THE PORT OF LOS ANGELES
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1 THE PORT OF LOS ANGELES Executive Director's Report to the Board of Harbor Commissioners DATE: FEBRUARY 10,2010 FROM: INFORMATION TECHNOLOGY DIVISION SUBJECT: RESOLUTION NO. - AGREEMENT WITH NEUDESIC, LLC FOR MICROSOFT OFFICE SHAREPOINT SERVER IMPLEMENTATION SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is requesting approval to enter into an agreement with Neudesic, LLC to implement Microsoft Office SharePoint Server (SharePoint), which will provide enterprise content and records management, business process automation, business intelligence, electronic collaboration, and other features for the Harbor Department's needs. The recommendation to select Neudesic, LLC is based on a competitive Request for Proposals (RFP) process performed by the Harbor Department. The proposed agreement requires a 20% small business participation level. The term of the proposed agreement is three (3) years at a not-to-exceed amount of $900,000. Neudesic, LLC is based in Irvine, California. RECOMMENDATION: It is recommended that the Board of Harbor Commissioners: 1. Find that in accordance with the Los Angeles City Charter Section 1022, it is more feasible for outside contractors to perform this work than City employees; 2. Approve the agreement with Neudesic, LLC at an amount not-to-exceed $900,000 and a term of three (3) years; 3. Authorize the Executive Director to execute the agreement and authorize the Board Secretary to attest to said agreement; and 4. Adopt Resolution No. DISCUSSION: Background- The Information Technology Strategic Plan (ITSP) recommends the implementation of a document management system to help the Harbor Department improve its operations and gain efficiencies. In August 2009, the Information
2 DATE: FEBRUARY 10, 2010 PAGE 2 OF 5 Technology Division (ltd) hired speaktech, Inc. to gather and analyze the Harbor Department's requirements for content management, collaboration, business intelligence and electronic workflows. After interviews with all of the Harbor Department's divisions, it was determined that SharePoint is capable of providing a platform that fulfills Harbor Department-wide needs and leverages the Harbor Department's substantial recent investment in Microsoft products, including the 2008 implementation of Microsoft Outlook / Exchange , which integrates tightly with SharePoint. Implementation of SharePoint addresses three (3) major strategies of the ITSP: 1. Invest in decision support. SharePoint can provide dashboards and reports that pull data from the Harbor Department's computer applications and databases, providing more reliable and integrated data for operational decisions. 2. Enhance the self-service functionality on the Harbor Department's intranet. SharePoint will replace the current intranet and allow easy access to pertinent information by using an intuitively designed navigation and structured information architecture. SharePoint is easy to maintain and has self service tools, which reduce the dependency on IT for managing content. SharePoint also provides: collaboration sites for projects, groups, and external partners; automation of business processes through electronic workflows and forms (examples include the Board approval process and purchase request tracking); enhance search capabilities for locating information throughout the Harbor Department; and management for online training. 3. Implement a Department-wide content management system. Currently, much of the information within the Harbor Department remains siloed, which increases data duplication, compromises data integrity, and delays or prevents access to data across the organization. A benefit of SharePoint is that it allows information to spread across many different content sources as centralized in a self-service and readily-available environment. Also, it will allow the Harbor Department to efficiently capture, manage, preserve, secure, and deliver documents, and reduce reliance on paper processes and storage.. Initially, ltd staff researched various kinds of content management software in the current market and what other City of Los Angeles Departments are using. The solution proposed is approximately one third the cost of content management systems employed by other City Departments and less costly to maintain. For example, the City of Los Angeles, Department of Airports recently approved $3.5 million for its content management system. ltd staff prepared a preliminary estimate of $600,000 for the Harbor Department's collaboration and content management project. This preliminary estimate was based on a low-cost, online Microsoft Business Productivity Online Standard Suite, which is a
