Subject:
Title
Second Amendment to exercise the term extension for a second renewal year to the contract with Oracle America, Inc. for Oracle support services.
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Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the Second Amendment exercising a term extension with Oracle America, Inc. for the continued maintenance and support services of County owned Oracle software license entitlements as needed for the Business Technology Services Department.
• This agreement provides for the continued maintenance and support services of County owned Oracle software license entitlements via an annual licensing and support Oracle ordering document with listed County owned license entitlements.
• This Second Amendment exercises the term extension in the amount of $1,484,506.86 of the second renewal year of this five-year agreement.
• Entitlements are utilized to support many critical County business processes including the Oracle Project Unified Solution (OPUS) system which is the County’s Enterprise Resource Planning (ERP) solution for administrative functions, financials, and human resources in support of County business.
• Through negotiations, Oracle responded with an inflationary structure that provided for Year 1, 4% increase over the prior renewals, and a 2% cap for renewal Years 2 through 5. In comparison to the impact of an 8% year over year increase, this negotiation avoided the County an estimated $477,550.00.
• The negotiated percentage increase caps year over year do not entitle Oracle to the County renewing future years through the agreement term.
• On January 31, 2023, the Board of County Commissioners (BCC) granted delegated authority to the County Administrator to approve term extensions pertaining to renewal periods two through five of these contracts and is further authorized by Code Section 2-188 of County Code.
• The County reserves the right to not continue future services through timely notification to Oracle of non-renewal of a future year “Ordering Document”.
• Funding for Year 2 of this Agreement is included in Fiscal Year 2024 Adopted Budget within the Business Technology Services (BTS) Fund, Enterprise Business Suite (EBS-OPUS) Operating Budget.
Contract No. 22-0190-A to exercise the term extension for second renewal year of a five-year agreement in the amount of $1,484,506.86.
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Strategic Plan:
Deliver First Class Services to the Public and Our Customers
5.3 Ensure effective and efficient delivery of county services and support
Summary:
This Second Amendment provides for the continued maintenance and support services of County owned Oracle software license entitlements. Entitlements are utilized to support many critical County business processes including the OPUS system which is the County’s ERP solution for administrative functions, financials, and human resources in support of County business.
Background/Explanation:
On January 1, 2023, the BCC approved the Agreement and Amendment One with Oracle America, Inc. for Year 1 in the amount of $1,455,398.88 with the provision for four additional twelve-month renewal periods. Amendment One modified provisions of Oracle’s boiler plate agreement. Annual renewals are provided via an ‘Ordering Document’ from Oracle prior to the expiration of the current year term.
Fiscal Impact:
Original amount not to exceed (Year 1): $ 1,455,398.88
Second Amendment Year-2 Term Extension: $ 1,484,506.86
Revised total amount not to exceed: $ 2,939,905.74
Funding is consistent with the FY24 BTS Adopted line-item budget for Year 2 of the contracted agreement; line item referenced in the EBS Oracle Cost Center 641114 program 7021 within the BTS 5001 Fund. Years 3-5 fees are locked with the negotiated 2% increase year-over-year and will be included in future BTS Budget Requests if the County, by way of the OBAEC governance group, chooses to renew future year(s).
Delegated Authority:
Authority for the County Administrator to sign this Term Extension is authorized under Code Section 2-188 and was further granted delegated authority by the BCC on January 31, 2023.
Staff Member Responsible:
Jeff Rohrs, Chief Information Officer, Business Technology Services
Merry Celeste, Division Director, Purchasing & Risk, Administrative Services
Joe Lauro, Director, Administrative Services
Partners:
N/A
Attachments:
Second Amendment