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Agenda Item
ASR
Control 23-001117 |
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MEETING
DATE: |
01/09/24 |
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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 Amendments 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: 3/8/2022 #32, 2/9/2021 #18, 10/8/2019
#20, 10/16/2018 #31 |
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RECOMMENDED
ACTION(S):
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1. |
Authorize the County Chief Information
Officer or designee to execute Amendment Number 22 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, 2026, to
June 30, 2027, and incorporate administrative changes to the Master Services
Agreement, reflecting an increase of $21,081,588 in the cumulative agreement
value, for a new estimated cumulative total of $276,493,442. |
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2. |
Authorize the County Chief Information
Officer or designee to execute Amendment Number 7 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, 2026, to June 30, 2027, and incorporate administrative changes to the
Master Services Agreement, reflecting an increase of $20,249,288 in the
cumulative agreement value, for a new estimated cumulative total of $140,202,673. |
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 incorporate administrative
changes to the contracts.
BACKGROUND
INFORMATION:
SAIC
Contract for Data Center, Desktop, Service Desk & Application Services
On May 14, 2013, the Board of
Supervisors (Board) approved an approximately five-year MSA (MA-017-13011864)
with Science Applications International Corporation (SAIC) for Data Center
Operations, Desktop Support, Applications and Service Desk Services (DDAS
Contract). The DDAS Contract was
subsequently approved for an additional one-year extension and then, on October
8, 2019, the Board approved an extension to the MSA from February 2, 2020, to
June 30, 2022, to make the DDAS Contract coterminous with the Master Services
Agreement for Managed Services Network, Voice and Security contract. On February 9, 2021, the Board approved the
two optional one year extensions, through June 30, 2024. On March 8, 2022, the Board approved to
extend the term from June 30, 2024, to June 30, 2026, with two one-year
optional extensions. The County is in Contract Year 10 of the 12-year contract.
In 2020, Internal Audit completed
an Internal Control Audit of Orange County Information Technology's (OCIT)
administration over the SAIC DDAS Contract and no findings were identified.
Proposed Amendment
Number 22 to the DDAS Contract
OCIT is requesting Board approval of
Amendment Number 22 (Attachment A) to the DDAS Contract with SAIC to: (1)
Exercise its right to extend the contract term by one optional year, extending
the term end date from June 30, 2026, to June 30, 2027; and (2) Incorporate the
following updates and/or administrative changes to the DDAS Contract documents
listed below:
In addition, Attachment U (Optional Work
Order) to the Agreement is being incorporated into the DDAS Contract. The optional work order outlines disentanglement
activities related to the IT Service Desk ticket management system and call
management software currently owned by SAIC and the negotiated not to exceed
fee associated with such disentanglement and transition services to the County.
SAIC
Contract for Network, Voice and Security Services
On October 16, 2018, the Board
approved an approximately three-year Master Services Agreement
(MA-017-19010750) with Science Applications International Corporation (SAIC or
Contractor) for Network, Voice and Security Services (NVS Contract). The NVS
Contract provided for an approximate five-month period to transition SAIC
services into the County, three Contract Years of services and two optional
one-year extensions (Contract Year 4 and Contract Year 5). On February 9, 2021,
the Board approved the two optional year extension, through June 30, 2024. On
March 8, 2022, the Board approved to extend the term from June 30, 2024, to
June 30, 2026, with two one-year optional extensions. The County is in Contract
Year 5 of the seven-year contract.
Proposed Amendment
Number 7 to the NVS Contract
OCIT is also requesting Board approval of
Amendment Number 7 (Attachment C) to the NVS Contract with SAIC to: (1)
Exercise its right to extend the contract term by one optional year, extending
the term end date from June 30, 2026, to June 30, 2027; and (2) Incorporate
updates and/or administrative changes to the NVS Contract documents listed
below:
Reasons
for Proposed Contract Extensions
The proposed extensions will result
in: (1) Deferred expenses related to the Request for Proposal (RFP) process and
costs associated with potential disentanglement services from current provider
and transitioning services to a new provider; (2) Cost reduction of $250,000
for each contract for the one-year renewals, for a total of $500,000; and (3)
Mitigated risk to County business operations associated with transitioning to a
new vendor.
Another factor that was taken into
consideration on the recommended extensions were the results of the latest
pricing benchmark for the DDAS and NVS contracts, which was conducted in
October 2023. The results of the benchmark studies revealed that SAIC’s overall
total fees for all services were slightly below standard market price, which
were negotiated in 2019 for the DDAS Contract and 2018 for the NVS Contract.
Furthermore, SAIC’s Customer Satisfaction Surveys (conducted monthly and
semi-annually) have consistently shown that customers are satisfied with SAIC
services and the contractor rarely misses a service level.
The Orange County Preference Policy
is not applicable to these contract amendments.
These Agreements include
subcontractors. See Attachments B and D for information regarding
subcontractors and Contract Summary Forms.
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.
FINANCIAL
IMPACT:
Data Center
Operations, Desktop Support, Applications and Service Desk Services
The table below shows the contract
value for the DDAS Contract, comparing to the contract value from the previous
Amendment Number 21 to the proposed Amendment Number 22. The variance shows an
increase of $21,081,588 to the Contract value to cover the one-year extension.
The cost changes to the base fees are associated with the projected increase in
support hours for Application support. The increase of $3 million proposed for
“Reserved Dollars for Optional Work” is so that the County may leverage project
work orders as needed.
Network, Voice and
Security Services
The table below shows the contract value
for the NVS Contract, comparing to the previous Amendment Number 6 amounts to
the proposed Amendment Number 7. The variance shows an increase of $20,249,288
to the Contract value to cover the one-year extension and the cost to manage
additional network equipment. The
increase of $4.5 million proposed for “Reserved Dollars for Optional Work” is
so that the County may leverage project work orders as needed.
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 MSAs. Appropriations and
Revenue for these contracts are included in the FY 2023-24 Budget for Fund 289
- OCIT Countywide Services and will be included in the budgeting process for
future fiscal years. These contracts
contain language allowing OCIT to terminate the agreements, reduce the level of
services, and/or renegotiate the levels of services to be provided.
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A - DDAS Master Services Agreement Amendment Number 22
Attachment B - DDAS Contract Summary Form
Attachment C - NVS Master Services Agreement Amendment Number 7
Attachment D - NVS Contract Summary Form