Contracts Overview
The Georgia Technology Authority awarded contracts for Infrastructure Services (IS) and Managed Network Services (MNS) on November 20, 2008.
The IS contract was awarded to IBM, with Dell and Xerox as subcontractors. The contract for MNS was awarded to AT&T.
Our process has been thorough and data-driven and resulted in the best possible contracts for the state of
With the involvement of participating agencies, we are meeting our goals
- Consolidate IT infrastructure
- Secure state data
- Stable operating environment
- Well governed
- Replacing aging infrastructure
- Robust disaster recovery
- Broad industry standards
We were able to get what we asked for
Stream 1
IBM will provide Infrastructure Services for mainframe, servers, print, service desk, end user computing (desktop), and disaster recovery.
Benefits include:
- Consolidation of state IT infrastructure
- Centralized operational management model
- Standardized service levels across the state
- Technology tools needed to manage and diagnose
- Services model including equipment refresh
- Improved disaster recovery capabilities
- Consistent perimeter information security solution
The value of the contract is $873 million over eight years. There are two, one-year options to renew. In-scope FTPs total 468 (291 employees, 94 vacancies, 83 contractors); all 291 employees received a job offer.
Stream 2
AT&T will provide Managed Network Services for Wide Area Network (WAN), Voice, and Local Area Network (LAN) services.
Benefits include:
- More robust and efficient network design
- Centralized management model
- Standardized service levels across the state
- Services model including equipment refresh
- Consistent perimeter information security solution
The value of the contract is $346 million over five years. There are two, one-year options to renew. In-scope FTPs total 191 (125 employees, 42 vacancies, 24 contractors); job offers were extended to 33 employees. (All job losses for MNS will occur at GTA.)
The magnitude of the state’s problems require the scope and capabilities that only major IT industry service providers can offer.
IBM and AT&T will invest in
Transition and Transformation Investments (IBM: $62 million; AT&T: $34 million)
- More efficient and robust security infrastructure
- Wall-to-wall inventory and asset management system
- Server and storage consolidation (IBM)
- Knowledge transfer and process documentation
- Centralized and consistent billing and chargeback tools
- Conversion to VoIP where economically beneficial (AT&T)
Infrastructure Services Investments (IBM: $122 million)
- End-user computing, server and storage equipment refresh and standardization
- Archive print facility capability assumed by service provider
Network Infrastructure Investments ($65 million)
- Network equipment refresh over seven-year term
- Includes new routers, switches, and voice equipment
We are working closely with participating agencies and the service providers to ensure a smooth transition of employees.
What we negotiated for employees
- Job Offers
- Stream 1: All in-scope employees received job offers from IBM, Dell or Xerox.
- Stream 2: All Critical and Designated employees received job offers from AT&T.
- Comparable total compensation package
- Recognition of years of state service
- Participation in benefits programs
- Vacation
- Eligibility and vesting in 401k plans
- No wait time for benefits
- Waive pre-existing health conditions
- No pre-employment testing or background checks
Employees who decline the job offer will no longer have a position on April 1, 2009 (Stream 1) or May 1, 2009 (Stream 2). The decision will be considered a voluntary resignation.
Retirement
We analyzed the issue thoroughly, first considering our business needs and then looking at what other states have done. We also talked with the service providers and worked with the Employees’ Retirement System, the Office of the Attorney General and legal counsel.
We determined key milestones for transitioning employees: 34, 30, 25 years and 10 years (age 60).
Criteria
- Employees within one year of 34, 30, or 25 years (regardless of age) or 10 years (at age 60) will be retained by GTA until they reach the milestone.
- “Critical employees” within two years of 34, 30, or 25 years (regardless of age) or 10 years (at age 60) will be retained by GTA until they reach the milestone.
They received and responded to their offers at the same time as other employees. Employees who work for an agency other than GTA will transfer to GTA until they reach their milestone.