HomeMy WebLinkAboutFCS-17-041 - T17-047 Hitachi Server and Storage Expansion
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-03-20
SUBMITTED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Ryan Scott, Buyer, 519-741-2200 ext. 7216
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2017-03-02
REPORT NO.: FCS-17-041
SUBJECT: T17-047 Hitachi Server and Storage Expansion
___________________________________________________________________________
RECOMMENDATION:
That Tender T17-047 Hitachi Server and Storage Expansion be awarded to
TeraMach Technologies Inc., Markham, Ontario, at their tendered price of
$150,480.01, plus H.S.T. of $19,562.40, for a total of $170,042.41.
BACKGROUND:
This contract is to expand on existing Hitachi database server and disk storage
environment used by the corporations business applications including those used for
Planning, Human Resources, Payroll, Operations, Finance, and Utilities. Only Hitachi
hardware is compatible with this existing Hitachi server and disk storage equipment.
This expansion is to meet computer and database growth requirements and to further
the City’s ability to apply patches, upgrades and create new systems. It includes
provisions to provide fault tolerance, system recovery and business continuity. The
expansion of this environment allows the City to consolidate and decommission older
systems, reducing the total number of servers and their ongoing maintenance costs.
REPORT:
Tenders were advertised publicly on the City of Kitchener website and the Internet
through the Ontario Public Buyers Electronic Tendering Information System. Documents
were downloaded by eight (8) interested parties and by the closing date of Thursday
February 23, 2017, one (1) tender had been received.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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The following tenders were received:
Bid Price
TeraMach Technologies Inc. Markham ON $170,042.41*
The manufacturer provides preferential pricing to distributors within each of the regional
areas. This preferential pricing limits competing distributors from bidding within other
distributors territories which has led to receiving only one bid.
The tender was reviewed by M. Daugherty, Database Administrator and R. Scott, Buyer
who concur with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
The net cost for this tender (A), is fair and reasonable for a project of this scope and the
upset limit is within the budget allowance (B) provided within the budget. Funding for
this tender is included within the approved reserve budget. The estimated surplus (D)
will remain within the reserve account to fund future upgrades/purchases.
T17-047
Hitachi Server and Storage Expansion
Estimated Cost for this Tender
T17-047 costs, including HST 170,042.41
less: HST rebate on tender (16,913.95)
Net Cost Being
Awarded153,128.46 A
Projected Additional Costs -
Total Estimated Cost for this Tender $153,128.46 C
Budget for this Tender
Computer Reserve Fund $161,830.00 B
Estimated Surplus for this Tender (B - C) 8,701.54 D
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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