DATE: May 21, 2024
TO: Board of Supervisors
SUBMITTED BY: Edward Hill, Chief Operating Officer/Interim Director of Internal Services/Chief Information Officer
Paul Dictos, Assessor-Recorder
Oscar Garcia, Auditor-Controller/Treasurer-Tax Collector
SUBJECT: Second Amendment to Fujitsu Agreement
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a Second Amendment to the Agreement with Fujitsu North America, Inc. for increased support and testing time associated with the conversion of the County’s property management information system, increasing the maximum compensation by $200,000 for a total of $4,352,108, and extending the term by six months from September 7, 2021, through March 31, 2025.
REPORT
There is no additional Net County Cost associated with the recommended action, which will allow the Internal Services Department - Information Technology Division (ISD-IT), in consultation with the Assessor-Recorder (Assessor) and the Auditor-Controller/Treasurer-Tax Collector (ACTTC), to continue work with Fujitsu North America, Inc. (Fujitsu) to finalize ongoing modernization services of the County’s Property Management Information System (PMIS) from an outdated COBOL infrastructure to a .NET format. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, there would be insufficient funds to finish converting the PMIS, which requires additional support services from Fujitsu for additional testing in order to achieve system acceptance. Additionally, the agreement would expire prior to project completion, leaving ISD-IT without an active agreement for support as the project approaches completion.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The recommended action will increase the total compensation by $200,000 to a total of $4,352,108. All costs associated with the recommended action will be funded through departmental chargebacks. Sufficient appropriations and estimated revenues are included in the ISD-IT Org 8905 FY 2023-24 Adopted Budget and will be included in subsequent budget requests for the duration of the project.
DISCUSSION:
On September 7, 2021, your Board approved Agreement No. 21-363 (Agreement) with Fujitsu America, for the conversion of the County’s PMIS from the COBOL language to a “.Net” hosting environment. The project began in late September 2021 and was projected to have a “go-live” date of April 2023.
On August 8, 2023, your Board approved an assignment of the Agreement from Fujitsu America to Fujitsu, due to an internal restructuring of the company. Fujitsu assumed the rights, interests, obligations, responsibilities, and liabilities for the Agreement.
On August 8, 2023, your Board also approved Amendment No. 1 to the Agreement, which increased the maximum compensation by $500,000, to account for changes to the scope of work, inclusive of an increase in defect and bug fixes, as well as an increase in the number of screens and outputs required for complete conversion of the PMIS. In total, there have been five change orders issued that are necessary to document these additional testing and validation requirements, and changes to the scope of work, which have delayed the project and have incurred additional costs to complete the conversion.
Pending finalization of the conversion, the departments have identified an increase in the testing time required to ensure that the project is ready for a successful “go-live” and that Fujitsu is able to provide required post “go-live” support.
Approval of the recommended action will allow Fujitsu to provide an extension of support services during the additional testing time necessary to acquire system acceptance of the final conversion of the PMIS, and during the post “go-live” support, increasing the total compensation to $4,352,108 and extending the term through March 31, 2025.
REFERENCE MATERIAL:
BAI #33, August 8, 2023
BAI #41, September 7, 2021
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Second Amendment to Agreement
CAO ANALYST:
Ahla Yang