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HomeMy WebLinkAboutIR 8432 INFORMAL REPORT TO CRY COUNCIL MEMBERS No. 8432 To the Mayor and Members of the City Council October 1, 2002 Subject: Decision Criteria for rT Solutions' Alternative Opportunities On September 10, 2002, (Informal Report 8429), the City Council was updated, on the initiatives and/or alternatives IT Solutions is investigating in the areas of IBM mainframe operations, server processing and voice/data transport services. A question was raised relative to conducting a cost/benefit analysis for these initiatives. This type of analysis will be conducted in each instance following the receipt of vendor proposals. Considering the financial impact of all activities that affect the City and its operations is a critical component of any business decision. Other factors, such as the qualifications of potential service providers, are also important. The goal is to ascertain whether outsourcing will provide the required suite of quality services at an affordable cost. The first task will be to determine the best proposal among those submitted. IT Solutions' Executive Team, Project Manager and other appropriate City staff will evaluate and rank each proposal on the following weighted criteria: 40% Perceived ability to provide requested services 30% Perceived ability to support and maintain services over time 20% Cost 10% -- Service Level Agreements The objective of this first task is to determine which vendor can provide the best services over time through a combination of talent, infrastructure and experience, hence the heavier weighting towards ability as opposed to cost. The second task is to compare the highest-ranking proposal with the current service level on cost and services provided. There are services that are definitely needed and will be proposed, such as disaster recovery, that do not exist in the current environment. The objective of the second task is to provide a comparison between the current and proposed environments that includes those additional services that will have to be provided even if outsourcing is not recommended. So, for example, if the proposed environment includes all services currently provided plus disaster recovery for a certain cost, the comparison will be made to the current environment's cost plus what it would cost to provide disaster recovery if the current environment were to remain and not be outsourced. ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No, 8432 To the Mayor and Members of the City Council October 1, 2002 Page 2 of 2 Subject: Decision Criteria for IT Solutions' Alternative Opportunities A recommendation will be made based on the availability of a qualified service provider and a valid cost comparison between the proposed and current environments. This recommendation, including all of the analysis, operational considerations and alternatives for any impacted staff, will be submitted to the IT Solutions Executive Strategy Team for their approval and recommendation .to the City Council. This newly formed team consists of the City Manager, Assistant City Managers and the major stakeholder department directors (or their designated representative) from Engineering, Finance, Fire, IT Solutions, Parks and Community Services, Planning, Police and Water. This process will be used for each of the three functions (IBM mainframe operations, server processing and voice/data transport services) currently being considered for outsourcing. Should you have any further questions, please contact Dave Miller at 8781 or me. Gary W. Jackson City Manager 2 ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS