OPRPM Circular 10-006 January 22, 2010 TO: Fiscal Officers FROM: Duff Zwald Director

SUBJECT: SPO Vendor List 10-01, WSCA Computer Equipment, Peripherals, and Related Services

INTRODUCTION The Western States Contracting Alliance (WSCA) has recently modified its contract for computer equipment, software, peripherals and related services. As a result, the State Procurement Office (SPO), on behalf of the University of Hawaii and other Hawaii purchasing jurisdictions, has issued changes to the SPO Vendor List No. 10-01, Computer Equipment, Peripherals and Related Services. This OPRPM Circular No. 10-006 will delineate the University procedures for use of the SPO Vendor List and shall supersede OPRPM Circular No. 10-005. This circular is available at the OPRPM Website: http://www.hawaii.edu/oprpm/spo_pricelist/. Purchases from the SPO Vendor List are exempt from competitive sealed bidding/proposals, small purchase, and sole source procurement procedures. University programs are not mandated to purchase from the SPO Vendor List, and requests to purchase outside of the SPO Vendor list are not required. Computer equipment, software, peripherals and related services may be purchased from other sources; however, purchases outside of the SPO Vendor list shall be made in accordance with the University’s administrative procedures for the procurement of goods and services. SCOPE University Programs may purchase computer equipment, software peripherals and related services from the following WSCA Contractors: Company Name Master Agreement No. Ace Technology Partners, LLC B27157 Apple Inc. B27158 Dell Marketing L.P. B27160 Hewlett Packard Company B27164 Howard Technology Solutions B27165 IBM Corporation B27166 Lenovo (United States) Inc. B27168 Ricoh Americas Corp. B27174 Toshiba America Information Systems, Inc. B27176 Transource Computers B27177 Xerox Corporation B27178 Xiotech Corporation B27179

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TERM The contract is in effect through August 31, 2012. COMPUTER EQUIPMENT, SOFTWARE AND SERVICES INCLUDED The contract is not for the purchase of major, large hardware or hardware and software offerings. Individual units/configurations for servers and storage should not exceed $300,000.00 each. Desktops per unit/configuration costs should not exceed $100,000.00. Printers of all types and monitors per unit/configuration costs should not exceed $50,000.00 each. This is not a restriction on how many units/configurations can be purchased but on the value of each individual unit/configuration.

• Announced Promotional Price are prices offered nationally to specific categories of customers (Consumer, Business or government) for defined time periods under predefined terms and conditions.

• Configuration in most instances in this document means a total system configuration. This may include more than one model or part number (or SKU), or a combination of hardware, software, and configuring of the system to make the system work.

• Consumables are those items that are required for the operation of the Equipment offered or supplied which are consumed over time with the purchaser’s use of the equipment are included – printer cartridges, batteries, projector bulbs, etc. Consumables such as magnetic media, paper and generally available office supplies are excluded.

• Cumulative Volume Discount means a contractual, cumulative, permanent volume discount based on dollars resulting from the cumulative purchases by all governmental purchases for the duration of the Master Price Agreement.

• Educational Discount Price means the price offered in a nationally announced promotion, which is limited to educational customers only.

• Equipment means workstations, desktop, laptop (includes Tablet PC’s), handheld (PDA) devices, projectors, servers, printers, monitors, computing hardware, including upgrade components such as memory, storage, drives, and spare parts. AUDIO VISUAL PRODUCTS (digital cameras, televisions, whiteboards, etc.) are not included in this contract. The exception to this definition is whiteboards, which can be sold as part of the Instructional Bundles, but not as a stand-alone item.

• E-rate is a program sponsored by the Federal Communication Commission whereby education and other qualifying institutions may purchase authorized technology at reduced prices.

• General Price Reduction Price means the price offered to consumer, business or governmental purchasers at prices lower than Products and Services Schedule Prices (PSS) pricing. General price reduction prices will be reflected in the PSS as soon as practical.

