The bid referenced above is hereby changed as follows: I. Attachment B Version 1.0 dated 5/11/10 has been deleted in its entirety and replaced by Attachment B Version 2.0 dated 5/18/10.. II. Additional Requirement 2. of ITSF10000835/CD bid sheets has been deleted in its entirety and replaced by the following: 2. The award will be made in the aggregate as follows: to be eligible for award bidders must bid on line items 1 through 6 and item 11.. III. The following is additional information regarding this bid opportunity: 1. ITSF10000835/CD Bid Sheets: Brand, Model and Part Numbers Question: All products will be IBM but there are, at a minimum, four model numbers. And depending on how you count there could be as many as 20. How should we respond to the "Model" there is not enough room to list that many Part Numbers? There are also at least 60 part numbers. How should we respond to Part Numbers? Can we answer these requirement by saying "See Attachment B line items"? Answer: Yes, you may answer these requirements by indicating See attachment B line items on the bid sheets of ITSF10000835/CD. 2. Attachment A, Special Bid Condition S16. Question: Warranty varies by type of equipment, E.G DS8100 is 48 months, Mainframe is one year. But with multiple years of maintenance, prepaid, as requested, the warranty is calculated into the maintenance agreement so there is no separate warranty from prepaid maintenance. How should we address this requirement since the warranty is included in the maintenance contract? Answer: A space has been provided in Attachment B Version 2.0 dated 5/18/10 to include the warranty period for Items 1 through 4. You may also indicate not applicable. 3. Attachment B, page 1, Best Delivery (Days ARO) Question: There are many products with different lead times. Should this be a worst case number? Answer: If there are various lead times for the equipment line items indicate the longest delivery lead time for Bidder's Best Deliver (Days ARO) on page 1 of Attachment B Version 2.0 dated 5/18/10. Please note that a space has been provided in Attachment B Version 2.0 dated 5/18/10 to indicate the individual delivery lead times for Items 1 through 4. Page 1 of 7
4. Attachment B, Unit Price for Items 1 through 10 Question: If there is no cost to a line item can we insert "N/A" or "Inc" or should we put in a zero? Answer: If there is no cost for a line item, indicate included in the unit price for that line item. 5. Attachment B, Item 3 - Software Specifications for DS8100 Question: Does the City want TPC Basic Edition or TPC for Disk on the DS8100? The configuration does not indicate which option is required and the selection can change the configuration. Answer: The configuration is for TPC for Disk License for 15TB. This is specified in Item 3, Software Specifications for MF Storage line 5. 6. Attachment B, Equipment Specifications for the DS8100 Question: The 2498 B40 requires a rack. There is no rack in the config. Will the city supply a rack? Answer: The City will supply rack space. 7. Attachment B, Additional Specifications for Item 1 - IBM z10/bc Mainframe, Additional Specifications for Item 2 - DS8100 and Additional Specifications for Item 2 - DS8100. Question: There are additional costs associated with the requested services were do to show the costs? There are no lines in any of the spreadsheet pages for services costs. Answer: Item 11 - Installation, Consulting and Configuration Services has been added to Attachment B Version 2.0 dated 5/18/10 so that services costs can be included. 8. Attachment B, Additional Specifications for Item 1 - IBM z10/bc Mainframe, Additional Specifications for Item 2 - DS8100 and Additional Specifications for Item 2 - DS8100. Question: With any of our engagements we submit detailed Statements of Work (SOW's). This is true of even those services that are included in the cost of the hardware. E.G. the Systems Assurances. Should we attached the detailed SOWs? And if so where do we attach the SOW's. Answer: Include detailed Statement(s) of Work as Attachment C with your bid proposal. 9. Attachment B, Item 7 IBM Financing Question: We intend to provide IBM Global Financing rates. Hardware and s/w are taxable but maintenance and services are not. How do we indicate the rates from IGF and what is taxable and what is not? Answer: Spaces have been provided in Item 7 - IBM Financing of Attachment B Version 2.0 dated 5/18/10 to include the interest rates and applicable taxes for the equipment, software, Page 2 of 7
