficiency and business operations. But it also poses the threat of business disruption and downtime,and it can tax valuable internal resources. That's why Cornerstone Systems,Inc.designed TechStart Services. Whether it's TechStart Basic or TechStart Custom (customized to Client needs), Cornerstone TechStart Services provides onsite and remote help for efficient and speedy installation of an IBM or non-IBM hardware or software solution.Cornerstone's TechStart Services offerings include: Project Management ■ Project Management describes the organizational approach by which the TechStart Services are managed. A Cornerstone Project Manager is assigned to oversee the entire planning,installation and turnover phases of the project. The Project Manager will coordinate all project resources, conduct project team meetings, document status of the project and escalate issues in a timely manner. All the highly valued Project Management Institute (PMI) skills as well as Cornerstone's Best Practices are applied to the Client's hardware implementation. Planning ■ Hardware — Cornerstone specialists conduct a Systems Assurance to review configurations ordered and all the installation details to ensure that the Client's customer expectations are met and that a successful installation is on schedule. ■ Software - Cornerstone specialists analyze and develop IBM and Independent Software Vendor (ISV) software installation and migration plans. This will include an assessment of software version/release level co requisites and pre requisites. Software planning is a key activity for a successful installation and production cutover. , Installation ■ Hardware-Cornerstone hardware installation specialists will be responsible for the installation of IBM and non-IBM equipment within the Client computing environment, verify configurations, and validate that all connected devices are available to the system. 12I074005Page 1 Confidential Information of Cornerstone Systems,Inc. Intbrmation contained in this statement of work is intended only for use by The City of Fort Worth.and may not be transmitted, reproduced,or divulged to any third party without prior written conn t from Cornerstone systems,Inc. unless otherwise required by law C, nF Cornerstone y&temS,Ina • Software - Cornerstone technicians configure, install and integrate software on the Client's system and provide integration when multiple components are involved. Cornerstone also plans, creates and records operating system modifications for a customized TechStart Custom installation. When Cornerstone is finished, the Client's software is fully configured, tested, documented,and ready to go. Training • With the TechStart Basic service, Cornerstone Systems, Inc. provides fundamental skills instruction on basic administration tasks. With a TechStart Custom, Cornerstone Systems, Inc can provide customized training for the Client beyond the Hardware Maintenance Console training. Hotline Support ■ 240 Hotline Support is provided as part of this offering. The Cornerstone Systems Hotline provides a single point of contact for the Client when in need of Cornerstone's services or assistance. With the Hotline,the Client makes only one phone call in order to.access any_service that Cornerstone offers or contact anyone in the company. It is available 24 hours a day,7 days a week, including holidays and weekends. In addition, the Hotline tracks and reports on how quickly or effectively customer support requests are being addressed, therefore, providing the Client with the assurance that acceptable service levels are being met. More information about our Hotline Support is available on the Cornerstone website at LttysJ/www.csihome.com/wwwfileslnewwel.nsf/lTableof-ontents)?() enAeent&CAT=Hotline Customized QuickPlace • Cornerstone provides access to a web-based Document Library from the Internet as a TechStart "Value Added"service. All administration information,project plans, status reports, issues and change control logs, checkpoint material, minutes, and project documentation will be centrally stored and accessible to the entire engagement team and key stakeholders. In summary,the Cornerstone TechStart service ensures the installation of the z890 goes smoothly and is successful for the Client. The Client can truly mitigate installation risks through the use of the TechStart offering. 12/072005 Page 2 Confidential Informadoa of Cornerstone Systeme,Inc Information contained in this statement of work is intended only for use by The City of Fort worth,and may not be transmitt4 reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law oilcornerstone tlmanea 9ySfEms,/na. Partner TechStart Services Scope Basic Services The scope of the TechStart Basic z890 and DS6800 begins with the ordering of the hardware. This is then followed by a Systems Assurance and continues with the delivery and installation of the z890 and the DS6800. The hardware installation is complete when the z890 and DS6800 have been powered up and all diagnostics run without error or referred to as"Code 20." It ends when the Client has signed off on (1) the first Initial Program Load (IPL) and verified connectivity of the z890 channel attached 1/0 devices and'(2)on the verification tests from the designated host system to the DS6800 as described in this Statement of Work. Custom Services In addition to the Basic Services, Cornerstone Systems can provide various Custom Services. If Custom Services are included,refer to the Addendum(s)to this Statement of Work. 12/07/2005 Page 3 Confidential Information of Cornerstone Systems,Ine. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third petty without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Nil Cornerstone Parlsor Systems,Ina Project Tasks Cornerstone Systems provides installation services utilizing a proven methodology and process that encompasses planning,constant Client interaction and communication,installation,and training.This approach enables Cornerstone to successfully install our Clients' systems, hardware, and operations infrastructure on schedule and within budget. With the TechStart Basic Services, Cornerstone Systems, Inc. will install Client's IBM z890 and DS6800 hardware and provide fundamental skills instruction on the System Element(SE),Hardware Management Console (HMC) and on the ESS configuration and operations. The following are the z890 and DS6800 installation services provided by Cornerstone Systems and IBM that are included with the TechStart Basic Services. Em Ml 11CORNERSTONE WILL... Project Management ■ Conduct project status meetings ■ Prepare and post status reports on the QuickPlace ■ Review and administer Project Change Control ■ Coordinate with the Client management interface ■ Escalate issues Planning ■ Conduct a Systems Assurance ■ Plan the installation with Client's representative ■ Order hardware ■ Validate cable orders ■ Conduct a DS Worksheet Preparation meeting ■ Develop an installation plan Physical Site Preparation Ensure that IBM installs all cables from the designated peripheral devices to the z890,assuming a separate cabling contract has been signed with Cornerstone ■ Ensure that the Client understands and verifies all electrical and power receptacle compatibility requirements ■ Validate cable connector types for host system connectivity for the DS 12/07/2005 Page 4 Confidential Information of Cornerstone Systems,Inc Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law I�rsatbr S' �s, oil GomerstolnC.ne Parinsr .