SYSTEMS MAINTENANCE SERVICES (SMS) 1 - 2007

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• • SMS Response: SMS is pleased to propose a line item price proposal for hardware maintenance support of the HP hardware outlined in Table A of Section 1.2, above. As noted on Page 4 of the attached SMS Maintenance Service Agreement (N103), pricing is based on 7x24 coverage with a 3-hr on-site response time and a 24-hr return-to-service guarantee. Alternatively, a 20% uplift can be applied to provide "a 6-hrreturn-to-service guarantee. The City indicated in the vendor meeting of June 19, 2006 that a number of servers are still currently under warranty. It was agreed that for purposes of this RFP all prospective vendors were to price these systems as if no systems were under warranty. If SMS is selected as the vendor of choice for the City, SMS can provide warranty and extended warranty coverage at a fraction of the OEM and even SMS standard pricing. A "warranty uplift" option to fu117x24 on~ite service carries all the services and coverage as the other systems that SMS is proposing to maintain. For example, SMS is capable of expanding the standard warranty (typically next day delivery of parts only) to full 7x24 on-site service for a very incremental charge (ie. DL360 is about $14/mo for complete 7x24 coverage). At the expiration of the warranty the uplift ends and full SMS coverage would apply from that point forward. A full list of those prices and will be provided when serial numbers and warranty systems are divulged. SMS continues to strive to offer a fair, flexible and competitive pricing model to all our maintenance clients. We understand that not all industry data centers have the exact same emergency response requirements and so we are pleased to provide the City of Santa Ana pricing options that meet its particular "call-close" requirements. In order to help the City of Santa Ana evaluate our responsiveness and ability to meet the City's call close-0ut time requirements, we would like to share some empirical data that identifies a sampling of our standard support so that the City can decide which pricing plan will be best for its service requirements. Attached are call logs from 2 of our larger southern California clients. These logs report ail service calls for a period of 14 and 21 months including when the call was first initiated to when the call was closed-out. Unless a specific meeting date and time was pre-scheduled by the client,100% of the calls were closed-out well within the City's 24-hr requirement and virtually all the calls were closed out within the 6 hr timeframe, even without that contractual requirement. Does the City need the "6 hour guarantee" option at a 20% increase in its cost if our current "3 hour response" support meets the actual requirements virtually all the time anyway? Not sure? SMS can offer the following options: 1) Try our coverage with standard "3 hour response" under a 90-day or 120-day evaluation. 2) Select the higher service level only for the most critical servers. Save 20% on the rest. • SMS will allow the client to change coverage per serial number How can SMS consistently meet and exceed our clients' service requirements? Speed • We answer all calls immediately and directly by our technical staff • We stock 100% of the systems, parts and components on your agreement in Cerritos • We provide hot-sparing to eliminate on-site surprises (ie Out-of-Box DOAs) • We built a nationwide company with 23 service centers all with back-up inventory Skill • Our technical staff is experienced and skilled at maintaining HP, IBM, Sun and Dell servers • We have 25 years of experience supporting mission~ritical data centers