HomeMy WebLinkAboutAgenda Statement 1981/10/20 Item 12COUNCIL AGENDA STATEMENT
Item 12
Meeting Date 10/20/81
ITEM TIIiLE:
Resolution ~Q~,,ZAccepting bids and awarding contract to Wang Laboratories,)
Inc, for lease/purchase of word processing equipment
SUBMITT D BY: Director of Policy Analysis and ,I~ (4/5ths Vote: Yes No X )
Program Evaluat'on
Purchasing Agent
On Fe ruary 26, 1981, the City Council approved in concept PAPE staff's recommendations:
(1) t purchase a central word processing system consisting of one central processing
unit, three word processing terminals, two quality printers and one twin sheet feeder,
and ( ) to enter into a lease/purchase agreement with a bank for the acquisition of the
word rocessing system. At the City Manager's request, final approval was withheld until
the p oposed new Word Processing Division's budget was considered during the normal budget
delib rations for FY 1981-82.
Adver ising for the proposed word processing system began on August 21, 1981 and closed on
Septe ber 10, 1981. Eight vendors submitted a total of fourteen proposals in response
to th RFP. Of the eight vendors, only three could successfully meet the optimum
speci ications as spelled out in the Request for Proposal. The successful vendors were:
Wang Laboratories, Inc.
Lanier Business Products, Inc.
Burroughs Corporation (Bid #4)
RECOMMENDATION: That the City Council adopt this resolution:
Accepting bids and awarding contract to Wang Laboratories, Inc. (Bid #3)
for the lease/purchase (via a bank) of word processing equipment in the principal
amount of approximately $56,Q20, including tax., freight and operator
training, (The interest amount, and thus the yearly lease/purchase payment,
is contingent upon final negotiations with the banks.)
Authorizing staff to upgrade the memory of one of the three. recommended work
stations in the Wang proposal at a cost not to exceed $310.
Authorizing the Director of Finance to request quotations from local banking
institutions for a three-year lease/purchase agreement requiring three
equal payments.
BOAR~COMMISSION RECOMMENDATION: N/A
DISC SSION
On Au ust 21, 1981, the City advertised for response to a Request for Proposal for a
cent al word processing system. In response, the following eight vendors submitted
four een proposals which included quotes on equipment, training, installation, site
prep ration and maintenance:
Continued
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Page Two, Item 12
Meeting Date 10/20/81
.. Quantum Systems Associates (QSA) $25,174.20
Burroughs Corporation
Bid #1 $27,924.00
Bid #2 $43,004.00
Royal Business Machines $47,202.00
CPT California $47,274.50
NBI Systems $49,604.96
~. Wang Laboratories, Inc.
Bid #1 $54,361.00
Bid #2 $56,561.00
Bid #3 $57,919.00
'. International Business Machines (IBM) $58,998.00
~. Lanier Business Products
Bid #1 $61,774.00
Bid #2 $62,898.00
I. Burroughs Corporation
Bid #3 $63,531.00
Bid #4 $78,331.60
Quantum Systems Associates was determined the apparent low bidder at the
bid opening on September 10, 1981.
hodology for Proposal Review
:ach proposal submitted was reviewed in a two-phase review process. The
~irst phase identified as non-responsive those proposals which were not bid
according to the equipment specifications, could not be demonstrated according
:o Request for Proposal specifications, or failed to meet the long range needs
if the City due to software or equipment limitations. At the completion of the
first phase, the following proposals were deleted from further consideration:
Quantum Systems Associated
Burroughs Corporation (Bids #1, 2, and 3)
Royal Business Machines
CPT California
NBI Systems
International Business Machines (IBM)
In most cases, the disqualifying features involved the expansion, on-line storage,
removable storage, screen line capacity/size or software functional requirements of
the Request for Proposal. These features, as specified in the RFP, are "state of
the art" and are considered very important to the overall success of the recommended
n~ord processing system. Upon completion of the first phase of the review process,
rJang Laboratories, Inc. was the new apparent low bidder (Wang Bid #1).
~ /~67~ Continued
Page Three, Item 12
Meeting Date 10-20-8~1
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second phase of the review process involved selecting the vendor who submitted
pest system (including both the discretionary and optimum equipment functions
gated in the RFP)at the lowest cost. At this decision level, the remaining
irs, Wang Laboratories, Inc., Burroughs (Bid #4), and Lanier Business Products,
were reviewed in regard to the following considerations:
. Communications with City's Burroughs computer
. Operations methodology
. Ease of operation
. Cumulative Low Cost
. System Expandability
. Incremental Expansion Cost
. Capability to meet the broad range of City applications
. Compatiblity with existing City equipment
the completion of this review process, Wang Laboratories, Inc. (Bid #3) was
~n as the system best meeting the City's needs. Bid #3, an Office Information
~m (OIS) 140, provides the City with (3) terminals, (2) printers, and (1) central
processing unit with on-line disk storage, of which half is removable. Although
bid is the most expensive of the three 4Jang bids, it is less expensive than
Burroughs Corporation or Lanier Business Products bids that successfully met the
ium specifications in the RFP. After in-depth discussions with Wang representatives
ding the differences, capabilities and growth potential of the three systems pro-
f by Wang, the OIS 140 was determined to~best meet the word processing needs of
:ity. The OIS 140 can be readily upgraded in the future to provide productivity
cements that will benefit both clerical and management staff. Through the purchase
pis system, the City can decide in the future to take advantage of the software/
care enhancements at a significantly lower incremental cost than if either Wang Bid #1
' were accepted. Therefore, it is staff's recommendation that the City approve
Bid #3.
Terminal Upgrade
In a ch of its bids, Wang proposed three terminals. Two of the terminals contained a
memo y size of 48,000 bytes of memory (.approximately 19.2 pages) with the third
term nal at 32,000 bytes of memory approximately 13 pages) which limits its software
and reates some inconsistencies in operations. It is recommended that the memory
of t e 32,000 byte station be upgraded to 48,000 bytes capabilities to allow for
grea er system flexibility and the capability to take advantage of all software
func ions. This can be accomplished at a cost not exceeding $310, including tax, and
will not affect the low bid status of Wang.
uibment Financin
It i requested that Council authorize the Director of Finance to request quotations
from local banking institutions for the lease/purchase of word processing equipment.
The ease/purchase will extend over a three-year period requiring three equal payments.
Staf considers the lease/purchase arrangement through a bank to be the best means of
fina cing this system, as it would allow the City to invest City funds at a rate that
woul offset the interest rate of the loan.
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continued
Page 4, Item 12
Meeting Date 10/20/81
FISCI~L IMPACT
Ther are sufficient funds budgeted for the lease/purchase of the proposed system.
Appr val of staff's recommendation will require the City to complete a 3-year
leas /purchase agreement with a bank for $56,020. In addition, the City will be
obli ated to a yearly maintenance cost of approximately $5,250 per year.
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