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Agenda Item
ASR
Control 18-000455 |
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MEETING DATE: |
06/05/18 |
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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): |
Joel Golub (714) 834-6827 |
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KC Roestenberg (714) 567-5075 |
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Subject: Amendment Number 12 with
Science Application International Corporation
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ceo CONCUR |
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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 Session |
Annual Cost:
See Financial Impact Session |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
No |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 1/9/2018
#24, 9/26/2017 #44, 9/26/2017 #15, 5/14/2013 #42 |
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RECOMMENDED ACTION(S):
Authorize and direct the County Chief Information Officer or designee to execute Amendment Number 12 to the Master Services Agreement 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 February 2, 2019 through February 2, 2020, and incorporate administrative changes to the Scopes of Work, reflecting an increase of $13,412,580, for a new cumulative total not to exceed amount of $126,118,625.
SUMMARY:
Orange County Information Technology is requesting Board approval of Amendment Number 12 to Master Services Agreement (MA-017-13011864) between the County of Orange and Science Applications International Corporation for Data Center Operations, Service Desk, Desktop Support and Applications Services, to exercise a contract option to extend the Master Services Agreement for the first optional year (Contract Year 6) and make certain administrative changes to the Agreement and its Scopes of Work.
BACKGROUND INFORMATION:
On May 14, 2013, the Board of Supervisors approved an approximately five-year Master Services Agreement with Science Applications International Corporation (SAIC) for Scope 1 services (MA-017-13011864) that included Data Center Operations, Service Desk, Desktop Support and Applications Services (the MSA). The MSA provided for a four month period for transitioning SAIC into the County at the beginning of the Agreement, five Contract Years of services, two optional extension years of services (Contract Year 6 and Contract Year 7), and the option to pay for additional time and services when the County transitions out of the MSA, at the conclusion of the Agreement.
The County is in Contract Year 5 of the MSA. Orange County Information Technology (OCIT) is requesting approval of Amendment Number 12 to the MSA with SAIC that exercises the contractual option to extend the MSA for the first optional year (Contract Year 6) thereby extending the MSA’s expiration date currently scheduled for February 2, 2019 to February 2, 2020, and incorporating the administrative changes summarized below. As stated in the preceding paragraph, notwithstanding this extension, the MSA provides that SAIC will provide certain additional services following the expiration of the MSA’s term, depending on the County’s needs and future agreements with SAIC.
Previously, on January 9, 2018, the Board approved Amendment Number 11 to incorporate annual baseline adjustments to reflect the estimated demand for IT services and administrative changes to the Agreement. On September 26, 2017, the Board approved Amendment Number 10 to remove Governance, Risk and Compliance (GRC) Software Management services to the MSA and decrease the cost by $181,806 as a result of the deletion. In addition, on that same date, your Board approved the IT sourcing strategy to extend the SAIC MSA for the first option year (Contract Year 6).
Optional One-Year Agreement Renewal
This amendment extends the MSA for one additional year and enables SAIC to continue providing the same services it is currently providing, with the exception of removal of the Business Recovery Center (BRC) services that SAIC has been providing to the County since the inception of the Agreement. The removal of BRC services will result in a reduction of approximately $100,000 annually. OCIT is recommending that the County establish its own BRC solution by utilizing existing County facilities and surplus equipment.
SAIC’s fees were established for all contract years, including optional Contract Years 6 and 7, when the MSA was executed. The fees were benchmarked by a third party Benchmarker in 2017 which concluded that the prices are competitive with the current market. A number of the proposed Contract Year 6 fees are decreasing slightly for services such as server support, network storage and database support, while a few fees will remain unchanged, including fees for desktop support, applications maintenance and development, mainframe support, management fees, data center facilities support, disaster recovery services and email support. The hourly rates for technical resources in support of work order projects will increase by 3%, which was contemplated as these rates included annual Consumer Price Index adjustments over the MSA term.
In addition, Amendment Number 12 proposes changes to the monthly call volumes and fixed monthly band pricing for Service Desk support. The County has been paying for a fixed 6,700 IT technical support and 411 calls (inquiries on County services) per month at $9.00/per call, for a fixed monthly price of $67,300. However, the number of calls for technical support has significantly declined and currently averages less than 3,000/month. Therefore, OCIT negotiated with SAIC to restructure the Service Desk band pricing so that the lowest band covers from 0 to 4,150 technical calls/month, for a fixed monthly price of $51,500, which will result in an $8,800/month or $105,000/year savings to the County. SAIC is able to offer this reduction by: 1) Implementing an Automated Call Distribution (ACD) to address a portion of the 411 call volume so as to avoid the number of calls that require the attention of a live agent; 2) Increasing the Service Level Requirement (SLR) on the average speed to answer from 30 seconds to 50 seconds; and 3) Increasing the allowable call drop rates from less than 5% to less than 6%. SAIC has never missed the Service Desk SLR and we do not anticipate these changes will lead to any significant negative impacts on the quality of services provided by SAIC.
In summary, actual expenditures are dependent upon the County’s actual service usage but when applying the current Contract Year 5 units of services to the Contract Year 6 fees, the cost is approximately $1.3 million less for the year.
Administrative Changes
The following administrative changes are also included in Amendment 12:
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Schedule 2A (IT Service Management and Life Cycle Services Scope of Work): Modified to reflect the update to the Maintenance Window language and to agree that certain maintenance and change activities require an entire weekend to perform. |
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Schedule 2B (Data Center Services Scope of Work): Modified to reflect the deletion of the scope requirement for SAIC to provide Business Recovery center Services. |
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Schedule 2E (Desktop Support Scope of Work): Modified to reflect the deletion of SAIC’s obligation to support desktop components of the Business Recovery Center. |
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Schedule 3 (Fees): Modified to reflect revisions to Service Desk Fees. |
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Appendix 3.1 to Schedule 3 (Scope of Work Pricing): Modified to reflect revisions to Business Recovery Center, Service Desk and Disaster Recovery pricing. |
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Appendix 4.1 to Schedule 4 (Service Level Requirements and Fee Reduction Weighting Factors): Modified to reflect changes to the Performance Targets for SLRs 62 and 63. |
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Attachment A (Statement of Work Definitions): Modified to revise the definition of “Calls.” |
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Attachment P (Financial Responsibility Matrix): Modified to reflect the deletion of the Business Recovery Center references. |
FINANCIAL IMPACT:
The table below shows the estimated annual MSA amounts for the remaining term of the MSA, compared to the previous Amendment 11. Please note that the actual financial impact will be dependent upon the County’s actual service usage for base services and work orders which may be increased or decreased according to the terms of the MSA.
Appropriations and Revenue for this MSA are included in the FY 2017-18 Budget for Fund 289, OCIT Countywide Services, and will be included in the budgeting process for future fiscal years. This MSA contains language allowing OCIT to terminate the agreement, 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)
MA-017-13011864 Amendment Number 12
Attachment B - Schedule 2A (IT Service Management and Life Cycle Services Scope
of Work)
Attachment C - Schedule 2B (Data Center Services Scope of Work)
Attachment D - Schedule 2E (Desktop Support Scope of Work)
Attachment E - Schedule 3 (Fees)
Attachment F - Appendix 3.1 to Schedule 3 (Scope of Work Pricing)
Attachment G - Appendix 4.1 to Schedule 4 (Service Level Requirements and Fee
Reduction Weighting Factors)
Attachment H - Attachment A (Statement of Work Definitions)
Attachment I - Attachment P (Financial Responsibility Matrix)
Attachment J - Contract Summary Form