SUBJECT: AWARD OF CONTRACT TO SABLE COMPUTER, INC., DBA KIS COMPUTER CENTER, FREMONT, CALIFORNIA, FOR NOVELL NETWARE TO MICROSOFT OUTLOOK/EXCHANGE
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1 DATE: NOVEMBER 21, 2007 FROM: INFORMATION TECHNOLOGY DIVISION SUMMARY: The proposed agreement is a three-year award to Sable Computer Inc., DBA KIS Computer Center, a Small Business Enterprise, 4027 Clipper Court, Fremont, CA for services required to migrate the Harbor Department s existing Novell Netware/GroupWise computing platform to the Microsoft Outlook/Exchange (MS Outlook/Exchange) computing and network authentication environment, and to provide training to Harbor Department staff. Small business participation for the proposed contract is one hundred percent (100%). Funds in the amount of $427,000 were allocated for Microsoft Outlook Consulting and Microsoft Domain Controller migration in the Information Technology Division s FY 07/08 budget. Funds in the amount of $15,000 for fiscal year 2008/2009 and $15,000 for fiscal year 2009/2010 will be allocated for additional consulting services likely to be required as the Harbor Department expands to new locations. The total amount for the contract will not exceed $457,000. RECOMMENDATION: It is recommended that the Board of Harbor Commissioners: 1. Find that in accordance with Section 1022 of the Los Angeles City Charter, it is more feasible for these services be performed by independent contractors than by City employees because the expertise required is of a technical and temporary nature. 2. Award a contract to Sable Computer Inc., DBA KIS Computer Center, Fremont, California, for services required to migrate from Novell Netware/GroupWise to Microsoft Outlook/Exchange computing environment.
2 DATE: NOVEMBER 21, 2007 Page 2 of 5 3. Authorize the Executive Director, or her designee, to execute changes to the agreement as necessary to provide for additional services and materials that may be required over the term of the contract. A change executed by the Executive Director, or her designee, will under no circumstances affect the length of the contract, or increase the annual compensation allowed under the contract by more than $150,000; however if the change orders result in increasing the originally authorized compensation of $457,000 by more than twenty-five percent (25%), Board of Harbor Commissioners approval shall be required for all such change orders. 4. Authorize the Executive Director to execute, and Board Secretary to attest to said Agreement, for and on behalf of the Board of Harbor Commissioners. DISCUSSION: 1. The Harbor Department has used Novell Netware for file sharing and user authentication and Novell GroupWise for and calendaring functions for many years. Harbor Department Management proposes to change from Novell to Microsoft products because Microsoft products for and calendaring provide better integration with other computer applications than Novell GroupWise. 2. The decision to move to MS Outlook was influenced by the Port s desire to select an alternative computing platform that would provide greater assurances of future continuity and compatibility, and a system that is more widely familiar to a user community. Due to Microsoft s influence on the market and its larger user base, current and future third party applications, computer hardware, and new communications products are far more likely to be integrated with MS Outlook/Exchange than with Novell Netware and GroupWise. The move to MS Outlook/Exchange will help reduce concerns regarding the Department s selection of future applications and their compatibility or integration with Novell products, and will also provide a more flexible network infrastructure for future technology deployments. 3. Microsoft s worldwide revenues for collaborative products for were $770,000,000 and Novell s was $116,000,000. Because of its greater market share, Microsoft is more likely to have the ability to set industry standards than Novell, and has more influence on the market than any other vendor. Third party applications are more likely to be integrated with MS Outlook than with Novell GroupWise, and most new products are being designed to work specifically with Microsoft s network authentication.
3 DATE: NOVEMBER 21, 2007 Page 3 of 5 4. Other factors supporting the timing of the move to MS Exchange include: The Harbor Department has started its first development project using the EMC Documentum, document management system. The port s understanding is that Documentum s Business Process Management (BPM) tools integrate especially well with MS Outlook/Exchange. MS Exchange 2007 includes innovative technologies and will have optional features allowing for the integration of voic , , calendars, and faxes. These new features, also known as Unified Messaging, assist in consolidating and integrating disparate communications systems into complementary communications technologies. As an example, voic could be obtained through s while details from and calendars could be obtained over the phone. Novell has developed a new product to replace the Harbor s current version of Netware. If the port decided to stay with Novell rather than migrating to MS Exchange, a substantial migration effort to Novell s new products would be required within 2 years. 5. Assistance with the migration to MS Exchange is required due to the criticality of to Port operations and because Port staff does not have expertise with migrations of this type. 6. A Request for Proposals was published on the Port s website and copies of the proposal were sent to six thousand two hundred and two (6,202) potential proposers through the Business Assistance Virtual Network (BAVN) on June 2, Seven proposals were received: Sable Computer Inc., DBA KIS Computer Center; CC-Ops; Dyntek; KnowledgeCentrix, Inc.; Oxford Institute of Technology; Systems of New York; and 123Together. Proposals were evaluated based upon qualifications and experience of the team, project plans and schedule, costs, and ability to meet proposal and contract requirements. 7. Sable Computer Inc., DBA KIS Computer Center, was ultimately selected, among other factors, because of 1) quality of their technical team (including a consultant who designed the Port s current Novell/GroupWise environment, whose knowledge will be valuable during the migration); 2) experience on similar migration projects; 3) certification for and expert technical knowledge of Xiotech Storage Area Network equipment, which is the
4 DATE: NOVEMBER 21, 2007 Page 4 of 5 storage and backup technology to be used extensively in the new Microsoft configuration. 8. Sable Computer Inc., DBA KIS Computer Center, is a Small Business Enterprise entity and has never had previous work with the Harbor Department. 9. An approved Affirmative Action Plan is on file in the Contracts and Purchasing Office and a copy of the approved contract will be forwarded to Contract Compliance for monitoring. ECONOMIC IMPACT: The award of this contract is not expected to have a direct employment effect in the region. ENVIRONMENTAL ASSESSMENT: The Director of the Environmental Management Division has determined that as an administrative activity, the proposed action is exempt from the California Environmental Quality Act (CEQA) as provided by Article II Section 2(f) of the Los Angeles City CEQA Guidelines. FINANCIAL IMPACT: Approval of this proposed three-year Agreement with Sable (DBA KIS Computer Center) commits the not-to-exceed amount of $457,000 for information technology consultant services and training to Port staff. It is expected that funds will be expended as follows: Fiscal Year Amount* 2007/2008 $427, /2009 $ 15, /2010 $ 15,000 Total Not-to-Exceed Amount $457,000 *Approval of this Board item authorizes the Executive Director, or her designee, to execute changes to the annual compensation under this Agreement by up to $150,000 during each year of the Agreement. However, if change orders result in increasing the originally authorized compensation of $457,000 by more than twenty-five percent (25%), Board approval will be required for all such change orders. Funds in the amount of $427,000 for FY 07/08 have been budgeted in Account No , Center No. 0640, Program 000. Funds for future fiscal years will be requested to be budgeted.
5 DATE: NOVEMBER 21, 2007 Page 5 of 5 If in any subsequent fiscal year funds are not appropriated by the Board for the work required by the Agreement, the Agreement shall be terminated. However, such termination shall not relieve the parties of liability for any obligation previously incurred. CITY ATTORNEY: The Office of the City Attorney has reviewed and approved the Agreement as to form. TRANSMITTALS: 1. Contractor Selection Process 2. Agreement LONNIE TANG Director of Information Technology MOLLY CAMPBELL Deputy Executive Director APPROVED: GERALDINE KNATZ, Ph.D. Executive Director GK:MC:LT:JB
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