CONTRACT FOR COMPUTER HARDWARE AND SOFTWARE
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CONTRACT FOR COMPUTER HARDWARE AND SOFTWARE
BETWEEN
Network Computing Corporation
And
City of Clearwater
This Agreement entered into this rl9r.tf:cJay of ~ , 1990, by and
between City of Clearwater (hereinafter called ~ient") and Network Computing
Corporation, a North Carolina corporation, with principal office~ at 5301 77
Center Drive, Charlotte, North Carolina 28217, (hereinafter called "NCC") for
and in consideration of the payments, agreements, covenants, and mutual
undertakings, hereinafter set forth the parties do hereby agree and contract with
each other, as follows:
ARTICLE 1: PURPOSE: Client hereby engages NCC and NCC hereby agrees to perform
the services and deliver the products hereinafter set forth in connection with
the Work (as hereinafter defined) to install and implement a computer based
system for operational activities, pursuant to the terms set forth herein.
ARTICLE 2: EXHIBITS: Attached hereto and made a part hereof for all purposes
are the following Exhibits:
Exhibit A:
Exhibit B:
Exhibit C:
Exhibit D:
Exhibit E:
Exhibit F:
Exhibit G:
Request for Proposal (RFP)
Scope of Work Schedule ,
Implementation and Payment Schedule
Hardware Listing Schedule
Licensed Software Listing Schedule
Software License Agreement
Vendor (NCC) Performance Bond
In the event of any conflict between the provisions of this Agreement and the
provisions of any Exhibit, the provisions of this Agreement shall control.
ARTICLE 3: SCOPE OF WORK: NCC shall deliver in accordance with the provisions
of this Agreement, services and products which are described in the attached
Scope of Work Schedule and which the parties hereto desire to result in the
installation and implementation of a computer based system to support Client's
operation.
ARTICLE 4: TIME OF PERFORMANCE: The services of Nce shall commence within fifteen
(15) days of the date of the final execution of this Agreement by both Client
and NCC and shall be undertaken and completed in accordance with the
Implementation and Payment Schedule. Exhibit C.
ARTICLE 5: CONSIDERATION:
(A) Client shall pay NCC the sum of $403,187.00 dollars for the performance of
the Work and re 1 ated servi ces performed by NCC pursuant to th i s Agreement.
Payments under this Agreement are to be made in accordance with the provisions
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of the attached Implementation and Payment Schedule, Exhibit C, and shall be
payable upon invoice by NCC.
(B) Payment for delivery of specific Work items listed in Exhibit D and E shall
become due upon the completion of each Work item.
(C) All out-of-pocket expenses incurred by NCC and which are in excess of the
standard installation by NCC man-days to be provided by NCC as shown on Exhibit
~, shall be paid by Client upon invoice by NCC; provided however, that prior
Client approval shall be required for all items of these expenses in excess of
$100.00 each. These reimbursable expenses include, without limitation, employee
travel and on-site time which will be charged at NCC's then applicable hourly
rates (currently $62.50 per hour), travel expenses, subsistence, long distance
telephone calls, postage and extraordinary reproduction costs.
(D) Invoices for component equipment and services Work are due and payable on
receipt, and payment in full shall be made no later than thirty (30) days from
date of the invoices, less the 10% retention provided for in Exhibit C, the
Implementation and Payment Schedule.
ARTICLE 6: DEFINITION OF WORK:
(A) The term Work shall include:
(1) Procurement of computer hardware and per i phera 1 equ i pment
(co 11 ect i ve ly the "Hardware"), i nc 1 ud i ng manufacturer supp 1 i ed system
software (provided, however, that this aspect of the Work shall apply
only to the extent of the Hardware, if any, shown on Exhibit D).
(2) Furnishing and installing NCC-developed computer application software
(collectively the "Software") which directs operation of the computer
hardware in accomplishing the specified tasks.
(3) User Documentation (NCe-developed application systems and other as
specified.)
(4) Training and installation support of 20 days at $350.00 per day plus
reasonable travel and living expenses.
(5) The request for proposal (referred to as RFP) is attached to this
contract, marked Exhibit A and made a part hereof, including the
modifications as stipulated in the RFP responses, at a total
estimated cost of $20,938.00, for the modifications.
