Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  17-000296

 

MEETING DATE:

03/28/17

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

County Executive Office   (Approved)

Department contact person(s):

Charlie Eckstrom (714) 834-3755 

 

 

Ian Rudge (714) 656-8449

 

 

Subject:  Amendment Number 3 with Atos Governmental IT Outsourcing Services, LLC

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost: See Financial Impact Section

Annual Cost: See Financial Impact Section

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: No

    Current Fiscal Year Revenue: N/A

  Funding Source: Internal Service Fund 289 - Information Technology - 100%

County Audit in last 3 years: No

 

 

    Prior Board Action: 5/24/2016 #S94D, 8/25/2015 #31, 6/29/2015 #1, 9/10/2013 #41

 

RECOMMENDED ACTION(S):

 

 

1.

Approve Amendment Number 3 to the Master Services Agreement between the County of Orange and Atos Governmental IT Outsourcing Services, LLC for voice and data network services.

 

2.

Authorize and direct the County Chief Information Officer or designee to execute Amendment Number 3 on behalf of the County, reflecting a decrease of $30,667 for a total not to exceed amount of $138,467,390 for the five-year term of the Agreement.

 

 

 

 

SUMMARY:

 

Orange County Information Technology requests Board approval of Amendment Number 3 to the Master Services Agreement (MA-017-13012100) between the County of Orange and Atos Governmental IT Outsourcing Services, LLC, to update various pricing on the Scope of Work Pricing Appendix and incorporate other updates and changes.

 

 

 

BACKGROUND INFORMATION:

 

On September 10, 2013, the Board approved a master services agreement (MSA) with Xerox for voice and data network services, which subsequently was assigned to XBS Disposition Subsidiary Two, LLC (XBS), which in turn was purchased by an Atos SE subsidiary and renamed "Atos Governmental IT Outsourcing Services, LLC (Atos)" as part of the Xerox-Atos transaction that closed on June 30, 2015.

 

The Parties entered into Amendment Number 1 to establish: (1) a binding arbitration procedure for addressing disputed service level requirement (SLR) fee reductions; and (2) a detailed remediation plan for Atos to demonstrate its ability to adhere to an agreed-upon schedule for transforming the County’s voice and data network. On June 29, 2015, the Board approved Amendment Number 1. On August 25, 2015, the Board approved the Assumption and Consent Agreement with Atos Governmental IT Outsourcing Services, LLC to provide for a certain name change and administrative matters.

 

Most recently, on May 24, 2016 the Board approved Amendment Number 2 to clarify and improve several provisions in the Agreement, including provisions that addressed:

 

--

Calculation, application and reporting of SLRs;

--

Adjustment of baseline fees and volumes for various resource units (RUs);

--

Reconciliation of payments resulting from adjusted baselines and RU volumes;

--

Improvements to the dispute resolution procedures and the streamlining of the    procedures that the parties use to manage the Agreement;

--

Improvements to the Services and the systems used to monitor and backup those Services; and

--

Changes to the delegation of authority to improve the ability of the County to efficiently manage the Agreement through a confirmation that the Chief Information Officer (CIO) has the delegated authority to make changes to the Transformation Project schedule and site-specific scope without further action of the Board.

 

Amendment Number 3

The County is entering Contract Year 4 of the five-year contract.  Orange County Information Technology (OCIT) is requesting approval of Amendment Number 3 to the MSA with Atos that covers annual baseline adjustments to align with estimated demand for services and the current Transformation schedule, and incorporates the operational and administrative changes summarized below. 

 

Scope of Work (SOW) Pricing Appendix Changes

The following table summarizes the financial changes made through Amendment Number 3, as compared to the previous Amendment Number 2, and have been incorporated in Appendix 3.1 to Schedule 3 of the MSA – Scope of Work Pricing and shows a net decreased contract value of $30,667:

 

Brief descriptions of the financial changes outlined in the foregoing table are provided below:

 

1.

Session Initiation Protocol (SIP) trunk re-pricing specifically for the Public Defender and Social Services Agency solutions.  The result reflects a total decrease of approximately $2 million for the remainder of the Agreement.

 

2.

Reducing hardware costs for shared Sheriff sites where the voice traffic solution is able to leverage on the enterprise infrastructure already in place. ($2 M decrease)

 

3.

Decreasing costs for support of legacy network switches, routers and wireless access points as sites are transformed and wireless solutions are implemented. ($1.4 M decrease)

 

4.

At the Sheriff’s request, adding support for their Voice equipment upon completion of Transformation.  ($1.5 M increase)

 

5.

Adding costs for transformation hardware and support based on updated estimated volume with information from sites that have been transformed. ($2.5 M increase)

 

6.