maintenance and services. If there are no applicable taxes for an item, enter 0 in the monthly payment column. 10. Attachment B, Item 3 - Software Specifications for DS8100 Question: With fours years of warranty included in the sale price of the DS8100 the s/w support is part of the coverage. Therefore there is no cost for years 1, 2, 3 and 4. How should this question be answered? Is a zero cost sufficient or can we put in "NA"? Answer: Note the changes to Attachment B Version 2.0 dated 5/18/10 for Item 3. 11. Attachment B, Item 4 - Equipment Specifications for Tape Library Question: The 2499 384 requires a rack. There is no rack in the config. Will the city supply a rack? Answer: The City will supply rack space. 12. Attachment B, Item 4 - Equipment Specifications for Tape Library Question: The L23 REQUIRES f/s 1801 in order to attach the D23. You can not attach the D23 to the L23 without this f/c and there is a cost associated with this feature. Will the required f/c be added to the s/s? If not were should we add the incremental costs for the f/c? Answer: Feature code 1801 is not required. 13. Attachment B, Item 5 - Specifications for 48 Months IBM Pre-Paid Maintenance for IBM z10/bc Mainframe and Item 6 - Specifications for 48 Months IBM Pre-Paid Maintenance for Tape Library Question: The maintenance is prepaid so there is no annual cost for years 3 thru 4 unless it is leased thru IBM Global Finance. Should we assume an IGF lease and fill in the costs? Answer: Note the changes to Attachment B Version 2.0 dated 5/18/10 for Items 5 and 6. 14. Attachment B, Item 7 IBM Financing Question: We can provide line-item lease rates or a blended lease rate for everything together. Do you have a preference? Answer: Spaces have been provided in Item 7 - IBM Financing of Attachment B Version 2.0 dated 5/18/10 to include the interest rates and applicable taxes for the equipment, software, maintenance and services. Individual interest rates may be proposed for the items or a single blended interest rate may be proposed. 15. Attachment B, Item 7 IBM Financing Question: The City takes advantage of IBM Sub-Capacity s/w pricing. Sub-Cap means that each month the s/w cost varies based upon the actual capacity used as opposed to the maximum capacity of the machine. This makes the taxes impossible to specify in advance. How should we address monthly s/w cost and monthly taxes? Page 3 of 7
Answer: IBM Sub-Capacity s/w pricing is a separate issue and doesn t apply to this bid opportunity. 16. Attachment B, Item 7 IBM Financing Question: If the maintenance is in fact prepaid there would be no monthly cost. If it is prepaid how do we answer these questions. If it is financed thru IGF should we put in the annual lease costs? Answer: If Item 5-48 Months IBM Pre-Paid Maintenance for IBM z10/bc Mainframe and Item 6 - Months IBM Pre-Paid Maintenance for Tape Library are financed enter the lease costs for the pre-paid maintenance in the monthly price column of Item 7 - IBM Financing. 17. Attachment B, Item 7 IBM Financing Question: IBM Financing - Are the Unit Prices equal to the Lease Purchase Monthly Payments for each line item listed? Are we to sum up the total of 48 payments in this form? This form appears to be formatted to a purchase price/qty, and total price and not formatted to accommodate lease payments. Please clarify what is requested here. Answer: Note the changes to column C Attachment B Version 2.0 dated 5/18/10 for Item 7. 18. Attachment B, Item 7 IBM Financing Question: Are Lease Payments to include the financing of sales taxes? Answer: Yes, the monthly lease payments for IBM financing should include the financing of sales tax. 19. Attachment B, Item 8 3 rd Financing Question: 3rd Party Financing - Are the Unit Prices equal to the Lease Purchase Monthly Payments for each line item listed? Are we to sum up a the total of 48 payments in this form? This form appears to be formatted to a purchase price/qty, and total price..and not formatted to accommodate lease payments. Please clarify what is requested here. Answer: Note the changes to column C Attachment B Version 2.0 dated 5/18/10 for Item 7. 20. Attachment B, Item 7 IBM Financing Question: We are providing you with a blended lease rate and interest rate for hardware. Since services and maintenance are not taxable and should be shown separately, how should we show the lease and interest rate for those items? Answer: Note that spaces have been provided in Item 7 - IBM Financing of Attachment B Version 2.0 dated 5/18/10 to include the interest rates and applicable taxes for the equipment, software, maintenance and services. Individual interest rates may be proposed for the items or a single blended interest rate may be proposed. 21. Attachment B, Item 10 - IBM Education Pack (Optional) Question: Do you want to finance the Ed. Packs? If so what term? Page 4 of 7
