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HomeMy WebLinkAboutAgenda - 06-15-2021; 8-l - Innovative Interfaces, Inc. Multi-Year Contract 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 15, 2021 Action Agenda Item No. 8-1 SUBJECT: Innovative Interfaces, Inc. Multi-Year Contract DEPARTMENT: Information Technologies (IT) and Library Services ATTACHMENT(S): INFORMATION CONTACT: Jim Northrup, 919-245-2276 Lucinda Munger, 919-245-2528 PURPOSE: To authorize the Manager to sign a multi-year maintenance and support contract for $164,396.09 (paid over three years) with Innovative Interfaces, Inc. BACKGROUND: Orange County first entered into an agreement with Innovative Interfaces, Inc. in November 2012 as a means to replace an aging integrated library management system (ILS). The Innovative agreement includes support for Sierra and Encore cloud-based applications. The Sierra application provides the following functions: • Manages the inventory of all library materials • Manages all circulation transactions (checkouts, returns, renewals, etc.) • Sends automated notices for hold pickups, overdue items, and billed items • Manages all patron (user) records • Manages the acquisitions process for new materials • Manages fines for overdue materials and billing process for damaged and lost materials The Encore application is the Library's public catalog and provides the following functions: • Online catalog that users can use to browse library collections at home and in the buildings • Allows users to place holds, track reading history, create lists, and renew items through an online account Annual software maintenance and support costs are centralized under the Information Technologies Department (IT) and are typically renewed on an annual basis. This renewal process involves getting an annual quote from each of the one hundred vendors IT actively manages. The best rates are subsequently negotiated for that particular year in order to prevent increases in maintenance costs. Decreasing agreement costs is always the goal. Often vendors annually increase their price by a certain percentage. This percentage can vary widely from year to year and from vendor to vendor. Negotiating multi-year contracts is a means to decrease support costs for any given product or to at least keep costs predictable for future years, with decreasing agreement costs always the goal. In recent years, an effort has been made to seek written contracts for all annual maintenance agreements and wherever possible negotiate multi-year agreements. Typically on new software acquisitions, IT assesses the value 2 of multi-year support options and will build those costs into the initial purchase. Many new purchases see year one costs as a capital investment and year two and beyond are moved into the operational software maintenance budgetary line item. Information Technologies works in concert with the Finance and Administrative Services Department and County Attorney's Office to ensure that all procurement statutes and best practices are followed. The proposed contract with Innovative Interfaces has been reviewed by the County Attorney utilizing the County Attorney's contract template as the starting point for the finished contract. By entering into this agreement, the County will be able to hold increases to 3.5% a year compared to 5% increases when going year to year. FINANCIAL IMPACT: The County should see a $2,449.09 savings over the term of this contract. Year to Year Agreement Costs FY Year Description Cost % Increase 2022 Annual Maintenance 52,924.72 2023 Annual Maintenance 55,570.96 5.00% 2024 Annual Maintenance 58,349.50 5.00% 3 Year total: $ 166,845.18 Multi-year Agreement Cost FY Year Description Cost % Increase 2022 Annual Maintenance 52,924.72 2023 Annual Maintenance 54,777.08 3.50% 2024 Annual Maintenance 56,694.29 3.50% 3 Year Total: $164,396.09 Annual vs. Multi Year Saviings: $2,449.09 SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated this item. It should be noted, however, that while the annual maintenance agreement itself may not impact Social Justice, this software is essential to the smooth running of Library Services and, like many infrastructure items, is a foundational element to ensure all Board Goals and Priorities are implemented. ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal impact is applicable to this item: • ENVIRONMENTALLY PREFERABLE PURCHASING Promote the use of chemicals, materials, equipment, and systems which are officially recognized as to minimize environmental impacts. This application reduces and in some cases eliminates paper use and creates a more efficient workplace. RECOMMENDATION(S): The Manager recommends that the Board approve this purchase and authorize the Manager to negotiate terms and execute the resulting contract as well as any future amendments.