(B) The term Work shall not include:
(1) Providing operating supplies and accessories which may be necessary
for the operation of any system including, but not limited to, forms,
magnetic tapes, removable disk cartridges, storage equipment, punch
cards, or paper tape, unless specifically stated otherwise in this
Agreement or any Exhibit attached hereto.
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(2) Preparing suitable operating environment for installation and
operation of computer hardware.
(3) Training of client personnel in writing computer programs and
maintaining equipment.
ARTICLE 7: LICENSES AND PROPRIETARY AGREEMENT: Certain proprietary systems
software supplied by manufacturer to facilitate computer hardware operations is
licensed for use by NCC. Where applicable, elient will execute a sub-license
agreement in which Cl ient acknowledges the non-transferabil ity of systems
software supplied by the manufacturer and licensed by NCe for Client's use. In
addition, concurrent with the execution and delivery of this Agreement, Client
shall execute a license agreement for the NCC proprietary licensed software in
the form of Exhibit I attached hereto. Client will not register or make
application for any patent, copyright or reserving in Client's or any other
party's name, any information, data system or equipment furnished by NCC
hereunder. Nor will Client permit others to do so. Client agrees to hold, save
and indemnify NCC free, clear, and harmless of, from and against any and all
liability including but not limited to court costs, attorney fees and
investigation expenses which may arise out of or result from Client's failure
to fully perform its obligations under any agreement referred to in this Article,
and NCC agrees to similarly indemnify the City of Clearwater for NCC's failure
to perform its obligations under any agreement referred to in this Article, and
Nce agrees to hold, save and indemnify City of Clearwater free, clear, and
harmless of, from and against any and all liability including but not limited
to court costs, attorney fees and investigation expenses which may arise out of
or result from NCC's failure to fully perform its obligations under any agreement
referred to in this Article. These indemnification agreements are both subject
to the limitations of Article 22.
ARTICLE 8: WARRANTY AND MAINTENANCE:
(A) It is stipulated and acknowledged by the parties hereto that the Hardware
and Software are transferred as a part of a prepackaged system sold by NCC.
Except as may be specifically set forth in Exhibit A, neither the Hardware nor
Software have been customized by NCC to specially accommodate the Client's
particular business. NCC makes no warranty whatsoever and assumes no
responsibility for warranty with respect to the Hardware purchased under this
Agreement. Nee warrants that at the time of delivery of the Software, and for
a period of one (1) year thereafter, their performance shall be in substantial
accordance with the description provided in the user's manual. In the event any
Software are determined to be defective, Client's sole remedy shall be the
correction or replacement, as determined by NCC, of the Software as soon as
reasonably practicable, at NCCls cost and expense.
Alternatively, the Client maintains the option to exercise the software only
performance bond during the bonding period in which case such exercise shall be
Client's sole remedy.
(B) EXCEPT AS MAY BE EXPRESSLY SET FORTH HEREIN, NCC DISCLAIMS ALL WARRANTIES
ON HARDWARE AND SOFTWARE, INCLUDING WITHOUT LIMITATION, ALL IMPLIED WARRANTIES
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL NCC
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BE LIABLE FOR ANY SPECIAL CONSEQUENTIAL OR INCIDENTAL DAMAGES, HOWEVER CAUSED,
WHETHER FOR BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE OR OTHERWISE.
(C) NCC agrees to use its best efforts to assist Client in obtaining a
maintenance agreement for Hardware. Client shall bear all cost incurred in
securing any maintenance agreement and all costs set forth in the maintenance
agreement shall be paid and borne solely by Client.
ARTICLE 9: ENTIRE AGREEMENT:
(A) This Agreement, the Exhibits and any ancillary agreements referred to herein
embody the who le agreement of the parties. There are no promi ses, terms,
conditions, or obligations referring to the subject matter hereof other than
contained herein.
(B) No amendment or modification of this Agreement shall be valid or binding on
any party unless such amendment or modification is in writing and signed by the
duly authorized representatives of both parties.
ARTICLE 10: PRICE PROTECTION PRIOR TO DELIVERY: If at time prior to delivery
the manufacturer's price for any Hardware or related software delivered hereunder
shall be higher than the prices set forth herein for any such item, the prices
set forth herein shall prevail (provided that the anticipated delivery date shall
not have been delayed due to the act or omission of Client).
