HomeMy WebLinkAbout9 Oracle Fusion Middleware Agenda Item # 9
TRUCKEE
w
Public
Memorandum
To: Board of Directors
From: Ian Fitzgerald
Date: May 8, 2007
Subject: Consideration of Purchasing Oracle Fusion Middleware for Information
System Integration
1. WHY THIS MATTER IS BEFORE THE BOARD
To obtain Board Approval for the purchase of software titled "Oracle Fusion Middleware:
Application Server & BPEL Developer".
2. HISTORY
Earlier this year, a company, Miner & Miner, was contracted to help develop an integration
middleware between our call center, CRC and our Outage Management,Software. The cost
of this integration was close to $30,000 (2006 Budget). This price personally scared me;
considering the many points of integration we still have to build between our many different
software applications we currently have in place. In lieu of this, I began to investigate a
cheaper way in which we could build integration methods between our systems without hiring
outside contractors, or purchasing software unique to each type of integration we were
required to perform.
There are several more integration development projects required this year to fully integrate
CRC with our Outage Management System, including but not limited to:
1. Development of a pre-emptive message upon calling CRC, explaining to the customer that
the PUD is aware of outages in defined neighborhoods, and are working to correct the
problem.
2. Grouping customers by outage incidents and relaying that information back to CRC.
3. Sending probable, predicted locations of Protective device failures from the outage
management system to our field crew's pagers and cell phones, indicating to our crews
where these devices are, what feeder their on, and how many customers are predicted to be
affected.
In addition, we are trying to seamlessly integrate our electrical designs with our IVUE
accounting system using a Multispeak Integration format which IVUE already supports.
I
3. NEW INFORMATION
Over the last few months of investigation, I came upon a software language, BPEL (Business
Process Engine Language) which would allow a user to build integration methods between
databases, file formats, pagers, cell phones, and web services, among other formats. This
software is developed through a GUI, or user friendly software, which allows the user to build
these integration methods, and then run them real-time or on a transactional basis.
Many software companies (iBolt, IBM, Microsoft, SAP, Siebel Systems, and Oracle) offer
some form of software which will allow you to build and serve up BPEL integration (See
Attached: Appendix C - Comparison of business integration software). Of these, the Oracle
solution seems best for the TDPUD for these reasons.
1. Our database storage environment exists within Oracle technology (IVUE & GIS).
2. The cost for the Oracle version of the software is inline with other companies.
(MS BizTalk $29,999 — iBOLT Integration Suite $50,000, IBM Websphere $85,000)
3. Oracle is the only product which Includes a Wireless extension allowing for Messaging
applications (1-way and 2-way, SMS/MMS/IM/Email/Voice Alerts), location-based
services (mobile positioning, mapping, routing), interactive voice access (VoiceXML)
and mobile browser applications. The other software applications do not provide this
feature.
4. Support: We currently have a business representative with Oracle, meaning the
business relationships have already been developed, which we do not have with other
vendors which provide this product. This will ensure timelier, and more advanced
support than we could expect from other vendors.
4. RECOMMENDATION
In response to this memorandum, I would recommend to the board to choose one of the
following options:
Option A:
A.1 . For the Board to authorize the purchase of the "Oracle Fusion Middleware:
Application Server & BPEL Developer" package at a total purchase price of
$54,900.00. (See Attached Appendix A - Oracle Credit Corporation Payment
Schedule No. 21223).
Note: This product was not budgeted for 2007, and this option's one time cost for this
year is too great to be compensated from other areas of my department's
budget.
Option B:
B.1. For the Board authorize the purchase of the "Oracle Fusion Middleware:
Application Server & BPEL Developer" package at the financing option: payment in
the amount of $1,711 .00 for a period of 36 months, from 01-JUL-07 through 01-
JUN-10. This option will increase the total product cost to $61,569.00.
