Title
Resolution Approving a 5-year, 4-month Renewal Contract with Infor to Continue Use of the Enterprise Asset Management (EAM) System in the Amount of $3,029,379.20
Body
Council Priority: Maintain Infrastructure and Provide Sustainable Growth Opportunities
Department: Information Technology
Council District: N/A
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Jane Nickles, 373-2314
Contact 2 and Phone: Chryste Hofer, 373-4650
PURPOSE:
The purpose of this contract is to renew and continue the software licensing agreement with Infor for the Enterprise Asset Management (EAM) system for a period of five years and three months. This renewal also involves increasing the number of desktop and mobile user licenses. In the past, the City has utilized a concurrent use license model. Infor’s new license model requires a transition to named users. The typical conversion from concurrent to named users is 2:1. Due to our longstanding relationship with Infor, City staff was able to negotiate the conversion at a 7:1 exchange, providing enough seats for our users without an exorbitant increase in costs. Also, Infor’s original quote included an annual increase of 5% in software costs. City staff negotiated and Infor agreed to an annual increase of only 4%, as well as unlimited access to Infor Campus, an EAM training resource.
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 1,000,000 assets, processes roughly 120,000 work orders annually, generates over 250 reports, and supports over 400 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 performance 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
• Provide reporting that supports more than six million dollars in reimbursements each year
In 2015, Infor and the City agreed to a five year term of service that included migrating EAM to the cloud as a SaaS solution. Since this contract began, Water Resources Operations, IT, and Parks & Recreation have all implemented EAM as their primary work management system.
BUDGET IMPACT:
The contracts for the previous five years totaled $2,485,101.60 with the final year cost of $516,614.52. The total net cost of the new five year, four month contract with Inform for the EAM SaaS subscription will be no more than $3,029,379.20.
Costs under this contract include the following:
Current Year Costs
FY 19-20 Increased cost due to additional licenses. Less than $ 23,000.00
Future Year Costs
Year 1 (FY 20-21): Annual license subscription fee $587,000.00
Year 2 (FY 21-22): Annual license subscription fee $587,000.00
Year 3 (FY 22-23): Annual license subscription fee $587,000.00
Year 4 (FY 23-24): Annual license subscription fee $610,480.00
Year 5 (FY 24-25): Annual license subscription fee $634,899.20
Total Costs Not to exceed $3,029,379.20
The total cost of this license renewal, $3,029,379.20, will be divided equitably and funded by the departments using EAM based on the number of users in each department.
Department
Account Number Cost April-July 2020 Annual Cost Cost Yr 4 Cost Yr 5 % of Total Cost
Yrs1-3(FY20-23) (FY23-24) (FY24-25)
GDOT
101-4501-03.5212 $2,576.82 $65,764.94 $68,395.75 $71,131.58 11.2%
Water Resources Supply and Reclamation
501-7011-01.5212 $13,050.03 $333,059.48 $346,382.70 $360,238.08 56.7%
Water Resources Storm Water
505-7003-05.5212 $349.40 $8,917.28 $9,274.00 $9,644.96 1.5%
Engineering
101-6007-01.5415 $1,412.02 $36,037.16 $37,478.58 $38,977.80 6.1%
FOD
101-4301-04.5212 $3,887.07 $99,204.74 $103,173.25 $107,300.18 16.9%
Information Technology
682-0720-02.5212 $1,340.70 $34,217.12 $35,584.46 $37,007.68 5.8%
Parks & Rec
101-5022-1.5212 $383.96 $9,799.28 $10,191.26 $10,598.92 1.7%
TOTAL PER YEAR $23,000.00 $587,000.00 $610,480.00 $634,899.20
RECOMMENDATION / ACTION REQUESTED:
The Information Technology Department recommends City Council approval of the attached resolution for SaaS licensing of our EAM system with Infor.