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HomeMy WebLinkAboutAgenda - 06-15-2021; 8-k - NEOGOV Multi-Year Contract 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 15, 2021 Action Agenda Item No. 8-k SUBJECT: NEOGOV Multi-Year Contract DEPARTMENT: Information Technologies (IT) and Human Resources (HR) ATTACHMENT(S): INFORMATION CONTACT: Jim Northrup, 919-245-2276 Brenda Bartholomew, 919-245-2551 PURPOSE: To review and authorize the Manager to sign a multi-year maintenance and support contract for $396,288.42 (paid over five years) with Govern mentJobs.com (NEOGOV). BACKGROUND: Orange County first entered into an agreement with GovernementJobs.com in October 2011 as a means to automate and enhance the employee recruitment and selection process. Since the original NEOGOV contract, other modules were added and have effectively developed into a fully integrated set of cloud based Human Resources tools such as NEOGOV Perform which has automated the County's performance evaluation system and NEOGOV Learn, an automated learning management system. These tools serve as keystones for Human Resources service delivery, i.e., recruitment, retention, training and performance. 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 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 NEOGOV has been reviewed by the County 2 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 5% a year compared to previous years fluctuations that included seemingly random increases for support costs experienced with a year to year basis. FINANCIAL IMPACT: The total contract amount paid over five years is $396,288.42, with the annual amounts detailed below. Year to Year Agreement Costs FY Year Description Cost % Increase 2019 Annual Maintenance 34,820.00 2020 Annual Maintenance 39,373.35 13% 2021 Annual Maintenance 48,706.27 24% 2021 New Module Annual Maintenance 22,822.54 New LEARN Module Proposed Multi-year Agreement Cost FY Year Description Cost % Increase 2022 Annual Maintenance Including LEARN 71,718.22 2023 Annual Maintenance 75,304.13 5% 2024 Annual Maintenance 79,069.33 5% 2025 Annual Maintenance 83,022.80 5% 2026 Annual Maintenance 87,173.94 5% Contract Total $396,288.42 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 government 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 the terms and execute the resulting contract as well as any future amendments.