Data Center Services Reprocurement

Background

The Texas Department of Information Resources (DIR) initiated a contract to consolidate data center operations for 27 agencies in late 2006. DIR signed the Data Center Services (DCS) contract with IBM to migrate existing systems into two consolidated data centers, to perform on-going operations and maintenance, and to provide disaster recovery services from March 2007 through August 2014.

On July 16, 2010, DIR issued the incumbent service provider a notice to cure material breaches.

DIR is initiating this competitive procurement process to select and contract with one or more outsource Supplier(s) to complete the consolidation and operate the data center facilities on behalf of the State as directed by the Texas Legislature in 2005 in HB 1516, 79th Session (R) with the intent to:

• Consolidate disparate legacy agency facilities,
• Reduce statewide costs for services,
• Modernize aging equipment, and
• Increase security and disaster recovery capability.

Purpose of the Procurement

To replace part or all of the services currently provided under the DCS contract.

The State intends to release two separate but related Requests for Offers (RFOs).

• The Service Integration RFO is for the acquisition of services of Multisourcing Service Integrator (MSI).
• The Service Delivery RFO is for the acquisition of five (5) IT service delivery components: Mainframe, Server, Data Center Facilities, Network, and Print & Mail.

The MSI has responsibility to coordinate and integrate operations, ensuring seamless end-to-end service delivery across the service delivery components.

Figure A shows the division of responsibilities and scope at a high level, including the retained service management role performed by the State and customer governance committees.

Figure A

Note: Although not pictured above, the role of the MSI also includes other functions such as Technical Management, Service Management, Financial Support Services, Supplier Management, and Continuity Management.

RFO Approach

In addition to providing the required services, the RFOs also seek to address the following:

1. Remediation and repair of the current service delivery environment. The initial focus is on the repair of key processes, including a reduction in the amount of time it takes from initial placement of order to acquisition and implementation.
2. Alignment of processes, tools and handoffs among and between multiple Suppliers and participating agencies. This includes documentation of these processes and a demonstrated ability to consistently enforce and adhere to the processes to carry out all necessary coordination among and between the multiple Suppliers.
3. Improved decision making, dispute resolution and relationship management through the active engagement of participating agencies. This engagement will be accomplished through governance bodies representing the participating agencies, each with clearly identified responsibilities.

Bidding Combinations and Awards

The procurement will allow Suppliers to bid on the Service Integration RFO and/or one or more of the service delivery components, represented through Statements of Work in the Service Delivery RFO. Figure B depicts bid options that may be chosen.

Figure B

A Supplier may respond to one or both RFOs. In the Service Delivery RFO, a Supplier may respond to one or more Statements of Work (represented as Options A through F).

A Supplier may bid on one or more services as depicted in Figure B, subject to the following response requirements:

1. A response to Mainframe must include both platforms, IBM z/OS and Unisys 2200.
2. Any response that includes Server must also include a response to Data Center and Network. (i.e., Suppliers cannot only bid on Servers) See option C.
3. A Supplier may submit a response to either Data Center and/or Network. A response to Data Center and/or Network does not require a response to Server. See options D and E.
4. Suppliers may bid on multiple combinations (see option F) of the service components as long as all the requirements above are followed and all responses that contain more than one service component contain a solution for each service component individually and all components are priced so that each is severable.

A Supplier may be awarded one or more services, subject to the following award restrictions:

1. The Supplier selected to be the MSI cannot be selected for any of the service delivery components in the Service Delivery RFO. If a Supplier is identified for downselect for the Service Integration RFO and also identified for downselect for any part of the Service Delivery RFO, the State will determine which offer will continue based on the best overall value to the State.
2. The State may award IBM z/OS and Unisys2200 mainframe platforms separately or as a bundle.
3. The State may award Server, Data Center, and Network separately or as a bundle. A Supplier who responds to Server, Data Center, and Network may be selected for:
   1. Server, Data Center, and Network
   2. Server and Data Center
   3. Server and Network
   4. Server only
   Note: A Supplier who responds to Server, Data Center, and Network will not be selected for Data Center and/or Network without Server.
4. The State reserves the right to award a service component to one or more Suppliers.