Back

Amend Contracts with Cordoba Corporation, R Systems, Inc., and Sierra Cybernetics, Inc. to Provide Short- and Long-Term Systems Development and Support Services; and Authorize Appropriation of $200,000 from the Undesignated Fund Balance

SYNOPSIS: 

The AQMD currently has contracts with three companies for short- and long-term system development services. These contracts are periodically amended to add budgeted funds as additional needs are defined. With Board approval, $200,000 of previous fiscal year funds were encumbered in Majesco Software Corporation’s (Majesco’s) contract for work not yet begun. Majesco’s contract has expired, and they are not renewing further contractual arrangements with the AQMD. Authorization is requested to re-appropriate this $200,000 from the Undesignated Fund Balance to complete the work not started by Majesco. This action also is to amend contracts with the remaining three companies approved by the Board to add $330,000 for needed systems development efforts. Funds in excess of the re-appropriated $200,000 (i.e., $130,000) are available in the Information Management FY 1999-00 Budget.

COMMITTEE: 

Administrative, April 14, 2000, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman of the Board to execute amendments to the contracts for systems development services with Cordoba Corporation, R Systems, Inc., and Sierra Cybernetics, Inc. to increase the contract amount for each by $110,000 and to approve the appropriation of $200,000 from the Undesignated Fund Balance to the Information Management Services & Supplies Major Object Account for Professional and Special Services.
   
   
2. To reduce the costs and time-and-delivery of the task orders, staff now proposes to either competitively bid the task order or to sole-source task order awards to one of the approved companies based upon staff’s assessment of which company can provide the best value to the District up to the funding level approved by the Board.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Over the past six years, Information Management has outsourced its software development, using level-of-effort contracts with software development firms. Companies were competitively chosen based on experience, technical expertise, and cost-effectiveness of their proposed staff as well as any added value identified during the proposal evaluation process. The current Board approved contracts are for one year with the option to renew for two one-year periods. Renewal of these contracts is contingent upon value provided, performance, and overall customer satisfaction.

These contracts have been basic ordering agreements where individual task orders were awarded to one of the pre-approved companies based, on a further competitive process. This procedure frequently added hidden administrative costs in preparing, bidding, and evaluating each task order. Staff’s experience has been that each company quickly became more knowledgeable - and therefore more cost-competitive - on systems for which they had previously been awarded task orders.

During the past six years of successfully implementing these contracts, staff has gained valuable experience in evaluating the expertise of the outsourcing companies and estimating the price of the task order work statement. To reduce the costs and time-and-delivery of the task orders, staff now proposes to either competitively bid the task order or to sole-source task order awards to one of the approved companies based upon staff’s assessment of which company can provide the best value to the District up to the funding level approved by the Board.

At the February 18, 2000 meeting, the Board approved new contracts with Majesco Software Corporation, R Systems, Inc., and Sierra Cybernetics, Inc. for systems development services; Cordoba Corporation’s contract from previous fiscal years had been extended to December 15, 2000. At the time these contracts were executed, it was expected that the contracts would be modified in the future to add funding from approved budgets as system development requirements were identified and sufficiently defined so that task orders could be prepared.

The previous contracts for these services (including Majesco), scheduled to expire on March 3, 2000 (excepting Cordoba), were processed to be extended to June 3, 2000 to complete work in progress. However, Majesco chose to not sign a new contract with AQMD or extend their current contract to complete work in progress. There is currently $200,000 approved by the Board in the previous fiscal year and encumbered in Majesco’s contract for work not yet started. Upon expiration of Majesco’s contract, these funds reverted back to the General Fund; however, the projects still require completion. Staff is therefore requesting the re-appropriation of these funds to this fiscal year’s budget to complete the work.

Development efforts are needed to enhance system functionality and to provide AQMD staff with additional automation for improving productivity. At the same time, Information Management is developing and/or acquiring systems capable of efficiently implementing new and evolving rules and programs such as Title V, Permit Streamlining, and Web-Enabling enterprise applications. The estimated cost to complete the work on these additional system development tasks exceeds the amount of funding in the existing contracts.

This item is listed on the Status Report on Major Projects for Information Management.

Proposal

Staff proposes the contracts be amended to add additional funding in the amount of $330,000 to cover this anticipated effort: $110,000 to Cordoba Corporation; $110,000 to R Systems, Inc.; $110,000 to Sierra Cybernetics, Inc.; and to appropriate $200,000 from the Undesignated Fund Balance. The specific task orders being funded are listed in Attachment 1.

Resource Impacts

Funds in excess of $200,000 are included in the FY 1999-00 Budget.

Attachment

Attachment 1 – Task Order Summary

Attachment 1
Task Order Summary

Section A – Funding Totals By Current Contract

Section B – Task Orders Scheduled for Award

* Previously awarded to Majesco Software.

/ / /