Explanation
BACKGROUND: This ordinance authorizes the Director of the Department of Technology to modify an existing contract with Unisys Corporation for software licensing, maintenance and support services associated with the City's mainframe Unisys Libra 460 System, for a three (3) year term and increase the contract amount by $474,335.00. The licensing and support coverage period will be from January 1, 2018 through December 31, 2020. This term period will provide the city the needed time and support services to continue processing city payroll as well as a cost savings of approximately $275,000.00. The future goal is to eventually retire the Legacy mainframe, and migrate the City's current payroll application and critical applications such as, Property Room inquiry used by the Division of Police, to a new technology platform. All other terms and conditions related to the software license, and maintenance and support services will remain the same.
The Unisys Libra 460 System directly supports mission-critical City applications, such as the City's payroll and Police Property Room applications. The Payroll application is utilized by all City agencies, ensuring that all City employees are paid and accurate records are maintained for the IRS, federal government, and the State of Ohio. Division of Police utilize this system for Property Room inquiries only. The Department of Technology, in cooperation with its City department affiliates, plans to migrate current applications running on the Unisys Libra mainframe platform to new technology platforms.
The original contract, EL014669, was authorized by ordinance 1660-2013, passed July 15, 2013 for $694,425.50 outlining a coverage period of July 1, 2013 through December 31, 2015. That contract was most recently modified via PO039040 and was authorized by ordinance 2479-2016, passed November 7, 2016 for $225,220.56 with a coverage period from January 1, 2017 through December 31, 2017. Unisys is the sole manufacturer of Unisys ClearPath systems, including the existing Libra 460 system. The aggregate contract total, including passage of this request to increase the contract amount by 474,335.00 would be $1,633,993.98.
1. Amount of additional funds to be expended: $474,335.00
Original Contract Amount: $694,425.50
Modification #1&2 Amount: $240,012.92
Modification #3 Amount: $225,220.56
Modification #4 Amount $474,335.00
Total Contract: $1,633,993.98
2. Reason additional goods/services could not be foreseen:
The City's payroll application and Police Property Room data are mission critical applications and currently are still housed on the Unisys Libra 460 System. Additional time is needed for the migration process of these applications from the mainframe platform to a newer technology platform.
3. Reason other procurement processes are not used:
This would be manifestly impractical to bid as Unisys is the sole source provider of the Unisys Libra 460 System.
4. How cost of modification(s) was determined:
The City of Columbus and Unisys Corporation negotiated the cost of the software license and support services extension. The cost to pay for the three year term agreement at $474,335.00 versus paying for the software license and support on a one year term basis for the next three years at an estimated cost of $749,335 will save the city approximately $275,000 which equates to saving one full year of cost.
This ordinance also requests approval to utilize the services provided by Unisys Corporation Inc., in accordance with sole source procurement provisions of Section 329 of the Columbus City Code; as it has been determined Unisys Corporation, Inc. is the sole distributor of the software licensing, maintenance and support services associated with the Unisys Libra 460 System, and does not utilize distributors or resellers to provide maintenance and support, or professional services for its software products.
FISCAL IMPACT: In 2015 and 2016, $240,012.92 and $225,220.56 respectively was legislated for the software licensing and support services. This ordinance (2017) is to modify the contract to increase the contract amount by $474,335.00 and to extend the software licensing and support services term period for three (3) years, bringing the contract aggregate total to $1,633,993.98. The funding for this contract has been identified and is available within the Department of Technology, Information Services Division, Information Services Operating Fund.
CONTRACT COMPLIANCE:
Vendor Name: Unisys Corporation CC#/F.I/D. #: 38-0387840 Expiration Date: 5/9/2019
DAX Vendor Acct. #: 007483
Title
To authorize the Director of the Department of Technology to modify an existing contract with Unisys Corporation to extend for a three (3) year term and to increase the contract amount by $474,335.00 for software licensing and support in accordance with the sole source provisions of the Columbus City Code; to authorize the expenditure of $474,335.00 from the Department of Technology, Information Services Division, Information Services Operating Fund. ($474,335.00)
Body
WHEREAS, this ordinance authorizes the Director of the Department of Technology to modify an existing contract with Unisys Corporation for software licensing and support associated with the City's mainframe Unisys Libra 460 System to extend the term for a three (3) year period from January 1, 2018 through December 31, 2020; and increase the contract amount by $474,335.00, with all other terms and conditions related to the software license and support remaining the same; bringing the aggregate contract total to $1,633,993.98; and
WHEREAS, the original contract, EL014669 was authorized by ordinance 1660-2013, passed by Columbus City Council July 15, 2013 and provided hardware, software, licenses and support services through December 31, 2015, with the contract most recently modified via PO039040 authorized under ordinance 2479-2016, passed November 7, 2016; and
WHEREAS, the Department of Technology utilizes Unisys Corporation's Libra 460 System to support mission critical applications, including City payroll and Police Property Room applications that allows the department to analyze, examine and integrate data sources and operating environments; and
WHEREAS, Unisys Corporation is the sole provider of the Unisys ClearPath 460 System so this ordinance is being submitted in accordance with Columbus City Code, Chapter 329, relating to sole source procurement in order to continue services provided by Unisys Corporation, and
WHEREAS, it has become necessary in the usual daily operation of the Department of Technology to authorize the Director to modify an existing contract with Unisys Corporation to increase the contract amount and extend the software licensing period for a three (3) year agreement in order to allow for additional time needed to migrate city's applications from the mainframe platform to a newer technology platform and uninterrupted daily operation activities, for the preservation of public health, peace, property, safety, and welfare; now therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1: That the Director of the Department of Technology be and is hereby authorized to modify an existing contract with Unisys Corporation for software license and maintenance and support associated with the City's mainframe Unisys Libra 460 System; to extend for a three (3) year term with a coverage period from January 1, 2018 through December 31, 2020 in the amount of $474,335.00 with all other terms and conditions related to the software licensing and support remaining the same.
SECTION 2: That the expenditure of $474,335.00 or so much thereof as may be necessary is hereby authorized to be expended from: (See attachment 2470-2017 EXP)
Department: 47| Division: 47-02| Object Class: 03| Main Account: 63945:|Fund: 5100|Subfund: 510001|Program: IT005| Section 3: 470201|Section 4: IT03| Section 5: IT0303| Amount: $362,783.00| {Software Licenses}
Department: 47| Division: 47-02| Object Class: 03| Main Account: 63946:|Fund: 5100|Subfund: 510001|Program: IT005| Section 3: 470201|Section 4: IT03| Section 5: IT0303| Amount: $111,552.00| {Software support}
SECTION 3. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That this contract is established in accordance with the sole source provisions of the Columbus City Code, Chapter 329.
SECTION 6. This ordinance shall take effect and be in force from and after the earliest period allowed by law.