ARTICLE 11: SHIPMENT AND DELIVERY: Client shall pay and solely bear all delivery
costs and shall reimburse NCC for any insurance charges for Hardware and Software
covered by this Agreement.
ARTICLE 12:SITE PREPARATION/INSTALLATION/TRAINING:
(A) Client assumes full responsibility for the operating environment in which
the Hardware and Software are to function. The proper operating environment with
respect to the Hardware is set forth in the manufacturer's specifications. Site
preparation shall include, but not be limited to, meeting requirements for space,
air-conditioning, humidity control, electrical lines and power, communications
services, cabling and supplies needed for proper operation.
(B) Installation of the Hardware and Software is the sole responsibility of
Client except to the extent that installation services are expressly provided
in this Agreement. Additional training and services may be purchased at NCC's
established rates. Installation service, where applicable, does not include
modification of the Software, except as specified in Exhibit A (RFP). In the
event NCC provides installation services with respect to the Hardware, acceptance
of the Hardware will occur following NCC's successful completion of any such
installation services. Successful completion shall mean that all peripherals are
tested and in normal working order and that the CPU functions to manufacturer's
standards. Whenever installation services are not to be provided by NCC in
conjunction with the Hardware or Software, elient shall be deemed to have
accepted the Hardware and Software upon their initial inspection or after a
period of five (5) days have elapsed from the date of physical delivery at
Client's facilities, whichever occurs earlier.
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(e) elient agrees to designate a representative to whom Nee shall direct all
inquiries and responses to requests by Client (the "Client Contact"). In the
event Client fails to select a Client Contact, NCC may, in its sole discretion,
select an employee or other representative of elient to fill this capacity.
Client understands that NCC will rely upon this elient Contact as having the
authority specified hereunder and that communications from NeC to Client will
be ordinarily addressed to this Client Contact.
(D) elient shall be responsible for the conversion of its data to the format
required by the Hardware and Software on a 1,600 BPI 1/2" magnetic tape in
unpacked ASCII format with single record, blocking, file definition and record
layouts. NCC assistance is available and billable as noted in Article 5 (C)
above. NCC will provide documentation to the City of Clearwater regarding the
correct data format.
ARTICLE 13: RISK OF LOSS PRIOR TO INSTALLATION: All risk of loss upon delivery
and prior to installation of the Hardware shall be borne solely by Client. NCC
shall not bear any responsibility for delays in delivery and installation of
Hardware which are beyond its reasonable control.
ARTICLE 14: TAXES: Payment of any Sales and Use, excise or like taxes applicable
to the Hardware and/or Software as listed herein and delivered shall be the sole
responsibility of Client.
ARTICLE 15: DELIVERY/TITLE:
(A) Delivery will be made F.O.B., the point of shipping origination of the
Hardware and Software, respectively. NCC will not be liable for damages or for
delay in delivery or for failure to give notice of delay when such delay is due
to conditions beyond NCC's control. The delivery date provided in Exhibit ~ shall
be automatically extended for a period of time equal to the time lost due to any
delay excusable under this clause.
(B) NCC will prepay transit insurance and freight, and bill Client for actual
charges.
ARTIeLE 16: APPLICABLE LAW: The laws of the State of Florida shall govern the
interpretation of this Agreement.
ARTICLE 17: CONSENT TO BREACH NOT WAIVER: No term or provision hereof shall be
deemed waived and no breach excused, unless such waiver or consent shall be in
writing and signed by the party claimed to have waived or consented to such
breach. The consent by any party to, or waiver of, a breach by the other, whether
express or implied, shall not constitute a consent to, waiver of, or excuse for
any other different or subsequent breach.
ARTICLE 18: COMPLIANCE: If any term or provision of this Agreement shall be bound
to be illegal or unenforceable, then it shall be stricken. Whereupon this
Agreement, as so amended, shall remain in full force and effect.
ARTICLE 19: NOTICES: All notices under this Agreement shall be in writing and
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shall be deemed duly given; upon delivery, if delivered by hand (against
receipt); or three days after posting if sent by registered mail (receipt
requested); to a party hereto at the address hereinabove set forth or to such
other address as a party may designate by notice pursuant hereto.
ARTICLE 20: AUTHORITY: Each party has full power and authority to enter into and
perform this Agreement, and the person signing this Agreement on behalf of each
party has been properly authorized and empowered to enter into this Agreement.
