Editors' Choice: Technology Refresh--A Multi-College Approach.

The author describes a cooperative purchasing effort initiated by Florida community colleges and extended to all the state's postsecondary institutions that has resulted in some $33 million in savings on computer technology purchases for participating institutions. This report describes how the resulting Technology Refresh Program has assured the continual upgrading and maintenance of computers purchased by the institutions and provided faculty, staff, and students with the opportunity to join the cooperative program for personal computer purchases.

The editors' choice selection is reserved for unreferced practitioner reports that describe approaches to specific issues confronted by community colleges. This report focuses on a cooperative purchasing effort by Florida community colleges that resulted in savings on information technology equipment and maintenance.

How does a college or university maintain state-of-the-art personal computer technology in a time of rapid advancements in hardware and software? How does one approach this challenge, determine the solution, implement the solution, afford the outcome, and manage the process? Pensacola Junior College in Florida (PJC) has accomplished this task with the assistance of its 27 sister state community colleges. The following narrative describes this accomplishment.

History

Four years ago, PJC attempted to address the challenge of maintaining state-of-the-art personal computers (PCs) in its laboratories and offices. Technology was advancing so rapidly that computer equipment was becoming obsolete in two to three years. PC technology was being integrated into all aspects of the college, thus demanding more resources, support services, and technical expertise. Four major PC manufacturers were contacted to attempt to determine a solution to this ongoing four-part problem: affordable acquisition, attractive financing, maintenance provided by the manufacturer throughout the useful life of the PCs, and equity recovery upon replacement. The outcome of that effort was no takers. None of these personal computer manufacturers was willing to work with the college to provide a solution to this four-part question. The college then attempted to solve this problem piecemeal, with marginal success by volume purchases, depot maintenance, auctioning obsolete PCs, and standardization of hardware and software college-wide. The colleges 2,500 PCs, though significant in number, still did not attract the interest of major PC manufacturers.

In the summer of 1997, an opportunity arose to address this problem again. The business affairs office at Pensacola Junior College contacted interested PC manufacturers and retailers and determined that an efficient solution could be created. The solution focused on technology refresh, a phrase used in the computer industry to describe the cyclical replacement of technology. Thus, the Florida Community College Technology Refresh Program (TRP) was developed.

Process

On February 9, 1998, a meeting was held at the state capital to discuss the Florida community colleges' interest in jointly implementing a statewide program to refresh technology resources at each college. Attendees included more than 60 representatives from the colleges--business officers, MIS staff, purchasing staff, and information technology staff. It was agreed at this meeting to pursue the development of a cooperative Request for Proposals (RFP), which could result in a master contract and standard financing documents for this program. The intent of this RFP was to establish stable and attractive pricing, trade-in values, and tax-exempt financing options, allowing participating colleges to refresh technology on a cyclical basis.

To acquire the information needed to begin developing this RFP, a survey instrument was developed and disseminated to collect data on all colleges' computer inventories, future expansion, current PC configurations, maintenance practices, information technology capabilities, and financing needs. The data collected from the survey were compiled and incorporated in a Request for Proposals dated April 10, 1998, which was forwarded to more than 30 pre-contacted and interested personal computer manufacturers, retailers, and financing organizations.

A pre-RFP conference was held on May 1, 1998, with more than 20 potential proposers and an equal number of college representatives. This conference resulted in three RFP addendums clarifying the intent and certain issues of the proposal request.

Proposals, two stacks more than four feet tall, were publicly opened on May 21, 1998, and formally evaluated on May 27, 1998, by a team of college personnel from eight of the colleges. The evaluation was conducted in a public meeting with more than a dozen of the proposers in attendance, strictly as observers. This resulted in a short list of four proposers and sin. proposals. Formal presentations were given by the finalists from June 8 through June 10, 1998, resulting in one proposer and two proposals being eliminated. The remaining finalists then delivered the proposed equipment--pre-configured, "bundled" computer systems as specified in the RFP--to each of three colleges for technical testing and evaluation by information technology staff at the colleges. The TRP Evaluation Committee then considered RFPs, formal presentations, and technical evaluations, and unanimously selected a proposal and a vendor to be our TRP partner (Dell Computer Corporation).

