DATE: November 28, 2023
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director, Internal Services/Chief Information Officer
SUBJECT: Agreement with AssetWorks
RECOMMENDED ACTION(S):
TITLE
1. Make a finding that it is in the best interest of the County to suspend the competitive bidding process consistent with Administrative Policy No. 34 for unusual or extraordinary circumstances, as AssetWorks, Inc. is the sole provider of FleetFocus software; and
2. Approve and authorize the Chairman to execute an Agreement with AssetWorks, Inc., for a fleet management software system and hosting services effective December 1, 2023 not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $671,900.
REPORT
There is no additional Net County Cost associated with the recommended actions, which will allow the Internal Services Department-Fleet Services Division (ISD-Fleet) to continue to use FleetFocus, receive maintenance and support, and begin using AssetWorks Inc.’s (AssetWorks) hosting services for their fleet management software to carry out daily activities and functions within ISD-Fleet. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended actions, ISD-Fleet would need to acquire and implement a new fleet management software system. Your Board may direct staff to solicit for competitive bids for a new system, however procuring and implementing an alternative fleet management system would be very costly and time consuming.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
The request to suspend the competitive bidding process is consistent with Administrative Policy No. 34, as FleetFocus is proprietary software only available for purchase directly through AssetWorks. The County has used FleetFocus since 1996 to effectively manage all operational and billing aspects of ISD-Fleet. The Internal Services Department-Purchasing Division concurs with the Department’s request to suspend the competitive bidding process.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. Cost associated with the recommended agreement will not exceed $671,900 for the total possible five-year term and are recovered through charges to user departments. Sufficient appropriations and estimated revenues are included in the FY 2023-24 ISD-Fleet Org 8910 Adopted Budget. Ongoing costs for the remaining term of the recommended agreement will be included in future budget requests.
DISCUSSION:
FleetFocus is a fleet management software system that allows for the collection, management, and reporting of all fleet-related components, including asset management, parts inventory, labor, motor pool operations, service writing, and billing. ISD-Fleet has used FleetFocus as its fleet management system since 1996 and has continued to upgrade the system as business operations require. The functionality and features that FleetFocus provides is essential for ISD-Fleet to conduct and manage business operations, functions, and processes.
On December 10, 2019, your Board approved agreement No. 19-736 with Assetworks for use of the FleetFocus fleet management system, including software maintenance and support.
In 2019, FleetFocus was upgraded to a newer software version to obtain additional features to help improve ISD-Fleet user functionality and customer service. During this period, AssetWorks conducted an assessment to evaluate and make recommendations on how ISD-Fleet can maximize use and efficiency of the system. As a result of implementing the recommended changes, ISD-Fleet has been able to operate more effectively and provide customers with better service. AssetWorks has continued to improve their services, and now offers hosting services for their software. ISD-Fleet will benefit from using AssetWorks’ hosting services for FleetFocus, as this will enable timely maintenance services and automatic upgrades.
The current term of agreement No. 19-736 with AssetWorks will expire on December 31, 2023, with one additional 12-month extension period remaining. ISD-Fleet recommends allowing the current agreement to expire and executing a new agreement, to incorporate the new hosting services and additional services.
Approval of the first recommended action will suspend the competitive bidding process as AssetWorks is the sole provider of the FleetFocus software.
Approval of the second recommended action will authorize the recommended agreement with AssetWorks and will allow ISD-Fleet to continue using FleetFocus, and to maximize business process efficiencies and improvements via usage of hosting services.
The recommended Agreement deviates from the standard County language, in that AssetWorks’ liability is capped at $1,000,000 for indemnification obligation claims. Additionally, the recommended agreement has a limitation on liability, limiting AssetWorks’ liability to fees paid to AssetWorks in the 12 months preceding the date a claim arises. AssetWorks also stipulates that they will not be liable for any punitive, exemplary, indirect, incidental, or consequential damages arising out of or relating to this agreement. Risk Management recommends against accepting this language; however, the Department believes that the benefits of entering into this agreement outweigh any associated risks as this is a contract for software licensing, maintenance, and support.
REFERENCE MATERIAL:
BAI #50, December 10, 2019
ATTACHMENTS INCLUDED AND/OR ON FILE:
Sole Source Acquisition Request Form
On file with Clerk - Agreement with AssetWorks
CAO ANALYST:
Ahla Yang