__..........v...-............. __........_...__ _ CORNERSTONE Hardware Configuration Por the z890 configuration: ■ Prepare and validate Client's IOCP to conform to the new z890 processor. ■ Load the IOCP to a storage media for use by the IBM CE when the machine is Code 20 ■ Create a plugging map for use by the IBM CE to map old chpids to the new chpids,if required ■ Ensure that the IBM CE has verified the proper hardware level Engineering Changes(EC's)are on the IBM peripheral hardware ■ Provide Client with a record of the configuration activities performed during this service For the DS6800 configuration: ■ Assist with formalizing address layout and channel attachments for the designated host system ■ Complete all Communications Worksheets ■ Submit all configurations to IBM ■ Configure the DS6800 ■ Provide Client with a record of the configuration activities performed during this service Software Configuration For the z890 configuration: ■ Assist Client in determining the required IBM system maintenance that must be applied to the current operating system to support the new z890 processor ■ Assist in pulling the Preventive Service Planning(PSP) buckets for the current operating system ■ Advise Client as to the best practice for installing the operating system and ISV maintenance For the DS6800 configuration: ■ Assist Client in determining the required IBM system maintenance that must be applied to the current operating system to support the new DS6800 ■ Assist in pulling the Preventive Service Planning(PSP) buckets for the current operating system ■ Assist in pulling the`Q' Bucket ■ Analyze all the DS6800 features,such as Flashcopy and PPRC,to ensure that the configuration layout is complete Hardware Installation For the z890 installation: ■ Schedule the z890 installation ■ Ensure that IBM installs Client's z890 hardware and that it is Code 20 12/07/2005 Page 5 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement ofwork is intended only for use by The City offort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law EllSyCstems,Ms^ornersfone u CORNERSTONE NVILL... ■ Perform the first IPL of the z890 system ■ Verify that all system hardware and peripherals are operational For the DS6800 installation: ■ Validate configurations ■ Schedule the DS6800 installation ■ Ensure that IBM installs Client's DS6800 hardware and that it is Code 20 ■ Assist with verification tests from the designated host system Basic Skills Instruction For the z890 installation: ■ Instruct the systems staff on configuring the Support Element on the HMC and instruct the operations and systems staff on using the Support Element and the HMC for the z890 ■ Assist with one IPL of the system with the operations and systems staff for the z890 For the DS6800 installation: ■ Instruct the systems staff on ESS configurations and operations Hotline Support Provide a single point of contact ■ Be available 24/7 ■ Log and track all calls ■ Monitor ticket to resolution and or closure 12/07/2005 Page 6 Confidential Information of Cornerstone Systems,Ing Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be trarismitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Nil Comeratone ��u Systems, n Timeframe Client can reasonably expect that the scope of these services will be completed as early as three(3) weeks or as late as six(6)weeks from the order date. Various factors can affect the schedule,such as ship date, currency of system software, hardware and software requirements, customer maintenance windows and schedules,and customer resource availability. Deliverables z890 Tech8tart ■ Delivery,installation and`Code 20'of the z890 ■ IOCP Input Deck and Output Listing for the z890 ■ Channel Plugging Map used for the z890 installation ■ Recommendations for IBM software maintenance for the z890 ■ References to technical manuals and documentation,such as IBM Redbooks and White Papers • Links to important IBM websites ■ Successful execution of the first IPL ■ Validation of the availability of the channel connected devices following the first successful IPL • Two basic skills instruction sessions of the SE and HMC(one for configuration and the second for usage) DS6800 TechStart ■ Completed Communications Worksheets ■ Recommendations for IBM software requirements for the DS6800 ■ References to technical manuals and documentation,such as IBM Redbooks and White Papers ■ Links to important IBM websites ■ Delivery,installation and`Code 20' of the DS6800 • Configuration of the DS6800 per Client requirements ■ Two basic skills instruction sessions of the ESS configuration and operations 12/07/2005 Page 7 Confidential Information of cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Ptemter COmerstOi7@ B�aeu Pander Systems,Ing Project Management ■ Systems Assurance ■ Team Member Information ■ Updated Installation Plan ■ Meeting Schedule ■ Project Status Reports/Meeting Minutes 12/07/2005 Page 8 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by 11v City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Pmniet Cornerstone systen►s,me Cornerstone Systems, Inc. Resources and Responsibilities Project Manager A Project Manager provides direction and control of Cornerstone Systems project personnel and establishes a framework for project communications, reporting, procedural, and contractual activity. This individual: I. Participates in the Systems Assurance 2. Prepares a project plan at project start for performance of this TechStart offering that includes tasks,schedule,and responsible person(s)or organization for each milestone 3. Conducts project status meetings 4. Sets up and maintains the"QuickPlace" 5. Prepares and posts Status Reports 6. Reviews and administers Project Change Control 7. Maintains project communications 8. Escalates to the Client of any problem areas that may cause a delay in the installation Senior Systems Programmer A Cornerstone Senior Systems Programmer serves as the technical lead responsible for the successful installation of the 2890.This individual: 1. Participates in the Systems Assurance 2. Provides consulting services on the z890 configuration 3. Prepares the IOCP source and loads to tape or diskette for use by the IBM CE for both the z890 and DS6800 4. Participates in the development of the installation plan 5. Ensures that the IBM CE verifies proper hardware level EC's are on the peripheral hardware 6. Ensures that IBM connects all contractual designated cables to peripheral devices 7. Ensures that IBM installs the z890 and that it is Code 20 8. Consults with the Client on IBM systems maintenance requirements 9. Provides best practices for installing the operating system and ISV maintenance 10. Performs and validates the first IPL,configuration verification,and device availability 12/07/2005 Page 9 Confidential Information of Cornerstone Systems,Inc— Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law themter oil tone Cornerss"�108fa Systems,lnc. Partcer 11. Performs the basic skill instruction of the System Element(SE) and Hardware Maintenance Console(HMC) 12. Provides feedback to the Cornerstone Systems Project Manager and the Client 13. Escalates to the Cornerstone Systems Project Manager any problems that may cause a delay in the installation. 