In March of 2004, the City entered into an Assignment Agreement (Agreement) with MWH Americas and PeopleSoft USA, later acquired by Oracle America, Inc. (Oracle) for the license to use and implement the PeopleSoft Customer Relationship Management System (CRM) software. CRM provides a case management tool for the approximately 623,000 customer contacts the Water Department handles on a yearly basis. The CRM software is integrated with Maximo, the work order management system used by the Water Department to provide a seamless movement of information for critical customer cases. In 2011, the City renewed the Agreement with Oracle for an additional four years (M&C C-24829).
In 2015, the City entered into a new agreement with Oracle (M&C C-27299) to upgrade the CRM software to Oracle RightNow, hosted as part of Oracle Cloud Services, which offers additional customer friendly features such as the ability to email with Water customers and the use of agent scripting for more thorough information gathering. The term of the agreement was for one year, with four additional renewals. However, that cooperative agreement (DIR-TSO-2539) expired with the Department of Information Resources in 2018. Oracle America, Inc., now utilizes cooperative agreement DIR-TSO-4158 in place of the previous agreement, which necessitated that the City obtain approval for the new cooperative agreement. There was a gap between the termination of the previous cooperative contract (May 25, 2018) and the commencement of the new cooperative contract (July 30, 2018). The amount paid during the gap period was administratively approved.
Oracle is the documented sole-source vendor for these services because of patents and copyrights.
PRICE ANALYSIS - The prices were obtained using Department of Information Resource (DIR) Contract No. DIR-TSO-4158. The DIR contract offers fixed discounts for these services. Water Information Technology staff has reviewed the pricing and determined it to be fair and reasonable.
COOPERATIVE PURCHASE - State law provides that a local government purchasing an item under a Cooperative Purchasing Agreement satisfies any state law requiring that the local government seek competitive bids for the purchase of the item. DIR contracts were competitively bid to increase and simplify the purchasing power of government entities.
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 the current term DIR-TSO-4158 will expire on July 30, 2020. In order for the Agreement to align with the City's Fiscal Year, adoption of this Mayor and Council Communication (M&C) technically authorizes (i) a series of Purchase Agreements, each of which will align to a term of the DIR, Agreements 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 that a Cooperative Agreement is not renewed, Staff would cease purchasing at the end of the last Purchase Agreement coinciding with the valid Cooperative Agreements. 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-TSO-4158 to make purchases authorized by this M&C. As noted, DIR-TSO-4158 expires July 30, 2020. If DIR-TSO-4158 is extended this M&C authorizes the City to purchase similar equipment and supplies under the extended contracts. If DIR-TSO-4158 is not extended but DIR executes new cooperative contracts with Oracle America, Inc. with substantially similar terms as DIR-TSO-4158, this M&C authorizes the City to purchase the equipment and supplies under the new DIR contract.
ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in an amount up to $36,250.00 and does not require specific City Council approval as long as sufficient funds have been appropriated.
M/WBE OFFICE - A M/WBE goal is not assigned when Purchasing from an approved purchasing cooperative or other public entity.
AGREEMENT TERMS - Upon City Council approval, this Agreement shall be effective beginning July 30, 2018 and end on July 30, 2020.
A Form 1295 is not required for this contract because: This contract will be with a publicly-traded business entity or a wholly-owned subsidiary of a publicly-traded business entity: Oracle