Meeting_Body
REVISED
EXECUTIVE MANAGEMENT COMMITTEE
OCTOBER 17, 2019
Subject
SUBJECT: POLICY FOR SOFTWARE AND HARDWARE LICENSE AND MAINTENANCE AGREEMENTS
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
DELEGATE to the Chief Executive Officer the authority to approve all multi-year renewals of software and hardware license and maintenance agreements, with a cap of five years per renewal.
Issue
ISSUE
In April 2003, the Metro Board of Directors approved to delegate to the Chief Executive Officer the authority to approve all annual software and hardware licenses and maintenance agreements. The Board supported the recommendation for renewing routine software and hardware license and maintenance agreements to align with current industry practices at that time. The policy embraced best practices and sound business judgement.
Current policy allows for single-year annual renewals. Metro staff is recommending that the policy be changed to allow multi-year renewals of software and hardware licenses and maintenance agreements. Multi-year contract renewals are offered by Metro vendors resulting in significant cost savings.
Background
BACKGROUND
The current policy acknowledges the unique character of Information Technology (IT) agreements and allows the Chief Executive Officer (CEO) to promptly renew expiring licenses and maintenance coverages needed to maintain Metro's key Information Systems infrastructure. IT agreements are sophisticated and designed primarily to recoup software development costs through licensing software use and providing maintenance service coverage.
There are many factors that go into determining license and maintenance fees:
o Some software vendors sell their products by granting the buyer a conditional license to use the product in perpetuity. The license agreement may also provide ongoing product support and software upgrades if the buyer prepays an annual subscription fee, which is automatic...
Click here for full text