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Enron Mail |
Employee Benefit Initiative
Cc: cindy.olson@enron.com, richard.causey@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: cindy.olson@enron.com, richard.causey@enron.com X-From: George Wasaff X-To: Kenneth Lay X-cc: Cindy Olson, Richard Causey X-bcc: X-Folder: \Kenneth_Lay_Dec2000\Notes Folders\All documents X-Origin: LAY-K X-FileName: klay.nsf Ken: One of the initiatives implemented at Global Strategic Souring since its formation in February is to leverage Enron's aggregated purchasing power to facilitate commercial development opportunities for the Business (EBS, EES, EFS, and etc.) Units. Annually, Enron spends several million dollars with COMPAQ for servers, desk top computers, and lap top computers. COMPAQ has also been selected as one of the potential candidates to service the EnHome program. COMPAQ is also one of EBS's alliance partners. Given the magnitude of Enron's relationship with COMPAQ, we have formed an intercompany team comprised of representatives from EBS, EES, EFS, Global Strategic Sourcing, and the EnHome Program. In our most recent meeting the business units reported the following: COMPAQ has failed to define its requirements for EBS services under the current alliance agreement between the companies. COMPAQ has also denied EBS access to expertise and installations required for product refinement and implementation. (Based on the feedback I have received, I question whether COMPAQ intends to honor the terms and conditions of its relationship with EBS). EFS only provides building services currently to a couple of Compaq's installations. EES has been in discussions with COMPAQ for several months now. Although we are progressing, it would appear that we are at an impasse on the language in the contract necessary to support the transaction. On the EnHome program, COMPAQ has generally been unresponsive to our questions and concerns for clarification and/or additional information on their experience in operating this type of program. The Widows 2000 Roll-out Contract literally has taken months to complete when it should have only been a matter of weeks. Ken, based on what I am seeing day-to-day, I am concerned that COMPAQ has lost sight of the value of our total business and the value of a healthy, bidirectional relationship. Therefore, specifically given the unresponsiveness to our most recent requests for clarification on the EnHome Program and our concerns regarding there ability to operate a program of this magnitude, I have requested that we reopen discussions with IBM and DELL. I will keep you apprised of future developments. George Wasaff
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