3 DATE: 10,2010 PAGE 3 OF 5 SUB..IECT: WITH NEUDESIC, LLC solution where a analysis and Department-owned vendors to owns the equipment; however, after further requirements recommendations, it was determined that a Harbor is required. The Request for Proposals (RFP) allowed or a Harbor Department-owned solution. However, all Department-owned solution because online enterprise collaboration and content the needs specified. important automation, e-forms, complex approval scenarios, with Harbor Department systems, controlling future needs, control over system Based on a Harbor ranged from $900,000 from its preliminary The additional owned solution, $900,000. solution, the cost of responsive $1,491,000. cost of the project was increased $600,000 to a final amount not to exceed $900,000. identified plus the added benefits of a Harbor Departmentis recommending approval at the not to exceed amount of 1 with Neudesic, LLC). When this proposed is completed, existing staff will be expected to support and maintain the The ongoing annual software licensing cost is estimated to be $30,000, which includes assistance with problem resolution and software upgrades. LLC was selected from a RFP released on September Through a competitive responses on products equivalent to unresponsive - two (2) for the Harbor Department received seven (7) The selection process allowed for proposals for Of the seven (7) responses, four (4) were deemed quote a full cost for the project, one (1) for failure to meet public Microsoft Gold requirements stated in the RFP, and one (1) for failure to requirement stated in the RFP. Therefore, only (3) firms were in the selection process. Transmittal 2 (3) Harbor Department Airports employee. was selected because it crn,ron including submitting the lowest providing the most project staffing (enabling Harbor Department knowledge during the implementation), and having the most participation.
4 DATE: FEBRUARY 10,2010 PAGE 4 OF 5 ENVIRONMENTAL ASSESSMENT: The proposed action is an Agreement between the Harbor Department and Neudesic, LLC to implement SharePoint. SharePoint is a computer based system to assist the Harbor Department with document and data management. As an administrative function, the Director of Environmental Management has determined that the proposed action is exempt from the California Environmental Quality Act (CEQA) in accordance with Article II, Section 2(f) of the Los Angeles City CEQA Guidelines. ECONOMIC BENEFITS: Spending under this contract will support the equivalent of fifteen (15) direct and secondary one-year equivalent jobs in the five-county region. FINANCIAL IMPACT: Costs and/or Revenue Impact- Approval of the proposed three-year agreement with Neudesic, LLC authorizes the Information Technology Division to implement SharePoint. Funds for Fiscal Year 2009/10 are budgeted. For Fiscal Years 2010/11 and 2011/12, funds will be requested to be budgeted as part of the annual budget adoption process, upon Board approval. Funds are expected to be expended from account as follows: Fiscal Year Proposed Total 2009/10 $600, /11 $200, /12 $100,000 Total $900,000 The Harbor Department's obligation to pay any amount due thereunder for any City fiscal years after the current fiscal year is contingent upon the legislative appropriation of funds for the purpose. The City's fiscal year ends on June 30th of each calendar year. Accordingly, anything to the contrary notwithstanding, the City may terminate any contract and its future monetary obligations thereunder, effective as of the end of any fiscal year. Continuing operations costs include annual software licensing of $30,000, and annual hardware costs of $18,000. Benefits of Funding- SharePoint provides a document management solution, as recommended by the IT Strategic Plan. Benefits include more efficient document workflows, central document repository, and greater access to information to improve decision making.
5 DATE: FEBRUARY 10,2010 PAGE 5 OF 5 Financial Impact if Not Approved- The Department will continue to perform document management with inefficient manual processes. This includes additional costs for paper, storage and staff time. Source(s) of Funding or Savings- The ongoing annual software maintenance costs for document management will be funded from Account 54110, Center 640, Program 000. CITY A TIORNEY: The Office of the City Attorney has reviewed and approved the agreement as to form and legality. TRANSMITTALS: 1. Agreement with Neudesic, LLC 2. List of Proposers and Evaluation Matrix FIS Approval: K- (initials) ~/~ IV/~~ LANCE KANESHIRO Chief Information Officer MOLLY CAMPBELL Deputy Executive Director APPROVED : GE~LDINEKNW Executive Director LK:AT
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11\ THE PORT OF LOS ANGELES Executive Director's Report to the Board of Harbor Commissioners DATE: MARCH 25, 2010 FROM: INFORMATION TECHNOLOGY DIVISION SUMMARY: The City of Los Angeles Harbor Department
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