191279

Emergency Ordinance

*Amend price agreement with Infor Public Sector, Inc. for the Infor Public Sector/Water Asset Management System Replacement Project to extend term an additional five years for $9,163,708 (amend Price Agreement 31001571)

Passed

The City of Portland ordains:

Section 1.  The Council finds:

  1. The Portland Water Bureau, for itself and on behalf of the Bureau of Environmental Services, seeks authorization to amend Price Agreement No. 31001571.
  2. The Bureau of Environmental Services and the Portland Water Bureau provide sewer, stormwater, and water services through a collective $39 billion in assets.
  3. The Bureau of Environmental Services and the Portland Water Bureau need to expand the use of Infor Public Sector, Inc.’s (IPS) software to perform maintenance and asset management of the City’s entire sewer system, including the sewer and stormwater collection system, and the water distribution system.
  4. In accordance with PCC 5.33.160, the City posted a Notice of Intent to Award a Contract using a Permissive Cooperative Procurement to CherryRoad Technologies, Inc. on January 11, 2021. Ordinance No. 190315 passed Council on February 16, 2021, authorizing Price Agreement 30007787, which used National Association of State Procurement Officials (NASPO), Inc. Value Point Contract No. AR2476 to establish a City Cooperative Contract with CherryRoad, Inc., a reseller of IPS’s products and services.
  5. May 28, 2019, Price Agreement No. 31001571 in the amount of $95,000 was awarded to IPS for licenses and software. In 2021, the City amended the agreement with Amendment No. 1, which authorized an increase of $900,000, bringing the total to $995,000 through May 31, 2024.
  6. The Price Agreement with IPS and IPS’s products and services have served the needs of both bureaus and have provided software-as-a-service licenses for City staff. The next phase of the Infor Public Sector/Water Asset Management System Replacement Project (Project) will require services specifically from IPS and include data conversion, system configuration, and system reliability testing.
  7. As part of the decision to expand the use of IPS, in 2019, the City solicited Request for Information (RFI) 00001289. IPS was selected by the Bureau of Environmental Services and the Portland Water Bureau as the vendor of choice to replace the outdated Oracle system that both bureaus currently use.
  8. The Portland Water Bureau and the Bureau of Environmental Services are requesting to amend Price Agreement 31001571, which will allow continued work with IPS for the Project.
  9. Having a secure and working asset management system is critical for the maintenance and operations of the City’s wastewater, stormwater, and water distribution systems. These services will allow the Bureau of Environmental Services and the Portland Water Bureau to have software support in place for the foreseeable future, allowing continued service to our more than 1 million customers in the greater Portland area.
  10. This Project provides the benefits of a shared approach to project implementation and ongoing asset management activities for both the Bureau of Environmental Services and the Portland Water Bureau. These benefits include increased data sharing, enhanced planning of capital projects across bureaus, and greater collaboration and communication during the construction activities that each bureau manages daily. These opportunities represent significant benefit to communities receiving services from or potentially impacted by the work of the Bureau of Environmental Services or the Portland Water Bureau.
  11. Price Agreement 31001571 with IPS provided the City with the option to extend for additional periods up to another five years, for a maximum total term of 10 years. The amendment will extend the Price Agreement through May 30, 2029 and provide for an additional $9,163,708. This increase in funds will bring the total Price Agreement amount to $10,158,708.
  12. Funding for Bureau of Environmental Services Project No. E11377 in the amount of $4,400,000 is available in the Sewer System Operating Fund in the Fiscal Year (FY) 2022-23 budget and will be requested in the FY 2023-24 Budget.
  13. Funding for Portland Water Bureau Project No. W02364 in the amount of $3,000,000 is available in the Water Fund in the FY 2022-23 Budget and will be requested in the FY 2023-24 Budget.
  14. A 20% contingency, in the amount of $1,527,285, has been factored into the amendment to cover costs not identified during the scoping phase, for future anticipated services related to other known technology integrations, and to potentially allow for other City bureaus to utilize the Price Agreement for future scoping work. Budget will be requested in future years to utilize the “contingency” amount for post-project ongoing support by the Bureau of Environmental Services and the Portland Water Bureau, and possible implementation by other City bureaus. 

NOW, THEREFORE, the Council directs:

  1. The Chief Procurement Officer is authorized to execute Amendment No. 2 to Price Agreement No. 31001571 for additional funds and to extend the term for an additional five years as described in Section 1, in the amount of $9,163,708 and substantially in accordance with Exhibit A, provided that the amendment has been approved as to form by the City Attorney’s Office.
  2. The Mayor and City Auditor are hereby authorized to draw and deliver checks chargeable to the Sewer System Operating Fund and the Water Fund when demand is presented and approved by the proper authorities.

Section 2. The Council declares that an emergency exists because the current asset management system used by both the Bureau of Environmental Services and the Portland Water Bureau to manage over $39 billion in City assets is currently out of service with the software vendor and needs to be replaced as soon as possible to avoid work stoppages that could impact the health and safety of the citizens of Portland and the surrounding areas; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)

Passed by Council

Auditor of the City of Portland
Simone Rede

Impact Statement

Purpose of Proposed Legislation and Background Information

This legislation authorizes an amendment to Price Agreement No. 31001571 with Infor Public Sector, Inc. to allow for implementation services for a new asset management system to replace the out-of-support asset management system that both the Bureau of Environmental Services and the Portland Water Bureau currently use.

Bureau of Environmental Services and Portland Water Bureau need to expand the use of Infor Public Sector (IPS) software to perform maintenance and asset management of the City’s entire water system, including the sewer and stormwater collection system, and the water distribution system.

