Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment No. 1 to DWSD portion of the City-wide Contract 6003725 with Oracle America, Inc., for Oracle Cloud SaaS Licensing by adding $51,055.40, for a total amount not-to-exceed $476,055.40. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of: February 15, 2023
Item No.: 2023-29
Amend Contract No: 6003725
Contractor: Oracle America, Inc.,
Address: 500 Oracle Parkway, Redwood Shore, CA 94065
Current Contract Amount: $425,000.00
Proposed Amendment No. 1 Amount $51,055.40
Proposed Total Amended Contract Amount: $476,055.40
Contract Term: 7/31/21 - 1/16/25
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed Amendment No. 1 to Contract No. 6003725
To add funds for Oracle Cloud SaaS Licensing
Oracle America, Inc.
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 DWSD portion of the City-wide Contract 6003725 with Oracle America, Inc., for Oracle Cloud SaaS Licensing by adding $51,055.40, for a total amount not-to-exceed $476,055.40. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
The City of Detroit’s Information Technology Department (DoIT) entered into a contract with Oracle America, Inc. to provide Oracle Fusion Cloud Software services City-wide. This contract is the current City of Detroit contract for the licensing and maintenance of the Oracle FUSION Financial System including Oracle Supply Chain. DWSD currently uses Oracle Supply Chain, a module of Oracle FUSION, to manage the equipment and good inventory used at DWSD. This allows DWSD to manage supply levels for items such as pipe, PPE and other goods required for Field Services, Fleet, other DWSD Departments.
Since the software went live, DWSD has added integration support for Cityworks. This process improvement also requires 15 additional licenses to allow for better audit and control of the inventory receiving and issuance business processes. This will increase the overall per year cost by approximately $25,527.70 per year for a total of $51,055.40 for the term of this contract. This amended contract will provide funding for the additional services for DWSD.
PROCUREMENT METHOD
This City-wide contract was procured via a Single Source Exception to Competitive Solicitation (ECS), The City Council approved the contract on 7/27/21. DWSD’s portion of this contract was approved by the Board of Water Commissioners on 7/26/21.
This Amendment was initiated through DWSD requisition #504246 and approved by DWSD Budget on 12/21/22.
Oracle America’s clearances are pending, and a formal amended contract document is required and will be drafted by the City of Detroit. Per DWSD procurement protocol, no further approvals are required.
SUMMARY
A. Contract Number: 6003725
B. Current Contract Term: 7/31/21 - 1/16/25
C. Current Contract Amount: $425,000.00
D. Proposed Amendment No 1 Amount: $51,055.40
E. Proposed New Total Contract Amount: $476,055.40
F. Funding Source: O&M Funds
G. GL String(s):
5720-20168-483301-622302-000205-10790-0000-000000 - 38.2% Water
5820-20179-493301-622302-000226-15805-0000-000000 - 61.8% Sewer
H. Anticipate Fiscal Year (FY) Spend:
FY 22-23: $145,527.70
FY 23-24: $145,527.70
FY 24-25: $65,000.00
This contract was presented to the BOWC Finance Committee on February 1, 2023. Per DWSD procurement protocol, no further approvals are required.