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Caption: Board of Trustees Minutes - 1972 This is a reduced-resolution page image for fast online browsing.
![](https://uihistories.library.illinois.edu/REPOSITORYCACHE/50/OBs6DuoIW70tdQ0M3dhBoe6I6b06wif0XR4LXG3Ah6dJ4TpoiEJ6v7da6648Sv8t7wxrVHb3MtGbyuLY74tB6K03gtwuzIysFN7yjX63p4dx6_801-464.jpg)
EXTRACTED TEXT FROM PAGE:
1971] UNIVERSITY OF ILLINOIS 455 make five additional annual payments, subject to availability of funds, for a grand total of $1,607,025.81. Upon completion of these payments, full title to the equipment will vest with The Board of Trustees of the University of Illinois. In addition, maintenance services currently at the annual rate of $38,496 will continue to be purchased from the IBM Corporation. Funds are available for the down payment of $74,323 and the first payment of $181,345.90 from institutional funds in the operating budget of the Computing Services Office. It is contemplated that funds for the subsequent annual leasepurchase payments will become available to the Computing Services Office through charges to those departments using the computer. The change order agreement will include a provision that all payments be subject to availability of funds and in accordance with existing statutory requirements pertaining to lease-purchase of automatic data processing equipment. This action will result in an estimated saving of $106,531.55 during the current fiscal year and a total savings of $1,384,849.14 over the five-year period, in comparison with the cost of continuing the present leasing arrangement. O n m o t i o n of M r . S w a i n , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d b y t h e following vote: A y e , M r . F o r s y t h , M r . H a h n , M r . H o w a r d , M r . H u g h e s , M r . Neal, M r . Pogue, M r . S w a i n ; no, n o n e ; absent, Dr. Bakalis, M r . Grimes, Governor Ogilvie, M r . Steger. LEASE-ACQUISITION OF COMPUTER ACCESSORIES. URBANA (25) The President of the University, with the concurrence of appropriate administrative officers, recommends that a lease-purchase agreement be entered into with the Ampex Corporation for two large core storage units to be used with the existing IBM 360/75 computer of the Computing Services Office at the UrbanaChampaign campus. Currently the University is leasing an IBM large core storage unit used with the IBM 360/75 computer. Recent studies have shown that a better utilization of the existing computer system can be obtained by acquiring two units with faster operational characteristics than that presently on lease. Sealed bid proposals were solicited by newspaper advertisements and direct mail solicitations to eleven known potential sources, to determine the operational characteristics and costs of core storage units currently available and suitable for use with the University's 360/75 computer installation. This resulted in four responses of which only one proposal, submitted by the Ampex Corporation, offered equipment that meets the technical and operational requirements such as operational speed, proven compatibility with the 360/75 system, technical support (maintenance), and warranty. On the basis of proven performance at similar existing installations, the addition of the Ampex core memory units to replace the presently rented IBM core memory unit will effectively increase the "job throughput" capability of the 360/75 system by an estimated 55 per cent. This will provide for greater capacity for instructional and research applications at a lower overall operational cost. In addition, the two Ampex units would enable the present 360/75 system to begin support of a new network of interactive remote terminals which is urgently needed for research and instructional users. The Ampex Corporation offered the two units under the following optional plans: (1) Outright purchase at a cost of $346,000. (2) Lease-purchase over a sixty-month period: a. $85,808 payable annually at a total cost of $429,040; b. $7,528 payable a month at a total cost of $451,680. (3) At a straight rental basis of $9,695 per month which would result in a total cost of $581,700 over a five-year period. None of the above figures includes the cost of maintenance, which is $1,000 per month. Sufficient funds are not available to make an outright purchase; therefore, the lease-purchase plan on an annual basis, subject to availability of funds, would be the most advantageous to the University. Sufficient funds are available for fiscal
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