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ITEM 13 |
City Council Memorandum Information Technology Memo No. N/A
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Date: |
July 17, 2023 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Dawn Lang, Deputy City Manager - CFO Sandip Dholakia, Chief Information Officer |
From: |
Lisa Lapp, Chief Applications Officer |
Subject: |
Purchase of Oracle Annual Support and Maintenance |
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Proposed Motion: |
Move City Council approve the purchase of Oracle annual support and maintenance, from Mythics, Inc., utilizing the Omnia Partners Contract No. 180233-002, in the amount of $649,220, for the term of August 1, 2023, through July 31, 2024. |
Background/Discussion: |
The City utilizes Oracle as the Enterprise Resource Planning (ERP) system, including the E-Business Suite Applications for Finance and Human Resources (HR). The application modules include HR, Self-Service HR, Financials, Payroll, Time Management, Project Costing, iExpense, iProcurement, Purchasing, and Order Management. The City purchases maintenance and support in order to provide the system and application upgrades necessary to operate and keep Oracle modules current, as well as to access technical assistance resources needed to resolve system issues and enable software fixes. The cost of the maintenance and support is based on the number of user licenses per module needed by City employees on an annual basis. Over the past year, the City completed an internal audit of users and the modules assigned to them. The audit reduced use of modules attached to users that no longer needed them and added new module licenses due to increased users in the system. This purchase includes annual maintenance and support as well as the net effect of added module licenses from the audit. |
Evaluation: |
Maricopa County, on behalf of Omnia Partners, competitively solicited and awarded a contract for Oracle products and services to Mythics, Inc. The City has a current agreement with Omnia Partners that allows for the cooperative use of its contracts. The term of the Omnia Partners contract is valid through November 30, 2028. |
Financial Implications: |
The purchase includes the ongoing annual maintenance and support cost of $336,528.22, as well as the one-time cost of additional Oracle module licenses from the internal audit in the amount of $312,691.78, for a total of $649,220. Staff anticipates approximately 8% annual increases in the cost of Oracle maintenance and support, affecting only the ongoing portion ($336,528.22) of the aforementioned overall total. The estimated budget for the internal license audit was $700,000, which was reduced to $312,691.78 through the work of internal audit staff and the favorable pricing received from Oracle via Mythics for the proactive work to self report. |
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Fiscal Impact |
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