S72-Q26439- A2 - Approve an Amending Ordinance authorizing a Second Amendment to Contract No. 4600010159 between the City of Houston and Phoenix Business Inc. to extend the contract term from January 5, 2018 to January 4, 2019, for SAP Consulting Services for the Houston Information Technology Services (HITS) Department.
Specific Explanations:
The Chief Information Officer (CIO) and the Chief Procurement Officer (CPO) recommend that City Council approve an amending ordinance authorizing a second amendment to the contract between the City of Houston (City) and Phoenix Business Inc. to extend the contract term from January 5, 2018 to January 4, 2019, for SAP Consulting Services for the Houston Information Technology Services Department.
This contract was awarded on December 29, 2009, by Ordinance No. 2009-1372, for a five-year term, with no additional renewal options. On August 25, 2014, City Council approved Ordinance No. 2014-0800, for an agreement to maintain rates negotiated with Phoenix Business, Inc. stated in the contract, and to renew the contract for three (3) additional years beginning after the fifth option year has ended in December 2014.
The contract term extension is being requested to allow time to complete the solicitation process to identify and award application managed services agreements.
The scope of work allows for the City of Houston to use SAP software to automate critical functions in the Financial, Purchasing, Human Resources and Payroll organizations across the City. The City’s operation environment requires on-going efforts to supplement our existing staff when a project requires specialized skills or existing workloads hamper our ability to meet critical deadlines.
M/WBE Participation:
This contract was awarded with a 15% M/WBE participation goal. The designated subcontractor Yaltech Consulting, Inc. is currently exceeding the goal.
Fiscal Note:
Funding for this item is included in the FY2018 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policy Ord. 2014-1078.
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Jerry Adams, Chief Procurement Officer Department Approval Authority
Finance/Strategic Procurement Division