Title
Resolution Approving a Contract Renewal with Infor for Upgrades to the Enterprise Asset Management (EAM) System.
Body
Department: Information Technology
Council District: n/a
Public Hearing: No
Advertising Date/By:
Contact 1 and Phone: Steve Averett, 373-2057
Contact 2 and Phone: Chryste Hofer, 373-4650
PURPOSE:
The Information Technology Departments desires to renew and modify its software licensing agreement with Infor for the Enterprise Asset Management (EAM) system for a 5-year, six-week period. This renewal also involves moving the enterprise-wide software solution from an on-premise license to a software-as-a-service (SaaS) subscription license (cloud computing).
This software is essential in supporting the City's asset management and work order management applications utilized by the Contact Center, Transportation, Water Resources, Field Operations, Engineering, Parks & Recreation, Fire, and IT departments. The move to a SaaS model will improve system-wide performance, increase mobile applications, provide enhanced service support, and allow full roll-out implementation.
BACKGROUND:
In 2003 the City of Greensboro implemented Infor EAM (formerly called DataStream) as its asset management and work order management software solution. It is used by the Contact Center, Transportation, Water Resources, Field Operations, Engineering, Parks & Recreation, Fire, and IT departments. EAM currently stores and manages approximately 600,000 assets, processes roughly 120,000 work orders annually, generates over 250 reports, and supports over 300 users.
EAM has a measurable impact on the performance and management of City operations. EAM gives departments the ability to:
· Track time, labor, and costs for all work performed
· Generate and provide MAP measures for transparency, accountability, and efficiency
· Track asset history and provide true costs for inventory and work over time
· Reduce costs and increase service availability by implementing a preventive maintenance program
· Enhance capital improvement project prioritization, resulting in increased reliability of water and sewer infrastructure
The existing EAM implementation is reaching the end of its viability for the current usage. Unfortunately, the current system architecture is not sustainable. Users of EAM often experience poor performance and, in the past two years, staff has had to exert extraordinary effort in maintaining up-time and availability during peak business hours. Performance and support need to improve and evolve.
The Infor EAM Software Subscription License Agreement is up for renewal. Going forward we anticipate not only an increase in the annual Software Subscription License to maintain the current system, but additional costs to enhance performance and provide capacity for planned departmental implementations.
The purpose of this resolution is to renew and modify the software licensing agreement with Infor for the Enterprise Asset Management (EAM) system for a 5-year, six-week period. This renewal also involves moving the enterprise-wide software solution from an on-premise license to a software-as-a-service (SaaS) subscription license (cloud computing).
BUDGET IMPACT:
The total net cost of the five year, six-week contract with Inform for the EAM SaaS subscription is $2,200,976.03.
Costs under this contract include the following:
Current Year Costs
FY 14-15 Prorated cost for implementation & subscription $ 54,726.03
Future Year Costs
Year 1 (FY 15-16): Annual license subscription fee $425,000.00
Year 2 (FY 16-17): Annual license subscription fee $425,000.00
Year 3 (FY 17-18): Annual license subscription fee $425,000.00
Year 4 (FY 18-19): Annual license subscription fee $425,000.00
Year 5 (FY 19-20): Annual license subscription fee $446,250.00
Total Costs: $2,200,976.03
The current fiscal year (FY14-15) six-week prorated implementation and software license has a cost of $54,726.03, of which $46,822.65 will be refunded to the City. The remaining net cost of $7,903.38 will be funded from the Water Resources Enterprise Fund.
Future years' costs for years one through five of the SaaS software license will be funded as part of the annual budget process.
Over the life of the contract terms, moving EAM to a Saas (cloud-based) subscription will increase productivity and achieve an estimated savings of $200,073 when compared to the maintaining the EAM system on-premises.
RECOMMENDATION / ACTION REQUESTED:
The Information Technology Department recommends City Council approval of the attached resolution for SaaS licensing of our EAM system with Infor.