Answer: This is an optional purchase. No financing is required. 22. Attachment A, General Bid Conditions Question: What specific General Bid Conditions (Form P-220) that have been supplied in the bid, apply to a Lessor that is simply providing the Lease Purchase financing for the equipment in the bid? Answer: We will issue a response shortly. 23. Form-225 Question: Do the Insurance Requirements in Form P-225 apply to a Lessor that may be financing this purchase under a Lease Purchase Agreement? Answer: We will issue a response shortly. 24. ITSF10000835/CD Bid Sheets, page 6, Additional requirement 7 Question: Given that the Bid is asking for a sample of the Lease Agreement(s) with their Bid Proposal for those Bidders proposing financing, it is safe to assume that the terms and conditions of Lease Purchase financing proposal will be executed under the Terms and Conditions of the Lessor's Lease Agreement(s) that is provided in the Bid, or some other mutually acceptable Lease Agreement? Answer: The terms of the Lease Purchase financing proposal submitted by the lowest responsive bidder will be reviewed by the City. The City reserves the right to negotiate or take exception to any of the terms of the Lease Purchase financing proposal. 25. Question: Should all of the IBM equipment be new? Answer: Yes, all IBM equipment should be new. Please refer to Attachment A, General Bid Condition G.13 Condition of Articles. 26. Question: Will hand delivered bids be given a receipt of delivery? Answer: A receipt can be provided upon request. 27. Question: Is a payment discount required? Answer: A payment discount is not required for this bid opportunity. 28. Question: There are multiple avenues for financing. Do we submit all avenues? Answer: Financing is optional for this bid opportunity. Prospective bidders may propose multiple financing options. Each financing option should be submitted as a separate sealed bid. 29. Question: Should IBM Global financing be included under Item 7 - IBM Financing or under Item 8-3rd Party Financing? Answer: IBM Global financing should be submitted under Item 7 - IBM Financing. Page 5 of 7
30. Question: The IBM Education Pack is only good for 12 months, do we note that in our proposal? Answer: Any additional information should be submitted as Attachment D with your bid proposal. 31. Question: IBM Global Financing has blended and non-blended finance rates, do you want both? Answer: It is at the discretion of the prospective bidders to propose blended or non-blended finance rates or any combination thereof. The City is seeking the most favorable finance rates. 32. Question: Is a PDF copy of the signed official bid document acceptable to submit as a proposal? Answer: Yes, a print out of the PDF copy of the signed official bid document is acceptable if it is included with your sealed bid proposal. 33. Question: How do we address assumptions in financing? Answer: All assumptions should be specified and included with the sample of the lease agreement to your bid proposal for Item 7 - IBM Financing and Item 8-3rd Party Financing. 34. Question: Are multiple copies of the proposal required? Answer: No, multiple copies of your proposal are not required for this bid opportunity. 35. Question: Do the insurance requirements apply to subcontractors? Answer: The insurance requirements do not apply to subcontractors for this bid opportunity. 36. Question: Is professional liability insurance required? Answer: Professional liability insurance is not required for this bid opportunity. 37. Question: Are subcontractors subject to vendor compliance (LBE ordinance and business tax registration)? Answer: Subcontractors are not subject to vendor compliance for this bid opportunity. 38. Question: I m not sure how to pass on the warranty. Answer: Be sure that the City and County of San Francisco is identified as owner of the equipment. 39. Question: Where should the items be delivered? Page 6 of 7
Answer: Item 4 Tape Library is to be shipped to the following address: City & County of San Francisco Department of Technology One South Van Ness Avenue 2nd Floor San Francisco, CA. 94103 Attn: Herbert Tong Item 1 - IBM z10/bc Mainframe, Item 2 - DS8100 and Item 3 - Software for DS8100 are to be shipped to the following address: Department of Technology 200 Paul Ave. 5th Floor San Francisco, CA. 94124 Attn: City & County of San Francisco. Bidders must sign and submit this bid addendum with their sealed bid proposal. Company: Signature: Name of person signing bid: Date: Page 7 of 7