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• Manufacturer means a company that as its primary business function, designs assembles, owns the trademark/patent and markets computer equipment including workstations, desktop computers, laptop (includes Tablet PC's) computers, handheld (PDA) devices, servers, printers, and storage solutions/auxiliary storage devices. The manufacturer must provide direct un-infringed unlimited USA OEM warranties on the products. The manufacturer's name(s) shall appear on the computer equipment. The Contractor(s) shall provide the warranty service and maintenance for equipment on a Master Price Agreement as well as a Takeback Program.

• Materials Management Division or "MMD” means the procurement official for the State of Minnesota or a designated representative.

• PDA means a Personal Digital Assistant and refers to a wide variety of handheld and palm-size PCs, and electronic organizers. PDA’s usually can store phone numbers, appointments, and to do lists. PDA’s can have a small keyboard, and/or have only a special pen that is used for input and output. The PDA can also have a wireless fax modem. Files can be created on a PDA which is later entered in to a larger computer. Note: For this procurement, all Tablet PC’s are not considered PDA’s The Contractor(s) shall provide the warranty service and maintenance for equipment on a Master Price Agreement as well as a Takeback program.

• Peripherals means any product that can be attached to, added within, or networked with personal computers or servers, including but are not limited to storage, printers (including multifunction network printers), scanners, monitors, keyboards, projectors, uninterruptible power supplies and accessories. Software, as defined in the RFP, is not considered as a peripheral. Adaptive/Assistive technology devices are included as well as configuration for education. AUDIO VISUAL PRODUCTS (digital cameras, televisions, whiteboards, etc.) are not included in this contract. The exception to this definition is whiteboards, which can be sold as part of the Instructional Bundles but not as a stand-alone item. The Contractor(s) shall provide the warranty service and maintenance for equipment on a Master Price Agreement as well as a Takeback Program.

• Per Transaction Multiple Unit Discount means a contractual volume discount based on dollars in a single purchase order or combination of purchase orders submitted at one time by a Purchasing Entity or multiple entities conducting a cooperative purchase.

• Products means personal computer equipment, peripherals, LAN hardware, pre-loaded Software, and Network Storage devices, but not unrelated services. The Contractor(s) shall provide the warranty service and maintenance for equipment on a Master Price Agreement as well as a Takeback Program.

• Products and Services Schedule Prices or PSS refers to a complete list, grouped by major product and/or service categories, of the Products and services provided by the contractor that consists of an item number, item description and the University price for each Product or Service. All such Products and services shall be approved by the WSCA/NASPO Contract Administrator prior to being listed on a Contractor-supplied website accessed via a URL. The Contractor(s) shall provide the warranty service and maintenance for all equipment listed on the PSS on a Master Price Agreement as well as a Takeback Program.

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• Refurbished Products are products that may have been powered on or used by another customer that have been fully retested, defective parts replaced, and repackaged to meet original factory specifications.

• Replacement Parts. Unless otherwise restricted in a Participating Addendum or maintenance service agreement, replacement parts may be manufacturer-certified refurbished parts carrying USA OEM warranties.

• Services are broadly classed as installation/de-installation, maintenance, support, training, migration, and optimization of products offered or supplied under the Master Price Agreement. These types of services may include, but are not limited to: warranty services, maintenance, installation, de-installation, factory integration (software or equipment components), asset management, recycling/disposal, training and certification, pre-implementation design, disaster recovery planning and support, service desk/help desk, and any other directly related technical support service required for the effective operation of a product offered or supplied. General consulting and all forms of application development and programming services are excluded.

• Servicing Subcontractor/Subcontractor/Reseller Agent means a Contractor authorized and state-approved subcontractor who may provide local marketing support or other authorized services on behalf of the Contractor in accordance with the terms and conditions of the Contractor's Master Price Agreement. A wholly owned subsidiary or other company providing warranty of other technical support services qualifies as a Servicing Subcontractor. Local business partners may qualify as Servicing Subcontractors. Servicing Subcontractors may not directly accept Purchase Orders or payments for Products or Services form Purchasing Entities. The Contractor(s) actually holding the Master Price Agreement shall be responsible for Servicing Subcontractor's providing products and services, as well as warranty service and maintenance for equipment the subcontractor has provided on a Master Price Agreement as well as the Takeback Program.

