FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
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FINANCIAL INFORMATION SYSTEM PURCHASE ORDER RENEWAL
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
A. Approve a five-year Sole Source Purchase Order with Oracle America, Inc. for an annual amount of $95,828, with a total not to exceed $479,140, commencing July 1, 2022, through June 30, 2027; and
B. Approve a contingency in the amount of $47,914 (10%).
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BACKGROUND
Orange County Sanitation District (OC San) has been using JD Edwards Financial Information System (Accounts Payable, Accounts Receivable, Fixed Assets, General Accounting, Human Resources, Job Cost, Payroll, Procurement) since 1997. OC San upgraded its JD Edwards system to the latest version in 2016 and intends to continue using the system for the long term. This request ensures that we can continue to operate the Financial Information System (FIS) while the underlying computer operating and database systems change over time. Oracle America, Inc. (Oracle) owns and supports JD Edwards and allows customers who commit to longer terms to keep the annual costs level for up to five years.
RELEVANT STANDARDS
* Ensure the public's money is wisely spent
* Produce appropriate financial reporting - annual financial report & audit letter and Ops & CIP budgets every two years, with annual update
* Sound engineering and accounting practices, complying with local, state, and federal laws
* Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard
PROBLEM
The current Purchase Order for OC San's FIS expires on June 30, 2022. This Purchase Order provides support, updates, and tax and regulatory compliance for OC San's FIS. If OC San does not enter into a 5-year commitment, it will accrue a 3% annual increase for the same services.
PROPOSED SOLUTION
Commit to a five-year term to maintain a fix...
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