(See Source of Funding for Breakdown)
2
5. SOURCE OF FUNDING (if applicable)
Because this product was investigated and discovered after the completion of the 2007
Budget, the source of funding for this product will break down as follows:
Option A:
2007: Total = $54,900.00
Source: $5847 from Savings from Field Computer Purchase) (07-950-30)
$40,000 from Consulting Services budgeted (1.9.923.00/743), but
not as yet used, and now offset by use of this software.
Additional Money Required to Purchase Software outright this year: $9,053.00
Option B:
2007: Total = $10,266
Source: $5847 from Savings from Field Computer Purchase) (07-950-30)
$4,419 from Consulting Services budgeted (1.9.923.00/743), but
not as yet used, and now offset by use of this software.
2008: Total = $20,532
Source: To be included in 2008 Budget
2009: Total = $20,532
Source: To be included in 2009 Budget
2010: Total = $10,266
Source: To be included in 2010 Budget
6. BOARD AUTHORIZATION TO TRANSFER FUNDS
For either option, the board will be required to authorize the transfer of budgeted funds from:
1. 07-950-30 - Field Unit Extension/Upgrade Capital Project
2. 1.9.923.00/743 — Professional Services
** See Appendix B — Budget Fund Transfer
to the new capital project: Oracle Fusion Middleware for Information System Integration
Capital Project.
3
Appendix A
Oracle Financing
Payment Schedule
C:)R C:L_ * I C-Ire d i r Payment Schedule
Page 1 of 1 No. 21223
Customer: Truckee Donner Public Utility District Financing Corporation Executed by Customer(authorized signature):
- - By:
Address: 11570 Donner Pass Road Name:
- _ Title:
Truckee CA 96161 -
- - - Executed by Oracle Credit Corporation:
Contact: - --- - By:
Phone:
- _ _- - _ _ Name:
Order: dated --- -
Agreement: dated Title:
PPA No.: dated Payment Schedule Effective Date:
System: Payment Schedule:
Payment Amount Due Date
Software: $45,000.00 36 @ $1,711 01-JUL-07 through 01-JUN-10
Support: $9,900.00 1 Year(s)
Consulting: $0.00
Education: $0.00
Thirty-six(36)monthly payments due and payable as set forth
Other: $0.00
- - above
System Price: $54,900.00
Transaction Specific Terms:
For this Contract,the rate used in PPA Section 3, Paragraph 2,Subsection(i)shall be the lesser of the rate in the Contract or 3%.
i
Opt
The onal Customer(if l s box is t
Customerhas ordered the System from an alliance member/agent of Oracle Corporation or one of its affiliates,whose name an address
are specified below. Customer shall provide OCC with a copy of such Order. The System shall be directly licensed d b p y the
Supplier specified in the applicable Order and Agreement, each of which shall be considered a separate contract.Customer has entered into',
the Order and Agreement based upon its own judgment, and expressly disclaims any reliance upon statements made by OCC about the
System, if any.Customer's rights with respect to the System are as set forth in the applicable Order and Agreement and Customer shall have
no right to make any claims under such Order and Agreement against OCC or its Assignee. Neither Supplier nor any alliance member/agent
is authorized to waive or alter any term or condition of this Contract. If within ten days of the Payment Schedule Effective Date, OCC is
provided with Customer invoices for the System specifying applicable Taxes,then OCC may add the applicable Taxes in accordance with this
Contract.