14. Prepares technical documentation Storage Specialist A Cornerstone Storage Specialist serves as the technical lead responsible for the successful installation of the DS6800. This individual: 1. Reviews and validates the order including the hardware,software,and cables 2. Verifies configurations of adapter support,operating system support,and array combinations 3. Participates in the Systems Assurance 4. Conducts a Worksheet Preparation meeting 5. Completes all Communications Worksheets 6. Configures the DS6800 7. Participates in the development of the installation plan 8. Ensures that IBM installs the DS6800 and that it is Code 20 9. Consults with the Client on 113M systems maintenance requirements 10. Assists Client with the configuration validation and device availability 11. Performs the basic skill instruction of the ESS configuration and operations 12. Prepares technical documentation 13. Provides feedback to the Cornerstone Systems Project Manager and the Client 14. Escalates to the Cornerstone Systems Project Manager any problems that may cause a delay in the installation, If required, the Cornerstone Senior Systems Programmer,Storage Specialist or Project Manager may introduce other Cornerstone technical experts,, on a remote basis, to deliver specialty consulting services during the TechStart Services engagement. Hotline Support 1. When Client calls the Hotline,the Cornerstone Hotline Coordinator obtains the caller's name, company name,email address,telephone number and reason for the call. 12107/2005 Pap 10 Confidential Information of Cornerstone Systems,Inc Infornm6on contained in this statement ofwork is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divWpd to arty third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Pramler oilCornerstone Systema,Ina Pardter 2. The Cornerstone Hotline Coordinator provides the caller with the four-digit account number and assigns a unique eight-digit confirmation number to the call. 3. The Cornerstone Hotline Coordinator contacts the appropriate Cornerstone resource. 12/072005 Page 11 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Premier ENSystems,Ime City of Fort Worth Resources and Responsibilities Management Interface A management interface acts as liaison between IBM, Cornerstone Systems,Inc.and the Client. The direction of the project will be coming from the management interface. This individual: 1. Participates in the Systems Assurance 2. Participates in project status meetings 3. Reviews Status Reports 4. Reviews and administers Project Change Control 5. Maintains project communications 6. Prepares physical site and delivery path from loading dock to computer room Systems Programmers Client Systems Programmers perform the Client assigned tasks for implementing the z890 and DS6800. These individuals: For both the z890 and DS6800 installations: 1. Participate with the IBM IPR on the site walk through 2. Participate in the Systems Assurance 3. Participate in the development of the installation plan 4. Provide operating system environment documentation For the 2890 installation: 5. Ensure that non-IBM CE's verify proper hardware EC levels on peripheral hardware 6. Order required EC levels for both IBM and non-IBM peripheral hardware 7. Configure all network hardware and software in support of the z890 hardware installation 8. Obtain,apply,test and implement ISV required software keys 9. Obtain,apply,test and implement IBM required maintenance 10. Configure all required components of a test system to support the verification IPL on the 2890 12/07/2005 Page 12 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law C ni Prertn r tOA@ Business stSms@rS,/no. Partner COrl1 11. Obtain,apply,test and implement ISV z890 required maintenance 12. Participate in the execution of the z890 installation verification plan 13. Participate in the basic skill instruction of the SE and HMC For the DS6800 installation: 14. Participate in the Worksheet Preparation meeting for the DS6800 15. Determine address layout and channel attachments for the designated host system 16. Determine file system allocations and RAID configurations for the ESS (for Open Systems only) 17. Configure all network hardware and software in support of the DS6800 hardware installation 18. Configure all required components to support the verification tests on the DS6800 19. Develop and execute a test plan 20. Validate the hardware configuration, channel attachment and hardware features, such as F1ashCopy and PPRC 21. Participate in the basic skill instruction of the ESS operations 22. Provide feedback to the Cornerstone Systems Project Manager and Client Management Interface 12/07/2005 Peke 13 Confidential Information of Cornerstone8ystems,Ine— Information contained in this statement of vmrk is intended only for use by The City of Fort Worth,and may not be transmitted. reproduced,or divulged to any third party without prior written consent from Cornerstone systems,Inc. unless otherwise required by law �>a Comersfone r�nom Al systems,►»c. TechStart Custom The following items are not included in the TechStart Basic scope of work and are additional services that Cornerstone Systems can provide to the Client on an as needed hourly fee basis, or as a fully scoped professional project. z890 TechStart 1. Network consultation 2. Network configuration(either hardware or software) 3. IBM software maintenance application(required for currency and z890 prerequisites) 4. ISV software maintenance application(required for currency and 2890 prerequisites) S. ISV software keys retrieval,installation,and testing 6. Creation of a test system for the verification IPL 7. Extended or multiple tests required by Client 8. z890 migration planning and execution(inclusive of a migration of the production workload) 9. Performance and tuning 10. Disaster recovery 11. Linux LPAR setup and configuration 12. Documentation of existing environment(hardware,network,software,application,etc.) 13. Customized training beyond the System Element and Hardware Maintenance Console training. DS6800 TechSYart 1. Multiple host system implementations 2. DS6800 migration planning and execution(inclusive of a migration of the production workload) 3. Parallel Access Volumes(PAV)implementation for S/390 4. Copy Services implementation,such as Flashcopy 12/07/2005 Page 14 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law w Prem►a Bgtiness ■ Systems,InCornerstonea rather 5. Storage network consultation 6. Storage network configuration(either hardware or software) 7. Switch,pre-SAN,or SAN implementations S. IBM software maintenance application(required for currency and DS6800 prerequisites) 9. ISV software