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