Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment No. 1 to Contract No. 6004660 (Project CS-1968) with Applications Software Technology (AST) LLC. for support for Oracle Supply Chain and Inventory Modules by adding $120,000.00 and eight (8) months, for a new term ending 3/31/24 and a total amended contract amount not-to-exceed $229,220.00. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of August 16, 2023
Item No. 2023-176
Proposed Amendment No. 1
Contract No. 6004660 (CS-1968)
Contractor: Applications Software Technology (AST) LLC
Contractor Address: 4343 Commerce Court, Ste 701, Lisle, IL 60532
Initial Contract Amount: $109,220.00
Proposed Amendment 1 Amount: $120,000.00
Proposed New Contract Amount: $229,220.00
Initial Contract Term: 8/1/2022 - 7/31/2023
Proposed Amendment 1 Extension: 8/1/23 - 3/31/24
TO: The Honorable, Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed Amendment No. 1 DWSD Contract No. 6004660
For support for Oracle Supply Chain and Inventory Modules
AST, LLC
MOTION
Upon recommendation of Marqaicha Welch, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department, authorizes the Director to approve Amendment No. 1 to Contract No. 6004660 (Project CS-1968) with Applications Software Technology (AST) LLC. for support for Oracle Supply Chain and Inventory Modules by adding $120,000.00 and eight (8) months, for a new term ending 3/31/24 and a total amended contract amount not-to-exceed $229,220.00. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD separated from GLWA’s software platform Oracle WAM for Inventory and Supply Chain Management. DWSD now uses the City of Detroit’s software platform Oracle FUSION ERP for financial management and Oracle Supply Chain Module for the management of inventory. In order to maintain the tight integration between system components, the City of Detroit’s Contract 6003001 with AST, LLC includes general support, upgrade planning, implementation and testing.
With the additional module there are additional support costs to ensure that FUSION is running properly with quarterly patch updates. To provide this support, DWSD is required to utilize AST, LLC (Contract 6003001). Having the same vendor support, for Oracle Supply Chain, allows DWSD and COD, the compatibility and integration to be seamless within the main FUSION ERP system.
The DWSD piggyback contract provides support during this fiscal year. The current City of Detroit contract with AST, LLC will expire 3/31/24. The City of Detroit plans to publish, a new solicitation and include the additional DWSD support requirements in the bid specifications.
PROCUREMENT METHOD
The DWSD contract was processed as a piggyback on an existing City of Detroit Contract 6003001. Because AST is the existing vendor, DWSD is required to use AST for support services. The DWSD IT Department submitted requisition 498421, that was approved by Budget on 7/7/22, requesting a new contract with AST, LLC, It was approved by BOWC 7/20/22.
This Proposed Amendment No. 1 was initiated through requisition 506741 and approved by budget on 7/14/23. Amendment No. 1 extends the term by eight (8) months and will add $120,000.00 in funding. The additional time and funds allow the City of Detroit to publish an RFP
The vendor’s clearances are approved and expire 11/17/23. Per DWSD procurement protocol, no other approvals are required.
SUMMARY
A. Contract No. 6004660 (CS-1968)
B. Contractor: Applications Software Technology (AST) LLC
C. Initial Contract Term: 8/1/22 - 7/31/23
D. Proposed Amendment 1 Extension: 8/1/23 - 3/31/24
E. Proposed New Contract Term: 8/1/22 - 3/31/24
F. Initial Contract Amount: $109,220.00
G. Proposed Amendment 1 Amount: $120,000.00
H. Proposed New Total Contract Amount: $229,220.00
I. Funding Source: O&M
J. GL Strings: 5720-20168-483301-617400-000205-10790-0000-000000 - 38.2%
5820-20179-493301-617400-000226-15805-0000-000000 - 61.8%
K. Projected Contract Expenditures:
FY 23-24: $120,000.00
This proposed amendment was presented to the BOWC Finance Committee on August 2, 2023. Per the DWSD Procurement Policy, no other approvals are required.