S17-H28720 - Approve Spending Authority in the amount not to exceed $350,463.71 for the payment of maintenance and support reinstatement fees for OnBase Software licensing from Hyland Software, Inc. for the Houston Airport System and Houston Information Technology Services.
Specific Explanation:
The Chief Information Officer and the Chief Procurement Officer recommend that City Council approve spending authority in the amount not to exceed $350,463.71 for the payment of maintenance and support reinstatement fees for OnBase Software licensing from Hyland Software, Inc. for the Houston Airport System (HAS) and Houston Information Technology Services (HITS).
The requested spending authority will allow both HAS and HITS to receive upgrades and patches missed between prior maintenance agreement and the newly executed contract. On May 30, 2018 Contract No. 4600014903 was awarded to ImageSoft, Inc. by Ordinance No. 2018-449 for maintenance and support for Hyland Software's OnBase software licensing.
The maintenance contract was significantly delayed as the City initially began negotiations directly with the software manufacturer (Hyland Software, Inc.); at the time of negotiations the software was sole source. After lengthy negotiations, the manufacturer notified the City that a DIR cooperative agreement with multiple resellers was awarded and that pricing in a direct contract would be at a greater cost to the City. Thereby an informal bid was processed with three respondents (Hyland, ImageSoft and Databank) and ImageSoft was the awarded vendor.
During this process, OnBase licensing remained available to address daily business-related requirements; but without maintenance, the City did not have access to upgrades and patches. To reinstate maintenance and bring the software to the now current version, the software manufacturer requires a reinstatement fee. By reinstating maintenance rather than repurchasing software licenses, the City will realize a savings of more than 60% of the product (which includes upgrades).
M/WBE Participation:
M/WBE Zero Percentage Goal document approved by the Office of Business of Opportunity.
Pay or Play:
The proposed contract requires compliance with the City's 'Pay or Play' ordinance regarding health benefits for employees of City contractors. In this case, the contractor provides health benefits to eligible employees in compliance with City policy.
Hire Houston First:
This procurement is exempt from the City’s Hire Houston First Ordinance. Bids/proposals were not solicited because the department is utilizing an Interlocal or Cooperative Purchasing Agreement for this purchase.
Fiscal Note:
Funding for this item is included in the FY2019 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
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_______________________________________
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___________________________________
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Jerry Adams, Chief Procurement Officer
Finance/Strategic Procurement Division
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Department Approval Authority
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Estimated Spending Authority
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DEPARTMENT
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FY2019
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OUT YEARS
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TOTAL
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Houston Airport System
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$171,167.88
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$0.00
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$171,167.88
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Houston Information Technology Services
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$179,295.83
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$0.00
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$179,295.83
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Total
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$350,463.71
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$0.00
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$350,463.71
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