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Agenda Item
ASR
Control 25-000413 |
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MEETING
DATE: |
05/20/25 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
All
Districts |
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SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
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Department contact person(s): |
KC
Roestenberg (714) 567-5075 |
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Ed
Althof (714) 834-3069 |
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Subject: Approve Contract Extensions with
Science Applications International Corporation
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement to Form |
Discussion |
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3
Votes Board Majority |
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Budgeted: Yes |
Current Year
Cost: See Financial
Impact Section |
Annual Cost: See Financial Impact Section |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: No |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: See Attachments B and E |
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RECOMMENDED
ACTION(S):
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1. |
Authorize the
County Chief Information Officer or designee to execute Amendment Number 24
to the Master Services Agreement by and between the County of Orange and
Science Applications International Corporation for Data Center Operations,
Service Desk, Desktop Support and Applications Services, to extend the term
from June 30, 2027, to June 30, 2032, and incorporate administrative changes,
reflecting an increase of $87,406,848 in the cumulative agreement value,
for a new estimated cumulative total of $363,900,290, and two optional contract extension periods of
up to one-year each for which Board approval will be required. |
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2. |
Authorize the
County Chief Information Officer or designee to execute Amendment Number 10
to the Master Services Agreement by and between the County of Orange and
Science Applications International Corporation for Managed Services Network,
Voice and Security Services, to extend the term from June 30, 2027, to June
30, 2032, and incorporate administrative changes, reflecting an increase of
$73,044,194 in the cumulative agreement value, for a new estimated cumulative
total of $212,382,867, and two optional contract extension periods of up to
one-year each for which Board approval will be required. |
SUMMARY:
Approval of both amendments to the
Master Services Agreements (MA-017-13011864 and MA-017-19010750) with Science
Applications International Corporation for Data Center Operations, Service
Desk, Desktop Support, Application Services, Network, Voice and Security Services
will extend the terms of the contracts and result in significant cost savings
and allow the County to defer expenses associated with re-bidding the
contracts.
BACKGROUND
INFORMATION:
The County of Orange currently has
two master services agreements with Science Applications International
Corporation (SAIC) for (1) data center operations, desktop support,
applications and service desk services (MA-017-13011864) (DDAS Contract); and
(2) network, voice and security services (MA-017-19010750) (NVS Contract). See
Attachments C and F for prior Board of Supervisors (Board) action.
Although both the DDAS and NVS
Contracts do not end until June 30, 2027, Orange County Information Technology
(OCIT) has begun planning to rebid both scopes of services under one contract
since it is an extensive process and will require a period to transition
services should the incumbent vendor not be selected. However, in consideration
of the County’s current fiscal challenges and upcoming large scale IT projects,
including the Enterprise Resource Planning (ERP) implementation, SAIC was asked
to consider submitting a cost savings proposal under the County’s recently
implemented Supplier Contract Reduction Program.
OCIT is requesting Board
authorization to accept SAIC’s proposed estimated fee reductions reflected in
the chart below, in exchange for a five-year extension on both contracts, with
two additional one-year contract extension periods. The reductions will go into
effect with the upcoming, new Contract Year, starting July 2025. The total
reduction for both Contracts is estimated to be approximately $25.9 million, or
approximately 10%, over the remaining terms of the Contracts.
*Fees shown above reflect estimated
charges for ongoing, base contract services and do not include optional project
work orders.
In addition, the County would be
able to defer expenses related to the Request for Proposal (RFP) process and
costs associated with potential disentanglement services from the current
provider and transitioning services to a new provider, which are estimated at
several million.
It should be noted that the last
pricing benchmark conducted in October 2023, by a third-party benchmarking firm
hired by the County, revealed that SAIC’s overall total fees for all services
were slightly below standard market price.
The Contracts also provide the County the ability to Benchmark on an
annual basis to ensure pricing remains competitive, given the service levels,
volumes and nature of services. SAIC’s Customer Satisfaction Surveys have
consistently shown that customers are satisfied with SAIC services. Lastly, at the department’s request, SAIC has
also committed to partnering with local schools and colleges to implement a
mentoring/internship program.
In addition to the requested
contract extensions, OCIT is requesting various administrative changes to the
Contracts, including: 1) Adjustments to
Service Level Requirements (SLRs) and SLR At-Risk amounts; 2) Location of
performance; 3) Key Personnel; and 4) Required reports.
The Orange County Preference Policy
is not applicable to these contract renewals. The Contractor’s performance has
been confirmed as at least satisfactory. OCIT has verified there are no
concerns that must be addressed with respect to Contractor’s ownership/name,
litigation status or conflicts with County interests.
The Agreements include
subcontractors. See Attachments C and F for information regarding
subcontractors and Contract Summary Form.
FINANCIAL
IMPACT:
The charts below show the increases
in the not to exceed values for both Contracts, through the proposed, five-year
extensions, including the discounts. The fees shown reflect estimated charges
for ongoing, base contract services and do not include optional project work orders.
DDAS Contract:
*
Note that Amendment No. 23 did not have any financial impacts.
NVS Contract:
*
Note that Amendment No. 9 did not have any financial impacts
Sufficient appropriations for both
Contracts will be included in the FY 2025-26 Budget for Fund 289, OCIT
Countywide Services Fund and will be included in the budgeting process for
future fiscal years. The Contracts contain language allowing the County to
terminate the agreements, reduce the level of services and/or renegotiate the
levels of services to be provided, for any reason, including availability of funding.
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A - DDAS Master Services Agreement Amendment Number 24
Attachment B - DDAS Prior Board Action
Attachment C - DDAS Contract Summary Form
Attachment D - NVS Master Services Agreement Amendment Number 10
Attachment E - NVS Prior Board Action
Attachment F - NVS Contract Summary Form