TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 1, 2016
COMMITTEE ON Procurement
Mr. David St. Pierre, Executive Director
Title
Issue purchase order and amend the existing agreement with LoadSpring Solutions, Inc., for Hosting and Support of Oracle Primavera Software, in an amount not to exceed $23,760.00, Account 101-27000-612820, Requisition 1433483
Body
Dear Sir:
Authorization is requested to issue a purchase order and amend an existing agreement with LoadSpring Solutions, Inc., for hosting and support of Oracle Primavera construction scheduling software for a one-year period. This purchase order will cover contract period starting September 30, 2016 and expire on September 29, 2017.
The District uses Oracle Primavera, a critical path method (CPM) scheduling system, to manage all capital construction projects. The scheduling system provides a collaborative environment to both District personnel and contractors working with the District.
The District issued an RFP in 2010, 10-RFP-04, to convert its Primavera files to the next-generation Internet-based software called Primavera P6, and make P6 operational for capital projects. At the time, Oracle did not host its software on the Internet directly, but did so through authorized providers. The winner of the RFP chose to use LoadSpring as the Primavera Internet hosting service. LoadSpring is a hosting service that specializes in construction management applications and provides over 90% of the hosting for Primavera.
On October 4, 2013, the Board approved extending the contract for an additional three-year period ending September 29, 2016.
Oracle only recently contacted the District to announce that it is now providing hosting services for Primavera. However, since the current hosting contract expires September 29, 2016 and LoadSpring requires no less than three months written notice prior to termination of contract, the District cannot change hosting providers at this time without jeopardizing current contracts in the system. The Information Technology Department plans to pursue a competitively bid contract for hosting and support of Oracle Primavera in 2017.
LoadSpring Solutions, Inc., the current service provider of the hosting service has submitted prices for the services required. Inasmuch as LoadSpring Solutions, Inc. is the only source of supply for the services required, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act).
LoadSpring Solutions, Inc. is not registered to transact business in Illinois, but has submitted a certificate of good standing from the State of Massachusetts. The Director of Information Technology has given approval to move forward with the recommendation to award.
The Multi-Project Labor Agreement is not applicable due to the specialized nature of the services required.
In view of the foregoing it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and amend the existing agreement with LoadSpring Solutions, Inc. in an amount not to exceed $23,760.00.
Funds for the 2016 expenditure, in the amount of $5,940.00, are available in Account 101-27000-612820. The estimated expenditure for 2017 is $17,820.00. Funds for the 2017 expenditure are contingent on the Board of Commissioners’ approval of the District’s budget for that year.
Requested, John Sudduth, Director of Information Technology, JS:SK:BVS:bvs
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 1, 2016