Alliance Member/Agent: --_-
Address:
Contact: _ - Phone:
This Payment Schedule is entered into by Customer and Oracle Payment Amount, unless otherwise stated, includes a proportional
Credit Corporation ("OCC") for the acquisition of the System from amount of the remaining components of the System Price
Oracle Corporation , an affiliate of Oracle Corporation,an alliance excluding such future support fees,if any.
member/agent of Oracle Corporation or any other party providing any
portion of the System ("Supplier"). This Payment Schedule B. SYSTEM: Software shall be accepted, and the services shall
incorporates by reference the terms and conditions of the above- be deemed ordered pursuant to the terms of the Agreement.
referenced Payment Plan Agreement ("PPA") to create a separate Customer agrees that any software acquired from Supplier to
Contract("Contract"). replace any part of the System shall be subject to the terms of the
Contract.Any claims related to the performance of any component
A. PAYMENTS: This Contract shall replace Customer's payment of the System shall be made pursuant to the Order and
obligation under the Order and Agreement to Supplier,to the extent Agreement. Neither OCC nor Assignee shall be responsible to
of the System Price listed above, upon Customer's delivery of a fully Customer for any claim or liability pertaining to any performance,
executed Order,Agreement, PPA, Payment Schedule,and any other actions,warranties or statements of Supplier.
documentation required by OCC, and execution of the Contract by
OCC. Customer agrees that OCC may add the applicable Taxes C. ADMINISTRATIVE: Customer agrees that OCC or its
due on the System Price to each Payment Amount based on the Assignee may treat executed faxes or photocopies delivered to
applicable tax rate invoiced by Supplier at shipment. OCC may OCC as original documents; however, Customer agrees to deliver
adjust subsequent Payment Amounts to reflect any change or original signed documents if requested. Customer agrees that
correction in Taxes due. If the System Price includes support fees for OCC may insert the appropriate administrative information to
a support period that begins after the first support period, such complete this form. OCC will provide a copy of the final Contract
future support fees and the then relevant Taxes will be paid to upon request.
Supplier as invoiced in the applicable support period from the
Payment Amounts received in that period. The balance of each
PS US 07Jan05i
Appendix B
Budget Fund Transfer
Truckee Donner Public Utility District
Capital Improvement Program: FY 2007- 2011
Project Title: Field Unit Extension/Upgrade Project Owner: Ian Fitzgerald/Stephen Hollabaugh
Status of Project: Preliminary Estimate Work Order*: 07-950
Cost Center: Power Supply-CC#9
Fiscal Year: 2007 2008 2009 2010 2011
Capital Costs: $ 33,000 $ 34,650 $ 36,383 1 $ 38,2021 $ 40,112
Costs Paid by Rates: $ 33,000 $ 34,650 $ 36,383 $ 38,202 $ 40,112
Costs Paid by Loans:
Costs Paid by Facilities Fees:
Contributed Capital:
Project Description
Quantity Costs Subtotal
Field Unit Extension Compaq TC1100 12 2400 28800
Vehicle Mounts 12 250 3000
GPS Units 12 100 1200
Total 33000
Future Years 2008 thru 2011 are for future upgrades in equipment and software.
Need/Financial Justification
'To Extend Field Use of GIS Map Software,and Upgrade Field Hardware 3.5 years old,
which are no longer capable of running software requirements
Goal 6.1 -District will utilize modern,cost effective work methods and equipmnet.
Project Cost Estimate
District District
Labor Materials Overheads Services Total Cost
2007 $ $ 33,000 $ 33,000
2008 $ $ 34,650 $ 34,650
2009 $ $ 36,383 $ 36,383
2010 $ $ 38,202 $ 38,202
2011 $ - $ 40,112 $ 40,112
%of Total Costs Attributed to the Following:
Engineering Site Construction Inspection Continqencv Total
2007 0%
2008 0%
2009 0%
2010 0%
2011 0%
Engineering Site Construction Inspection Contingency Total
2007 L$ 9-
- $ $ $ $ $
2008 $ - $ $ - $ $
2009 $ - $ $ $ - $
2010 $ $ $
2011 $ $ $ $ $
Overhead Calculation:
Labor Inventory Transportation Construction Administrative Total
2007 $ $ $ - $ $ $
2008 $ - $ - $ $ $ $
2009 $ - $ $ $ $ - $
2010 $ $ - $ $ $ - $
2011 $ $ $ $ - $ $