Each party further acknowledges that it has read this Agreement, understands it,
and agrees to be bound by it.
ARTICLE 21: UCC APPLICABILITY: Except to the extent that the provisions of this
Agreement are clearly inconsistent therewith, this Agreement shall be governed
by any applicable provisions of the Uniform Commercial Code (the IICodell). To the
extent that th i s Agreement enta i 1 s de 1 i very or performance of servi ces, such
services shall be deemed "goods" within the meaning of the eode, except where
expressly inconsistent with the intent and purpose of the Code.
ARTICLE 22: ARBITRATION: All claims or disputes arising between the parties
hereto re 1 at i ng to the Agreement and its anc ill ary agreements or the breach
thereof or relating to any matters within the scope of this Agreement shall be
decided by arbitration in accordance with the Rules of the American Arbitration
Association then obtaining, unless the parties mutually agree otherwise. Notice
of the demand for arbitration shall be filed in writing with the other party or
parties to this Agreement and with the American Arbitration Association. The
award rendered by the arbitrator(s) shall be final, and judgment may
be enter~d upon it in accordance with applicable law in any court having
jurisdiction thereof. The provisions of this Agreement to arbitrate and any other
written agreement to arbitrate referred to herein shall be binding and
specifically enforceable under the prevailing Florida arbitration law, and the
venue of any such arbitration shall be Clearwater, Florida.
Anything contained herein to the contrary notwithstanding, NCC shall have the
right to apply to a court of competent jurisdiction for any injunction
restraining elient from violating or continuing to violate any of the
confidentiality provisions of this Agreement and any ancillary agreements; and
in general any equitable claims shall be brought before courts of competent
jurisdiction in the State of Florida and shall not be subject to arbitration as
provided in this Article.
In no event shall either party, hereto, be liable for monetary damage in excess
of $100,000 (one hundred thousand dollars) in the aggregate for claims brought
by NCC or City of elearwater, which are subject to arbitration, or the subject
of any lawsuit brought in an applicable court of competent jurisdiction,
including costs and attorney's fees.
Any legal action brought by or against the City of elearwater, not subject to
arbitration, such as tort or equitable claims, shall have its venue in the State
of Florida.
ARTICLE 23: FORCE MAJEURE: Neither party shall be responsible for or, shall be
deemed to have breached th i s Agreement by reason of, de 1 ay or fail ure in
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performance resulting from acts beyond the control of such party, or, causes
beyond the control and without the fault or negligence of such party. Such acts
shall include but not be limited to: an act of God; an act of war; riot; an
epidemic, fire, flood or other disaster; an act of government; a strike or
lockout; a communication line failure, power failure, or failure of the computer
equipment or non-NCC developed software.
I n the event Nee is de 1 ayed in the de 1 i very of the Licensed Program and
Materials, or the installation thereof, for reasons beyond its control, delivery
or installation shall take place as soon thereafter as is reasonably feasible.
ARTICLE 24: HEADINGS NOT CONTROLLING: Headings used in this Agreement are for
convenience only and shall not be used in construing or interpreting any
provision.
ARTICLE 25: NO ASSIGNMENT: Neither this Agreement, nor any right or interest
hereunder, shall be assigned by Client without the prior written consent of NCC.
Any assignment of attempted assignment, whether by operation of laws or otherwise
without the written consent of NCC shall at the option of NCC, be null and void.
ARTICLE 26: BINDING EFFECT: This Agreement shall be binding upon and inure to
the benefit of the parties hereto, their respective successors and assigns.
IN WITNESS WHEREOF, the Client and NCC have executed this Agreement as of the
date first above written.
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Approved as to form
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f:j# elty Attorney
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EXHIBIT "B"
Attached and made a part of that certain Agreement for Computing Hardware and
Software dated , 1990, between Network Computing
Corporation and City of elearwater.
SCOPE OF WORK SCHEDULE
The scope of services to be provided under this Agreement are as follows:
Hardware Related Services
* Order Hardware from manufacturers
* Coordinate delivery of Hardware
* Install Hardware
* Coordinate maintenance agreement
* Coordinate payments to NCC and manufacturers
System Initialization Services
* Perform system generations of the operating system and language processor(s)
* Organize application directories
* Provide specifications document
Systems Analysis and Specifications
* Analyze applicational needs (Estimated (2) days. T&L only.)