• Software For software purchases from Novell, IBM/Lotus, Symantec and Microsoft using the State's Master and Volume License Agreements, please refer to SPO PL No. 05-16, Computer Software. Use of this Price List is mandatory for those agencies that are committed to its use.

• Standard Configurations or Premium Savings Configurations means deeply discounted standard configurations that are available to the using the Master Price Agreement only. Any department, at any given time, that commits to purchasing the standard configuration adopted by other Purchasing Entities shall receive the same price for the contract awardees. This specification includes a commitment to maintain and upgrade (keep pace with the advance of technology) the standard configuration for a stated period of time or intervals.

• Storage Solution/Auxiliary Storage means the technology and equipment used for storage of large amounts of data or information. This includes technologies such as: Network Attached Storage (NAS) and Storage Area Networks (SAN). The Contractor shall provide the warranty service and maintenance for equipment on a Master Price Agreement as well as a Takeback Program.

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• Takeback Program means the Contractor's process for accepting the return of the equipment or other products at the end of life as determined by the State utilizing the Master Price Agreement. Departments must first list product with the State's Excess Property Program. Contact Inventory Management for details at 831-6756 or 831-6788.

• Technical Support refers to the Contractor agreeing to maintain a toll-free technical

support telephone line. The line shall be accessible to the University Program personnel who wish to obtain competent technical assistance regarding the installation or operation of products supplied by the Contractor(s) during a product warranty period or during a support agreement.

• Trade In refers to the exchange of used Equipment for new Equipment at a price reduced by the value of the used Equipment.

• Value Added Services The Contractor(s) shall provide services such as installation,

training, and software imaging upon request of the University Program. WEB SITE MAINTENANCE

• The Contractors agree to maintain and support Participating State and Entity Internet websites for access to the specific Participating Entity PSS, service selection assistance, problem resolution assistance, billing concerns, configuration assistance, Product descriptions, Product specifications and other aids described in the RFP, and/or in accordance with instructions provided by the WSCA/NASPO Contractor Administrator. The Contractors agrees that the website shall contain a single, uniform WSCA price for configurations and items. Failure to comply with this requirement will be grounds for further action taken against the Contractors. In addition, the website shall have the ability to hold quotes for 45 days, as well as the ability to change the quote.

• The Contractors may provide electronic commerce assistance for the electronic

submission of Purchase Orders, purchase order tracking and reports.

• Once the website is approved, the Contractors may not make changes to the website without notifying the WSCA/NASPO Contractor Administrator and receiving written approval of the changes.

ORDERING Each Contractor maintains its website with product and services information, product configuration and pricing, the primary contact, and the terms and conditions of the price agreement. Departments are advised that changes to products and pricing occur frequently. It is recommended for that auditing purposes, a printed copy of the web site page showing the item(s) ordered or a printed quote from the contractor or the contractor’s website be placed in the procurement file.

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VARIOUS TYPES OF DISCOUNTS

• WSCA/NASPRO Premium Savings Package (WNPSP) means deeply discounted standard configurations that are available to departments using the Master Price Agreement only. Any department, at any given time, that commits to purchasing the standard configuration adopted by other Purchasing Entities shall receive the same price for the contract awardees. This specification includes a commitment to maintain and upgrade (keep pace with the advance of technology) the standard configuration for a stated period of time or intervals. For purchases using the WNPSP, this option is for ordering a single configuration at a time. Pricing is per unit for each single configuration. Go to the following website at: http://www.wnpsp/index.html, click onto "current configurations" and "current specifications" for desktops, laptops and monitors manufactured by Hewlett Packard, Dell and Lenovo. The package is updated every six months with new pricing and vendor selection by the WNPSP team. A new package is available on May 1st and November 1st of each year. If your department procures desktops, laptops or monitors using the WSCA/NASPO Premium Savings Package, please contact the manufacturer directly to confirm the Premium Savings Package price and request a price quotation for your records.

