Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
OCTOBER 16, 2019
Subject
SUBJECT: ORACLE PRIMAVERA UNIFIER APPLICATION USER LICENSES
Action
ACTION: APPROVE CONTRACT MODIFICATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute Contract Modification No. 2 to Contract No. PS54707001, with Mythics Inc., for 220 additional Oracle Primavera Unifier Application User Licenses for a firm fixed price of $495,887, increasing the total contract value from $991,774 to $1,487,661, and extending the contract term through October 31, 2020.
Issue
ISSUE
The existing contract document management system for Program Management is being replaced as the prior product was retired by Oracle. Contract document management is the electronic document exchange including review between Metro and contractors. Additionally, the system provides change and cost control functionality. Oracle Primavera Unifier software is being implemented to replace the prior system and to improve technology for document management.
As the software was initially implemented, the need for additional licenses arose to support the increased number of capital projects underway with Measure R and in development with Measure M. Staff is requesting Board approval for the Contract Modification as the total Contract value exceeds Metro’s Chief Executive Officer’s delegation of contracting authority.
Background
BACKGROUND
In 2009, Metro deployed a Program Management Information System (PMIS) to facilitate program wide project tracking, contract document administration and management reporting. PMIS was implemented to maximize efficiencies through automation, standardization, and provide program performance transparency. The system utilized the latest version of Oracle Primavera software that has been configured to support the program wide reporting requirements. Software applications included Oracle Primavera P6, Professional, Project Status, Oracle Primavera Contract Management (CM14), Microsoft® SharePoint 2016, and EcoSys EPC. All applications were integrated to the organizational financial system in Oracle E Business Suite.
In 2016, Oracle determined that Primavera Contract Manager had reached the end of its product life and was retired from support. The replacement project identified for contract document administration and cost control was Oracle Primavera Unifier. System implementation began for the new product in 2017.
In November 2018, Mythics, Inc. was awarded the Oracle Primavera Unifier Software contract for an amount of $495,887 to provide 220 application user licenses. Mythics, Inc. offered a competitive discount and price hold for additional software licenses within one year of purchase. Contract Modification 1 was issued in March 2019 for an amount of $495,887 to provide 220 additional application user licenses. As new Measure M projects begin implementation, there is a need for additional 220 user software licenses.
Discussion
DISCUSSION
Metro has deployed the PMIS to facilitate program-wide project tracking, administration and management reporting. The system utilizes the latest version of Oracle Primavera software configured to support electronic document exchange for document control, change control, and cost control.
Document Control - involves electronic document exchange of major contract deliverables including the review and approval of documents. Contract document database logs are maintained including a document repository to protect the overall integrity of contract project records.
Change Control - contains configuration management of contract change requests and modifications for both professional services and construction contracts. Contract change database logs are maintained to document pertinent reasons for changes and costs associated.
Cost Control - comprises a centralized cost database that is automated to other systems for financial data integration and utilized for cost reporting of budget, actuals and forecast. Cost logs are maintained for reporting and to review variances and trends.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Procuring this software will not have any impacts on the safety of our customers and/or employees.
Financial_Impact
FINANCIAL IMPACT
The FY20 budget includes an aggregate of $495,887 in Cost Centers 8510 and 8610, in projects 465521 East San Fernando Transit Corridor, 460201 West Santa Ana Branch Transit Corridor, and 100055 Measure R Administration. This recommendation is a onetime purchase however on-going future maintenance costs will be budgeted through the annual budget process and allocated to agency overhead.
Impact to Budget
The sources of the funds are from the respective projects and comprised of mostly Measure R Administration, Measure R 35% and Measure M 35%. These funds are designated for transit expansion projects identified in the Measure R and M ordinance and are not eligible for operating purposes. No other funds were considered.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Approval of this recommendation supports the following Metro Strategic Plan Goal: Provide high-quality mobility options that enable people to spend less time travelling. This project will help expand the transportation system with targeted infrastructure and service investments. These investments deliver increased safety, improved air quality, and better access for all whom live, work, and play within LA County.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board could consider not procuring this software in favor of increased staff labor with manual document review. This option is not recommended as document review timeliness is tied to reducing costs for construction projects. In addition, efficient document exchange serves to reduce contract claim exposure and project delays.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Contract Modification No. 2 with Mythics, Inc. to Contract No. PS54707001 to provide 220 additional Oracle Primavera Unifier software licenses.
Attachments
ATTACHMENTS
Attachment A -Procurement Summary
Attachment B - Contract Modification/Change Order Log
Attachment C - DEOD Summary
Prepared_by
Prepared by: Julie Owen, DEO, Program Control, Program Management (213) 922-7313
Brian Boudreau, Sr. Executive Officer Program Control, Program Management, (213) 922-2474
Reviewed_By
Reviewed by: Rick Clarke, Chief Program Management Officer, (213) 922-7557
Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051