Increasing demands for voice services, primarily for call center services and Survivable Remote Site Telephony routers that enables redundancy for emergency phone calling. ($1.3 M increase)

 

7.

Adding pricing for extra small routers, switches, and Uninterrupted Power Supplies (UPS) to accommodate the County’s requirements.  The extra small equipment sizes are a more cost-effective Transformation solution for the smaller sites and this change saves the County from having to upgrade existing power and cooling infrastructure to handle more robust equipment.

 

8.

Reducing optional Contract Years 6 and 7 pricing for Non-Services RUs to account for the fact that all equipment will have been fully depreciated by the end of Contract Year 5.

 

Contract Updates and Changes

The following contract updates and changes have also been incorporated:

 

1.

Schedule 2F– Network Management Services in Support of Systems Providing Only IP/VoIP Telephony:  New schedule added to cover the unique design and support criteria required by the Sheriff and Assessor Departments.

 

2.

Appendix 2A.2 – Network and Voice Environment Data:  Modified to reflect updates to the County list of sites and location information that have been authorized through the Project Change Request process.  Added a table listing designated Statements of Work applicable to each listed County Agency/Division that shall be performed by Vendor as part of the Services.

 

3.

Appendix 2B.3 – Vendor Provided Network Circuits and VPN Connections:  Modified to reflect updates to the circuit bandwidth requirements for each of the County sites.

 

4.

Schedule 4 – Fee Reductions:  Modified to update the list of County systems that require backup and restoration services.  Added language to enhance the County’s ability to place non-critical incident tickets in pending status in order to avoid unnecessary auto-generated communications to the agencies when a service impact outage occurs, while the County is waiting for the issue to be resolved.

 

5.

Appendix 4.1 to Schedule 4 – Fee Reductions Weighting Factors:  Modified to provide clarification on several service levels requirements (SLRs).

 

6.

Attachment L – California Law Enforcement Telecommunications System (CLETS):  Replaced the CLETS requirements document with the most current version.

 

7.

Appendix B.8.b - Transformation Deliverable, Acceptance Criteria and Milestone List: Modified to reflect mutually agreed to changes to the Transformation Milestone delivery dates and allocation of Milestone progress payments.

 

8.

Appendix B.7.b - Transformation Approach and Methodology:  Modified to reflect updates to the network tools and processes and Transformation scope changes authorized by the Orange County Sheriff and Assessor departments.

 

9.

Insurance Requirements: Modified the insurance requirements in Section 23 of the Master Services Agreement to incorporate the County’s updated standard insurance language and requirement for Network Security and Privacy Liability.

 

10.

Numerous other minor administrative updates and adjustments.

 

This contract includes subcontractors and/or pass through to other providers. See Attachment P for Contract Summary Form.

 

 

 

FINANCIAL IMPACT:

 

The chart below shows the estimated annual contract amounts for the remaining term of the contract according to the proposed Amendment Number 3, compared to the previously approved Amendment Number 2.  The Amendment Number 3 forecast amounts reflect actual expenditures from the start of the contract through January 31, 2017, and forecasted costs for the remaining term of the contract.  The variance reflects a decrease of approximately $30,000 over the five-year term of the Agreement. 

 

 

Appropriations and Revenue for this Agreement are included in the FY 2016-17 Modified Budget for Fund 289, Information and Technology ISF, and will be included in the budgeting process for future fiscal years.  This Agreement contains language allowing the County to terminate the contract, reduce the level of services, and/or renegotiate the levels of services to be provided.

 

 

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A -Masters Services Agreement (MSA) Amendment Number 3
Attachment B - Appendix 3.1 – SOW Pricing
Attachment C - Appendix 2A2 – Network and Voice Environment Data
Attachment D - Appendix 2B.3 – Vendor Provided Network Circuits and VPN Connections
Attachment E - Schedule 4 – Fee Reductions
Attachment F - Appendix 4.1 – Fee Reductions Weighting Factors
Attachment G - Reserve
Attachment H - Attachment L – CLETS
Attachment I - Revised Insurance Language
Attachment J - Appendix B.8B – Transformation Deliverable, Acceptance Criteria and Milestone List
Attachment K - Appendix B.7B – Transformation Approach and Methodology
Attachment L - Schedule 2F - Network Management Services in Support of Systems Providing Only IP/VoIP Telephony
Attachment M - Appendix 2A.1 ITSM Tools
Attachment N - Appendix 2B.4 County Software Network Management Tools
Attachment O - Schedule 2A - ITSM Scope of Work (SOW)
Attachment P - Contract Summary Form