Report to: General Committee                                                       Report Date: August 7, 2007

 

 

SUBJECT:                          Award of Tender 071-T-07 Supply and Delivery of IBM Server Hardware

PREPARED BY:               Sugun Rao, Technology Manager

                                            Tony Casale, Senior Buyer

 

 

RECOMMENDATION:

THAT the report entitled “Award of Tender  071-T-07 Supply and Delivery of IBM Server Hardware”  be received;

 

AND THAT Tender 071-T-07 for the Supply and Delivery of IBM Server Hardware be awarded to the lowest priced bidder, Compugen Inc. for a total award amount of $539,935.57 exclusive of GST and expiring on December 31, 2009;

 

AND THAT Compugen Inc. be considered the preferred supplier for the Town of Markham for Server Hardware Technology for the next 3 years;

 

AND THAT the award be funded from the 2005 ITS Capital Project 049 6150 6738 005 in the amount of $240,000.00 and from the 2006 ITS Capital Project 049 6150 7287 005 in the amount of $299,935.57;

 

AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:

Not Applicable

 

FINANCIAL CONSIDERATIONS:

 

Original Budget and Account #

 

$3,386,989

 

049 6150 6738 005 /

049 6150 7287 005

Supply and Delivery of IBM Server Hardware

Current Budget Available (unspent)

 

$   870,976

 

 

Less Cost

 

($ 539,935)

 

Awarded to Compugen Inc.

Less Contingency

 

 

 

 

Budget Remaining

 

$   331,041

 

 

Close upon final payment:

 

NO

 

 

 

 

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (Environmental, Accessibility, Engage 21st, Affected Units)             6. Attachment(s)

 

PURPOSE:

The purpose of this report is to obtain approval to award the contract to the lowest priced bidder, Compugen Inc. for the Supply and Delivery of IBM Server Hardware for a term of three (3) years to expire on December 31, 2009.

BACKGROUND:

The server replacement project was initiated in 2006.  A tender request for server hardware was issued in April 2006 to all hardware vendors. The Tender was awarded to Compugen Inc. to provide IBM Server Hardware for Phase 1 of the project.

 

Over the latter part of 2006, through the awarded tender, the required 17 IBM servers for Phase I were acquired and installed.

 

In order to continue with the remaining two phases of the server replacement project, a second request for tender for the provision of IBM server hardware was issued on June 6, 2007.

 

In order to obtain approval to proceed with the evaluation of tender submissions; staff submitted a report entitled “Server Hardware Replacement” to the IT Sub-committee of Council on June 19 of 2007.  The report was received by the committee and the following recommendations were approved:

 

“That the report dated June 19, 2007, entitled “Server Hardware Replacement” be received;

 

AND THAT staff proceed with the evaluation of tender # 071-T-07 for IBM server hardware for the remaining two phases of the server hardware replacement program with the total cost not exceeding $500,000, exclusive of taxes, to be funded from 2005/06 Capital account numbers 49-6150-6738-005 and 49-6150-7286-005;

 

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.”

 

In accordance with the approved recommendations, staff proceeded with the evaluation of bids received.

 

OPTIONS/ DISCUSSION:

The requested tender approval will establish a vendor to provide IBM server hardware for the remaining two (2) phases of the server replacement project.

 

Bids received in response to the request for tender are summarized below.

BID INFORMATION

Advertised, place and date

ETN, June 6, 2007

Bids closed on

June 15,2007

Number of contractors picking up bid documents

8

Number of contractors responding to bid

   6 *

 * One bid was disqualified as they were unable to meet the deadline for submission.

 

 

DETAILED PRICING INFORMATION

 Companies

Price exclusive of GST

Compugen Inc

$539,935.57

Acrodex

$560,559.96

Ashlin Computers

$568,236.43

Albert White Technology

$569,237.76

Nexinnovations

$578,798.46

 

ENVIRONMENTAL CONSIDERATIONS:

Not Applicable

 

ACCESSIBILITY CONSIDERATIONS:

Not Applicable

 

ENGAGE 21ST CONSIDERATIONS:

Not Applicable

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Not Applicable

 

 

RECOMMENDED BY:

 

________________________                                                ________________________

Nasir Kenea,                                                                            Andy Taylor,

Acting, Chief Information Officer                                               Commissioner, Corporate Services

 

ATTACHMENTS:

Not Applicable