SR - AGR-5700.4 - FOURTH AMENDMENT INFORMATION TECHNOLOGY SERVICES AGREEMENT1. SUBJECT
Fourth Amendment, Second Extension to Agreement with Conduent State and Local
Solutions, Inc. for Information Technology Services
2. SUMMARY -
The City contracts for Information Technology (IT) Services with Conduent (formerly Xerox)
State and Local Solutions, Inc. The latest contract was approved by the City Council on June 28,
2011. The initial term for the contract is five years, with options to extend up to an additional
three years. The initial term expired on June 30, 2016, and the City extended the agreement
through June 30, 2017. The proposed extension is for one additional year.
3. RECOMMENDED ACTIONS
Approve the Fourth Amendment to the Information Technology Services Agreement with
Conduent State and Local Solutions, Inc., extending the Agreement for one year commencing
July 1, 2017 and terminating on June 30, 2018, and authorize the Mayor to execute the
Amendment.
4. FISCAL IMPACT
The total not to exceed compensation under the Second Extension Term is $1,350,917.79. This
expenditure will be included as part of the proposed FY 2017 -18 Operating Budget in account
780.1601.51670.00000 (Information Systems Fund — Contractual Services).
5. STRATEGIC PLAN GOAL(S)
4a. Provide outstanding public services — Enhance technology to improve public accessibility to
information and services.
6. GENERAL PLAN IMPLEMENTATION
Not applicable.
7. DISCUSSION and BACKGROUND
Background
The City has contracted for Information Technology (IT) support since 1984. Contracting for
this service continues to be a more cost effective and efficient method of providing this service as
opposed to having an in -house IT department.
The City approved its latest contract with the current vendor, Conduent State and Local
Solutions, Inc. ( Conduent), in June 2011, after a competitive bid process. That agreement
included an initial term of five years, with a City option to extend the agreement up to an
additional three years. The initial term expired on June 30, 2016, and in March 2016, a one -year
extension was approved, which expires on June 30, 2017.
Through the five and a half years of the Agreement, the City has been very satisfied with the
services provided by Conduent. The on -site IT staff have been responsive and effective in
ensuring the City's complex and extensive IT network remains sound and secure.
Discussion
Since the execution of the agreement, there has been a significant growth in technology
sophistication and acquired IT infrastructure. As such, staff is continuing to review the current
IT staffing structure and is working with Conduent to identify necessary changes in order to keep
up with our increased IT needs, and balancing those needs within the fiscal challenges we face in
the next year.
The initial base rate for services was $1,295,000 for FY 2011 -12. This was unchanged for year
two of the agreement (FY 2012 -13). Beginning in year three (FY 2013 -14), the fee increased
annually in an amount equivalent to the percentage increase granted to the Orange Municipal
Employees Association (OMEA), with a minimum of 1% and a maximum of 2.2 %. There is no
scheduled increase for OMEA in FY 2017 -18 at this time. Therefore, the increase is 1 %, which
results in a fee for FY 2017 -18 of $1,350,917.79.
8. ATTACHMENTS
Fourth Amendment to Information Technology Services Agreement
ITEM 2 5/9/2017