Recovery Contract Negotiations. NEDRIX 2/24/04 Cliff Leavitt CBCP Sr Mgr BC / DR Staples
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1 Recovery Contract Negotiations NEDRIX 2/24/04 Cliff Leavitt CBCP Sr Mgr BC / DR Staples 1
2 Presentation Objectives Importance of vendor relationship How to pick a vendor RFP considerations Evaluating RFP Open discussion 2
3 Do You Need an RFP? Questions that need answers Corporate requirement Price Room for improvement Vendor relationship Attempt to re-negotiate current contract Be candid with vendor Unhappy with vendor Change in vendor status Major change in contract Significant change in infrastructure Initial entry into Disaster Recovery 3
4 Shortcomings of RFP s If you don t ask you will not receive Lengthy process Creation & reviewing Legal review (with any contract) Commitment to completion dates 4
5 Identify Requirements Level of Recovery (Needs Assessment) IT infrastructure Business resumption Standard Tapes & Trucks High availability RTO - Recovery Time Objectives RPO - Recovery Point Objectives 5
6 Business Continuity Model Business Impact Analysis Business Resumption High Availability Recovery Less than Two Hours Disaster Recovery Critical Apps Restored 48 Hours Disaster Recovery Critical Apps Restored 7 Days Application Not Critical Two - Four Weeks 6
7 Vendor Selection The smaller your infrastructure the more options you have You might have to split vendors for special processes Trade journals, Conferences User groups Internet 7
8 Other Contract Considerations Hired Services from vendor Pros Requires accurate and up to date documentation Availability Faster when needed the most Frees up resources to perform other DR tasks Cons Training for IT staff Ownership in program Increased cost 8
9 Items that can be Negotiated Test time Hired services Growth Termination Adding and dropping equipment 9
10 Sample Format for RFP Introduction Notices to Respondents Proposal Requirements General Terms & Conditions Specifications Pricing & Delivery Schedule Respondent Questionnaire 10
11 Introduction Description of Company Objective of RFP 11
12 Notices to Respondents General - Explain benefits expected from this RFP Submittal deadline Company contacts Inquiries & interpretations Contract award process Criteria for selection Respondents acceptance of evaluation methodology Commitment 12
13 Proposal Requirements General Instructions Preparation and Submittal Instructions Pricing & Delivery Schedule Terms & Conditions Submittal Checklist 13
14 General Terms & Conditions General Definitions (Contract Documents, Respondent, Contractor) Entire Agreement Payment Indemnity Termination 14
15 General Terms & Conditions Waiver of Terms & Conditions Independent Contractor Publicity Assignment Insurance Amendment Governing Law No Exclusive 15
16 End User Specifications End-User Space Describe what you need for employee work space, Cost per seat Hardware & configuration Software required Required Network connection FAX & Copier equipment? (any Partnerships w/ mail services and/or check printing companies that can be leveraged in contract) 16
17 Server Specifications Servers Specific Hardware Vendor & Quantity Machine or Product / Model # Description Type of processor Memory Internal disk drive Special Cards (NIC, etc) Modem lines required Tape drives Disk space required 17
18 Server Specifications Testing Time Required Dates of Test, Start times, Contiguous time? Office Space during testing Telephone s required Special equipment Printers, FAXES (checks, etc) LPAR requirement CPU Requirements (interactive & batch) 18
19 Communication Specifications Comm required - T1 s etc. Modems, (CSU / DSU) LAN / WAN requirements between servers (include rated speeds) Routers & switches (if company supplied, floor space requirements) Internet connectivity Firewalls Fee for floor space International requirements/considerations 19
20 Special Considerations Support all configurations from 1 location Exercise requirements Technical services during exercises Scratch tapes available during exercise as well as disaster. Term of contract (1 YR, 3 YR, Longer) Terms to remove & add equipment from schedules, co-terminus with contract Disaster Declaration Fee? Leverage cost on Disaster Planning software 20
21 Special Considerations Cell phone coverage at recovery facility Storage space at recovery facility Plan for growth in contract (servers, disk, tapes, etc.) Vendor to provide communications configuration at recovery site. Contract pricing (server, end-users, Comm, test time) Payment terms 21
22 Respondent Questionnaire Facilities End-user-workstations Plan rehearsals Recovery experience & support Utilities (power/telecommunications/security) Contract / Fees 22
23 RFP Evaluation Tools 23
24 Negotiation Matrix Vendor #1 *Wt. Vendor #2 *Wt. Tape Drives Desired Exercise dates As requested 10 Difficult to meet 5 Exercise Hours Travel Alaska 5 Bermuda 6 End User seats Exercise & Disaster Declaration Fee for End user seats Yes Usage fee End User seats Disaster $ per day (for 150 Seats) 5 $ per day 1 How long can we stay at Hotsite Indefinitely 7 6 weeks 3 Disaster Declaration Fee Daily Usage Fee 0 first 30 days then, $ per day 7 $K per day, starting day 1 4 Mobil Service Available Yes 8 No 0 AS400 Pre-load Option Included 10 Included 10 20% Disk growth 2nd & 3rd year Included 10 Not included 0 5% CPU growth 2nd & 3rd year Included 10 Not included 0 *Weighted by importance Total Weight
25 Pros & Cons Matrix Vendor #1 Vendor #2 Grow with us confidence Pro / Con Pro / Con Comfort with established relationship Pro / Con Pro / Con Additional expenses for exercises Pro / Con Pro / Con Pre-load option included in price Pro / Con Pro / Con Additional fee for end user space Pro / Con Pro / Con Test Dates Pro / Con Pro / Con Mobil Option Pro / Con Pro / Con Private Global Network Pro / Con Pro / Con Daily Usage Fee if disaster is declared Pro / Con Pro / Con 25
26 26
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