To approve the purchase of licensing and maintenance for JD Edwards and PeopleSoft systems for a one (1) year contract with four (4) automatic one-year renewals for Technology Services in the estimated annual amount of $475,419 from Oracle America, Inc. through an existing contract; and authorizing the City Manager to execute all necessary documents. (DIR Contract No. DIR-TSO-4158) Approved

Oracle America, Inc. provides licensing and maintenance for the City’s financial system (JD Edwards) as well as the City’s human resources system (PeopleSoft). The JD Edwards and PeopleSoft systems are the systems of record for their respective work areas, and utilized in excess of 10 years. The systems contain millions of records vital to the City’s operational needs. This agreement is for the term of May 24, 2021 through May 23, 2022.

The initial coverage will be in the amount of $475,419 followed by four (4) automatic one-year renewals at an estimated amount of  $475,715 for year two, $494,744 for year three, $514,534 for year four, and $535,115 for year five.

The PeopleSoft system is critical to personnel management functions for the City of Plano including hiring, time management and payroll.  The JD Edwards system is the main financial system for the City of Plano and is also used for inventory management.

If we do not approve this license and maintenance agreement, the City would need to procure a replacement system for both the Finance department as well as the Human Resources department and would need to migrate current and historical data to the new system. Because these systems are leveraged by departments providing administrative support to every other department in the city, such a migration would significantly disrupt the daily operations of the entire City.

The City is authorized to purchase from the State Contract list pursuant to Chapter 271 Subchapter D of the Texas Local Government Code and by doing so satisfies any State Law requiring local governments to seek competitive bids for items (DIR Contract No. DIR-TSO-4158; City of Plano Contract No. 2021-0334-OR).

Funding for this item is available in the 2020-21 Technology Services Applications Budget.  This request is for a one (1) year contract with four (4) automatic one-year renewals for licensing and maintenance with Oracle America, Inc., in the annual amount of $457,419, which will leave a remaining balance of $739,983 in the 2020-21 Technology Services Applications Budget for other maintenance expenditures.  Future year expenditures are dependent on the automatic contract renewals in the estimated annual amount of $475,715 for FY 2021-22; $494,744 for FY 2022-23; $514,534 for FY 2023-24; and $535,115 for FY 2024-25.  All future year expenditures will occur within council approved appropriations.

Approval of this item relates to the City of Plano’s Strategic Plan Critical Success Factor of an Excellent, Innovative, and Accountable City Government.