DATE: January 12, 2021
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Amendment Three to Master Agreement with Oracle America, Inc.
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment Three to Master Agreement No. 14-055 with Oracle America, Inc. (US-OMA-68497) to add Schedules C - Cloud Services and S - Services to utilize additional services, effective upon execution by Oracle, with no change to the term of February 6, 2014 through February 5, 2024 and no increase to the maximum compensation of $16,000,000.
REPORT
Approval of the recommended action will add Oracle’s Cloud Services schedule to the existing Master Agreement. This will allow the County to utilize additional services to better manage and update the County’s PeopleSoft Financial Supply Chain Management (FSCM) module, Human Capital Management (HCM) module, and Budget and Planning System, as well as various Oracle databases. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the County will not be able to utilize Oracle’s cloud-based services.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The services will allow the transition of the budget module from an on-premises hosted solution to a cloud platform. Sufficient appropriations and estimated revenues are included in the Internal Services Department - Information Technology Services (ISD-IT Services) Org 8905 FY 2020-21 Adopted Budget and will be included in subsequent budget requests.
DISCUSSION:
On June 28, 1994, the Board approved Agreement No. 94-306 with PeopleSoft Corporation (PeopleSoft) for license and support of a Human Resources Management System (HRMS).
On August 5, 1997, the Board approved Master Agreement Nos. 97-376 and 97-377 with PeopleSoft for license and support of a Financial Information System (FIS).
Oracle purchased PeopleSoft in 2004. On January 26, 2010, the Board approved Master Agreement No. 10-015 with Oracle to purchase additional license and support pursuant to the terms of the original FIS agreement.
On February 4, 2014, the Board approved Master Agreement No. 14-055 with Oracle, to replace and update the original HRMS and FIS agreements and Amendment One, which updated the term, contractual limit, incorporated certain schedules, and updated the governing law. On February 6, 2014, Oracle countersigned the agreement and Amendment One.
On January 29, 2019, the Board approved Amendment Two to Master Agreement No. 14-055, to extend the term through February 5, 2024, and amend the total compensation amount from $8,500,000 to $16,000,000, in order to account for the term extension.
The recommended amendment adds Oracle’s Cloud Services and generic services schedules onto the schedule of available products and services within Master Agreement No. 14-055. Approval of the recommended action will allow the County to utilize Oracle’s Cloud Services solutions to upgrade for budgeting, increasing the mobility and flexibility of the County’s budgeting process. The recommended amendment does not obligate the County to use any of these services; it only provides the County the option to utilize those services.
As with prior agreements, Oracle requires that the County sign the recommended amendment prior their execution. Oracle support for these systems is critically important to the County. The recommended amendment limits Oracle’s liability arising out of the agreement to the fees paid under the order for the services giving rise to the liability during the 12 months prior to the incident. The ISD - IT Services believes that the benefits outweigh all potential risks and recommends approval of the amendment by your Board as a prudent business decision. County Risk Management was previously consulted for review of the agreement.
REFERENCE MATERIAL:
BAI #47, January 29, 2019
BAI #25, February 4, 2014
BAI #32, January 26, 2010
BAI #11a, August 5, 1997
BAI #42c, June 28, 1994
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment Three to Master Agreement No. 14-055
CAO ANALYST:
Sonia M. De La Rosa