Title
a. Approve award of an Agreement with FASTER Asset Solutions to the County with a new Turn-Key Fleet Management Operations System, for the initial term beginning November 5, 2013, through and including November 5, 2018, with an aggregate value estimated not to exceed $360,000; and
b. Authorize the Contracts/Purchasing Officer to execute the Agreement and to sign future Amendments to the Agreement where the Amendments do not significantly change the scope of work or cause an increase in the Agreement annual rates of more than fifteen percent (15%).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve award of an Agreement with FASTER Asset Solutions to the County with a new Turn-Key Fleet Management Operations System, for the initial term beginning November 5, 2013, through and including November 5, 2018, with an aggregate value estimated not to exceed $360,000; and
b. Authorize the Contracts/Purchasing Officer to execute the Agreement and to sign future Amendments to the Agreement where the Amendments do not significantly change the scope of work or cause an increase in the Agreement annual rates of more than fifteen percent (15%)/
BACKGROUND:
On May 16, 2013, the County issued a Request for Proposal (RFP#10417) to solicit proposals from qualified vendors capable of providing the County Fleet Operations with a new Turn-Key Fleet Management System.
The County requires a new fleet management system to replace the existing fleet management module that is approximately ten (10) years old and is running on an outdated platform that is close to being retired. The current system hasn't received an update in roughly three (3) years. The Fleet Management system maintains the service records for approximately 1,500 vehicles, ranging from small equipment to full size trucks and heavy equipment, such as dozers and graders. The current system combines an electronic system supported heavily by a manual process, which at times is very cumbersome and labor consuming. Staff produces roughly over 9,000 work orders annually through the system.
The current system interfaces with other critical operating systems within Fleet Management, such as Fleet's third party fuel management system (FleetData), and also maintains vehicle replacement fund information for the County Vehicle Replacement Program (VRP).
All automotive equipment information as well as maintenance and repair history is captured and stored in the Fleet Management system. Information collected on fleet equipment allows documentation for compliance with State of California and Federal Safety requirements.
SUMMARY/DISCUSSION:
The proposed Agreement is based upon County requirements as set forth in the terms and conditions of Request for Proposals (RFP #10417). In response to the RFP, five (5) proposals were received and evaluated by a group of employees from the Fleet Management Division with consultation from the Contracts/Purchasing Officer. Based on the responses, two (2) firms were selected and invited to make final oral presentations to the group. Following the oral presentations of the two (2) finalist firms (AssetWorks and FASTER), a careful review of the two finalists was performed and a final recommendation was made to both the Interim-Fleet Manager and the Contracts/Purchasing Officer; FASTER was selected for recommendation of an award of the agreement.
As a benefit to the County, as a customer of Faster Asset Solutions, vendor holds in an already pre-established escrow account for their customers their software source code, which would be released to the County should Faster Asset Solutions go out of business. This would allow the County to continue use of the software system by having availability of the code to maintain the system in the future.
The amount reflected within this board report covers the following costs of procuring the new system and for the first five years for Annual Support.
Software and Services- $195,200
Annual Support: 1st Year- $27,400
2nd Year- $28,222
3rd Year- $29,069
4th Year- $29,941
5th Year- $30,839
Annual Support costs are escalated by 3% each year to cover inflationary rates.
OTHER AGENCY INVOLVEMENT:
The agreement has been approved by County Counsel as to legal form and the Auditor-Controller as to fiscal provisions. The Information Technology Department has approved the system as to its technical requirements and security provisions. The Budget Committee received this report on October 30, 2013.
FINANCING:
Payment for services to Faster Asset will be percentage-based, as milestones are completed. A Payment Milestone document has been negotiated and incorporated into the agreement documents. The maximum current year cost includes a one-time initial expense of $195,200 for software and services, assuming all milestones are met, and $27,400 for first year annual support, for a total of $222,600. This expense is not included in the FY 2013-14 Fleet Management budget. Based on year-end results for FY 2012-13, the fleet maintenance unit includes a savings of $151,620. As program designated funds, the year-end budget report will include a recommendation to return this savings to the Vehicle Replacement Program assignment to cover a portion of the unbudgeted cost. Staff will work closely with the CAO's budget and analysis unit to identify potential for expenditure savings for the remaining $70,980. Also negotiated was a provision that limits the outside liability of Faster Asset Solutions to the total value of the agreement, and a revised termination clause that eliminates a termination for convenience to force agreement performance.
Prepared by: Michael R. Derr, Contracts/Purchasing Officer, (831) 755-4992
Approved by:
________________________________________
Robert K. Murdoch, P.E., Director of Public Works
Approved by:
________________________________________
Benny J. Young, RMA Director
Dated: October 28, 2013
Attachments: FASTER Agreement