Title
Tyler Munis Enterprise Resource Planning Contract
History
Village staff received approval at the October 19, 2020, Committee of the Whole meeting to negotiate a contract with Tyler Technologies for the software, devices, and services required to implement and maintain the Munis ERP, ExecuTime, and EnerGov software applications. The Village is already heavily invested in Tyler Technologies through use of their New World Computer-Aided Dispatch, as well as Enterprise Asset Management and 311 Citizen Access software platforms.
Village staff has been in contract negotiations with Tyler representatives since October. After extensive negotiations, staff believes this agreement meets the Village’s requirements while providing the best value. The Technology Commission recommended that staff include a contingency, which is typical for ERP software implementations. The total five-year cost to purchase, implement, and maintain the Tyler Munis ERP is $2,082,786, which includes a $35,000 contingency. The total cost amount includes $1,299,661 in one-time implementation fees and $182,307 in annual software maintenance, support, and service fees. