M&C Review


COUNCIL ACTION:  Approved on 11/13/2018 

DATE: 11/13/2018 REFERENCE NO.: **P-12274 LOG NAME: 13PORACLE SOFTWARE SERVICES SB ITS
CODE: P TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize Purchase Agreement with Oracle America, Inc., in an Annual Amount Up to $1,005,000.00, Using a Cooperative Contract for Annual Licensing, Maintenance and Support for Oracle Software and Services for the Information Technology Solutions Department (ALL COUNCIL DISTRICTS)

RECOMMENDATION:

It is recommended that the City Council authorize a Purchase Agreement with Oracle America, Inc., for software services ,licensing, maintenance and support for the Information Technology Solutions Department  using the State of Texas Department of Information Resources Cooperative Contract in an Annual Amount up to  $1,005,000.00, with renewal options in accordance with DIR-TSO-4158 or applicable successive DIR contracts for the same services.

 
DISCUSSION:

The Information Technology Solutions (ITS) Department will use this Purchase Agreement to purchase and renew all Oracle licensing, support and maintenance for use by all City departments.

Authorization of this Mayor and Council Communication (M&C) will allow for the continuation of maintenance and technical support for the Oracle products used throughout the City. The Enterprise Resource Planning (ERP) system supporting financial, purchasing and human resource operations is Oracle PeopleSoft. The Human Resources Department uses an Oracle cloud based recruiting system. The Performance and Budget Office uses the Oracle Hyperion system for the budget system and Oracle cloud based reporting tools. The Police Department uses Oracle for Police databases. The Transportation and Public Works Department uses Oracle software to support project management.

ITS is co-terming all Oracle license maintenance renewals to reduce the number of purchase orders created and streamline invoice payments through February 29, 2020. During November 2018, Oracle maintenance renewal invoices will be due for payment for approximately $300,000.00. Remaining maintenance renewals will be due after February 2019 and the annual amount will be approximately $780,000.00.

COOPERATIVE PURCHASE - State law provides that a local government purchasing an item under a Cooperative Purchasing Agreement satisfies state laws requiring that the local government seek competitive bids for purchase of the item. The State of Texas Department of Information Resources (DIR) Cooperative Contracts have been competitively bid to increase and simplify the purchasing power of local entities.

PRICING ANALYSIS – The DIR contract offers fixed discounts. Staff reviewed the pricing and determined it to be fair and reasonable.

M/WBE OFFICE – A MBE/SBE goal is not assigned when purchasing from an approved purchasing cooperative or public entity.

SUCCESSOR CONTRACTS – To facilitate planning and budgeting Staff would prefer to have annual Agreements that align with the Fiscal Year. However, the DIR Agreement is out of alignment with the City's Fiscal Year and its current term with expire July 30, 2022. In order for this purchase to align with the City's Fiscal Year, adoption of this M&C technically authorizes (i) a series of purchase Agreements, each of which will align to a term of the DIR Agreement to ensure legal authority exists for the contract, and (ii) an annual spend amount, future years of which would be subject to City Council appropriation. In the event the DIR Agreement is not renewed, Staff would cease purchasing at the end of the last purchase Agreement coinciding with a valid DIR Agreement. If the City Council were to not appropriate funds for a future year, Staff would stop making purchases when the last appropriation expires, regardless of whether the then-current purchase Agreement has expired.

The City will initially use DIR Contract No. DIR-TSO-4158 to make purchases authorized by this M&C. As noted, that Agreement DIR-TSO-4158 is set to expire July 30, 2022. If DIR Contract No. DIR-TSO-4158 is extended, this M&C authorizes the City to purchase similar software and services under the extended contract. If DIR Contract No. DIR-TSO-4158 is not extended but DIR executes a new cooperative contract with Oracle America, Inc., and with substantially similar terms as DIR Contract No. DIR-TSO-4158, this M&C authorizes the City to purchase software and services under the new DIR contract.

AGREEMENT TERMS - Upon City Council approval, this Agreement will commence upon execution by both parties and continue in accordance with the terms and conditions of DIR Contract No. DIR-TSO-4158 or applicable successive DIR contracts for the same services.

Terms shall be as follows:

Year 1 - November 14, 2018 - July 30,2019

Year 2 - July 31, 2019 - July 30,2020

Year 3 - July 31, 2020 - July 30, 2021

Year 4 - July 31, 2021 - July 30, 2022


RENEWAL OPTIONS - This Agreement may be renewed in accordance with the terms and conditions of DIR Contract No. DIR-TSO-4158 or applicable successive DIR contracts for the same services  at the City's option. This action does not require specific City Council approval provided that City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal terms.

ADMINISTRATIVE INCREASE - An administrative increase or change order for this Agreement may be made by the City Manager in the amount up to $100,000.00 per year and does not require specific City Council approval as long as sufficient funds have been appropriated.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that funds are available in the current operating budget, as appropriated, and that prior to an expenditure begin made, the Information Technology Solutions Department has the responsibility to validate the availability of funds. Future year appropriations are subject to Mayor and Council approval.

BQN\DIR-TSO-4158\SB
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Program Activity Budget
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FROM
    Fund Department
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Account Project
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Submitted for City Manager's Office by:
Susan Alanis (8180)
Originating Department Head:
Kevin Gunn (8517)
Additional Information Contact:
Sheila Baker (8356)
Cynthia B. Garcia (8525)

 
 
ATTACHMENTS
  Oracle Form1295.pdf