maintenance application(required for currency and DS6800 prerequisites) 10. ISV software keys retrieval,installation,and testing 11. Creation of a test system for the verification tests 12. Extended or multiple tests required by the Client 13. Performance and tuning 14. Disaster recovery 15. Documentation of existing environment(hardware,network,software,application,etc.) 16. Customized onsite training beyond the ESS configuration and operations training 12/07/2005 Page 15 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Femier Comersbne rutrrost Stems,Inc. Partner Assumptions and Considerations 1. Cornerstone Systems Services personnel will perform work onsite and remotely assuming that: a. A separate onsite work area will be available for each Cornerstone technician assigned that includes a desk,terminal,active telephone,and Internet access. b. Unique user ids for all systems and sub-systems in scope will be provided for each of the Cornerstone-identified team members;the user ids will have proper authorization to enable the execution of the assigned tasks. c. Remote access to all systems will be available and the procedures provided for each of the identified team members from Cornerstone Systems. d. Building access, including badges,security codes and off-hours access will be made available for each Cornerstone Systems employee working onsite. e. Provide facilities for meetings and onsite activities. 2. Client will designate a person to act as a management interface or liaison between IBM and Cornerstone Systems,Inc.and Client. The direction of the project will be coming from the Client management interface. 3. The installation may result in modifications to the estimated schedule, pricing, or other terms of this statement of work; therefore, changes to this statement of work will be processed in accordance with the procedure described in Appendix B,"Project Change Control Procedure." 4. For the duration of this engagement,the Client ensures all modifications made to the Operating System environment by anyone other than the Cornerstone Systems technical staff, such as the Client personnel or hired consultants are documented, and the information is made available to the Cornerstone Systems technical staff. 5. For IBM and Cornerstone Systems,Inc.to perform this service,Client must either have onsite or on order with a timely delivery date, all the software and hardware required for the z890 and DS6800 system being installed. 6. Client will provide a document describing/defining the current hardware and software environment,e.g.a system configuration schematic and lists of software packages licensed to the mainframe. 7. Client must obtain a separate cabling contract either through Cornerstone, directly through IBM or through some other vendor. The scope of this contract should include determining the cabling requirements, placing the order, and then labeling, laying out and installing the cables. If the contract is obtained through Cornerstone,the work would be performed by IBM. 8. As a reseller of IBM equipment, Cornerstone Systems, Inc. is required to meet the IBM VAE (Value Added Enhancement) requirements for all z890 and DS6800 installations. These requirements,which can bereferenced in the IBM z890 and DS6800 installation documentation, were incorporated into the TechStart Basic offering and can be categorized into (1) mandatory, 12107/2005 Page 16 Confidential Information of Cornerstone Systems,Ina Information contained in this statim.ant of=is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party wit3rout prior written consent from Cornerstone systems,Inc. unless otherwise required by law Pramler Business oil 8=Ina Partner tone (2) base for all 2890 and DS6800, and(3)minimum for the specific solution. One of the z890 base requirements is the generation, installation and testing of the input/output control program (IOCP). Even though Client may decide to take responsibility for this requirement or any of the other IBM VAE requirements, Cornerstone Systems, Inc, is still ultimately responsible for ensuring that all VAE requirements are met. 9. After the first verification IPL of the z890 system and operational verification of all system hardware and peripherals,all subsequent changes'to the IOCDS are made by Client. 10.Cornerstone Systems, Inc.'s performance is predicated upon IBM and Client fulfilling the responsibilities specified in this statement of work. 11.Client will ensure personnel are available to complete the tasks and activities and are available from the start date of the Services. 12.Client signs a separate cabling contract with Cornerstone Systems for the 2890 cabling. The DS6800 cabling is the responsibility of Client. 12(07/2005 Pop 17 CoaGdential Information ofCornetstone Systemr,Inc. Information contained in this stateaura of work is b t nded only for use by The City of Fort W ortk and may not be transmitted, reproduced,or divulged to any third party without prior writom consent$om Cornerstone Systems,Ine. unless otherwise required by law oilCornerstone $ySfen►s,Inc. Partner TechStart Pricing 1. The services described in this TechStart Services Statement of Work and Addendum are included in the price quoted below. 2. Project Management is included with the TechStart Basic Services and Custom Services, if included. 3. Cornerstone's web-based document library,which is accessed from the Internet, is included with TechStart Basic and TechStart Custom Services. It is a TechStart"Value Added"service so there is no extra charge for the maintenance of or access to the data and documents maintained in this central repository. 4. The Cornerstone Hotline Support is included with the TechStart Services for a limited-time only. Support starts at the first verification IPL and continues for the next thirty- (30) calendar days. The Hotline Coordinator opens a ticket and contacts the appropriate Cornerstone resource. The technician or manager contacts Client to address the issue or request. The Hotline Coordinators and Cornerstone Managers monitor the ticket to ensure that the incident is brought to a successful resolution and or closure. After the thirty- (30) day period, Client can continue•to call the Cornerstone Hotline for problem reporting for a maximum of a 30-minute consultation with a Cornerstone Technician or Manager. If the request or issue cannot be handled during the consultation,a determination will be made as to the next steps. 