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HomeMy WebLinkAboutB&L assoc. documentsB&L ASSOCIATES 220 Reservoir Street (suite 15) Needham, MA 02494 EMAIL March 23, 2004 To: James Osteen Jr. From: Bryce Kramer Jim, Jim, prior correspondence shows, B&L has gone a long way toward helping the City of Miami proceed with their upgrade by offering special consideration. Following up on yesterday's phone conversation, I am authorized to offer one final consideration. I believe there is a purchase order in process as I write this letter for product support for 2004 on the current processor. The amount is $53,620. With the processor upgrade that amount will increase to $57,855 for the first year. B&L will not charge any additional product support for the calendar year 2004. Thank you for the long and valued business through the years. I hope this helps. Please contact me with any questions. Best regards, Bryce R&L ASSOCIATES, INC. Voice; 781-444-140* Fax: 781-444-5805• Email: info@bandl.com •Web Site: www.bandl.com B&L ASSOCIATES 220 Reservoir Street (suite 15) Needham, MA 02494 EMAIL February 5, 2004 To: James Osteen Jr. From: Bryce Kramer Jim, I have gone through the files to gather some history. We have been doing business with the City of Miami since 1983 but I only went back five years since that is the relevant time period. In March, 1998 the City of Miami licensed BBARS for the A17 processor for $75,000. Our contract number is D978429. It was a five year license. In February, 1999 the City of Miami licensed the software shown below for a NX5822-32 (RPM 1915) processor to replace the A17. Our contract number is D986742-R2, The license fees were $309,000 reduced to $116,737 after discounts and license credits. The primary credit ($75,000) was for BBARS since it was only one year into its license cycle on the A17. This license was permanent for the NX5822-32 processor. When a processor changes the license terminates and license credits are applied on a five year prorated bases per item 5.1 of the agreement. That license for the NX was effective on March 1, 1999 and the license credit period expires on February 29, 2004; therefore not credits are due. NX5822-32 BBARS 100,000 BL/LIB 43,900 BL/ROBO (robotic interface) 22,000 BL/VIEWER 13,933 BL/PACK 39,900 BL/SCHED 50,485 13L/DIST 39,600 Total License Fees 309,818 The City of Miami is now replacing the NX5822-32 processor with a Libra-520 using two partitions, one rated at 2430 RPMs and the other rated at 729 RPMs. The RPMs total 3159. The new processor is about 60% more powerful than the NX5822-32 processor. Since our software is priced upon processing power, this would make the pricing fall into a higher price class as shown in the October 1, 2003 email. However, based upon our phone conversation regarding the City's migration to open systems and reducing the B&L ASSOCIATES, INC. Voice: 781-444-1404 Fax: 781-444-5805 Email: info@bantil.com Web Site: www.bandl.com B&L ASSOCIATES 220 Reservoir Street (suite 15) Needham, MA 02494 RPM's over the next couple of years, I have been authorized to offer pricing at the reduced 2000 RPM price point. This represents a dramatic savings for the City. The five year license fees are shown below. The $340, 000 price (before discounts) is only 10% higher than it was five years ago and the software will be running on a processor that is 60% more powerful. When you apply the discounts, the five year license fees are reduced to $272,266. That is six major applications averaging about $45,000 per application. Jim, a permanent license was not shown in my prior email since it is 10% higher than the, five year license and it has been our history over the past 28 years that only about 2% of our clients keep a processor over five years. That alternative should have been presented in the prior email and I am presenting it now as another alternative. Net License License Product Fee Discount Fee BBARS 79,090 20% 63,272 BL/LIB with label 49,244 20% 39,395 BL/ROBO 34,471 20% 27,577 BL/VIEWER 12,496 20% 9,997 BL/PACK 51,706 20% 41,365 BL/SCHED 56,695 20% 45,356 BL/DIST 56,630 20% 45,304,1 Total 340,332 272,266 License terms of less than five years are always offered at a premium. I am authorized to offer the City of Miami shorter license terms at no premium. The table is shown below. The product support charge in the right hand column applies regardless of license term selected but it has already been paid through the end of 2004. B&L ASSOCIATES, INC. Voice: 781-444-1404 Fax: 781-444-5805 Email: info@bandl.com Web Site: www.bandl.corn B&L ASSOCIATES 220 Reservoir Street (suite 15) Needham, MA 02494 License Term (Years) Product 5 4 3 2 1 BBARS 79,090 63,272 47,454 31,636 15,818 BL/LIB with label 49,244 39,395 29,546 19,698 9,849 BL/ROBO 34,471 27,577 20,683 13,788 6,894 BLIVIEWER 12,496 9,997 7,498 4,998 2,499 BL/PACK 51,706 41,365 31,024 20,682 10,341 BL/SCHED 56,695 45,356 34,017 22,678 11,339 BL/DIST 56,630 45,304 33,978 22,652 11,326 ,- Total 340,332 272,266 204,200 136,132 68,066 Less Discount 68,066 54,453 40,840 27,226 13,613 Net License Fees 272,266 217,813 163,360 108,906 54,453 Yearly Support 13,445 8,371 5,860 2,124 8,790 9,638 9,627 57,855 57,855 Offering the reduced price point, a substantial discount and a shorter license term at no premium is our way of trying to make it work. I hope it helps. Your moving to open system coincides with our plans. We are moving all our systems to an open environment. Our BL/LIB product has already been moved and others will follow. The BL/LIB for open systems is a product called Vertices and you can see more about it at www.vertices.net. We are working on WEB interfaces to all of our products. BL/SCHED is the first product to have this interface and we anticipate having a.beta version of the web based BL/SCHED available by June 1. After the web interfacing is done, our plan is to move the DMS database to a SQL database on a WINDOWS server and then move all the middleware. The WEB interface for the WINDOWS version will be exactly the same as the ones for the MCP version. This is very good for our customers since they will be able to seamlessly move from the MCP to open systems with one central point of control. Please contact me with any questions. Best regards, Bryce B&L ASSOCIATES, INC. Voice: 781-440-1404 Fax: 781-444-5805 Email: info@bantil.com Web Site: www.bandl.com