Explanation
BACKGROUND:
This legislation authorizes the Director of the Department of Technology to extend and modify a contract with Lawson Software Americas Inc. for the installation and related services associated with the Columbus Human Resources Information System (CHRIS) project. The original contract (EL007511) was authorized by ordinance #1799-2007, passed by Columbus City Council on November 26, 2007. The contract was most recently renewed by ordinance 1243-2010, passed October 18, 2010, extending the term of the contract through November 30, 2011. This ordinance will extend the contract through November 30, 2012 and increase the funding amount by $600,000 for a total CHRIS project services contract amount of $3,957,168.67.
The $600,000 modification amount will be used to pay for Lawson Software Americas Inc. consultants to support City staff to prepare for CHRIS acceptance testing ($32,425) and complete acceptance testing (up to $567,575), a critical project milestone before the system can be fully operational. The CHRIS implementation has been more complicated than originally anticipated, requiring more support from Lawson Software Americas Inc. consultants beyond that agreed to in the original contract. Consequently, the need for additional services was not foreseen when the original contract was established. Given Lawson's extensive involvement in the CHRIS project, it is not in the City's best interests to procure the additional service through another procurement process, as this would further delay implementation of the CHRIS system. The $32,425 amount was negotiated with Lawson Software Americas Inc., as documented in change order 19926.0/O-1109-122448. An additional change order is forthcoming, and this ordinance requests up to $567,575 in contingency to accommodate the cost of that additional service.
As the CHRIS project is not completed, and after further research and analysis, it has been determined that the Department of Technology has a need to extend the contract for an additional twelve months, from December 1, 2011 through November 30, 2012. While performing development tasks associated with the implementation, there were unforeseen circumstances that directly impacted deliverables and milestones. Out of these unforeseen circumstances, it has become necessary to extend the original date.
This ordinance also will allow the term extension on two existing purchase orders to continue to make available funds not yet liquidated on (purchase orders EL007511 $710,024.34 unspent balance as of September 15, 2011 and EL010074 $2,392.59 unspent balance as of September 15, 2011).
EMERGENCY: Emergency designation is requested as to avoid interruption in the performance of services necessary in the usual daily operation, and to facilitate contract execution and related payment for change orders, deliverables and other services.
FISCAL IMPACT: The cost associated with this legislation is $600,000 to be used for Lawson Software Americas Inc. consultants to support City staff to prepare for CHRIS acceptance testing ($32,425) and complete acceptance testing (up to $567,575).This amount is available within the Department of Technology Information Services Capital Improvement Fund and the BAB (Build America Bond Fund). The aggregate total for Lawson Software Americas Inc. , unvoted carryover funds with this legislation is $3,957,168.67. This legislation will allow the remaining funds to be utilized on purchase orders EL007511 ($710,024.34 unspent balance as of September 15, 2011) and EL010074 ($2,392.59 unspent balance as of September 15, 2011).
CONTRACT COMPLIANCE:
Lawson Software Americas Inc., 41-1251159 Expiration Date: 09/21/2013
Title
To authorize the Director of the Department of Technology to modify the existing contract with Lawson Software Americas Inc. to extend the term period for one additional year, and to increase the funding; and to authorize the expenditure in the amount of $600,000 to cover project cost deliverables and related services associated with the Central Payroll and Human Resources Information Management System (CHRIS), from the Department of Technology, Information Service Division, Capital Improvement Bond and the Build America Bond Fund and to declare an emergency. ($600,000.00)
Body
WHEREAS, this ordinance authorizes the Director of the Department of Technology to modify the existing contract with Lawson Software Americas Inc. for an additional one (1) year term from December 1, 2011 through November 30, 2012, and to increase the funding in the amount of $600,000 for Lawson consultants to support City staff to prepare for CHRIS acceptance testing ($32,425) and complete acceptance testing (up to $567,575), a critical project milestone before the system can be fully operational;
WHEREAS, this ordinance will also authorize existing purchase orders EL007511 and EL010074 remaining funds to be extended through November 30, 2012 to continue with project deliverables and services to be performed; and
WHEREAS, this ordinance is needed to continue the provisions for services between the City of Columbus and Lawson Software Americas Inc. , to allow for the continuation of development and implementation of a computer system (consisting of hardware and software) and related services for the Central Payroll and Human Resources Information Management System (CHRIS), with all other terms and conditions remaining the same, in accordance with the terms and conditions established in the original agreement with Lawson Software and the City of Columbus, and
WHEREAS, an emergency exist in the daily operation of the city in that it is immediately necessary for the Director of the Department of Technology to extend a contract and establish a purchase order with Lawson Software Americas Inc. to support daily operation activities, thereby preserving the 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 is hereby authorized to modify the existing contract with Lawson Software Americas Inc. to extend it for an additional one (1) year term from December 1, 2011 through November 30, 2012; to increase funding in the amount of $600,000; and to utilize any remaining funds associated with purchase orders EL007511 & EL010744 within this extended period, with all other terms and conditions remaining the same.
SECTION 2: That the expenditure of $600,000 or so much thereof as may be necessary is hereby authorized to be expended from:
Dept./Div.: 47-02| Fund: 514| Sub-Fund: 003 BAB|Project Name: Human Resources Information|Project Number: 470049-100000 (unvoted carryover funds)| OCA Code: 514149| Obj. Level:06| Obj. Level 3: 6655|Amount: $3,605.76
Dept./Div.: 47-02| Fund: 514| Sub-Fund: 002| Project Name: Human Resources Information| Project Number: 470049-100000 (unvoted carryover funds)| OCA Code: 514049| Obj. Level 1: 06| Obj. Level 3: 6655| Amount: $28,819.24
Total of $32,425
Dept./Div.: 47-02| Fund: 514| Sub-Fund: 002| Project Name: Human Resources Information| Project Number: 470049-100000 (unvoted carryover funds)| OCA Code: 514049| Obj. Level 1: 06| Obj. Level 3: 6655| Amount: $567,575.00
Total of $567,575
Combined Total of $600,000
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 the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.