Repository: UIHistories Project: Board of Trustees Minutes - 1974 Version B [PAGE 146]

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138

BOARD OF TRUSTEES

[December 20

As part of the overall plan to maintain ongoing improvements and efficiencies in computerized programs, it will be necessary to install new equipment and withdraw existing equipment through trade-in or cancellation of lease agreements on an incremental basis. Through this series of incremental changes in the next six to nine months, an IBM 370/158 system, as projected, will become available and will replace the basic equipment currently used and provide considerable operational advantage. The entire automatic data processing function at the three campuses has been and will increasingly become related to its compatibility with equipment, operating systems, application programs, and systems level software. This factor and the large manpower and dollar investments over many years, indicate the necessity to continue the use of compatible IBM equipment. Any alternative to this concept would require delays and large expenditures for conversion and training of personnel. Because compatible IBM equipment is currently being favorably leased through the Illinois Educational Consortium for Computer Services, it will be advantageous to modify the University contract with the Consortium to provide for the acquisition of the more sophisticated equipment, such as the IBM 370/158, when it becomes available. The change orders to the lease agreement with the Illinois Educational Consortium for Computer Services, and provisions for trade-in of University-owned equipment as appropriate, will be consistent with the University regulations and applicable State Statutes and will provide that all payment obligations will be subject to the availability of funds. The new equipment will not be available from the Consortium until the late summer of 1973. However, it is contemplated that funds for the initial and subsequent monthly lease payments will be available in the operating budget of the University Computer Center. This transaction is considered exempt from provisions of the Illinois Purchasing Act as special business equipment economically procurable from only one source. The University will continue, from time to time, to_lease certain peripheral equipment from the IBM Corporation under the University's master lease agreement. In the transition from the 370/155 to the 370/158 computing system, rental of the peripheral equipment will amount to $8,260.05 per month. The Vice President for Planning and Allocation and the Vice President for Financial Affairs recommend that the Comptroller and the Secretary of the Board of Trustees be authorized to (1) execute such contracts, leases, or other appropriate documents to obtain a Model 370/158 computing system from the Illinois Educational Consortium for Computer Services at a rate of $32,674.50 per month, with appropriate adjustments for trade-in credits for University-owned equipment; (2) cancel or amend the current lease agreements, to terminate the leasing of the Model 370/155 and directly associated equipment for which the University no longer will have a need when the new computing system is in operation; and (3) make change orders with the IBM Corporation under the master lease agreement for certain peripheral equipment at the rate of $8,260.05 per month. I concur.

On motion of Mr. Swain, authority was given as recommended by the following vote: Aye, Mr. Forsyth, Mr. Hahn, Mr. Howard, Mr. Hughes, Mr. Pogue, Mr. Steger, Mr. Swain; no, none; absent, Dr. Bakalis, Mr. Neal, Governor Ogilvie.

PURCHASES

(17) The President submitted, with his concurrence, a list of purchases recommended by the Directors of Purchases and the Vice President for Financial Affairs. The purchases amounting to $833,877.12 will be made from institutional funds.1

1 This term designates funds received by the University under contracts with the United States government, contracts with private corporations and other organizations, funds from foundation grants, and grants from corporations and other donors, and University revolving funds authorized by law.