* Provide specifications document for modifications
Subsystem Implementations ~ General
* Training and installation support @ $350/day for this first 20 staff days.
* Documentation
* Training of System Manager
* Backup Training
* Operational Training
Subsystem to be Provided (see Exhibit E)
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EXHIBIT "C"
Attached and made a part of that certain Agreement for Computer Hardware and
Software dated , 1990, between Network Comput i ng
Corporation and City of Clearwater.
IMPLEMENTATION AND PAYMENT SCHEDULE
The following schedule shall apply to this Agreement:
Imp lementat ion - It has been mutually agreed upon, by both part ies, that
implementation shall commence immediately upon contract execution. Software
implementation shall be dictated according to the Client's schedule.
Payment -
*
$93,812.25 equal to twenty five percent (25%) of the total hardware and
software costs shall be paid to NCC upon contract execution.
The remaining balance of hardware costs shall be paid to NCC upon hardware
delivery, installation, and acceptance as defined in Article 13 and 15 of
th i s Agreement.
The remaining balance of base software license fees shall be paid to NCC
with i n th i rty (30) days of the time the base products are de 1 i vered,
loaded, and ready for use on the designated equipment.
Estimated modification cost of $20,938.00 (see Article 6) will be finalized
during the application needs analysis. These costs shall be billed as
delivered and payment will be due within thirty (30) days.
The first twenty (20) days of training and installation support shall be
billed, at $350.00 per day, as incurred and will be due within thirty (30)
days. Additional training and installation support, if requested by client
would be billed at $500.00 per day.
Ten percent (10%) of the total software contract price may be withheld by
the City of Clearwater until a 90 day trial period has elapsed, measured
forward from the system live date. In order to implement this provision
ten percent (10%) may be withheld from each software invoice submitted by
NCC.
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CITY OF CLEARWATER
DEPARTMENT OF ADMINISTRATIVE SERVICES--DIS DIVISION
NCC UTILITY/CUSTOMER INFORMATION SYSTEM
IMPLEMENTATION TARGET DATES
Contract Acceptance
Hardware Shippino
Reouirements Study
Parallel Testino
System Live
June 15, 1990
November 1, 1990
January 1, 1991
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EXHIBIT "D"
Attached and made a part of that certain Agreement for Computer Hardware and
Software dated , 1990, between Network Computing
Corporation and City of Clearwater.
HARDWARE LISTING SCHEDULE
The designated Hardware for this Agreement includes the following:
.QIY..:.. IT EM
1 VAX4000 WITH 32 MB of Memory,
6-RF31E-AA Disks,
TK70 296 MB
Cartridge Tape, VMS Unlimited
User License, VMS Services for
MS-DOS
1 TU-81 Plus 1600/6250 BPI
Tape Drive
PRICE
$188,020
2ND YEAR
MAINTENANCE
$ 7,824
34,654
2,004
2 LG-02 600 LPM Printer
1 CXY-08 RS232 COMM Board
28,812
2,101
22,530
2,832
216
2,880
5 DECServer 300, 16-Line
Terminal Servers
55 VT320 Terminals
Grand Total
29,205
3,690
5,046
10,986
4,517
750
$330,311
(52.850)
$277 ,461
1,980
516
576
2,016
Ethernet Devices
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LA-75 DOT Matrix Printers
LA-210 DOT Matrix Printers
Documentation & Media
1
Diagnostics Modem
$20,844
LESS: Municipal Discount
$20,844
Note: Hardware prices include 1st year maintenance.
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EXHIBIT "E"
Attached and made a part of that certain Agreement for Computer Hardware and
Software dated , 1990, between Network Computing
eorporation and City of Clearwater.
LICENSED SOFTWARE LISTING SCHEDULE
The following licensed Software applications are to be provided under this
Agreement:
PRICE
YEARLY
MAINTENANCE
NCC APPLICATIONS:
Utility Billing and Cash
Receipts
$50,000
$6,000
3RD PARTY APPLICATIONS:
IQ Intelligent Query
DIGITAL APPLIeATIONS:
$15,000
$1,800
Subtotal
$ N/C
9,668
21,064
2.056
$32,788
$ N/C
341
771
VMS Operating System
Cobol Development
RDB Development
Vaxcluster License
$1,112
Note: License Fees include 1st year maintenance fees.