Executive/Council Action Form (ECAF)
ITEM TITLE:
Title
Motion 25-115, approve and authorize execution of the Cloud Services Agreement with Oracle America, Inc. for an Enterprise Resource Planning software solution
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DEPARTMENT: Information Technology
ORIGINATOR: Dee White
EXECUTIVE RECOMMENDATION: Ken Klein 2/20/25
PURPOSE: The purpose of this ECAF is to approve and execute a Cloud Services Agreement with Oracle America, Inc. to provide an Enterprise Resource Planning (ERP) software solution.
BACKGROUND: Planning and daily operations of an enterprise such as Snohomish County requires IT systems supporting a large number of business capabilities across many different business functions. An ERP (Enterprise Resource Planning) system is a core element of a modern organization promoting the ability to drive continuous improvement, business efficiencies, and cost management, and also with the potential to integrate people management functions into the ERP system. Today we operate a large number of disjointed financial, payroll, and HR systems that not only are outdated in their capabilities, but also provide both technical and process challenges that result in inefficiencies. The systems we have today deliver on a subset of the capabilities independently, and we have disparate systems that are not effectively integrated. The county requires a replacement of our current financial, payroll, and human resources systems - along with a number of connected systems. A full-scale ERP will also provide additional capabilities related to core systems, and also an opportunity to consider standardizing along a single timekeeping system. We have an opportunity to rethink the way this work is delivered in the county by not only modernizing systems, but also modernizing processes to deliver this work, including modernizing the accounting structures for the county. The County published RFP-24-025BC to solicit proposals for an ERP software solution and Oracle America, Inc was selected by the Snohomish County evaluation committee as submitting the highest-ranking proposal to provide the ERP software solution. The resulting agreement offers a competitive investment model, with fixed annual pricing for the first 5-year term and an option for a second 5-year term with an uplift limited to only 10%, with fixed pricing until the end of that term. The maximum cost for the ERP solution is expected to be Three Million Seven Hundred Eighty-Four Thousand Six Hundred Forty Dollars ($3,784,640.00) during the initial five-year contract term. The Agreement may be extended for one additional five-year term. Approval of this Agreement will allow the IT department to proceed with implementation of the ERP system. Expedited handling is requested in order for Agreement to be executed no later than February 26, 2025 in order to lock in reduced pricing offered during contract negotiations.
FISCAL IMPLICATIONS:
|
EXPEND: FUND, AGY, ORG, ACTY, OBJ, AU |
CURRENT YR |
2ND YR |
1ST 6 YRS |
|
DAC |
$756,928 |
$756,928 |
$3,784,640 |
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Plus applicable sales tax |
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TOTAL |
$756,928 |
$756,928 |
$3,784,640 |
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REVENUE: FUND, AGY, ORG, REV, SOURCE |
CURRENT YR |
2ND YR |
1ST 6 YRS |
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TOTAL |
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DEPARTMENT FISCAL IMPACT NOTES: Sufficient funding required for this solution is included in the approved IT 2025-2026 biennial budget for the ERP project.
CONTRACT INFORMATION:
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ORIGINAL |
X |
CONTRACT# |
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AMOUNT |
$3,784,640 plus applicable sales tax |
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AMENDMENT |
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CONTRACT# |
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AMOUNT |
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Contract Period
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ORIGINAL |
START |
Upon execution |
END |
5 years from execution |
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AMENDMENT |
START |
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END |
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OTHER DEPARTMENTAL REVIEW/COMMENTS: Reviewed/approved by: Risk Management (Sheila Barker 2/19/25), Finance (Nathan Kennedy 2/120/25), and Prosecuting Attorney’s Office as to form only (Rebecca Wendling 2/19/25)