Title
Customer Care and Billing (CC&B) Contract Extension (Ordinance S-43261)
Description
Request to authorize the City Manager, or his designee, to execute Amendment 3 to extend and increase the contract limit with Ernst & Young, LLC, for ongoing managed services for the City's customer information and billing system and related applications through June 30, 2019. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Water Services Department, in conjunction with the Information Technology Services, Public Works and Finance departments, provides customer information and billing to approximately 430,000 accounts and $750 million annually. Customers are billed on a monthly basis for water, sewer and trash services, as well as for various City taxes. The current billing software, CC&B version 2.1, was implemented in 2010 and is currently unsupported. Council approved an upgrade to CC&B version 2.4 on Jan. 21, 2015, and implementation of the upgrade is underway.
Contract 140985 with Ernst & Young, LLC, (EY) is to upgrade and support CC&B. This extension will be for managed services support for CC&B version 2.4, ongoing support of related Oracle applications, Mobile Workforce Management, Customer Self Service, Field Work Product Integration Pack, solution development, maintenance of operations, and application updates, which will enhance the customer experience and improve efficiencies. The Water Services Department has negotiated contract terms and conditions with EY to extend the contract. The total amount of additional funding required will not exceed $4.8 million.
Procurement Information
The Scope of Work for the proposed contract extension is a logical follow-on to work already completed by EY as part of the existing agreement, Contract 140985, that was competed in accordance with Administrative Regulation 3.10. Normal competition for the extension was waived as a result of a Determination Memo citing that application of competitive requirements would be contrary to the public interest, also in accordance with Administrative Regulation 3.10.
Contract Term
The orginal contract term was for 24 months commencing on July 6, 2015. This Amendment extends the contract for 15 months starting on or about April 3, 2017, with one option to extend for one year, which may be exercised by the City Manager or his designee. Contract work scope identified and incorporated into the contract prior to the end of the contract may be agreed to by the parties, and work may extend past contract expiration for work in-progress. No additional contract work scope changes may be executed after the end of the contract term.
Financial Impact
The current total value of Contract 140985 is $6,625,728. The proposed extension incorporates an additional $4,800,000 to the contract value. The total cost of the contract will not exceed $11,425,728. Funds are available in the Water Services Department budget.
Concurrence/Previous Council Action
City Council approved Contract 140985 on Jan. 21, 2015, for a term of 24 months and the contract performance period began on July 6, 2015.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.