Explanation
BACKGROUND:
This ordinance authorizes the Director of the Department of Technology, on behalf of the Department of Public Utilities (DPU) to enter into a contract with Oracle America, Inc. for Oracle Linux software maintenance and support. The maintenance and support services will be for a one (1) year term, December 1, 2010 through November 30, 2011. The agreement provides software upgrades and technical support for five (5) Oracle Linux operating system licenses at $1,259.10 per license. The funding needed to establish the annual maintenance and support contract for this term period is $6,295.50.
Oracle Linux is the operating system for the Columbus Utility Billing System (CUBS), and has been without Oracle Linux support since December 17, 2009. Consequently, upgrades to the CUBS system have been delayed, pending renewal of the Oracle Linux software support agreement. The last agreement for support (EE006329) expired without renewal (12/17/09) because the authorized software re-seller (Columbus Supply) could not extend support for another year without the city signing an Oracle required agreement between the city and Oracle. As Oracle was not a party to the contract between Columbus Supply and the city, the city could not sign the agreement with Oracle. Furthermore, the Oracle standard agreement contained terms that are unacceptable to the city. As a result, the Department of Technology negotiated directly with Oracle to establish mutually agreeable amendments to the Oracle standard agreement, all of which have been reviewed and approved by the City Attorney.
Oracle Linux support was last purchased through purchase order EE004582 in October 2007 from solicitation SO026606, awarding a contract to Columbus Lumber (dba Columbus Supply), an authorized Oracle re-seller, for $4,528.10. The agreement included options for two (2) annual renewals. The first option was exercised through purchase order EE006329 in December 2008 for $5,479.10. As explained above, the second option could not be exercised as a result of needing to sign the Oracle required agreement pertaining to Oracle Linux customers.
The company (Oracle USA Inc.), associated with the original contract changed their name and Federal Identification number May 2010. This legislation authorizes the Department of Technology on behalf of the Department of Public Utilities (DPU) to enter into a contract with Oracle America, Inc., formerly known as Oracle USA Inc
This ordinance will authorize the assignment of all open, past and present contracts between the City of Columbus with Oracle USA, Inc., FID 84-1332677 to Oracle America, Inc. FID 94-2805249; with the contract compliance expiring on 5/19/2012. In May 2010 Oracle USA, Inc. updated their W-9 to reflect the company name as Oracle America, Inc. with a new federal ID number but the same business address.
This ordinance also requests to waive the competitive bidding provisions in accordance with section 329 of the Columbus City Code, as the Department of Technology is unable to purchase Oracle Linux maintenance and support from authorized re-sellers (e.g. Columbus Lumber) without accepting the terms and conditions of the standard Oracle agreement; and there is an immediate need to renew the software maintenance and support.
EMERGENCY: Emergency designation is requested to expedite a contract and establish a certified purchase order to acquire the needed software maintenance support before year end closing.
FISCAL IMPACT: In 2008 and 2009 $436,289.25 and $436,757.63 was legislated for maintenance and support respectively with Oracle USA, Inc. For this year (2010), $449,860.34 was legislated with Oracle USA, Inc., and $818.21 (from ordinance 0712-2010) with Oracle America, Inc. Therefore, along with this request for Oracle Linux software maintenance and support services for $6,295.50 the aggregate 2010 total is $456,974.05. Funds are identified and available in the Department of Technology Internal Service Fund.
CONTRACT COMPLIANCE: Oracle Americas, Inc. 94-2805249 Expiration Date: 05/19/2012
Title
To authorize the Director of the Department of Technology, on behalf of the Department of Public Utilities (DPU), to enter into a contract with Oracle America, Inc. to acquire Oracle Linux software maintenance and support services, to waive competitive bidding provisions of the Columbus City Code; to authorize the expenditure of $6,295.50 from the Department of Technology Information Services Fund; and to declare an emergency. ($6,295.50)
Body
WHEREAS, the Department of Technology, on behalf of the Department of Public Utilities (DPU), has a need to enter into a contract with Oracle America, Inc. for Oracle Linux software maintenance and support services for a one year term of December 1, 2010 through November 30, 2011; and
WHEREAS, Oracle Linux is the operating system for the Columbus Utility Billing System (CUBS); and this contract provides computer programming software maintenance and technical support services, and obligates the vendor to provide upgrades, new releases and to maintain the work requests for five (5) Oracle Linux operating system licenses in the amount of $6,295.50 ($1,259.10/per license); and
WHEREAS, this ordinance will authorize the assignment of all open past and present contracts between the City of Columbus with Oracle USA, Inc., FID 84-1332677 to Oracle America, Inc. FID 94-2805249, with the contract compliance expiring on 5/19/2012; and
WHEREAS, this ordinance also requests approval to waive the competitive bidding provisions in accordance with Columbus City Code, Section 329.07; and
WHEREAS, an emergency exists in the daily operation of the city in that it is necessary for the Director of the Department of Technology, on behalf of the Department of Public Utilities to enter into a contract with Oracle America, Inc. for Oracle Linux software maintenance and support for the Columbus Utility Billing System (CUBS), to maximize efficiency for 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 Technology, on behalf of the Department of Public Utilities (DPU), is hereby authorized to enter into a contract with Oracle America, Inc. to acquire Oracle Linux annual software maintenance and support services for a one (1) year term, December 1, 2010 through November 30, 2011, for five (5) Oracle Linux operating system licenses ($1,259.10/per license); and to authorize the assignment of all open past and present contracts between the City of Columbus with Oracle USA, Inc., FID 84-1332677 to Oracle America, Inc. FID 94-2805249.
SECTION 2. That the expenditure of $6,295.50 or so much thereof as may be necessary is hereby authorized to be expended from:
Div.: 47-01|Fund: 514|Sub-fund: 550| OCA Code: 514550|Obj Level 1: 03|Obj. Level 3: 3369| Amount: $384.03 | Electricity
Div.:47-01|Fund: 514|Sub-fund: 600| OCA Code: 514600|Obj. Level 1: 03|Obj. Level 3: 3369| Amount: $2,442.65 | Water
Div.:47-01|Fund: 514|Sub-fund: 650| OCA Code: 514650|Obj. Level 1: 03|Obj. Level 3: 3369| Amount: $2,738.54 | Sewer and Drains
Div.:47-01|Fund: 514|Sub-fund: 675| OCA Code: 614675|Obj. Level 1: 03|Obj. Level 3: 3369| Amount: $730.28 | Stormwater
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 for good cause shown, the competitive bidding provisions of Chapter 329 of the Columbus City Codes, 1959, are hereby waived.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after its passage if the Mayor neither approves nor vetoes the same.