  We present a detailed, realistic analysis of the implementation of a proposal
for a quantum phase gate based on atomic vibrational states, specializing it to
neutral rubidium atoms on atom chips. We show how to create a double--well
potential with static currents on the atom chips, using for all relevant
parameters values that are achieved with present technology. The potential
barrier between the two wells can be modified by varying the currents in order
to realize a quantum phase gate for qubit states encoded in the atomic external
degree of freedom. The gate performance is analyzed through numerical
simulations; the operation time is ~10 ms with a performance fidelity above
99.9%. For storage of the state between the operations the qubit state can be
transferred efficiently via Raman transitions to two hyperfine states, where
its decoherence is strongly inhibited. In addition we discuss the limits
imposed by the proximity of the surface to the gate fidelity.
