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Agenda Item
ASR
Control 24-000338 |
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MEETING
DATE: |
06/04/24 |
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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: |
Auditor-Controller (Approved) |
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Department contact person(s): |
Andrew
Hamilton (714) 834-2457 |
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Laurence
McCabe (714) 796-0310 |
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Subject: Renewal of CGI Inc. CAPS+ Software
Maintenance Agreement
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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: N/A |
Current Year
Cost: N/A |
Annual Cost: FY 2024-25 $1,807,349 |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: Yes |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 2/6/2024 #6, 5/25/2021 #13, 1/14/2020
#18, 10/6/2015 #16 |
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RECOMMENDED
ACTION(S):
Authorize the County Procurement
Officer or Deputized designee to execute Amendment Seven to sole source
contract with CGI Technologies and Solutions Inc., for software maintenance of
the CAPS+ Advantage Finance/Procurement, Human Resources/Payroll, and Performance
Budgeting systems, effective upon Board of Supervisors approval through June
30, 2027, with an increase in the contract amount not to exceed $5,697,667, for
a revised cumulative agreement amount not to exceed $21,113,837.
SUMMARY:
Authorizing the County Procurement
Officer or Deputized designee to execute Amendment Seven of the contract with
CGI Technologies and Solutions Inc. will ensure that the Countys legacy
Enterprise Resource Planning (ERP) systems remain viable, supportable, and stable
until the new Software-as-a-Service ERP system can be implemented.
BACKGROUND
INFORMATION:
The County's financial,
procurement, human resources, payroll, and performance budgeting systems,
collectively known as CAPS+ (County-wide Accounting and Personnel System), is a
vital component of the County's infrastructure maintained by the Auditor-Controllers
Office Information Technology division.
On February 6, 2024, the Board of
Supervisors approved the release of a Request for Proposal (RFP) for a
Software-as-a-Service (SaaS) Enterprise Resource Planning (ERP) System to
replace the current CAPS+ system.
However, replacing the current ERP system will be a multi-year effort to
procure and implement the new system.
The County must support its legacy Advantage ERP system until the new
SaaS ERP system can be implemented.
The CAPS+ system is required for
County operations for the following:
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Recording financial business
transactions Preparing financial plans |
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Budget development |
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Maintaining financial records |
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Generating financial statements |
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Collecting costs for federal and state
program billings |
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Recording procurement contracts |
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Making vendor payments |
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Processing the County's payroll |
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Administering Human Resources personnel
records |
The core of CAPS+ is licensed to
the County by CGI Technologies and Solutions Inc. (CGI) and comprises multiple
ERP Advantage software products, including Financial System (FS),
Personnel/Payroll (HR) System and Performance Budgeting (PB) System (previously
Budget Reporting Analysis Support System, or BRASS).
CAPS+ Support and
Maintenance
Maintenance services supplied under
this contract include:
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System problem resolution through
hotline technical support |
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Documentation updates and technical
bulletins |
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Software defect corrections and general
maintenance sub-releases that are necessary for both operational and security
purposes |
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Access to system enhancements through
periodic new software releases |
New software releases are required
to keep the CAPS+ system current with federal and state laws, Governmental
Accounting Standards Board rules, changing information technology, and security
updates.
Contract History
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Contract/
Amendment |
Board
Date |
Major
Changes |
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Original Agreement |
6/21/2011 #32 |
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Original ten-year maintenance and
support agreement for FS, HR, and BRASS systems |
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Total Amount: $11,214,711 |
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Amendment One |
6/24/2014 #32 |
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Discontinued support for BRASS system
and added support for upgraded PB system |
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Increase of $414,705 over the term of
the agreement |
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Amendment Two |
10/6/2015 #16 |
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Added support and maintenance for new
third-party bundled software products for the FS and HR Upgrade Project |
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Increase of $30,412 over the term of the
agreement |
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Amendment Three |
N/A |
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Updated Software
License Agreement to exchange licensing Convey 1099 bundled software product
for CGI Advantage 1099 software on 10/6/2015 |
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No change in
cost to the County. |
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Amendment Four |
1/14/2020 #18 |
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Added
maintenance for new third-party software required for a PB upgrade |
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Increased
contract amount by $31,640 over the term of the agreement |
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Amendment Five |
N/A |
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Entered into on
10/22/2020 to add third-party software |
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Increased
contract amount by $1,645 |
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Amendment Six |
5/25/2021 #13 |
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Renewed contract
for three years with no annual increase |
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Increased
contract amount by $3,723,059 |
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Amendment Seven |
6/4/2024 |
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Requesting to
renew contract for three years |
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(Current Agenda Staff Report) |
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Requesting to
increase contract amount by $5,697,667 |
This contract was brought to the
Board of Supervisors with less than 30 days to allow for the negotiation of the
contract with the vendor.
CGI is working to
move their customers from an On Premises environment to
Software-as-a-Service. As a result, customers remaining On Premises have a
higher cost for software maintenance and additional cost for any patches.
Effort was put forth to negotiate a reduced cost in line with current cost;
however, CGI did not agree to the requested pricing.
Considerations to
Sole Source the Purchase of the CAPS+ Maintenance from CGI
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The Advantage software system is a
proprietary product of CGI. The vendor does not outsource its maintenance or
support services and is the only company that can supply the services
necessary to maintain the CAPS+ system. |
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CGI provides hotline technical support,
delivers source code corrections, and releases updates to the software
periodically, including security updates.
It is critical that the County support this vital system. |
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Replacing the current ERP system will be
a multi-year effort. The County must
continue to support its legacy Advantage ERP system while it procures and
implements its new SaaS ERP system until it is operational. |
FINANCIAL
IMPACT:
Appropriations for this contract
amendment will be included in the FY 2024-25 Budget for Auditor-Controller CAPS
Program, Budget Control 014, and will be included in the budgeting process for
future years. If such appropriations are
not approved for any fiscal year covered by the contract amendment, the
contract will be terminated.
Funding for this project will be 100%
General Fund. However, a significant
portion of funding for this project will be refunded in arrears to the General
Fund through indirect cost recoveries from federal and state grants or
reimbursements and County non-general funds via the Countywide Cost Allocation
Plan (CWCAP). An initial and preliminary
analysis estimates that at least 50% of expenses qualify as indirect costs,
which may be refunded to the General Fund.
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A Contract MA-003-11012413
Attachment B Contract MA-003-11012413 Amendment One
Attachment C Contract MA-003-11012413 Amendment Two
Attachment D Contract MA-003-11012413 Amendment Three
Attachment E Contract MA-003-11012413 Amendment Four
Attachment F Contract MA-003-11012413 Amendment Five
Attachment G Contract MA-003-11012413 Amendment Six
Attachment H Contract MA-003-11012413 Amendment Seven
Attachment I Contract Summary Form