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Caption: Board of Trustees Minutes - 1974 Version B
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98 C H A N G E ORDER BOARD OF TRUSTEES [October 18 C O M P U T I N G SERVICES DATA PROCESSING EQUIPMENT, CHICAGO CIRCUE (12) The President, with the concurrence of appropriate administrative officers, recommends a change order in the existing IBM lease agreement to permit the lease-purchase of certain peripheral computer equipment at the Chicago Circle campus. The Computer Center is presently leasing a 370/1SS computing system from the IBM Corporation which was installed on September 27, 1971, to replace thenexisting data processing equipment and to meet the computer requirements of the campus. Because of the rapid changes in computer technology and to maintain the most suitable equipment for the Computer Center, commensurate with the needs and funds available, it has been to this date advantageous to lease such equipment. A current review of the cost of leasing as compared to that of a lease-purchase arrangement has been made, and it has been determined to be to the University's advantage to lease-purchase selected peripheral devices which have accumulated an advantageous purchase credit. These consist of high-speed printers and tape drives and their respective control units. Lease-purchase procurement of these selected peripheral devices will result in substantial savings to the University over the period of the proposed five-year lease-purchase plan as delineated below. The anticipated useful life of the components to be acquired is expected to exceed the payout period. It is to the advantage of the University to continue to lease the rest of the peripheral equipment as well as the Central Processor and Memory because of the rapidly changing technology, capacity requirements, and short operational life characteristics. Negotiations with the IBM Corporation have resulted in a proposal for a change order in our existing lease agreements whereby selected peripheral devices would be operated on a lease-purchase basis — with allowances for past rental payments and educational discounts. Therefore, it is recommended that a change order be authorized effective October 1, 1972, to (1) cancel the present lease payments for the selected peripheral devices, (2) make a payment of $5,976.35 on October 23, 1972, and the first payment of $16,672.03 on November 1, 1972, and (3) make five additional annual payments, subject to availability of funds, for a grand total of $129,326.70. 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 $8,670 will continue to be purchased from the IBM Corporation. Funds are available for the down payment of $5,976.35 and the first payment of $16,672.03 from institutional funds in the operating budget of the Computer Center. It is contemplated that funds for the subsequent annual lease-purchase payments will be available in the operating budget of the Computer Center. 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 $7,758 during the current fiscal year and a total savings of $103,790 over the five-year period, in comparison with the cost of continuing the present leasing arrangement. O n motion of M r . Swain, this recommendation was approved by the following vote: Aye, M r . Forsyth, M r . H a h n , Mr. H o w a r d , M r . H u g h e s , M r . Neal, M r . Pogue, M r . Steger, M r . Swain; no, n o n e ; absent, Dr. Bakalis, Governor Ogilvie. C H A N G E ORDER C O M P U T I N G SERVICES DATA PROCESSING EQUIPMENT, URBANA (13) The usage of computers for administrative purposes has grown rapidly over the past several years. It is necessary to consolidate Administrative Data Processing's computing installations to broaden the range of applications, increase productivity, and improve versatility while avoiding the cost of expanding these facilities separately. This consolidation involves replacing the three existing administrative computers with one large, central facility and appropriate job-entry terminals to accomplish the administrative computing function. The systems to be displaced are:
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