5. Pricing is fixed pricing and includes all travel and living expenses. It is anticipated that there would be 1 on-site trip for each item.Following is a breakdown: Basic Services $20,700 Vr&ATL $26,300 Data Migration $27,000 TOTAL $74,000 12/07/2005 Pop 18 Confidential Information of Cornerstone systems,Inc. Information contained in this statement of work is intended only for use by The City offoft Worth,and may not be tmusmitted, reproduced,or drMpd to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Premier Comentone �'n"a;s Systems,tna Statement of Confidentiality This Statement of Work dated November 21, 2005 contains proprietary information prepared by Comm-stone Systems,Inc.exclusively for the use of City of Fort Worth and may not be divulged in whole or in part to any,third partywithout the expressed written permission of Cornerstone Systems, _ Inc)1ANVCSS &""wQtt�rttec� N6 lam. This proposal shall remain in effect until December 31,2005. If City of Fort Worth does not act on this proposal by the expiration date, all copies of this document must be returned to Cornerstone Systems,Inc. 12107!2005 Page 19 Confidential Information of Cornerstone Systema,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written convent from Comerstone Systems,Inc. unless otherwise required by law Premier . GOIAB,stone Businesc Systems,lntz Panner Signature Page This TechStart Services Statement of Work was prepared by: Cornerstone Systems,Inc. Signature: �''s11 Name(Print): Hidhael F . t i Gke►n Title: C •F. �) • Date: i 2�lz � l Address: qQ 15 x&)ahq-e 'Sl.l-l7e- t T Phone h`:(-TL4) � �I DO e X�• �ZZ This TechStart Services Statement of Work is authorized by: City of Forto "r Signature: LQ Name(Print): Richard Zavala Title: Assistant City Manager Date: December 23,2005 Address: City of Fort Worth 1000 Throckmorton Street Fort Worth,TX 76102 Phone#: 12/07/2005 Page 20 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intea,ded only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to arty third party without prior written consent from Comerstone Systems,Inc. unless otherwise required by law Cornerstone Systems,!na Appendix A - Solution Assurance Information Cornerstone Systems, Inc follows the IBM Solution assurance Product Review Guide methodology when conducting a Solution assurance. The process generates the following deliverables: • Hardware and Software Order Lists • Solution Assurance Discussion Guide/Install'ation Checklists ■ Solution Assurance Participant List ■ Solution Assurance Review Action Items 12/07/2005 Page 21 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law l ' Pmm{er SyStenfS,l Nil mneOWzton0na. Rem Panner Appendix B - Project Change Control Procedure 1. The Cornerstone Project Manager briefs all project participants on the Scope and Deliverables of the engagement at project start. 2. If a project participant or stakeholder determines that changes to the scope of work or deliverables are necessary for successful completion, he or she notifies the Cornerstone Project Manager or the Client Management Interface. 3. The Cornerstone Project Manager and the Client Management Interface will first discuss the situation to determine if the change request should proceed. a. If the answer is no, the Cornerstone Project Manager and the Client Management Interface will advise the requester. The disapproved request will be reported at the weekly Project Status meeting and recorded in the minutes. b. If the answer is yes, the Cornerstone Project Manager will document the change using the Project Change Control Form included in this document. Both the Client Management Interface and the Cornerstone Project Manager will then approve the request. 4. The Client Management Interface will submit the Project Change Control request to the Client designated authorizer(s)who are responsible for cost,schedule,or service quality. S. Concurrently,the Cornerstone Project Manager will submit the Project Change Control request to the Cornerstone designated authorizer(s)and the Cornerstone Account Executive. 6. The Cornerstone Project Manager ensures that all authorized signatures are obtained from the Client designated authorizers, the Cornerstone designated authorizers, and the Cornerstone Account Executive before action is taken. 7. The Cornerstone Project Manager reports the approved request at the weekly Project Status meeting, records it in the minutes, and posts all authorized change requests on the Client QuickPlace. 12I07t2MS Page 22 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Wath,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systema,Inc. unless otherwise required by law t�N Systererstone a°u ms,Inc. roject Rhange Control Ilecluest Client Name: Name of the Company Project Name: Name of the Project Cornerstone Project ID: Cornerstone Billing,ID Cornerstone Project Manager: Name of the assigned Cornerstone Project Manager Client Management Interface: Name of the assigned Management Interface Change Request Number. Change Request Number is mmddyyhhmm Description (background): The change request is described here. It should clearly state what the change is,how it changes the scope,why it is needed for the successful implementation,who is expected to perform the change, and when it should occur. IMPACT ASSESSMENT IMPACT ON SERVICE OR QUALITY: Any impacts to the end-user or business are described here. For example, does the change implementation require the shutting down of a production resource(network, application,machine,etc)? Or,does the change affect established Service Level Agreements? IMPACT ON SCHEDULE: Any impacts to the project schedule are described here. For example,will the change cause pre-determined project milestones to be adjusted? If so,how? Will a revised Plan have to be created? Check here: ❑ IMPACT ON COST: Any impacts to the contractual costs are described here. For example, will the change require additional Cornerstone resources and or Cornerstone hours? Or, does the change require the purchase of additional hardware or software? If so,cost out the change to Client IMMEDIATE ACTION REQUIRED: Any special communications,authorizations or notifications are described here. For example,must the change be processed by a Change Review Board, and or does it require an emergency change,and or does it require customer notification? Does it require a management or executive review and authorization because of the cost impact? AUTHORIZATION Requested by:Project Participant or Stakeholder Date Requested: Reviewed by: Cornerstone Senior Technician Date Reviewed: Approved by: Cornerstone Project Manager Date Approved: Approved by: Client Management Interface Date Approved: Authorized by:Client Authorizer Date Authorized: Authorized by:Cornerstone Authorizer Date Authorized: Authorized by:Cornerstone Account Executive Date Authorized: 12/072005 Page 23 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law oil systems, Cornerstone ParlIM 12/07/2005 Page 24 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted, reproduced,or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Z rrz ETH BIT�" _ y r `Y Z 890 & DS6800 Hardware Installation Addendum For Custom Services City of Fort Worth December 7, 2005 www.csihome.com Cornerstone Systems,Inc. Enterprise Solutions 420 Exchange,Suite 150 Irvine,California 92602 714.368.8100 a t II!� Il�dasss Co+nrarons "'d" TABLE OF CONTENTS ATLNTS INSTALLATION —.—I SERVICES OVERVIEW............................................................................................................................. 1 PROJECTTAM...........................................................................................:.............:........................................1 DELIVEABus........................................................................................................................................3 CORNERSTONE SYSTIsm,INc.RnouRcEs AND REspoNsIBIUTtES......