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HomeMy WebLinkAboutAgenda 11-16-2021; 8-b - Tyler Technologies Multi-Year Contract Addendum 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 16, 2021 Action Agenda Item No. 8-b SUBJECT: Tyler Technologies Multi-Year Contract Addendum DEPARTMENT: Information Technologies (IT) and Human Resources (HR) ATTACHMENT(S): INFORMATION CONTACT: Jim Northrup, 919-245-2276 Gary Donaldson, 919-245-2453 Brenda Bartholomew, 919-245-2551 PURPOSE: To review, approve and authorize the Manager to sign a five year software maintenance and support contract addendum (paid annually) with Tyler Technologies, Inc. BACKGROUND: Orange County first entered into an agreement with MUNIS, now known as Tyler Technologies, Inc., in December of 2002 as a means to update and enhance its legacy financial system. Since the original MUNIS contract, other modules were added and have effectively developed into a fully integrated set of business tools that have served to automate many business functions for the enterprise. These tools serve as service delivery keystones for both Finance and Administrative Services and Human Resources. Annual software maintenance and support costs are centralized under the Information Technologies (IT) Department and are typically renewed on an annual basis. This renewal process involves getting an annual quote from each of the more than one hundred vendors IT actively manages. The best rate is then 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 percent. This percent can vary widely from year to year and from vendor to vendor. Negotiating a multi-year contract is a means to decrease support costs for any given product or to at least keep costs predictable for future years. Again, decreasing agreement costs is 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. FINANCIAL IMPACT: Information Technologies works in concert with Finance and Administrative Services and the County Attorney's Office to ensure that all procurement statutes and best practices are followed. The contract addendum has been reviewed by the County 2 Attorney and Finance and Administrative Services. 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 when going year to year. With a five-year overall cost of $751,510.15, the following table shows both past and projected cost increases. Year to Year Agreement Costs FY Year Description Cost % Increase 2019 Annual Maintenance 156,994.67 2020 Annual Maintenance 155613.28 3% 2021 Annual Maintenance 167,324.59 8% Proposed Multi-year Agreement Cost FY Year Description Cost % Increase 2022 Annual Maintenance $174,359.25 2023 Annual Maintenance $183,077.21 5% 2024 Annual Maintenance $192,231.07 S% 2025 Annual Maintenance $201,842.62 5% Contract Total $751,510.15 *FY 2020 saw an overall decrease in cost due to elimination of modules that were no longer needed. The remaining module cost increased by 3%. 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 Environmedntal Responsibility Goal impact is applicable to this item: • ENERGY EFFICIENCY AND WASTE REDUCTION Initiate policies and programs that: 1) conserve energy; 2) reduce resource consumption; 3) increase the use of recycled and renewable resources; and 4) minimize waste stream impacts on the environment. 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 execute this contract addendum as well as any future addendums to the original 2002 contract.