• Cumulative Volume Discount means a contractual, cumulative, permanent volume discount based on dollars resulting from the cumulative purchases by all governmental purchases for the duration of the Master Price Agreement.

• Educational Discount Price means the price offered in a nationally announced promotion, which is limited to educational customers only.

• General Price Reduction Price means the price offered to consumer, business or

governmental purchasers at prices lower than PSS pricing. General price reduction prices will be reflected in the PSS as soon as practical.

When placing an order, check contractor's website for complete ordering instructions, including but not limited to discount (premium savings package, cumulative volume discount; educational discount price; and general price reduction price), installation, de-installation, maintenance, support, training, migration, warranty, delivery, etc. Purchase orders may be issued to purchase the license for software or to purchase products listed on the Contractor's "Products and Services Schedule Prices" (PSS) at the prices in accordance to Price Guarantees. The Contractor is required to provide warranty and maintenance service on equipment that is purchased. The Contractor shall offer a Takeback Program for all products covered by this Agreement. NO. OF QUOTATIONS REQUIRED/BASIS FOR AWARD

• Obtain a minimum of two (2) written quotations for all purchases under $100,000.00.

• Obtain a minimum of three (3) written quotations for all purchases of $100,000.00 or more.

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• The award may be made to the vendor whose offer provides the best value in terms of

quality of product, pricing, configuration, warranty coverage, technical support, lead time, etc. to the University. If the department is unable to obtain the minimum number of written quotes, the department must justify that all contractors listed in this vendor list were contacted to submit a written quotation within a reasonable time frame and the results are documented.

Departments are required to keep copies of all quotations with their procurement files.

Although award can be made based on “best value”, an OPRPM Form 95, Determination of Cost or Price Reasonableness, as required under AP A8.285, must be completed for purchases exceeding $2,500 under this contract if the lowest quotation was not selected or if all contractors listed were contacted and only one vendor responded. The Form 95 should be retained in the fiscal officer’s files if the amount of purchase is within the fiscal officer’s purchasing authority or should be submitted to OPRPM, as applicable.

PURCHASE ORDERS Purchase Orders shall be issued and payments made directly to the vendors listed herein. In place of the SPO VL No., type on the purchase order the WSCA number (*) assigned to each contractor to qualify for the WSCA pricing. Check individual Contractor website to determine if they can provide electronic commerce assistance for the electronic submission of Purchase Orders, purchase order tracking and reporting. LEASE AGREEMENTS Lease Agreements are not allowable under the contract. PRODUCT AND SERVICE SCHEDULE The Contractor agrees to maintain the PSS is accordance with the following provisions:

A. The PSS prices for Products and services will conform to the product category discount levels on file with WSCA/NASPO Contract Administrator for the following Products:

Band 1 - Servers Band 2 -Workstations (desktops, laptops, tablet PC's) Band 4 - Storage Operating Systems LAN Devices B. The Contractor may change the price of any Product or Service at any time, but the

guaranteed discount levels shall remain unchanged during the agreed period unless or until prior approval is obtained from the WSCA/NASPO Contract Administrator. The Contractor agrees that the PSS on the State administration website shall contain a single, uniform WSCA price for configurations and items. Failure to comply with this requirement will be grounds for further action to be taken against the Contractor.

C. The Contractor may make model changes; add new Products, and Product upgrades or

Services to the PSS. The pricing for these changes shall incorporate, to the extent

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possible, comparable discount levels approved by the WSCA/NASPO Contract Administrator for similar Products or Services.

D. The Contractor agrees to delete obsolete and discontinued Products from the PSS on a

timely basis. E. The Contractor shall maintain the PSS on a Contractor supplied Internet website.

PRODUCT SUBSTITUTIONS

A. Substitutions of units/configurations MMD and the WSCA Directors acknowledge that individual units and configurations may

stop being produced during the life of the resulting contract. Substitution of different units and configurations will be permitted with the prior written approval of the WSCNNASPO Contract Administrator. This substitution is at the sole discretion of the WSCNNASPO Contract Administrator, subject only to review and approval of the WSCNNASPO Contract Administrator.