_........................................................».4 CITY OF FORT WORTH RESOURCES AND RESPONsIBiTd rms......................................................................»........6 SIGNATURE PAGE.--- ............7 12/07/2005 Page i Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Cornerstone Systema,Inc. unless otherwise required by law Prembr MIS=nc. ness P�artaer ATLNTS Installation Services Overview The scope of the ATL/VTS installation begins with the ordering of the hardware. This is then followed by a Systems Assurance and continues with the delivery and installation of the ATL/VTS. The hardware installation is complete when the ATLNTS has been powered up and all diagnostics run without error or referred to as "Code 20" It ends when the Client has signed off on the migration of Client data to the ATL/VTS. Project Tasks With this TechStart Custom Service, Cornerstone Systems,Inc. will install Client's IBM ATL/VTS hardware and provide fundamental skills instruction on the ATL/VTS configuration and operations. The following are the ATLNTS installation and migration services provided by Cornerstone.Systems and IBM that are included with this TechStart Custom Service: CORNERSTONE WILL... Planning Conduct a Systems Assurance ■ Plan the installation with Client's representative ■ Order hardware and tapes ■ Validate cable orders ■ Develop an installation plan Physical Site Preparation Ensure that IBM installs all cables from the designated host system to the ATLNTS,assuming a separate cabling contract has been signed with Cornerstone ■ Ensure that the Client understands and verifies all electrical and power receptacle compatibility requirements ■ Validate cable connector types for host system connectivity for the ATLNTS Hardware Configuration Prepare and validate Client's IOCP to define the ATL/VTS to the designated host system ■ Load the IOCP in the designated host system ■ Ensure that the IBM CE has verified the proper hardware level Engineering Changes(EC's)are on the designated host system Software Configuration Obtain Preventive Service Planning(PSP)buckets for the current operating system 12/072005 Page 1 Confidential Information of cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law promw BUIRM oil sys>T comeratones rriG I�la.t ■ Identify,order,apply,test and implement required IBM maintenance ■ Identify,order,apply,test and implement required ISV maintenance ■ Setup and implement appropriate SYS LPARMLIB members ■ Configure the ATLNTS ■ Setup and implement DFSMS ACS routines ■ Setup and implement OAM procedures and exits ■ Initialize tapes Hardware Installation ■ Schedule the ATLNTS installation ■ Ensure that IBM installs Client's ATLNTS hardware and that it is Code 20 ■ Perform the first IPL of the z890 system ■ Assist with verification tests from the designated host system Hardware Implementation Prepare for migration to ATLNTS ■ Migrate data to ATLNTS Basic Skills Instruction ■ Instruct the systems staff on ATLNTS configuration and operations Hotline Support ■ Provide a single point of contact ■ Be available 24/7 ■ Log and track all calls ■ Monitor ticket to resolution and or closure 12/07/2005 Page 2 Confidential Information of Cornerstone Systema,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Praoler &stases comersrone Systems,lnc. Deliverables ■ Delivery,installation and`Code 20' of the ATL/VTS ■ Generation and implementation of IOCP Input Deck and Output Listing for the designated host system to support the ATL/VTS ■ List of recommended IBM and ISV software maintenance requirements ■ References to technical manuals and literature,such as IBM Redbooks and White Papers ■ Links to important IBM websites ■ Identification,order,installation and implementation of required IBM software maintenance ■ Identification,order,installation and implementation of required ISV software maintenance ■ Validation and configuration of the ATL/VTS ■ Setup and implementation of DFSMS ACS routines • Setup and implementation of OAM procedures and exits • Initialization of new tapes ■ Documented procedures ■ Migration of Client identified data to the ATL/VTS ■ Basic skills instruction session for ATL/VTS configuration and usage 12/07/2005 Page 3 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law C �Bnsl,� COlnelStone Parla,r Systems,Inc.. Cornerstone Systems, Inc. Resources and Responsibilities Senior Systems Programmer A Cornerstone Senior Systems Programmer ensures that the designated host system is configured to support the installation of the ATLNTS. This individual performs the following Custom Services: I. Participates in the Systems Assurance 2. Participates in the development of the installation and migration plan 3. Ensures that the IBM CE verifies proper hardware level EC's are on the designated host system 4. Prepares and loads an IOCP Input Deck on the designated host system with the ATLNTS defined 5. Validates connectivity to the ATLNTS from the designated host system 6. Obtains Preventive Service Planning(PSP)buckets for the current operating system 7. Identifies,orders,applies,tests and implements required IBM maintenance 8. Identifies,orders,applies,tests and implements required ISV maintenance 9. Ensures that IBM connects all contractual designated cables to peripheral devices 10. Provides feedback to the Cornerstone Systems Project Manager and the Client 11. Escalates to the Cornerstone Systems Project Manager any problems that may cause a delay in the installation. 12. Prepares technical documentation Storage Specialist A Cornerstone Storage Specialist serve's as the technical lead responsible for the successful installation and migration to the ATL/VTS.This individual: 1. Participates in the Systems Assurance 2. Participates in the development of the installation and migration plan 3. Reviews and validates the order including the hardware,software,and cables 4. Verifies configurations of adapter support and operating system support 5. Ensures that IBM installs the ATLNTS and that it is Code 20 6. Assists with verification tests from the designated host system 12/07/2005 Page 4 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law oil =MMS� 7. Sets up and implements appropriate SYSLPARMLIB members 8. Configures the AUNTS by validating library sequence numbers,defining tape ranges, setting policies,etc, 9. Sets up and implements required DFSMS ACS routines 10, Sets up and implements OAM procedures and exits 11. Initializes tapes 12. Performs functional testing 13. Migrates Client identified data to the ATLNTS,such as DFHSM,Mobius,test,production and CICS log datasets 14. Performs the basic skills instruction of the ATLNTS configuration and operations 15. Prepares technical documentation 16. Provides feedback to the Cornerstone Systems Project Manager and the Client 17. Escalates to the Cornerstone Systems Project Manager any problems that may cause a delay in the installation. If required,the Cornerstone Senior Systems Programmer, Storage Specialist or Project Manager may introduce other Cornerstone technical experts, on a remote basis, to deliver specialty consulting services during the TechStart Services engagement. 