Contract Highlights

The resulting contract with the vendor resulted in these benefits to our participating colleges:

   PCs at no less than 22.5% under list price, this discount applicable to all
   future PCs and future list price reductions;

   peripherals at 5% over the vendor's cost;

   three-year maintenance included in the price of purchase, lease, or
   lease-purchase, with other maintenance options offered;

   very aggressive tax-exempt lease-purchase financing; 11% trade-in values
   guaranteed;

   dedicated Web site access for ordering and technical assistance, and links
   to other associated Web sites;

   same PC and peripheral prices available for personal purchases by faculty,
   students, and staff;

   a formula-based process for future determination of personal computer
   prices by college determined configurations and components;

   access to the vendor's long-range road-mapping plans (quarterly meetings to
   disclose and discuss advances in soon-to-be available technology, projected
   price reductions, and service improvements);

   and numerous other beneficial services and features.

The participating colleges formed a Steering Committee and Technology Committee to govern this venture. The Steering Committee consisted of business officers, purchasing directors, and information technologists who volunteered from the participating colleges. Additionally, the Technology Committee consisted of personal computer technicians, network specialists, and other technical experts. These volunteers were endorsed by the colleges and made responsible to the Council of Business Affairs, an organization composed of the 28 chief business officers for the participating colleges.

At this writing in March 2000, the Steering Committee, jointly with the vendor, has reconfigured the TRP computer bundles nine times in little more than a year and a half--since September 1, 1998, the date the contract commenced. These new bundles resulted in lower costs; faster chips; additional memory; the addition of laptops, servers and workstations; flat screen options; and other improvements. Most of these improvements were initiated by the vendor through the road-mapping meetings we have held with them. Florida's community college system is clearly taking advantage of the advances in technology and not spending limited resources on soon-to-be-obsolete equipment.

Cost Savings

There are currently 62,000 personal computers in use among Florida's community colleges. Based on a three-year refresh cycle, the colleges will save an estimated $33,108,000 or $534 per personal computer (based on the RFP price versus state contract price or discounted list price of comparable PCs). Savings will also be realized in purchasing software, printers, scanners, and other computer related equipment at 5% over cost to the vendor or 7.5% under the vendor's list price for other PCs and servers (estimated savings of $3 to $5 million over three years). The colleges have been expending approximately $17,000,000 per year for PC technology in each of the last four years. The savings on maintenance, labor, parts, and other costs will be significant. At PJC alone, the business office estimates $50,000 annually in savings. The 28 colleges could generate $1,400,000 savings in maintenance-related costs. During the first years of operation, Florida's community colleges purchased in excess of $29.5 million worth of personal computers through the Tech Refresh Program and have saved an estimated $12.5 million over previously negotiated pricing with a multitude of PC providers. Additionally, students, faculty, and staff have purchased in excess of $3,050,000 worth of PCs through Tech Refresh.

Long-Term Relationship

The vendor and the Florida community colleges and universities have entered into a long-term relationship that is held together solely by the vendor providing the highest quality equipment, services, and financing at these low costs. This Technology Refresh Program gives Florida colleges and universities direct access to the vendor's decision-makers and, in turn, provides the colleges the necessary information to use the limited resources available for technology in the best possible way. A technology refresh program and the process designed by the cooperating colleges to create this program can be replicated by other groups of colleges, universities, and school systems, with any number of interested personal computer manufacturers or retailers. As a business affairs officer at one college in the Florida system, I can report that the colleges have been thoroughly satisfied with this relationship with the vendor and the benefits gained from Tech Refresh. We strongly encourage the implementation of a technology refresh program in any system or consortium of educational institutions. Such a program can help colleges to maintain current technology and make the most efficient use of monies allocated for computer purchases.

At this writing in March 2000, 65 institutions, including community colleges, public universities, and private universities, have joined the program, with a potential inventory of 150,000 computers to be refreshed with state-of-the-art technology provided and maintained by the vendor with significant savings.

Rand Spiwak serves as vice president for business affairs at Pensacola Junior College in Pensacola, Florida. [e-mail]

(Copies of the 430 pages of the RFP, survey, contract, financing documents, the vendor's proposal, and the technology refresh Web site, can be viewed on a CD prepared by Pensacola Junior College by contacting Dr. Rand Spiwak, Vice President for Business Affairs, Pensacola Junior College, 1000 College Blvd., Pensacola, Florida, 32504, 850/484-1725 phone or 850/484-1827 fax. The vendor's technology refresh Web site can be viewed at http://www, dell. com/premier with usemame trp and password trp. This is a view-only site for information purposes.)