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DHHS IT Directors
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DHHS Seat Management
April 11, 2007
DHHS IT Directors
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Background
DHHS had a current Delivery
Order (DO) with ACS to provide Managed Desktop Support which will expire
May 4, 2007.
Slightly under 5600 00eats00
have been deployed to-date, each with a 48-month amortization schedule.
DHHS separately manages more
than 5,000 Seats.
At the end of the current
contract period DHHS will owe Total Asset Termination Value (TATV) on
each Seat.
DHHS IT Directors
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Background continued
In August 2005 DIRM notified
the Divisions that new equipment would no longer be acquired via the
Seat Management contract.
ITS has stated they are planning
to provide a Managed Desktop Service offering in the future.
Office of the Internal Auditor,
AGs Office and DIRM have been negotiating with ACS for an amendment
to the current DO, as well as TATV clarification.
The amendment is now complete
as of Friday, April 4, 2007, and has been signed by the Secretary. The
new contract will start on May 1, 2007.
DHHS IT Directors
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Negotiation Highlights
Clarifies TATV payment obligation
terms upon contract termination at any point in time.
Provides a separate MOU that
addresses details concerning TATV agreement.
ACS was required to provide
a detailed inventory of all of hardware, software and infrastructure
items that would become DHHS00assets upon TATV payout.
Reduces Minimum Seat contractual
thresholds from existing Seat base from 5,000 to 3,000. The 3,000
can be a combination of existing and/or additional seats.
Allows for 3,000 threshold
to be eliminated as a contractual requirement at either three months
prior to natural termination of contract or, upon notice of contract
termination in the event of early termination (i.e. this will provide
DHHS with flexibility for transitioning 00eats00from the contract
to the subsequent support plan to be executed.
Provides for no DHHS minimum
requirements for 00dding00new seats under the contract for 00ervices
only00 and no TATV to be applied on future seats.
Removes automatic refresh
option after 48-month term for equipment.
DHHS IT Directors
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Negotiation Highlights
continued
Extends Contract to May 2008,
with two additional one year options.
Provides an option to place
state-owned assets (i.e. either those that meet the 48-month threshold
under the contract, or new seats) under ACS support services.
Provides for a substantial
reduction in monthly Seat fees for those placed under the 00ervice
only00model (i.e. desktops, laptops and printers).
Provides clarification of
services and service level expectations, as well as the addition of
a glossary defining all service terms.
Clarifies Move/Add/Changes
(MACs) definition, quantity allowance and management of MAC activity.
Delineates between 00oft00
MACs and 00ard00MACs.
Specifies the number of 00ard00
MACs required within normal service levels per year at no additional
cost.
Specifies that 00oft00
MACs (i.e. regardless of number) are to be provided at no additional
cost.
Significantly decreases hourly
rate for 00ard00MACs that are in excess of the yearly allowance.
DHHS IT Directors
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Negotiation Highlights
continued
Decreases TATV obligation
by applying a significant credit if and when DHHS formally notifies
ACS of its intent to extend to the second year of support.
Provides a mechanism for transition
plan execution upon notice of contract termination.
Clarifies requirements related
to DHHS signoff prior to 00ew work00occurring.
Eliminates the ITS contract
administration fee for both the current seats and any new seats added.
(DHHS has received approval from State IT Procurement to eliminate this
fee.)
Added a Memorandum of Understanding
(MOU) to the amendment that clarifies the TATV obligation with specific
terms and formulas.
DHHS IT Directors
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DHHS Decision
DHHS
decided to amend the contract to continue
ACS support of the existing seats for
one year with two one year extension
options.
DHHS
can add State-owned seats to the contract
to be supported by ACS at a service-only
rate.
All TATV will be eliminated
over the contract00 full term.
DHHS IT Directors
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DHHS IT Directors
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Questions?
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