FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
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NINTEX WORKFLOW CLOUD SUBSCRIPTION RENEWAL
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION:
A. Approve a Purchase Order for a three-year contract with a term from July 18, 2023 through July 17, 2026 with Konica Minolta Business Solutions to renew OC San’s subscription for Nintex Workflow Cloud, payable annually, utilizing the Sourcewell State Contract: #090320-KON for a total amount not to exceed $386,928; and
B. Approve a contingency of $38,693 (10%).
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BACKGROUND
In 2021, Orange County Sanitation District (OC San) purchased a modern workflow platform known as Nintex Workflow Cloud (NWC) and has been developing digital forms and workflows on the platform. More than 80 forms and workflows are in production at OC San today, facilitating a variety of critical business processes such as Payment Request Vouchers, Travel Expenses, Employee Status Changes, Sole Source Requests, and Bid Requests. NWC is a subscription-based solution that charges customers based on the number of workflows in production. OC San has recently increased the number of workflows in production which has increased the annual maintenance above $100,000.
RELEVANT STANDARDS
• Ensure the public’s money is wisely spent
• Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard
PROBLEM
The current purchase order contract for OC San’s NWC subscription expires on July 17, 2023. This subscription provides the workflow platform used to support critical business processes as noted above.
PROPOSED SOLUTION
OC San’s Information Technology (IT) staff has used the NWC solution for two years and is confident that the solution is reliable and meets OC San’s business needs. The IT staff would like to commit to a three-year term to maintain an approximate 5% annual increase rate lock, equivalent to a three-year total not to exceed amount of $386,928, compared to a 7% price increase per year, for a total not to exceed amount of $400,848 for three-year without the lock. Below is the comparison of payment and schedule of savings:
|
Year |
With 3-Year Commitment (~5% annual increase rate lock) |
Without 3-Year Commitment (7% annual increase) |
Savings |
|
2023/2024 |
$122,736.77 |
$124,684.35 |
$1,947.58 |
|
2024/2025 |
$128,873.61 |
$133,412.25 |
$4,538.64 |
|
2025/2026 |
$135,317.32 |
$142,751.11 |
$7,433.79 |
|
Total |
$386,927.70 |
$400,847.71 |
$13,920.01 |
TIMING CONCERNS
The current Purchase Order term will expire on July 17, 2023. To prevent a lapse in coverage, renewal must be completed prior to July 17, 2023.
RAMIFICATIONS OF NOT TAKING ACTION
OC San would not be able to complete critical business processes associated with the NWC digital workflow system after the existing term ends. Many OC San business processes rely on forms and workflows supported by this agreement.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance. This item has been budgeted in the FY 2023-2024 adopted budget.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
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