12/07/2005 Page 5 Confidential Information of Cornerstone Systems,Inc Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Boom NOgAzenrislonc.ne City of Fort Worth Resources and Responsibilities Storage Specialist The City of Fort Worth Storage Specialist is responsible for the following assigned tasks: 1. Participates in the Systems Assurance 2. Participates in the development of the installation and migration plan 3. Assists with verification tests from the designated host system 4. Assists with configuration of the ATL/VTS 5. Assists with migration of data to the ATL/VTS 6. Participates in the basic skills instruction of the ATLNTS configuration and operations 7. Provides feedback to the Cornerstone Systems Project Manager and the Client 8. Escalates to the Cornerstone Systems Project Manager any problems that may cause a delay in the installation. 12/07/2005 Page 6 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Pramtar 9vslness nil i sotme ezlon@ Pertnar Systems,Inc. Signature Page This TechStart Custom Services Addendum was prepared by: Cornerstone Systems,Inc. Signature: Name(Print): L�11cI�eI F• N�cke� Title: ^ ��• F Date: _ 12� 05" Address: �}2D EXC�GU'1,�i2 SlClf� �� Zrvt�t. CFS ��-100 -. Phone#:�fl y� '�$'81 DO ex�• l 2 2- This TechStart Custom Services Addendum is authorized by: City of Fort Worth Signature: Name(Print): Richard Zavala Title: Assistant City Manager Date: December 23,2005 Address: City of Fort Worth 1000 Throckmorton Street Fort Worth TX 76102 Phone#: 12/07/2005 Page 7 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law i. J. i'. .s ?f .Jii '.t'-',C:4 't,.. .aY..ti ..:4t„s�:. a�K iX'• +�� Z890 & DS6800 Hardware Installation Addendum (2) For Custom Services City of Fort Worth December 7, 2005 www.csihome.com Cornerstone Systems,Inc. Enterprise Solutions 420 Exchange,Suite 150 Irvine,California 92602 714368.8100 � oilS ps=11 annae ' . TABLE OF CONTENTS mS6800DATA WGRATION SERVICESOVERVIEW........................................................................................................................................l PmoacrTASKS...................................................................................................................................................l DELzpsR"LES.......................--...................................................................................................................2 CoomouoznvESymms,INC.RmonmzsmAND RESPONSIBiLrrms—_----..--.—.--------~3 Crnror}omrWzorH Ronnonoao^No RwoNsmimms------_.-----.---------.—_.4 SIGNATURE 12m5/2005 � Page Confidential Information of Cornerstone Systems,Inc. Information contained mthis statement ofworkuintended only for use by'Me City ofFort Worth,and rnay not be bansmitteA reproduced, ordivulged mmwthird party without prior written consent from Cornerstone Systems,Inc. unless otherwise mqu/mu by law NOCornerstone Systems,Ina DS68O0 Data Migration Services Overview Data accessed by the existing IBM MP3000 mainframe processor is currently stored on DASD storage internal to the MP3000,as well as external to the MP3000.The data migration from the current DASD to the DS6800 will be performed in two phases. Phase 1 will occur when the production is moved from the 7060 to the 2890,and will involve the internal DASD.Phase 2 will occur after the z890 is in production mode,and will involve the external DASD. Standalone time will be required to perform both phased migrations. ' e Project Tasks With this TechStart Custom Service, Cornerstone Systems, Inc.will migrate the Client's internal and external DASD currently housed on the W3000 platform to the DS6800,which will be connected to the z890 to be installed at the Client site.The following are the data migration services provided by Cornerstone Systems and IBM that are included with this TechStart Custom Service: CORNERSTONE WILL... DS6800 Migration I Phase 1 ■ Plan the migration with City of Fort Worth's representative ■ Review internal DASD configuration ■ Initialize new DS6800 volumes ■ Develop a migration plan ■ Build jobs to copy data from internal DASD to DS6800 • Migrate data from internal DASD to DS6800 Phase 2 • Plan the migration and testing with City of Fort Worth's representative ■ Initialize new DS6800 volumes ■ Develop a migration plan ■ Build jobs to copy data from external DASD to DS6800 ■ Migrate data from external DASD to DS6800 ■ Monitor data migration Hotline Support ■ Provide a single point of contact ■ Be available 24/7 ■ Log and track all calls ■ Monitor ticket to resolution and or closure 12/052005 Page 1 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law eremler ONComerstorre masa Systems,Ince Deliverables • Migration plan • Migration jobs ■ Migration of data from MP.3000 internal DASD to DS6800 • Migration of data from MP3000 external DASD to DS6800 12/05/2005 Page 2 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law a Wass ata oil Com+erstone t�raror Systems,Inc. Cornerstone Systems, Inc. Resources and Responsibilities Senior Systems Programmer A Cornerstone Senior Systems Programmer ensures that the data migration is planned and carried out in a method not to compromise the data of the City of Fort Worth. This individual performs the following Custom Services: 1. Participates in the development of the migration plan 2. Performs the data migration of the MP300 internal and external DASD to the DS6800 Storage Specialist A Cornerstone Storage Specialist serves as the technical lead responsible for the successful migration to the DS6800.This individual: FOR THE DS6800 MIGRATION 1. Reviews the MP3000 internal and external DASD configuration 2. Develops a migration plan 3. Initializes the new DS6800 volumes 4. Builds jobs to copy data from the MP3 000 internal DASD to the DS6800 5. Migrates data from the MP3000 internal DASD to the DS6800 6. Builds jobs to copy data from the MP3000 external DASD to the DS6800 7. Migrates data from the MP3000 external DASD to the DS6800 8. Monitors migration 9. Prepares technical documentation I0. Provides feedback to the Cornerstone Systems Project Manager and the Client 11. Escalates to the Cornerstone Systems Project Manager any problems that may cause a delay in the installation If required, the Cornerstone Senior Systems Programmer, Storage Specialist or Project Manager may introduce other Cornerstone technical experts, on a remote basis, to deliver specialty consulting services during the TechStart Services engagement. 12/052005 Page 3 Confidential Information of Cornerstone Systems,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Comerstone Systems,Inc. unless otherwise required by law .,r J v i. •,. .. .