Report to: General Committee Report Date: May 10, 2010
SUBJECT: Award of Proposal P-09-126 Joint Portal Managed Hosting Services
PREPARED BY: Nasir, Kenea, Ext. 4733
Alex, Moore, Ext. 4711
RECOMMENDATION:
1)
THAT the report
entitled “Award of Proposal P-09-126 Joint Portal Managed Hosting
Services” be received;
2)
3) AND THAT the CIO and Manager of Purchasing be authorized to negotiate with successful proponent, Compugen Inc., for Additional Joint Portal Managed Hosting Services subject to an upset limit of $610,560.00 Inclusive of HST;
4)
5) AND THAT Markham’s share of the contract for Joint Portal Managed Hosting Services be funded from capital budget account # 49-5350-8659-005 in amount of $346,737;
6) AND THAT Markham’s share for Additional Joint Portal Managed Hosting Services be funded from capital budget account # 49-5350-8659-005 in amount of $305,280;
7) AND THAT Purchasing be authorized to issue a Purchase order for contract P-09-126 to the Region of York to cover the Town’s 50% contribution;
8) AND THAT This report be taken to May 11th, 2010 Council meeting;
9) AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.
The purpose of this report is to obtain Council approval to award the contract P-09-126 Joint Portal Managed Hosting Services.
The IT Strategic Plan endorsed by council in 2006 identifies
Portal Implementation as one of the six recommendations. In accordance with council direction, staff have been working in partnership with the Region of
York over the past few years on this initiative on a 50%-50% cost sharing
basis. In 2008 council approved the
award of three components, namely Hardware, Software and support services, to
In early 2009 staff engaged
Using the detailed documents provided as the outcome of the Phase 0 engagement, an RFP 145-R-09 was issued for Phase 1 implementation and subsequently awarded to Perficient Canada, in Sept. 2009. The project implementation is progressing as planned with completion time targeted for summer 2010, to be followed by subsequent phases.
Since the original RFP for the Joint Portal implementation in 2008, staff have been considering a third party hosting and service management as a viable option. This approach is believed to not only provide a cost effective and centrally managed service to both Markham and York Region, but also attractive arrangement for other municipalities to join the partnership.
It is
with this background that RFP P-09-126 was issued through the Region of York
for the provision of hosting and managed services for the Joint Portal
infrastructure (development, test and production). After review of the results of the RFP it was
determined that the price was significantly over budget. It was decided that a post closing addendum
be issued with a reduced scope of work requesting revised proposal and new
pricing.
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Advertised, place and date |
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Bid closing date |
February 4, 2010 |
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Number picking up documents |
51 |
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Number responding to bid |
3 |
Pricing
for two parts was requested: PART A – Hosting services, and PART B – Managed
Services.
PROPOSAL EVALUATION:
The evaluation team was comprised of staff from the Markham and the Region of York IT departments with staff from the Region’s Supply and Services Department acting as the facilitator. The evaluation was for both Parts A and B of the RFP-145-R-09 and was based on pre-established evaluation criteria as detailed in the Request for Proposal: 21% qualifications, 10% submission (understanding of project),39% Project deliverables and quality assurance and 30% for price, totaling 100% with resulting scores as follows:
Part A & B
|
Joint portal Managed Hosting
Services |
|
|
|
Vendor |
Score (out of 100) |
Rank |
|
Compugen Inc. |
76.4 |
1 |
|
Scalar Decisions Inc. |
59.0 |
2 |
|
RAD International Ltd. |
53.6 |
3 |
Note: The Prices ranges from $681,479.80 - $2,602,708.71
OPTIONS / DISCUSSIONS:
The requirement for hosting and managed services for the Joint Portal infrastructure outlined in the RFP was for two major areas: Hosting (Part A), and Managed Services (Part B). Each of these areas identified lists of detailed requirements. The services included in the proposal range from hosting the whole infrastructure, providing the necessary security protection, network and server management, backup and storage services, ticketing system support, operational monitoring, alerting and reporting.
Evaluation of the original RFP resulted in prices that exceeded the budget estimated for this service. Therefore, staff revised the requirement and issued a post-bid addendum to all the respondents with a reduced scope with the intent that part of the scope be undertaken by staff at a reduced cost. In addition, staff also considered an in-house hosting option of all the services as part of this process in order to determine the most viable alternative.
The submissions to post-bid addendum was evaluated and resulted in Compugen Inc. as the highest ranked / lowest priced proponent. Although staff considered part of the services to be managed in-house as a result of the original RFP evaluation, it would be operationally effective for all of the originally identified services to be managed through a single service provider. Due to the favourable pricing received through the post-bid addendum both Markham and Region of York staff have identified an opportunity to include all of the original identified services as part of this contract. In addition, considering the timelines proposed by Compugen for the transition of the services, it will be in the Town’s interest to proceed with this contract in order to meet project timelines.
As a result of the competent pricing, and the project timelines requirements, staff recommend to negotiate further with Compugen Inc. in order to include additional services as part of this contract that initially staff were considering to do in-house, while ensuring that the solution is cost effective. Staff estimate the additional in-house work to be about $610,560 Inclusive of HST (Markham’s portion 50% of this amount). It should be noted that there may be services that may still be best undertaken by staff or other arrangements as appropriate.
A governance framework led by the Joint Markham and Region of York sponsors and a joint steering committee is already in place to help manage the project process. In addition, a Memorandum of Understanding between Markham and the Region of York is being drafted and reviewed by staff from both organizations. These frameworks will provide a proper management mechanism for this joint initiative.
In summary, the recommended solution will provide the Town and the Region with hosting and managed services to ensure the environment is operationally reliable. In addition, this arrangement will provide the opportunity to quickly acquire additional services in the future as required.
FINANCIAL CONSIDERATIONS
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PORTAL PROJECT
FINANCIAL SUMMARY |
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Project To Date As
of April 29, 2010 |
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Markham Impact |
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Project
Budget |
3,000,000 |
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Expenditures
and Commitments |
1,849,984 |
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Net
Budget Available (A) |
1,150,016 |
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Total Award |
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Managed
Hosting Services * |
693,474 |
346,737 |
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Additional
Managed Hosting Services * |
610,560 |
305,280 |
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Total
Award (B) |
1,304,034 |
652,017 |
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Remaining
Budget After Hosting Services (C) =
(A) - (B) |
497,999 |
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* |
Costs include 1.76% HST. Markham's share at 50% of award amount |
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Remaining
budget will be used to fund other requirements of the Portal project. |
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Not Applicable
The Joint Portal initiative is in line with the continued endeavor by the Town to enhance customer service. The outcome of this project will provide one more medium to provide customer service and enhance the online services offered to citizens.
Not Applicable
RECOMMENDED BY: