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HomeMy WebLinkAboutResolution - 6019 - Contract - Strategia Corporation - Research Of Embedded Chips, Various Equipment - 09/24/1998Resolution No. 6019 Item No. 47 September 24, 1998 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a contract for research of embedded chips in various equipment for Year 2000 compliance, by and between the City of Lubbock and Strategia Corporation,. and related documents. Said contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this 24th day of September 1998. IND 0 J) 11, 1 IMMILIJ ATTEST: /". Ka arnell City Secretary APPROVED AS TO CONTENT: Ron L. Lewis Assistant to the City Manager APPROVED AS TO FORM: William de Haas Competition and Contracts Manager/Attorney Ccdocs/Strategia9-24-98.Res September 24, 1998 ti Resolution No. 6019 Item No. 47 September 24, 1998 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF LUBBOCK AND STRATEGIA CORPORATION STATE OF TEXAS COUNTY OF LUBBOCK This Agreement is between the CITY OF LUBBOCK, a municipal corporation, hereinafter referred to in this agreement as "CLIENT", and Strategia Corporation, located at P.O. Box 37144, Louisville, Kentucky 40233-7144, hereinafter referred to as "CONSULTANT" WHEREAS, the CLIENT is seeking to identify and remediate systems which may not be Year 2000 Compliant; WHEREAS, the CONSULTANT is an experienced professional in the area of Year 2000 services and other related areas with particular knowledge of this Project, possesses the skill and expertise required, and has the personnel resources to perform the required work; and, WHEREAS, the Agreement provides for the performance by the CONSULTANT of required services for the Project, as set forth herein; NOW, THEREFORE, for and in consideration of the promises, covenants and agreements herein contained, the parties mutually agree as follows: I. SCOPE OF SERVICE CONSULTANT agrees to perform the services (the "Services') described in its Revised Response, dated May 21, 1998, to RFP #98072 (the "Response") (except that the total Professional Fees shall be $215,000 rather than the $265,625 stated on page 42 therein). The Response is attached hereto as Exhibit A and incorporated herein. CONSULTANT shall furnish all necessary labor and supervision, except as specified hereunder to be furnished by CLIENT, and shall perform the Services subject to and in accordance with the terms and conditions of this agreement. CLIENT may elect to forego any particular Service or Services by providing written notice of such election to CONSULTANT at any time; provided that even if CLIENT elects to forego Services, there shall be no reduction in the Professional Fees to be paid. CONSULTANT may, but shall not be required to, also provide such other services not specified in the Proposal as the CLIENT may request in writing from time to time (the "Additional Services'): PSA0803981MG 1 This Agreement shall supercede all prior agreements, and understanding between the parties with respect to all subject matter hereof, except as maybe otherwise specifically provided in this Agreement. The parties may amend this Agreement to more specifically define the Services, to engage CONSULTANT for Additional Services, or to define the Additional Services. Any amendment to this Agreement shall be in writing executed by both parties. Exhibit A, the Response, is hereby made an integral part of this Agreement (except that the total Professional Fees shall be $215,000 rather than the $265,625 stated on page 42 therein). CONSULTANT personnel performing Services and Additional Services shall be and will remain at all times, employees, and/or sub -contractors of CONSULTANT. CONSULTANT employees and/or sub -contractors assisting the CLIENT under this Agreement who are found, in the CLIENT's reasonable opinion, to be incompetent to provide the Services to be performed hereunder, shall be removed by CONSULTANT promptly upon receipt of a written request by the CLIENT setting forth the basis for the determination of incompetence. Such employee shall be replaced with another CONSULTANT employee reasonably satisfactory to the CLIENT as soon as possible. I\ Jt_: �, • _- A. CONSULTANT shall procure and carry, at its sole cost and expense through the life of this Contract insurance protection hereinafter specified, in form and substance reasonably satisfactory to the CLIENT. CLIENT has the right to delay the commencement of any activities whether performed by the CONSULTANT, subcontractor, agents, or third parties pending CLIENT's determination of satisfaction, which determination shall not be unreasonably conditioned, delayed or withheld. The insurance carrier must be an insurance company authorized to transact business in the State of Texas and have a Best's Financial rating of A:VH. A Certificate of Insurance specifying each and all coverage shall be submitted to CLIENT prior to the execution of this Contract. All insurance shall be prepared and executed by the insurance company or it's authorized agents and shall contain, if reasonably obtainable, (a) an endorsement naming the CLIENT an additional insured, (b) a provision requiring written notice of cancellation or any material change will be provided thirty (30) days in advance of cancellation PSA080398TMG 2 i or change, and (c) other than with respect to Worker's Compensation, a waiver of subrogation in favor of CLIENT and cross liability and severability clauses. B. CONSULTANT shall obtain and maintain policies of insurance throughout the Contract term in limits specified below. L Worker's Compensation. The CONSULTANT shall maintain Worker's Compensation and Employer's Liability insurance coverage as required by statute or coverage approved by the City Risk Management Coordinator. 2. Commercial General Liability. The CONSULTANT shall maintain Commercial General Liability coverage endorsed to include premises/operations, contractual liability, independent contractors' and completed operations. The policy shall have a minimum of One Million and no/100 Dollars ($1,000,000) combined single limit in the aggregate and per occurrence. CLIENT shall pay CONSULTANT upon the completion of the Services according to the schedule set forth below. CONSULTANT's professional fees for the Services shall be $215,000 (the' Fee') plus reasonable expenses incurred by CONSULTANT, not to exceed $10,000 (plus the amount of any additional expenses that are incurred because of delays caused by, or other fault of, the CLIENT). Each invoice for reimbursable expenses will be supported by (a) an itemised description of expenses claimed, (b) pertinent information relative to the expenses, and (c) attached receipts when such receipts are reasonably available. Amounts due to CONSULTANT shall be paid within 5 days of CLIENT's receipt of in invoice for same. CONSULTANT shall bill CLIENT for Services rendered upon completion and delivery of the items identified in the following table: PSA0803981MG 3 or change, and (c) other than with respect to Worker's Compensation, a waiver of subrogation in favor of CLIENT and cross liability and severability clauses. B. CONSULTANT shall obtain and maintain policies of insurance throughout the Contract term in limits specified below. L Worker's Compensation. The CONSULTANT shall maintain Worker's Compensation and Employer's Liability insurance coverage as required by statute or coverage approved by the City Risk Management Coordinator. 2. Commercial General Liability. The CONSULTANT shall maintain Commercial General Liability coverage endorsed to include premises/operations, contractual liability, independent contractors' and completed operations. The policy shall have a minimum of One Million and no/100 Dollars ($1,000,000) combined single limit in the aggregate and per occurrence. CLIENT shall pay CONSULTANT upon the completion of the Services according to the schedule set forth below. CONSULTANT's professional fees for the Services shall be $215,000 (the' Fee') plus reasonable expenses incurred by CONSULTANT, not to exceed $10,000 (plus the amount of any additional expenses that are incurred because of delays caused by, or other fault of, the CLIENT). Each invoice for reimbursable expenses will be supported by (a) an itemised description of expenses claimed, (b) pertinent information relative to the expenses, and (c) attached receipts when such receipts are reasonably available. Amounts due to CONSULTANT shall be paid within 5 days of CLIENT's receipt of in invoice for same. CONSULTANT shall bill CLIENT for Services rendered upon completion and delivery of the items identified in the following table: PSA0803981MG 3 Project.go Price t 30% Signing of the contract by appropriate Strategia $64,500 Project.go Price Milestone 1 Signing of this Contract 30% Signing of the contract by appropriate Strategia $64,500 personnel Council approval of contract and signature of the Mayor of the City of Lubbock. Milestone 2 Project Plan Finalization 20% Formulation of a high-level project plan for the $43,000 identified quantity of embedded systems, number of buildings, PLCs and vehicles involved. Review of available resources. Delivery of agreed upon Project Status Report. Delivery of Project Plan. Milestone 3 Facilities & Infrastructure Walk 25% Downs and Verify Inventory $53,750 Conduct walk throughs to verify inventory and physical infrastructure. Deliver a verified list of system/devices by vendor, make, model, serial number, language, and platform which need to be tested for Year 2000 Compliance. Deliver the risk and severity -weighted scale report. Milestone 4 Vendor Survey and Analysis 25% Gather agreed upon information regarding the $53,750 inventory and provide vendor compliance forms. Analyze the information received from the vendor's and provide a grid illustrating vendor compliance results. Provide detailed findings in hard copy or magnetic media format. Provide an executive -level presentation to City of Lubbock officials, detailing the risk of the various options. Provide management with a method of monitoring programs through the Year 2000 Payment by the CLIENT shall be initiated upon receipt of the invoice and are due no later than five (5) days from invoice receipt. All deliverables and related invoices will be directed to: Mr. Ron Lewis City Manager's Office City of Lubbock P.O. Box 2000 Lubbock, TX 79457 PSA080398TMG 4 It is expressly agreed that under no circumstances shall the CLIENT be responsible for payment or CONSULTANT be entitled to compensation for any services or expenses, other than as set forth herein, unless such additional amounts are approved by CLIENT in writing and in advance. CONSULTANT shall pay any fees owed to its employees or subcontractors for their services rendered in connection with this Agreement from the fees paid by CLIENT pursuant to this Agreement. Mj TO I Folfull►. v Yis) ► I is)�1 ►M If either party shall breach this Agreement, the other party may give notice of termination, which shall specify the manner in which the Agreement has been breached. If the breaching party has not cured the breach within 10 days of receipt of the notice of termination (not to exceed a total of 30 days during the duration of this Agreement), this Agreement shall be automatically terminated. If it has been cured within such period, this Agreement shall remain in full force and effect. Upon such a termination, neither party will have further obligation to the other except for (a) any Required Payments (defined below) and (b) any liability for any breach of this Agreement occurring prior to the termination. "Required Payments" are payments that are or become due under this Agreement relative to Services and reimbursable expenses and costs incurred prior to termination. Required Payments would always include (to the extent not previously paid) CONSULTANT's reimbursable expenses incurred through the date of termination and the fixed price for any of the items set forth in Section VI of this Agreement ("Items") that are completed prior to termination plus, if CONSULTANT has commenced but not completed one or more Items, a portion of the fixed price for that Item determined as follows: (a) if this Agreement is terminated pursuant to notice from CLIENT, the portion shall be an amount that is equitable based on the value, if any, of all portions of that Item that are delivered relative to the value the Item would have had if it had been completed or (b) if this Agreement is terminated pursuant to notice from CONSULTANT, the portion shall be based on CONSULTANT's percentage completion with respect to that Item determined in accordance with customary industry standards including but not limited to generally accepted accounting principles. Termination of this Agreement will not cause reversion to CONSULTANT of any rights acquired by CLIENT under this Agreement. 11 • ►I. 1• _. ►MM F41 _ ywas) I z K 10) -1 -AUT : M • z A. CONSULTANT shall retain all information received from or concerning the CLIENT and the CLIENT'S business in strictest confidence and shall not reveal such information to third parties without prior written consent of the CLIENT, unless otherwise required by law. B. CLIENT shall retain all information received from or concerning the CONSULTANT and the CONSULTANT'S business in strictest confidence and PSA080398TMG t shall not reveal such information to third parties without prior written consent of the CONSULTANT, unless otherwise required by law. This section shall survive termination of the Agreement for any reason. The CLIENT shall be the owner of all work papers created and software developed or delivered in connection with this Agreement (other than those that pertain to Year 2000 services generally and not to the CLIENT specifically). CONSULTANT shall deliver such work papers that it develops and are owned by CLIENT. CONSULTANT shall be entitled to retain a duplicate set of work papers for its files for informational purposes and not for duplication or distribution. IX. RESPONSIBILITY OF THE CLIENT The CLIENT will: A. Provide, in a timely fashion, information as to its requirements for the Project as described in the approved final schedule. B. Assist CONSULTANT as described in the Response and by placing at its disposal all available information pertinent to the Project including previous reports and any other data relative to the project as is requires by the approved final schedule. C. Furnish to CONSULTANT, as required for performance on CONSULTANT services, data, and other special research and available and appropriate professional interpretations of all the foregoing. D. Examine all studies, reports, specifications proposals, and other documents presented by CONSULTANT, in a timely manner, and render in writing the decisions pertaining thereto within time as described in the approved final schedule. E. Designate an individual to act as the CLIENT's Project Manager on behalf of the CLIENT, with respect to the work to be performed under this Agreement. F. Give prompt written notice to CONSULTANT whenever the CLIENT observes or otherwise becomes aware of any development that affects the scope or timing of the CONSULTANT's services. A. CONSULTANT warrants that it is fully qualified to perform the Services as described on Exhibit A, and except as set forth therein, has all the equipment, materials, supplies and other items necessary to complete the Services. B. CONSULTANT warrants that the Services performed will conform to generally accepted standards for the type of project involved and that it will use its best efforts to render the Services required in a timely and diligent manner. PSA080398TMG 6 C. CLIENT's sole and exclusive remedy for any breach of warranties in this Article X shall be for CONSULTANT to remedy any defects in CONSULTANT's deliverables of which defects it receives notice during the term of this Agreement or within six months thereafter. CONSULTANT shall provide such remedy in a timely fashion and at no cost to CLIENT. D. Except as expressly provided herein, CONSULTANT MAKES NO WARRANTY, EXPRESS OR IMPLIED (INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE) TO THE CLIENT OR TO ANY OTHER PERSON WITH RESPECT TO THE SERVICES TO BE PROVIDED BY CONSULTANT PURSUANT TO THIS AGREEMENT. CLIENT understands, acknowledges, and agrees that none of CONSULTANT's subcontractors, suppliers, or licensors shall have any liability in their capacities as such in connection with the Services. E. CONSULTANT's aggregate liability to the CLIENT arising out of or related to this Agreement shall not in any event exceed the aggregate amounts paid by the CLIENT to CONSULTANT for Fees pursuant to the terms of this Agreement. Under no circumstances shall CONSULTANT be liable for consequential, incidental, special, or punitive damages. CONSULTANT shall have no liability under this Agreement to any Person not a party to this Agreement. CLIENT shall indemnify and hold CONSULTANT harmless against any liability related to this Agreement or the Services asserted by any Person not a party to this Agreement. F. CLIENT represents and warrants to CONSULTANT that CLIENT has sufficient intellectual property and contractual rights with respect to the hardware and software to which the Services are to be applied so that the provision of the Services as contemplated by this Agreement will not violate any third party's rights. Subject to the foregoing, CONSULTANT warrants that the rendering of the Services hereunder, including any work product resulting from the Services will not violate any rights including but not limited to intellectual property rights, of any persons, or any laws. G. Notwithstanding anything therein to the contrary, all provisions of RFP #98072 that relate to representations and warranties are explicitly superceded by this Agreement and shall be of no force and effect. CLIENT explicitly acknowledges and agrees to the foregoing and agrees not to in any way enforce any such provisions in RFP #98072 and specifically not to enforce any provision Section I.16 thereof. ETTILIKS) CONN= The following conditions are incorporated into the understandings associated with this Agreement: A. CONSULTANT's project team members will have the opportunity and authority to contact personnel of the CLIENT directly in the performance of consulting duties. PSA080398TMG 7 B. CONSULTANT shall testify, when required by CLIENT, on CLIENT's behalf, in any court or governmental or regulatory agency hearings or proceedings relative to the work performed under this Agreement at CONSULTANT's then current hourly rate plus expenses. C. Disputes on any matter relating to this Contract shall be discussed and resolved by authorized representatives of each Party who have the authority to bind the party that they represent. The Parties shall use their best efforts to amicably and promptly resolve the dispute. However, if the dispute is not resolved in the foregoing manner, either party may pursue appropriate legal and equitable remedies in a court of competent jurisdiction. Other conditions may be added to this Agreement in the future by mutual consent of both parties. D. The Services require a significant amount of input and participation by members of CLIENT's staff. Significant delays in providing such input and participation will cause delays in the performance of Services. The fees for Services will be increased to CONSULTANT's then current service rates for all Services so significantly delayed. If Services are delayed significantly by CLIENT's delay in providing such input and participation, CONSULTANT may be unable to provide the Services on a timely basis because of commitments made by CONSULTANT to others. Such a failure to provide the Services on a timely basis shall not constitute a breach of this Agreement by CONSULTANT. XII. ADDRESSES OF PARTIES TO AGREEMENT All correspondence, contacts, and communications other than invoices between the parties to this Agreement shall be deemed to be made when delivered or when actually received by fax or electronic mail at the following addresses or such changed address for a party as it may give to the other by notice: City of Lubbock, Texas Strategic Corporation P.O. Box 2000 P.O. Box 37144 Lubbock, Texas 79457 Louisville, Kentucky 40233-7144 Attention: Mr. Ron Lewis Attention: Richard W. Smith Phone: 806-775-3373 Phone: 502-426-3434 Fax: 806-775-2051 Fax: 502-426-2662 XIII. APPLICABLE LAW This contract shall be governed by and construed in accordance with the laws of the State of Texas. The parties hereto hereby irrevocably consent to the exclusive jurisdiction and venue of the courts of the State of Texas, County of Lubbock, for the purposes of all legal proceedings arising out of or relating to this contract or the actions that are contemplated hereby. PSA080398TMG 8 7 � f XIV. RECORDS CONSULTANT shall maintain records that are necessary to substantiate the services provided by CONSULTANT. XV. INDEMNITY CLIENT represents and warrants to the CONSULTANT that CLIENT has sufficient intellectual property and contractual rights with respect to the hardware and software to which the Services are to be applied so that the provision of the Services as contemplated by this Agreement will not violate any third party's rights. Subject to the foregoing, the CONSULTANT warrants that the rendering of the Services herein, including any work product resulting from the Services will not violate any rights including but not limited to intellectual property rights of any persons or any laws. CONSULTANT agrees to protect, defend, hold harmless, indemnify the CLIENT against any claim, damages, liability, losses, and expenses arising out of any threatened, actual, or alleged claim of a breach of CONSULTANT's warranty set forth in this section XV. XVI. TERM The Agreement will commence on the date of this Agreement and terminate six months (plus the length of any delays caused by CLIENT) later. The provision of Services shall be deemed to be complete when all deliverables described in Exhibit A as being part of the Services have been accepted by CLIENT. Each deliverable will be deemed accepted if CLIENT does not notify CONSULTANT of actual material deficiencies in that deliverable within 21 days after it is delivered to CLIENT. XVII. MISCELLANEOUS A. It is understood and agreed that CONSULTANT and CLIENT are independent contractors. At no time will CONSULTANT or CLIENT or any of their respective employees or agents hold themselves out as or act as agents for the other. Neither CONSULTANT nor CLIENT nor their respective employees or agents shall be entitled to any benefits from the other party except as stated in this Agreement, nor shall they expose the other party to any liability for taxes or any other cost or expenses (except as permitted) in connection with the Services. Accordingly, CONSULTANT shall be responsible for payment of all taxes arising out of CONSULTANT's activities in performing the Services, including but not limited to, federal and state income taxes, social security taxes, unemployment insurance taxes and any other taxes or business license fees as required. Notwithstanding the foregoing, CLIENT shall be responsible for and shall pay any sales or use tax imposed in connection with the Services and all taxes imposed on CLIENT in the ordinary course, such as taxes with respect to CLIENT's employees and income. PSA08039STMG 9 B. If CONSULTANT uses third party software at CLIENT's site in connection with providing the Services, CLIENT agrees to observe in all material respects all provisions of each license for such third party software relating to confidentiality, non -disclosure and use restrictions (including restrictions limiting use to that of CLIENT's data and programs and not those of any other person or entity). C. CONSULTANT agrees to comply with all applicable local, state, and federal laws, regulations, and orders relating to the services, including but not limited to fair and equal opportunity practices and policies. D. CONSULTANT will be solely responsible for any and all damages or losses with respect to any and all of the CONSULTANT'S equipment utilized in the performance of Services under this agreement, and CLIENT will have no liability of any kind with respect thereto unless damages or losses arise out of CLIENT's cause or fault. E. CONSULTANT shall retain all rights in any software or other invention developed by or for CONSULTANT to aid in the performance of the Services or which otherwise pertains generally to Year 2000 compliance services and not specifically to CLIENT. PSA080398TMG 10 IN WITNESS WHEREOF, duly authorized representatives of the City of Lubbock and Strategia Corporation have executed this contract this Pl/ day of 55i -,o , 1998. STRATEGIA CORPO TION By: G A, Name: Title: V P LUBBOCKCITY OF a LI -AMEST: Lit&� Darnell, City Secretary APP VED TO CONTENT: Ron Lewis, Assistant to the City Manager ATO FORM: 426= A7" William de Haas, Competition and Contracts Manager PSA080398TMG 11 C Exhibit A i Year 2000 Compliance Consulting Services Response to RFP #98072 May 21, 1998 10 4110, 10 k*, 'GONSO Strategla IOVAn Information Services Company This quotation contains information that is confidential to Strategia Corporation and The City of Lubbock In consideration of the receipt of this document and the associated literature, the recipient (the City of Lubbock) agrees not to reproduce or to make this information available in any way to individuals outside the group directly responsible for the evaluation of its contents. All prices specified and conditions stated in this proposal are valid for a period of thirty (30) calendar days from the date of presentation, May 21, 1998 unless extended in writing by Strategia Corporation. TRANSMITTALLETTER............................................................................................................... 4 OPERATINGPLAN........................................................................................................................ 5 STRATEGIA'S QUALIFICATIONS................................................................................................20 QUALIFICATIONSOF STAFF......................................................................................................34 OPERATING PROCEDURES AND REPORTS.............................................................................37 PROPOSEDCOMPENSATION.....................................................................................................42 FINANCIALREQUIREMENTS....................................................................................................43 OTHERINFORMATION..............................................................................................................44 Proprietary and Confidential to Strategia Corporation and City of Lubbock Proprietary and Confidential to Strate6a Corporation and City of Lubbock • � r City of Lubbock Operating Plan Strategia Corporation (Strategia") will conduct Year 2000 services for the City of Lubbock and will base its findings on the City of Lubbock's existing, known collection of information. Strategia will supplement any additional information pertinent to Year 2000 services for the City of Lubbock with further data collection. The following tasks are based upon the requirements of the RFP #98072. Strategia will, in the best interests of the City of Lubbock Year 2000 Compliance Consulting Services project, complete these tasks in the order of their presentation. However, depending upon circumstances that best answer the City of Lubbock's requirements at the time, Strategia will perform certain tasks concunrently or as an extension of another task. When specified, the City of Lubbock will work with Strategia to complete certain tasks. 1.0 Conduct Project Planning and Administrative Functions The Strategia project manager will provide a detailed overview of the project, and will coordinate with the City of Lubbock project leader, with the goal of ensuring that change control will be established upon start-up of the project. Strategia will develop the formats for administrative deliverables and will conduct preliminary planning efforts with City of Lubbock. The Strategia project manager will use the documents listed below as guides to complete this task. Results: • High-level project plan • Project administrative actions • Formats for administrative deliverables Deliverables: • High-level project plan • Project status reports Resources: • Strategia project manager, Strategia consultants, and City of Lubbock project leaders Documents: • Contract between City of Lubbock and Strategia • Proposal and Operating Plan 5 Proprietary and Confidential to Strategia Corporation and City of Lubbock • City of Lubbock Operating Plan 2.0 Determine Project Requirements The Strategia project manager will discuss, with City of Lubbock project leaders, the project requirements that he/she has defined and will determine what efforts will be required during the project. The Strategia project manager, with the City of Lubbock project leaders, will review issues and requirements related to legal, management, change control, and documentation matters. Result: • Detailed requirements for the City of Lubbock Year 2000 engagement Deliverable: • Project status reports Resources: • Strategia project manager, Strategia personnel, and the City of Lubbock project leaders Documents: • N/A 3.0 Develop Project Plan The Strategia project manager and the City of Lubbock project leader will work together to develop the Year 2000 project plan. Year 2000 project plans are living documents, meaning that they will be updated and changed as the project continues. Result: • Project plan Deliverables: • Project plan • Project status reports Resources: • Strategia project manager and the City of Lubbock project leader Document: • N/A 6 Proprietary and Confidential to Strategia Corporation and City of Lubbock J City of Lubbock + Operating Plan 4.0 Conduct Walk-Throughs to Verify The City of Lubbock's Inventory Strategia will review and verify the City of Lubbock's existing Programmable Logic Control (PLC) inventories of systems/devices, which do not require Year 2000 testing. This review and verification process will consist of a series of meetings with City of Lubbock engineers to discuss the use of the systems/devices and the importance of their being Year 2000 compliant. Strategia will conduct walk-throughs or walk -downs to examine individual system or devices. Strategia technicians can identify, isolate, and eliminate from the vendor survey and analysis phase certain devices or systems that they determine to be Year 2000 compliant. This effort translates into cost-effectiveness for the City of Lubbock. During the walk-throughs or walk -downs, Strategia technicians may collect additional information, which may be helpful during the testing phase. Based upon the data already complied, and additional information collected Strategia will assign a risk -and severity - weighted scale for individual PLC/devices.. Strategia recommends the additional walk-throughs to substantiate the verification of the City of Lubbock's existing inventories, and to demonstrate technical due diligence. 7 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Operating Plan 4.0 Conduct Walk-Throughs to Verify The City of Lubbock's Inventory - Continued Results: - Verified list of system/devices by vendor, make, model, serial number, language, and platform which need to be tested for Year 2000 compliance A risk -and severity weighted scale is assigned to each PLC system/device which must be tested - Specify devices or systems to be eliminated from the assessment and testing phase Deliverables: - Verified list of system/devices by vendor, make, model, serial number, language, and platform which need to be tested for Year 2000 compliance - Risk -and severity weighted scale report Resources: - Strategia project manager and consultants, City of Lubbock project leaders and City of Lubbock engineers Documents: - Existing list of systems/devices compiled by the City of Lubbock 8 Proprietary and Confidential to Strategic Corporation and City of Lubbock City of Lubbock Operating Plan 5.0 Conduct Verification of the City of Lubbock's Physical Infrastructure Systems/Devices Inventories Strategia will review and verify the City of Lubbock's existing physical infrastructure inventories of systems/devices, which do not require Year 2000 testing. This review and verification process will consist of a series of meetings with City of Lubbock engineers to discuss the use and maintenance of the systems/devices and the importance of their being Year 2000 compliant. Additional, Strategia will conduct walk-throughs or walk -downs to examine individual systems or devices. Strategia technicians can identify, isolate, and eliminate certain devices or systems that they determine to be Year 2000 compliant. This effort translates into cost-effectiveness for the City of Lubbock. During the walk-throughs or walk -downs, Strategia technicians may collect additionally information, which may be helpful during the testing phase. Based upon of the data already complied, and additional information collected, Strategia will assign a risk -and severity weighted scale for the City of Lubbock's individual physical infrastructure systems/devices. Strategic recommends the additional walk-throughs to substantiate the verification of the City of Lubbock's existing inventories, and to demonstrate technical due diligence. 9 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Operating Plan 5.0 Conduct Verification of the City of Lubbock's Physical Infrastructure Systems/Devices Inventories -Continued Results: - Verified list of systems/devices by vendor, make, model, serial number, language, and platform which need to be tested for Year 2000 compliance - Specify devices or systems to be eliminated from the assessment and testing phase - A risk -and severity weighted scale is assigned to each physical infrastructure system/device which must be tested Deliverables: - Verified list of system/devices by vendor, make, model, serial number, language, and platform which need to be tested for Year 2000 compliance Risk -and severity weighted scale report Resources: - Strategia project manager and consultants, City of Lubbock project leaders and City of Lubbock engineers Documents: - List of existing systems/devices compiled by the City of Lubbock 10 Proprietary and Confidential to Strategic Corporation and City of Lubb>xk City of Lubbock Operating Plan 6.0 Conduct Vendor Survey Strategia will provide a vendor compliance survey with Year 2000 compliance requirements and criteria for physical infrastructure and PLC embedded chip/logic systems, equipment, and devices (non -M. Strategia will contact vendors via mail and will monitor responses. Strategia will gather information from three (3) sources. Source one (1) will be the manufacturer of the product, source two (2) will be any published official statements, (e.g., from a reliable Year 2000 Website) and source (3) three will be industry -recognized organizations such as EPRL Strategia will analyze the results of the vendor survey to determine the degree of the City of Lubbock's Year 2000 risk, and to define a mitigation strategy. The City of Lubbock has estimated the number of vendors to be seven hundred and fifty (750). Results: •' Vendor compliance information for physical infrastructure and PLC embedded chip/logic systems, equipment, and devices (non -IT) • Three (3) sources of Year 2000 compliance status Deliverables: N/A Resources: Strategia project manager, Strategia consultants, and City of Lubbock personnel Documents: Existing City of Lubbock inventories and additional information collected by Strategia detailing physical infrastructure and PLC embedded chip/logic systems, equipment, and devices (non -IT) • Vendor compliance survey forms 11 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Operating Plan 7.0 Analyze Results of Vendor Survey Strategia will analyze the information received from the City of Lubbock's vendors in response to the Vendor Survey (Task 6.0) to determine the degree of risk to the City of Lubbock from third parties' failure to become Year 2000 compliant. Results: • Detailed spreadsheet with vendor compliance information • Evaluation of risk due to Year 2000 exposure Deliverables: • Grid illustrating vendor compliance results Resources: • Strategia project manager, Strategia consultants, and City of Lubbock personnel Documents: • Responses from vendors 12 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Operating Plan 8.0 Present Results of Impact Analysis Strategia will develop, prepare, and present the results of its Year 2000 services to City of Lubbock officials and designated key personnel. Results: ' An assessment of Year 2000 risk to the City of Lubbock • Detailed compliance information in hard copy or magnetic media format • Suggested mitigation strategies (alternate approaches and plans of action) for approval by City of Lubbock officials Deliverables: ' Executive -level presentation to City of Lubbock officials, detailing the risk of the various options • Detailed information in hard copy or magnetic media format • Management process for monitoring programs through the Year 2000 Resources: • Strategia project manager and City of Lubbock personnel Documents: • Results from each task in the Operating Plan 13 Proprietary and Confidential to Strategic Corporation and City of Lubbock City of Lubbock Operating Plan Optional Tasks Strategia is including the following two (2) additional tasks, which we have determined would benefit and enhance Year 2000 compliance services to the City of Lubbock. 1.0 Conduct Business Impact Analysis Strategia will conduct a Business Impact Analysis to determine the financial, operational, legal/regulatory, and supply chain impacts that the City of Lubbock would incur from a failure of the Year 2000 project. Strategia will conduct surveys and interviews with City of Lubbock officials, and will investigate the Year 2000 compliance status of key external, non -IS vendors and suppliers on whom critical processes depend. Results: • Assessment of the critical work processes and supporting applications/systems and relationships with, or dependencies upon, external suppliers • Independent review of City of Lubbock exposures to loss associated with Year 2000 and the potential impacts of failure to complete parts of the project for which they are responsible • Analysis of the potential impacts of failure to achieve compliance • Increased awareness and credibility for the Year 2000 project and demonstration of appropriate due diligence with regard to the scope of Year 2000 issues Deliverable: Impact Analysis report detailing potential financial and operational impacts the city may incur and the risk of impact occurrence Resources: • Strategia Certified Disaster Recovery Planners, Strategia project manager, City of Lubbock officials and management, and key external suppliers and distributors Documents: • Strategia Impact surveys (hardcopy and electronic) and vendor compliance certification documents 14 Proprietary and Confidential to Strategia Corporation and City of Lubbock Cary of Lubbock Operating Plan 2.0 Year 2000 Contingency Planning The purpose of a Year 2000 Contingency Plan is to provide for the continuity of critical functions during an interruption of information services or a break in the critical supply chain. Based on information gathered during the completion of the tasks below, Strategia will develop a Year 2000 Contingency Plan that will minimize or eliminate the potential effects of an interruption to Information Services due to the Year 2000 date change or information processed or collected during other tasks. 2.0.1 The Contingency Plan Strategia Corporation will assist the City of Lubbock in determining the appropriate alternative processing methods for each mission -critical and critical function and/or business process that will be identified during the Business Impact Analysis. Information from tasks may also be used. An Event Horizon (the date when a unit will fail to process dates properly, or the target date on which code renovation and testing are to be completed) will be created to track the critical decision points and failure dates for the implementation of the contingency plan. Results: Development of viable action plans to support critical functions in the event that Year 2000 efforts are unsuccessful or delayed, or that a vendor is unable to provide essential supplies. Each action plan will include a decision point, implementation date, and the anticipated failure date (Event Horizon) for critical and mission -critical functions. Deliverables: • Year 2000 Contingency Plan and Event Horizon Resources: • Strategia Project Manager, Strategia Disaster Recovery personnel, and City of Lubbock personnel Documents: • Existing City of Lubbock Disaster Recovery information 15 Proprietary and Confidential to Strategia Corporation and City of Lubbock Cty of Lubbock Operating Plan 2.0.2 Crisis Management Strategia Corporation personnel will instruct the City of Lubbock personnel in the correct execution of crisis management steps to maintain the Contingency Plan throughout the duration of the Year 2000 effort. Strategia will further support the City of Lubbock Year 2000 project by providing supervision of execution of the Event Horizon and the related Contingency Plans. Results: • Early detection of the need to activate Contingency Plans in order to avoid potential impacts and to determine that critical work processes continue at acceptable levels of performance Deliverables: • Process guidelines for ongoing assessment and management of Year 2000 risk Resources: • Strategia Project Manager, Stmtegia Disaster Recovery personnel, and City of Lubbock personnel Documents: • Existing City of Lubbock Disaster Recovery information 16 Proprietary and Confidential to Strate0a Corporation and City of Lubbock t City of Lubbock Operating Plan Pre -Testing Walk -Through and Plan Development Strategic recommends that the testing phase of the Year 2000 Embedded Systems begin with a walk- through of facilities specified by the City of Lubbock, to be conducted by Strategic personnel, along with the appropriate the City of Lubbock subject matter experts. Strategia has reviewed the embedded chip systems, equipment, and devices list that the City of Lubbock provided as part of the RFP #98072, and has identified certain systems, equipment, and devices on the list that areotot impacted by the Year 2000. Benefits: ❑ Strategia's walk-through proposes to isolate and eliminate non -impacted systems, equipment, and devices from the vendor survey and analysis phase — which translates into cost-effectiveness for the City of Lubbock. ❑ Based upon past successful engagements, Strategic will coordinate "on the spot" testing of certain systems and devices to determine compliancy status, thus saving time, and minimizing costs to the City of Lubbock. Strategia's project plan is designed to identify the following information, in order to avoid redundancy and to build a comprehensive project plan. With the goal of giving the project a strong and organized start, and of leading the project to success, Strategia intends to: ❑ Utilize any of the City of Lubbock's existing project plans and inventories. ❑ Define the resources, and the current skill sets of personnel, at the City of Lubbock. 17 Proprietary and Confidential to Strategia Corporation and City of Lubbock I City of Lubbock Operating Plan Information gathered from the following will be key components of the final master project plan: ❑ Analysis of the City of Lubbock's Current Inventory ❑ Analysis Current Project Plan ❑ Review of the City of Lubbock's Resource Availability ❑ Review of the City of Lubbock's Personnel Skill Sets ❑ Discussion of Preliminary Recommendations ❑ Definition of Roles and Assignment of Responsibilities Assessment Once Strategia and the City of Lubbock's subject matter experts complete the walk-through, they will assess the facilities component systems. Utilizing Strategia's database that was successfully utilized in previous Year 2000 engagements for embedded systems, as well as information gained from vendors and other contacts, Strategia and the City of Lubbock will be able to develop a comprehensive test plan. This test plan will include Strategia's testing methodology, vendor -supplied test scripts and procedures. Most clients provide their own existing inventories of the individual embedded devices, or equipment that they assume could be affected by the date change at Year 2000. Many units or devices make up a system, which must function as a whole. In many cases, multiple systems (sub -systems) are grouped together and function as a master system The identification and testing of these systems are critical to the success of a Year 2000 project. Strategia will identify these systems and sub- systems during the walk-through, with the cooperation of the City of Lubbock, and Lubbock Power and Light personnel, for the purpose of verifying that all systems are identified as systems. For example, large buildings often have time- and date -sensitive management systems that are composed of several sub -systems. Utilizing the experience of the City of Lubbock's facility personnel, along with Strategia's experience in walk-throughs of buildings, it will be possible to identify devices that are grouped together as a system 18 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Operating Plan The Assessment Phase consists of the following tasks: ❑ Review existing test data ❑ Determine test strategy ❑ Introduce Strategic testing methodology ❑ Confirm schedules and communications vehicles ❑ Structure the City of Lubbock's inventory from devices to systems (sub- systems included) ❑ Structure the City of Lubbock's inventory from sub -systems to master systems ❑ Determine that date/clock devices exist at the device level, sub -system level and system level. ❑ Understand the function of the affected devices/systems ❑ Analyze of database, and recommendations for recording and communicating test results Test Plans Strategia will submit test plans to the City of Lubbock and Lubbock Power and Light, to give officials and key individuals the opportunity to review the plans, and to provide for resources around any scheduled maintenance downtimes. An integral part of planning the tests is the review of vendor -supplied documentation. Test plans will incorporate vendor -supplied test scripts and procedures when possible. Strategia's experience with facilities, and facility infrastructure, will be utilized in designing the test plans. Strategia's team includes experienced Project Consultants, as well as Utilities and Facilities Engineers with successful testing backgrounds. Strategia's Testing Phase consists of the following tasks: ❑ Test stand-alone units for compliance on an individual basis; however, units that are part of a system require a much more complex testing strategy. ❑ Conduct multi -systems testing, which constitutes Full Systems Integration Testing required when a system may be part of a larger system This level of testing is imperative to the overall functionality of the operation. 19 Proprietary and Confidential to Strategia Corporation and City of Lubbock Caty of Lubbock Operating Plan ❑ Formulate Test Plans by: ✓ Unit Test ✓ Systems Test ✓ Integration Test ❑ Work on-site with the City of Lubbock's subject matter experts to develop test scripts and plans ❑ Conduct pilottests in multiple environments to assist with the knowledge transfer and be the basis for monitoring goals and milestones ❑ Verify knowledge transfer and test plan agreements with the City of Lubbock management team o Begin testing with the City of Lubbock subject matter experts. Stmtegia will oversee testing processes. ❑ Share test results for "like components" throughout the City of Lubbock, in order to create testing efficiencies and reduce "like devices/systems" testing redundancy ❑ Certify test results, or put Remediation Plans into effect ❑ Re -test remediated devices, based on previous Testing Methodology ❑ - Verify and certify results ❑ Update and finalize database ❑ Create and present final reports ❑ Receive sign -off by City of Lubbock Management Team Database Strategia will compile a database of vendor responses and test results for units, sub -systems, and systems. Strategia will present the findings of the finalized database to the City of Lubbock, and Lubbock Power and Light, upon completion of testing. Contingency Plan Strategia recommends that the City of Lubbock, and Lubbock Power and Light, develop a contingency plan for critical systems. Strategia advises that contingency planning is prudent for large systems. The need to utilize a contingency plan could be caused by vendor unreliability or misrepresentation. 20 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Strategia's Qualifications Current Name, Address, and Phone Number Strategia Corporation PO Box 37144 Louisville, KY 40233-7144 (800) 325-3977 or (502) 426-3434 Primary Contact: Scott Lacy Business Address of corporate officers and partners: 6040 Dutchman Lane PO Box 37144 Louisville, KY 40233-7144 Ownership interest of corporate officers and partners: Strategia is a publicly traded company on the American Stock Exchange (SAA). Please refer to Appendix G to see Form 10-KSB from the Securities and Exchange Commission for ownership interest of corporate officers and partners and board of directors. 21 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Strategia's Qualifications As well as being dedicated to providing Year 2000 compliance solutions in the United States, Canada and Europe, Strategia (formerly known as Dataguard Recover Services, Inc.) has been a worldwide leader in business continuity and protection services since, 1984, the same year in which it was incorporated (in Louisville, Kentucky). The corporate name was changed to "Strategia" in July 1996. With offices in Louisville, Kentucky, and Paris France, Strategia is well-positioned to resolve the Year 2000 problem with a suite of services which include: ❑ Impact Analysis ❑ Magnitude Assessment ❑ Application Renovation ❑ Compliance Testing ❑ Strategia's data center contains an IBM 3090-600J, with one hundred and twelve (112) million instructions per second WS) capacity. In addition, this data center has the following Bull (formerly Honeywell) systems: ■ One DPS 8000/83 ■ One DPS 8000/82 ■ One DPS 90/94 ■ One DPS 6/98 At the Louisville data center, Strategia has a full complement of peripherals, disk, tape, and printers — as well as a full suite of communication interfaces. ❑ Strategia's Shelbyville, Kentucky facility is exclusively dedicated to Year 2000 Testing Services. It contains multiple IBM 3090-600Js with one hundred and twelve (112) MIPS each. As with the Linn Station Road facility, the Shelbyville site also has a full complement of peripherals, disk, tape, and printers — as well as a full suite of communication interfaces. ❑ Strategia's Louisville, Kentucky data center (at Linn Station Road) has 30,000 square feet total (24,000 raised floor and 6,000 corporate office space). 22 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Strategia's Qualifications ❑ Shelbyville has 28,0000 square feet total (15,000 raised floor and 13,000 administration and storage space). ❑ Strategia's main corporate office in Louisville (at Dutchmans Lane) (approximately 30,000 square feet) is located within ten (10) minutes of the Linn Station Road data center. Strategic employs one hundred and eighty-five (185) talented and dedicated individuals. Strategia's full-time team of expert consultants has experience in managing Year 2000 projects for multiple organizations including government agencies, healthcare facilities, universities, manufacturers, and banking institutions. Strategia's Financial Statement is attached as Appendix A. Strategia is currently aligned with Computer Associates International, Inc. to deliver advanced Year 2000 remediation solutions to clients worldwide. 23 Proprietary and Confidential to Strategia Corporation and City of Lubbock 0. City of Lubbock Strategia's Qualifications Biographical Information on Principals of Strategia James P. Buren Chief Consultant, Year 2000 PROFESSIONAL EXPERIENCE Mr. Buren is one of the original founders of Strategia Corporation. His present role is to act as the Chief Consultant, Year 2000, with responsibility for quality control, new methodologies, report review, and development of automated conversion techniques. Mr. Buren has also specialized in the design of communications network recovery plans. He has reviewed, recommended and installed the components that allow large networks to be restored on short notice. Before the formation of Strategia, Mr. Buren was president of his own systems consulting firm for six years. That firm, Buren and Company, specialized in the design and implementation of computer systems of all types, hardware procurement studies and facilities management. Prior to Buren and Company, Mr. Buren was vice president and general manager of an engineering computer timesharing company in Houston, Texas. Mr. Buren s early experience was in systems and progranuning activity for MetriData Computing and General Electric, both in Louisville. In total, Mr. Buren brings to Strategia more than twenty-five years of direct computer systems experience with major emphasis on telecommunications and network design and management. Mr. Buren serves as Chairman of the Strategia council for the development of Year 2000 methodologies. He has taken the lead in the development and submission of Strategids ITAA certification, leading the Strategia consultants in the preparation of this critical document. CONSULTING EXPERIENCE Mr. Buren has responsibility for overall quality control on all consulting engagements. As a consequence, he has had involvement with and acted as final company authority on all of Strategia's Year 2000 consulting and conversion projects. Mr. Buren has given presentations to many executives and end users on their Year 2000 challenge. He has developed strategies and discussed same with many of our clients. He has played a vital role in the planning and assessment phases of the Year 2000 projects that Strategia has tackled. EDUCATION Mr. Buren s educational background includes a Bachelor of Science Degree in Physics and Mathematics, graduate level training in Physics and Computer Science, and numerous computer vendor technical schools and educational seminars. Mr. Buren has been the focal point in the formal Year 2000 training program provided to Strategia's consultants. He has attended countless seminars concerning the Year 2000 crisis. Mr. Buren has attended formal Year 2000 project manager training which aided in defining his role as project manager. This training also addressed all aspects of the planning and conversion effort required and the roles the Strategia client will have. 24 Proprietary and Confidential to Strategia Corporation and City of Lubbock Ob City of Lubbock Strategia's Qualifications VMiatn O. Lehmann Vice President of Technical Services PROFESSIONAL EXPERIENCE Mr. Lehmann is the Vice President of Technical Services. Prior to joining Strategia, he was responsible for strategy, architectural services and products for the healthcare industry. Mr. Lehmann also assisted executives of major corporations and their IS organizations in addressing new technology integration and issues associated with strategically managing information technology and its role in supporting or driving business strategy. An experienced executive and management consultant, Mr. Lehmann operated as the engagement director on projects that focused on the integration of payor and clinical systems into integrated delivery systems. He was personally responsible for the business plan and architectural design of the earliest three tier client server systems implemented in the healthcare industry. Mr. Lehmann was President and CEO of a software company that was recognized as a leading provider of healthcare networking software. In that capacity, he was the visionary trendsetter who oversaw the product direction and market development. Additionally, he implemented the strategy that allowed other software and database vendors to distribute their proprietary solutions through the networks created by the standards based open system solution. This allowed for successful interoperability and connectivity of various Practice Management and Electronic Medical Record systems with multiple hospital database systems. The management and movement of data between Labs, ADT, Medical Records, Long Term Care, Managed Care and other payer systems were also facilitated. He has had substantial experience as a CIO in the healthcare, financial and distribution businesses. Having served on the board of a prominent systems integration business, Mr. Lehmann is familiar with all aspects of the integration of technology. He has been on industry association boards and is a popular speaker at national meetings and conventions. CONSULTING EXPERIENCE Mr. Lehmann led the consulting engagement and later managed the operational aspects of a corporate turn around in a Fortune 100 telecommunications company. By consolidating data centers, installing all new software, process reengineering the staff functions, and centralizing material management, the company was returned to profitability. He also successfully started an integration consulting business for the firm that specialized in healthcare delivery and financial transaction processing solutions. Earlier, Mr. Lehmann started an independent business unit for a large Midwestern financial institution that operated one of the first debit card retail Point -of -Sale networks in the country. It was during this period that he implemented self-service gasoline fueling utilizing debit and credit cards. This was the first commercially available service in the United States. EDUCATION Mr. Lehmann holds a Bachelor of Science degree in Mathematics and Economics from St. Joseph's College, Rensselaer, Indiana. 25 Proprietary and Confidential to Strategia Corporation and City of Lubbxk City of Lubbock Strategia's Qualifications C. Gregory Uligian Vice President of Marketing and Millennium Services PROFESSIONAL EXPERIENCE Mr. Uligian is Vice President of Marketing and Millennium Services for Strategia Corporation. He has 20 years of senior level business experience in client sales/service management with an emphasis in managing information, telecommunications and administrative services and consulting. His leadership roles include President/CEO of a health care information services business, 10 years as an Officer/Vice President of a multi -billion dollar energy services company, three years leading a Big Six consulting practice and 14 years with the world's largest information systems company. Mr. Uligian, as President and CEO of a health care systems and services business, substantially increased profitability, client services and revenue through the creation and implementation of several unique marketing and service strategies. His successful business leadership led to competitive advantage and ultimately to the sale of the business. As Vice President of Corporate Information Systems and Support Services for LG&E Energy, Mr. Uligian was responsible for providing corporate service, including facilities and building management, office services, systems development, information services, departmental computing and telecommunications. As Branch Manager for IBM, Mr. Uligian was the executive responsible for the IBM offices in Evansville, Indiana; Lexington, Kentucky; and Louisville, Kentucky for this $70 billion corporation, with responsibility for marketing of information systems hardware, software and services. CONSULTING EXPERIENCE As General Manager of Deloitte & Touche, Louisville, Kentucky, he led their management consulting business of Kentucky. Responsibilities included identifying business opportunities, managing the completion of projects within scope and fee arrangements and to the client's satisfaction. EDUCATION Mr. Uligian earned a Bachelor of Science Degree in Industrial Engineering from the University of Michigan and participated in the University of Michigan College of Business MBA program. 26 Proprietary and Confidential to Strategia Corporation and City of Lubbock city of Lubbock Strategia's Qualifications NAMES AND BUSINESS POSITIONS OF BOARD OF DIRECTORS Please refer to Appendix G for Form 10-KSB from the Securities and Exchange Commission. 27 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Strategia's Qualifications References: Mecklenburg County Magnitude Assessment of IT Infrastruture Ms. Marsha Hinde 600 East 4th Street Charlotte, NC 28202-2835 (704) 336-7017 South Carolina Electric and Gas Company (SCANA) Embedded Chip Technology Inventory and Assessment Ms. Rita Shipman 1426 Main Street Mezzanine Level - MZ1 Columbia, SC 29201 (800) 733-2450 Hartford Hospital Impact Analysis, Magnitude Assessment, Renovation, Testing, PCs, and Biomedical Devices Mr. Jack Alberti 80 Seymour Street Hartford, CT 06102-5037 (860) 545-4224 (Cilco) Central Illinois Light Company - Asessment of non -IT technologies (embedded chips) Bud Rutter 300 Liberty Street Peoria, IL 61602 (309) 677-5537 28 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Strategia's Qualifications There are no clients with whom Strategic has had engagements whose contracts with Strategia have expired, were not renewed, were cancelled, or revoked. Year 2000 Compliance Testing Before the Year 2000 Compliance Testing process begins, precise planning and preparation must be established Approaches vary according to industry standards, time constraints, regulatory requirements and availability of resources. Strategia's cadre of senior consultants works on the individual facets of the Year 2000 challenge — from the initial impact assessment to a company — to the magnitude assessment, conversion and testing. Strategia's expert Year 2000 personnel will assist the City of Lubbock in the development of testing and implementation strategies, with the goal of ensuring that errors or changes in functionally have not been introduced during the source code conversion process. In answering client's other needs (such as information services), Strategic offers the following products and services [including Embedded Systems (Chips) analysis] which have a direct relation or co -relation to Year 2000 Compliance Consulting: • IVMennium Compliance • Outsourcing • Platform Migration • Computer Recovery Centers • Contingency Planning Consulting • Remote Data Backup • Embedded Systems • Strategia PC -2000 29 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Strategia's Qualifications Millennium Compliance Through an experienced team of consultants, combined with carefully selected tools and strategic business partners, Strategic addresses every facet of your Year 2000 Compliance challenge. Strategia's multiphase approach includes the Impact Analysis, Magnitude Assessment, Application Renovation and Compliance Testing. These phases can be implemented as a complete "end-to-end" program or as individual components. Outsourcing Strategia has developed a complete approach to data center management that is tailored to meet the needs of each client. Outsourcing options enable concentration on the core competencies of the business, while contracting for critical computer necessities. This approach will provide stability to a client's information technology budget through predictable and reliable pricing plans. Whether requirements are for outsourcing the entire legacy function, a specific application, or a special project, Strategia is equipped to handle current and future information processing concerns. Platform Migration Through the expertise of project managers, the utilization of a large number of high-capacity mainframes and a unique automated tool -set, Strategia can assist in the safe and. efficient migration from one platform to another — with minimal impact on the client's operational environment. Computer Recovery Centers Strategia is a leader in providing IBM and Bull hot site backup services to mainframe users worldwide. Over 150 firms and organizations have chosen Strategia. Current clients include service organizations, healthcare institutions, manufacturing firms, national and international financial institutions, communication and utility companies, securities firms, oil companies, and federal and state government agencies. 30 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Strategia's Qualifications Contingency Planning Consulting Strategia has a full-time staff of Certified Disaster Recovery Planners (CDRPs) who have many years of contingency planning experience in companies and government agencies of all types and sizes. Strategia begins a typical engagement with assessments of the risks and threats that a business could incur from of a disaster. By applying proprietary planning methodology, Strategia can quickly assemble a specific plan -- with minimal disruption to a client's daily processes. Remote Data Backup Organizations are finding increasing difficulties in their efforts to safeguard sensitive data and as a result, may be precariously poised for the future. Strategia offers a variety of remote backup and electronic vaulting solutions that are automated, unattended, highly reliable and cost-effective. 'These solutions easily and efficiently handle backing up and restoring valuable data, as well as ensuring integrity of the data. This data is immediately transmitted to Strategia's secure data vault for offsite storage and preservation. Our remote data protection solutions include LAN server backups, mainframe data vaulting and warehousing, mirroring of critical or high availability servers, and custom -engineered fail -over solutions that guarantee access to, and use of data -- no matter what happens to the primary data site. From a single PC to an enterprise -wide solution, Strategia can provide the mosthighly reliable and cost-effective data protection services. Embedded Systems At Strategia, we recognize that non -TT related issues with Year 2000 compliance are as significant as IT issues. The solution to these and other questions is an Impact Analysis consisting of a detailed collection of information dealing with suspect technology components, a user risk assessment of failure, compilation of components by vendor, followed by a survey of the vendors to determine status/resolution of Year 2000 compliance. Organized along departmental lines, this process is iterative and continues until the project is complete. 31 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Strategia's Qualifications A Strategia Impact Analysis includes four (4) areas of assessment: 1. Information System Applications 2. Compliance of PCs 3. Process Control and Instrumentation 4. Facilities Including Physical Infrastructure At the completion of the Impact Analysis phase, the database and project materials are transferred to client personnel for follow-up and resolution. Monitoring of the vendor compliance, posting to the analysis database and prioritizing the action plans by risk, lead-time and vendor are ongoing tasks. Strategia's experience providing Embedded Chip Assessments spans numerous industries with particular emphasis in state and local governments, healthcare, utilities and manufacturing. Strategia's PC -2000 Methodology Personal computers (PCs) are considered as corporate assets and therefore Strategic suggests a Year 2000 Risk Analysis, which includes an information collection and assessment of the PCs within such organizations. The rationale for this analysis is based upon the compelling fact that many PCs are involved in mission -critical business processes or are in control of mission -critical equipment. Strategia's Workstation/Network Analysis Group, in cooperation with software tool vendors, has developed and refined its PC -2000 methodology by integrating the use of tailored tools and analytical processes. As a result, Strategia's PC -2000 Methodology will provide a solution to a client's Year 2000 PC (networked PC servers and stand-alone PCs) compliance challenge. To gather data about the programs installed on each PC, Strategia performs a software analysis, thereby collecting information and identifying any executable file, regardless of the file name. The PC -2000 analysis tool locates, at the client's request, many types of files, such as graphics files, data files and compressed files. Knowing the location of these files will provide the client with valuable information for future in-house remediation/testing. The software analysis is non-invasive, meaning that it does not browse or record confidential data sets. 32 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Strategia's Qualifications In addition, Strategia provides a hardware analysis consisting of seven (7) levels of test (on real- time clock and BIOS) in order to determine the degree of compliance for Year 2000. Throughout the entire testing process, network traffic is increased minimally at login — and only once per. PC. No two (2) PCs are assessed twice; however, each PC that logs in is checked to completion, or the process is automatically performed again (to the point of conclusion) on that specific PC. This standard makes certain that all PCs that log on are assessed. In addition to the basic Year 2000 services, Strategia can also provide facts about the exact hardware specifications of most computers. These specifications can be used for future help desk and administrative tasks. The information can be incorporated into a relational database and delivered on CD-ROM for the client's convenience. Strategia's tool requires a minimum of resources: ❑ Each workstation needs 280k of conventional memory for DOS and 1k of hard drive space. ❑ The server requires 2.5 MB of conventional memory for installation plus 1 MB for every fifty (50) assessments. Strategia's tool is compatible with Windows NT, Novell Network, VINES and other peer-to-peer networks. Strategia assesses workstations running on Windows NT, Windows 95, Windows 3.1x, DOS, and OS/2. 33 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Qualifications of Staff J. Michael Ashley Project Manager Year 2000 Services PROFESSIONAL EXPERIENCE Mr. Ashley is a Project Manager within Strategia's Consulting Group, specializing in Year 2000 analysis and conversion including non -IT technologies (Risk Assessments, Impact Analysis, Magnitude Assessments, Application Renovation, Compliance Testing and Contingency Plan Development). Mr. Ashley brings to Strategic over 23 years experience of management, consulting and Information Technology expertise over a wide range of industries and technical platforms. Prior to joining Strategia, Mr. Ashley was a Project Leader at a leading insurance company with one of his main responsibilities being Year 2000 analysis and compliance. Mr. Ashley worked as a consultant in various industries throughout the Louisville area. His experiences include helping with the transition of Columbia Healthcare from their Louisville location to their new headquarters in Nashville, 'IN. He was also the sole support for the Financial Information and Analysis systems at General Electric's Appliance Park Mr. Ashley obtained the majority of his Information Technology expertise at Jewish Hospital Healthcare Services. While at JHHS, his positions ranged from Programmer, to Operations Manager, to Assistant Director of Information Services. During his tenure, he oversaw the selection, planning, conversion, testing and implementation of a corporate -wide payroll system. He was also responsible for the evaluation and recommendation of the use of SAS software for detailed reporting used in the development of a Management Information System. EDUCATION Mr. Ashley holds a Bachelor of Science degree from the University of Louisville. While his major is Mathematics, he holds minors in Physics, Electrical Engineering and Business. 34 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Qualifications of Staff Michael Witt Project Manager Year 2000 Services PROFESSIONAL EXPERIENCE W. Witt is a project manager specializing in Year 2000 projects emphasizing client/server technology. Mr. Witt brings over 7 years experience in management, consulting and information management. Prior to joining Strategia, Mr. Witt managed product development and improvement for the deployment of a fully automated ordering system utilizing Internet client/server technology for a leading manufacturing company located in Kentucky. In this capacity, he worked closely with the customer base translating their requests into technological solutions that met both stringent budget requirements and the customer needs. Mr. Witt also served as a lead instructor for a national computer training company. During his tenure there, he developed an expert knowledge of over 150 software applications. As a portion of his duties, Mr. Witt also developed technical courseware for clients' custom applications. He led the development, implementation, and delivery of several new client/server -teaching techniques, which both enhanced the learning process and expanded the product base available to this company. Mr. Wm's consulting experience includes, but is not limited to the following clients: University of Kentucky, Foster Farms, and St. Francis Healthcare System. Mr. Witt has also assisted several Human Services companies in the development of automated techniques used to increase customer satisfaction and decrease time expenditures of employees. He has also served as PC technical support analyst and programmer analyst. Mr. Witt has programming experience in C, C++, and x86 Assembly Language using both AT&T and Intel syntax. CONSULTING EXPERIENCE While serving as a consultant for the manufacturing facility Mr. Witt developed the ability and skills necessary to work within a mixed Novell NetWare/Wridows NT network while maintaining continuity among the users. He has worked with many operating systems including all versions of DOS, & Windows (including a Microsoft Certification with Windows NT), OS/2 Warp, &Unix (Linux, FreeBSD). EDUCATION Mr. Witt holds a Bachelor of Arts degree from Southwest Baptist University in Bolivar, MO. He also holds the Microsoft Certified Product Specialist credential for Windows NT. 35 Proprietary and Confidential to Strategia Corporation and City of Lubbock a City of Lubbock Qualifications of Staff Michael Radeke Project Manager Year 2000 Services Professional Experience Mr. Radeke is a project manager within Strategia's consulting group, specializing in Year 2000 projects including Risk Assessment, Impact Analysis, Magnitude Assessment, Application Renovation and Compliance Testing. Mr. Radeke brings to Strategia over 35 years of management, engineering, manufacturing and information systems skills from companies specializing in machine tool, capital equipment, and electronic controls. For over twenty years, he was employed by the world's largest machine tool company, where he directly participated in the transition from relay -controlled numerical controls (NCs) to the highly -integrated NCs of today. Assignments included Project Engineering Leader of the first commercial computer using integrated circuits, System Manager of the first computer used for computerized numerical controls (CNCs), Product Manager for the Robotics Business Unit. Each assignment involved direct application of embedded chips into PCs and industrial equipment. He participated in the creation of systems using Manufacturing Resource Planning programs integrated with Direct Numerical Control and Job Floor Reporting. For over five years, Mr. Radeke was instrumental in design and implementation of technically sophisticated bulk material handling, weighing and blending systems for the world market utilizing PCs, embedded chips and programmable logic controllers. Mr. Radeke directed the activities of a robotics and systems company whose products are used in automotive and aerospace industries. He was responsible for the success of an internet service provider. Consulting Experience Mr. Radeke consulted within the major machine tool company on the future direction of electronic and computing technology pertaining to products being designed and manufactured. For over a year, he served as the NC representative on the future manufacturing systems steering committee of the largest aerospace company. Mr. Radeke served as committee chairperson of the Robotics Institute of America, and participated in manufacturing technology planning and implementation panels at major automotive companies worldwide. Recently he introduced a new manufacturing technology while a member of a concurrent engineering team for the development of the newest commercial airplane in the world. Mr. Radeke has worked with engineers from: Ford Motor Company (USA & Europe), Boeing Commercial Airplane Company (Washington, Kansas, Pennsylvania), Chrysler Corporation (USA), General Electric Research and Development (New York), Ansaldo Engineering (Italy), SAAB Aerospace (Sweden), General Motors (USA & Europe), Caterpillar Tractor ([.TSA and Europe), Alfa Romeo (Italy), LVD (Belgium). Education Mr. Radeke has a Bachelor of Science degree in Electrical Engineering from the University of Cincinnati. He has taken many courses toward a Master of Science degree in Applied Mathematics, has completed a 2000 Hour Apprenticeship Program at a major capital equipment company, plus several management Training Courses from various universities and the American Management Association. 36 Proprietary and Confidential to Strategia Corporation and City of Lubbock • ' !City of Lubbock Operating Procedures and Reports Following are the processes that Strategia intends to utilize in making recommendations to the City of Lubbock concerning Year 2000 compliance: Approach Strategic will structure its approach and wM adapt its methodology to fit the City of Lubbock's requirements. Strategia will lead an embedded chip assessment for the City of Lubbock's various departments. This assessment will include identifying potential date -impacted microprocessor/embedded clip equipment, machinery, security systems, HVAC, and elevators. In this phase of the embedded chip review of the City of Lubbock's various departments, Strategia will collect information on potentially impacted (date -sensitive) devices and will assign a risk metric (a numerically weighted scale) to each identified item or system Strategia's "technical due diligence" wM include: ❑ Ascertaining that the data collected supports the deliverables (product of effort) ❑ Defining the deliverables of the Impact Analysis before collecting data ❑ Storing data in electronic format for easy manipulation and reporting 37 Proprietary and Confidential to Strategia Corporation and City of Lubbock ' City of Lubbock = Operating Procedures and Reports Selected Personnel Strategia proposes a team approach to staff this critical project. Strategia will provide the City of Lubbock with: ❑ An experienced project manager who will be involved throughout the project duration, has proven capabilities in project management techniques and extensive knowledge of the software tools and techniques to employ. ❑ Strategia consultants who will support the project manager. ❑ A review of the entire project and deliverables by Strategia management. The City of Lubbock will appoint a full-time project leader and appropriate team to assist and help manage the process at their locations. Summary Strategia, a worldwide leader in Year 2000 services, offers: • Year 2000 planning expertise • A proven methodology and approach • A professional staff of Year 2000 specialists • A custom crafted solution utilizing optimal tools for renovation • A history of successful projects, including end-to-end and enterprise -wide projects • A corporation dedicated to successful projects and satisfied clients 38 Proprietary and Confidential to Strategia Corporation and City of Lubbock 4 V f City of Lubbock Operating Procedures and Reports Methodology The goal of Strategia's Year 2000 Methodology is to provide Strategia project managers, project team members, and designated personnel from the City of Lubbock with: ❑ Project policy and planning guidelines ❑ Recommended procedures for organizing, controlling and evaluating the Year 2000 embedded system rectification project ❑ Descriptions of project phases, tasks and activities ❑ Examples of control forms and project deliverables The objectives of the Conversion Methodology are to: ❑ Reduce system conversion time and cost requirements ❑ Minimize the impact of personnel change upon a project ❑ Facilitate software services contract/proposal development ❑ Simplify project management, training, and development ❑ Identify and plan project resource requirements ❑ Provide a reference basis for expertise/experience ❑ Facilitate management review and progress management ❑ Establish a basis of Strategia Year 2000 conversion quality standards The methodology outlines and describes system conversion project procedures. Specific tasks within a phase may or may not be required and can be iterative, depending upon the unique requirements of each conversion project. Strategia has developed surveys, vendor analysis and methodologies to assist team members in Year 2000 assessments as well as non -IT -related efforts. Due tot he unique objectives of each project, the project manger exercises professional judgement in applying each phase — depending upon the client's needs and the suggested tasks within each phase. For example, only two (2) of the four (4) phases listed on the following page are applicable to the City of Lubbock's Year 2000 Embedded Systems Rectification Project (Impact Analysis). 39 Proprietary and Confidential to Strategia Corporation and City of Lubbock • ' City of Lubbock Operating Procedures and Reports Impact Analysis Some of the many unanswered questions regarding Year 2000 are: ❑ How to assess and evaluate risk? ❑ What is the financial scope related to the Year 2000? ❑ What are the best alternatives for addressing the date -related challenge? ❑ When should planning for the change start? ❑ How to get started? ❑ How long will it take? Non -IT and IT -related issues are of equal importance in Year 2000 compliance. The first step to answering these and other questions is an Impact Analysis consisting of a detailed inventory of suspect technology components, a user risk assessment of failure, compilation of components by vendor, and a survey of the vendors to determine status/resolution of Year 2000 compliance. Organized along departmental lines, this process is iterative (meaning that can be repeated) and continues until the project is complete. Ongoing tasks are: ❑ Monitoring of vendor compliance ❑ Posting to the analysis database ❑ Prioritizing action plans by: Risk Lead time Vendor At the completion of the Impact Analysis phase, the database and project materials are transferred to client personnel for follow-up and resolution. 40 Proprietary and Confidential to Strategia Corporation and City of Lubbock Gty of Lubbock Operating Procedures and Reports Strategia's Impact Analysis will include the following areas of assessment for the City of Lubbock: Assessment and Analysis of Physical Infrastructure Strategia will walk through the City of Lubbock's buildings to gather information on (or to validate the City's existing inventories) and to assess the risks that Year 2000 poses for potentially date -sensitive equipment. Typical types of equipment are elevators, environmental controls, security systems, and metering systems. Vendor Survey Strategia will provide a vendor compliance survey with Year 2000 compliance requirements and criteria for embedded chip/PLC equipment and devices (non -IT). Strategia will contact vendors via mail and will monitor their responses. Strategia will analyze the results of the vendor survey to determine the degree of the City of Lubbock's Year 2000 risk, and to determine a mitigation strategy. Strategia will produce the following management -level reports, based upon information gathered in the Assessment and Analysis of Physical Infrastructure, and the Vendor Survey: u Analysis of Vendor Survey Strategic will analyze the information received from the City of Lubbock's vendors in response to the Vendor Survey. The findings of this analysis will determine the degree of risk that the City of Lubbock may incur from third parties' failure to become Year 2000 compliant. u Results of Impact Analysis Strategia will develop, prepare and present the results of the Impact Analysis to the City of Lubbock. 41 Proprietary and Confidential to Strategia Corporation and City of Lubbock City of Lubbock Proposed Compensation Pricing Assumptions and Terms • The bid is based on Strategia's performing the services described in the Operational Plan. • City of Lubbock has already completed an impact analysis (assessment), and it is available for review. • The pricing is valid for thirty (30) calendar days. • The project will start within thirty (30) calendar days of receiving signed authorization from the City of Lubbock. • Travel and living expenses are billed at the rate actually incurred. • The duration of the engagement is estimated to be four (4) months. • Billing will be rendered after a 30% initial payment (of Total Professional Fees) at contract signing. The remaining balance will be billed monthly on a progress payment basis. • Bid is subject to the terms of Strategia's standard agreement. • Pricing is subject to the assumptions set forth in the Statement of Work and RFT'. Any increased scope of work or duration of engagement beyond that stated will be subject to additional charges. Professional Fees Totals - City of Lubbock Optional Year 2000 Services: Business Impact Analysis - Cost - TBD Contingency Plan - Cost - TBD 42 Proprietary and Confidential to Strategia Corporation and City of Lubbock $265,625.00 M � City of Lubbock Financial Requirements Strategia's annual financial statements for the last three (3) years are attached at Appendix A. Bank References First Capital Bank of Kentucky PO Box 6898 Louisville, KY 40207 (502) 891-4415 James McFerran Star Bank 425 Walnut Street MC 8160 Cincinnati, OH 45201-1038 (513) 632-4546 David B. Cardell The types and amounts of liability insurance carried by Strategic are attached at Appendix C. 43 Proprietary and Confidential to Strategia Corporation and City of Lubbock d City of Lubbock Other Inf ormation Strategia Corporation has not been involved in litigation within the last five (5) years or has pending litigation arising out of contract performance. Neither Strategia Corporation nor its principals have ever been involved in any kind of bankruptcy proceedings. Strategia Corporation will be available to begin work on the Year 2000 Compliance project for the City of Lubbock within thirty (30) days or receiving signed authorization from the City of Lubbock. 44 Proprietary and Confidential to Strategia Corporation and City of Lubbock