�:J �irt118f S=ri s RCe City of Fort Worth Resources and Responsibilities Technical Representative The City of Fort Worth Technical Representative is responsible for the following assigned tasks: 1. Participates in the development migration plan and testing plans 2. Assist with the migration and testing of the W3000 internal DASD to the DS6800 3. Assist with the migration and testing of the MP3000 external DASD to the DS6800 4. Provides feedback to the Cornerstone Systems Project Manager and the Client 5. Escalates to the Cornerstone Systems Project Manager any problems that may cause a delay in the migration 12/05/2005 Page 4 Confidential Information or Cornerstone Systems,Ina Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, .or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law tl Promiar irWlna flttWl Signature Page This TechStart Custom Services Addendum was prepared by: Cornerstone Systems,Inc. Signature: � �Name(Print): r t jGhae( l F. H(Gke—r-) Title: C F Date: Address: EX C{'1ak-)'!j e T 5(kt+:L 152 1'V Int ) CA q)-1007- Phone 2-1002..Phone This TechStart Custom Services Addendum is authorized by: City of Fort Worth Signature: Name(Print): Richard Zavala Title; Assistant City Manager Date; December 23,2005 Address: City of Fort Worth 1000 Throckmorton Street Fort Worth,TX 76102 Phone#: 12/05/2005 Page 5 Confidential Information of Cornerstone Systeme,Inc. Information contained in this statement of work is intended only for use by The City of Fort Worth,and may not be transmitted,reproduced, or divulged to any third party without prior written consent from Cornerstone Systems,Inc. unless otherwise required by law Page 1 of 3 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 12/20/2005 - Ordinance No. 16739-12-2005 DATE: Tuesday, December 20, 2005 LOG NAME: 13P05-0299 REFERENCE NO.: P-10292 SUBJECT: Authorize a Purchase and Installation Agreement for an IBM Z890 Mainframe Computer, a DS 6800 Disk Storage System, and an Automatic Tape Library System from Cornerstone Systems, Inc., and Adopt Appropriation Ordinance for the Information Technology Solutions Department RECOMMENDATION: It is recommended that the City Council: 1. Authorize a purchase and installation agreement for an IBM Z890 Mainframe Computer, a DS 6800 Disk Storage System and an Automatic Tape Library System from Cornerstone Systems, Inc., for the Information Technology (IT) Solutions Department for an estimated cost of$1,040,415.00; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations by $1,040,415.00 in the Information Systems Capital Projects Fund based on the budgeted three year repayment from the Information Systems Fund; 3. Authorize the trade-in and removal of the existing IBM model 3000-H30 Mainframe Computer and ancillary components with a current estimated value of$4,000.00; and 4. Authorize the maintenance of hardware and lease of operating system software for three years. DISCUSSION: The IT Solutions Department will use this procurement for a new mainframe computer and peripheral components to replace an aging system that is approaching obsolescence. The City of Fort Worth has used the current IBM mainframe computer for five years. On January 30, 2001, (M&C P-9282) the City Council approved the lease/purchase of the current mainframe system. Many vital automated systems continue to run on the City's mainframe environment. Although several application systems are scheduled to migrate to other computing platforms ie Municipal Court, the IT Solutions Department projects there will be continued utilization of the mainframe platform for at least five years. As is the case with many older technology products, the current system is dated and its usefulness to the City has diminished. As an example, the Human Resources software system is scheduled for a mandatory upgrade and the current mainframe system cannot accept the upgrade. Additionally, the City received formal notification from IBM that support for the current system will cease in March 2007. If the City were to have an outage, the lack of support could easily delay the repair and impact important applications such as payroll, accounts receivable, accounts payable, general ledger, Police data and Equipment Services information. http://www.cfwnet.org/council_packet/Reports/mc_print.asp 3/6/2006 Page 2 of 3 The cost elements for the purchase, installation and trade-in of the existing systems are as follows: Element Cost Hardware Pricing (for all) $485,967.00 Maintenance (3 years, 24 X 7) $205,135.00 Installation/Migration Services $83,400.00 Lease Operating System Software for 3 years $269,913.00 Trade-in (current market pricing) ($4.000.00) Total $1,040,415.00 Part of the cost above is estimated. The cost of shipping for the tape library as well as its installation cost is estimated. The installation cost will be billed at $200 per hour. Additionally, the quote for the trade-in value of the old equipment is based on the market conditions that currently exist. The mainframe computer is over 5 years old and the other trade-in equipment is even older. As is the case with other old technology hardware, the equipment being traded has little or no value. The proposal cost from Cornerstone is approximately $43,500 less per year over the current annual cost for system software. IT Solutions staff solicited quotes for the mainframe replacement from three State of Texas Catalog Information Systems Vendors (CISV). In addition to Cornerstone, quotes were solicited from IBM Corporation and T3 Technologies, Inc. Only Cornerstone submitted a response. Although only one quote was received, Cornerstone is the City's designated Premier Partner for IBM Services. IBM's business model is for its customers to designate a Premier Partner and allow the designee to offer the best pricing for goods and services. In planning for the replacement of the mainframe computer, the IT Solutions budget as approved, was to spread the acquisition cost over three years. In June 2005, the City transitioned to a self financed inter- fund loan model to make payments for computers and other technology items. Use of the fund will allow the equipment to be financed over three years without paying interest. For this acquisition, the estimated interest savings using the inter-fund loan approach is $44,500.00. Cornerstone Systems Inc., is designated as a CISV by the State of Texas. Under section 271.083 of the Texas Local Government Code, a local government satisfies otherwise applicable bidding requirements when it makes a purchase through the Texas Building and Procurement Commission catalog purchasing procedure. The City will comply with that procedure for the purchase agreement authorized under this Mayor and Council Communication. M/WBE — An MM/BE goal is not assigned when making a purchase from an approved purchasing cooperative or other public entity. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance funds will be available in the Information Systems Capital Projects Fund. BQN\\ TO Fund/Account/Centers FROM Fund/Account/Centers C196 485200 004196004003 $1,040,415.00 C196 541320 004196004003 $1,040,415.00 http://www.cfwnet.org/council_packet/Reports/mc_print.asp 3/6/2006 Page 3 of 3 C196 541320 004196004003 $1,040,415.00 Submitted for City Manager's Office bX: Richard Zavala (Acting) (6222) Originating Department Head: Jim Keyes (8517) Pete Anderson (8781) Robert Combs (8357) Additional Information Contact: Pete Anderson (8781) http://www.cfwnet.org/council_packet/Reports/mc_print.asp 3/6/2006