B. Addition of units/configurations MMD and the WSCA Directors acknowledge that with the evolution of technology, new,

emerging units and configurations will develop. Addition of these new, emerging units may be permitted, with the prior approval of the WSCA/NASPO Contract Administrator and the WSCA Directors. The addition of new, emerging units and configurations is at the sole discretion of the WSCA/NASPO Contract Administrator, subject only to review and approval of the WSCA Directors.

PRODUCT DELIVERY The delivery time to departments varies for each Contractor after receipt of a valid Purchase Order or P-Card. Go to the Contractor website for product delivery times. SHIPMENT AND RISK OF LOSS

A. All deliveries shall be F.O.B. destination, prepaid and allowed, with all transportation and handling charges included in the price of the product and paid by the Contractor. Responsibility and liability for loss or damage shall remain with the Contractor until final inspection and acceptance when responsibility shall pass to the University Program except as to fully-litigated defects, fraud and Contractor's warranty obligations.

B. Whenever a University Program does not accept products and returns them to the Contractor, all related documentation furnished by the Contractor shall be returned also. Unless otherwise agreed upon by the University Program, the Contractor is responsible for the pick-up of returned products. The Contractor shall bear all risk of loss or damage with respect to returned products except for loss or damage directly attributable to the negligence of the University Program.

C. Unless otherwise arranged between the University Program and Contractor, all products shall be shipped within the time period set forth below after receipt of a purchase order, by a reliable and insured shipping company.

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• Ace Technology Partners LLC Within 25 calendar days • Apple Inc 10 to 14 days • Dell Marketing L.P.: 14 to 30 days. • Hewlett Packard Company: Within 20 business days or greater than 20 days by

mutual agreement between the University and Contractor.

• Howard Technology Solutions 10 to 14 business days • IBM Corporation Within 20 business days or less • Lenovo (United States) Inc 10 to 15 business days • Ricoh Americas Corp. Within 30 days • Toshiba America Info Sys Inc Within 20 business days • Transource Computers: 1 to 20 days. • Xerox Corporation 10 to 14 days • Xiotech Corporation 10 to 14 days

ACCEPTANCE The University Program shall determine whether all products and services delivered meet the Contractor's published specifications. No payment shall be made for any products or services until the University Program has accepted the products and services. The department shall make every effort to notify the Contractor within fifteen (15) calendar days of non-acceptance of a product or service; otherwise the products or services shall be deemed accepted. PAYMENTS Payments are to be made to the Contractor(s) remit to address provided in this vendor list. Section 103-10, HRS, provides that the State shall have thirty (30) calendar days after receipt of invoice or satisfactory completion of contract to make payment. Payments may also be made via "Purchasing Card.'' In the event an order is shipped incomplete (partial), the department shall pay for each shipment as invoiced by the Contractor unless the department has clearly specified "No Partial Shipments" on each Purchase Order. PURCHASING AUTHORITY Fiscal officers may issue purchase orders under the WSCA contract within their delegated purchasing authority only. All purchase orders exceeding this authority shall be submitted to a designated departmental fiscal officer with greater purchasing authority or to OPRPM, as applicable, for review and processing. PRICE REASONABLENESS An OPRPM Form 95, Determination of Cost or Price Reasonableness, as required under AP A8.285, must be completed for purchases exceeding $2,500 under this contract if the lowest quotation was not selected or if all contractors listed were contacted and only one vendor responded. The Form 95 should be retained in the fiscal officer’s files if the amount of purchase is within the fiscal officer’s purchasing authority or should be submitted to OPRPM, as applicable.

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QUESTIONS All questions pertaining to the contract may be directed to Matthew Chow (chowmatt@hawaii.edu) or Karlee Hisashima (karlee@hawaii.edu) telephone (808) 956-8687. All technical questions pertaining to the product and service specifications may be directed to the contact person(s) designated on the contractors’ websites.

PERSONAL COMPUTERS = (MAY INCLUDE PRINTERS, SERVERS AND STORAGE

MANUFACTURERS)

PRINTERS

SERVERS - STORAGE