The bureaus need to acquire and implement new software because the existing software aged out of support in August 2021. Ordinance 190315 passed Council on February 16, 2021, authorizing Price Agreement 30007787, which used National Association of State Procurement Officials (NASPO), Inc. Value Point Contract No. AR2476 to establish a City Cooperative Contract with CherryRoad, Inc., a reseller of Infor, Inc. products and services.

On May 28, 2019, Price Agreement No. 31001571 was awarded to lnfor Public Sector, Inc. for Infor Public Sector licenses and software. The Price Agreement with lnfor Public Sector, Inc. and Infor, Inc. products and services have served the needs of both bureaus and has provided software-as-a-service licenses for City staff.

The next phase of the Infor Public Sector/Water Asset Management System Replacement Project (Project) requires services specifically from Infor Public Sector, Inc. and includes data conversion, system configurations, and system reliability testing. This Project is being overseen by the City’s appointed Technology Oversight Committee.

Bureau of Technology Services has identified over 1,200 known vulnerabilities in the current asset management system used by both the Bureau of Environmental Services and the Portland Water Bureau. Because the current asset management system is no longer supported by the software vendor, the City is at risk of losing the ability to manage and assign work to field crews who are responsible for operating and maintaining the City’s sewer, stormwater collection, and water distribution systems.

As part of the decision to expand the use of Infor Public Sector, in 2019, the City solicited Request for Information (RFI) 00001289. The Bureau of Environmental Services and Portland Water Bureau selected Infor Public Sector, Inc. as the vendor of choice to replace the outdated Oracle system.

Portland Water Bureau and Bureau of Environmental are requesting to amend Price Agreement 31001571, which will allow continued work with Infor Public Sector, Inc. for the Project. This amendment will provide additional funding, extend the term of the agreement, complete the next phase of services addressed above, and provide for a new asset management system to replace the outdated asset management system.

This is an investment in business process improvement with a known fixed amount, plus contingency. The Project will have three phases: engage scoping, implementation, and enhancements. The pre-implementation phase has been completed and each bureau is currently entering the implementation phase. Contingency funds have been factored into the amendment that will provide the City flexibility to allow for additional bureaus to use this Price Agreement for scoping work. The contingency funds also account for system enhancements, including additional software integrations and system configurations that are not in the original scope of work for the implementation phase.

Financial and Budgetary Impacts

The initial term of the Price Agreement is June 1, 2019, and the current expiration date is May 31, 2024. The Price Agreement provided the City with the option to extend for additional periods up to another five years, for a maximum total term of 10 years. This amendment will extend the Price Agreement through May 30, 2029.

The amendment provides for an additional $9,163,708 to the original Price Agreement, bringing the total Price Agreement amount to $10,131,708.

Funding for Bureau of Environmental Services Project No. E11377 in the amount of $4,400,000 is available in the Sewer System Operating Fund in the Fiscal Year (FY) 2022-23 Budget and will be requested in the FY 2023-24 Budget.

Funding for Portland Water Bureau Project No. W02364 in the amount of $3,000,000 is available in the Water Fund in the FY 2022-23 Budget and will be requested in the FY 2023-24 Budget.

A 20% contingency, in the amount of $1,527,285, has been factored into the amendment to cover costs not identified during the scoping phase, for future anticipated services related to other known technology integrations, and to potentially allow for other City bureaus to utilize the Price Agreement for future scoping work. Budget will be requested in future years to utilize the “contingency” amount for post-project ongoing support by Bureau of Environmental Services and the Portland Water Bureau, and possible implementation by other city bureaus. 

Community Impacts and Community Involvement

With this ordinance, Bureau of Environmental Services and the Portland Water Bureau will benefit from a shared approach to project implementation and ongoing asset management activities. These benefits include increased data sharing, enhanced planning of capital projects across bureaus, and greater collaboration and communication during the construction activities that each bureau manages daily. These opportunities represent significant benefit to communities receiving services from or potentially impacted by the work of Portland Water Bureau and Bureau of Environmental Services.

When this system is implemented, both bureaus should have a greater reporting capability, which should increase the ability to balance employee workloads and monitor the true costs of asset management. This software implementation will advance our anti-racism and equity goals in numerous ways:

  • We will be able to overlay demographic information onto water service infrastructure information, such as age of infrastructure, frequency of maintenance issues, recognized water quality issues, performance metrics, and trends in regulatory compliance.
  • This Project will help us expand access to potable water in public places throughout the city, ensuring facilities comply with the Americans with Disabilities Act (ADA).
  • We will better collaborate on capital and asset planning with other bureaus, minimizing impact on communities and price increases.

100% Renewable Goal

This effort decreases the City’s energy use by continuing to displace paper-driven practices and procedures. Prior to the Price Agreement, our asset management collaboration practices were invested in printing and distribution of paper-based work products. As of today, our practices integrate a paperless distribution of work products representing an overall reduction in the use of energy. Optimization of processes will also lead to more planned and scheduled maintenance work, which results in fewer vehicle trips to pick up parts and equipment, and better-running equipment, which reduces energy consumption.

Budget Office Financial Impact Analysis

The costs associated with this procurement—including a 20% project contingency—are built into the BES and PWB FY 2023-24 Requested Budgets and relevant outyear forecasts.

Document History

Item 390 Regular Agenda in May 17-18, 2023 Council Agenda

City Council

Passed

  • Commissioner Dan Ryan Yea
  • Commissioner Rene Gonzalez Yea
  • Commissioner Mingus Mapps Yea
  • Commissioner Carmen Rubio Yea
  • Mayor Ted Wheeler Yea

Bureau

Requested Agenda Type

Regular

Date and Time Information

Requested Council Date
Time Requested
10 minutes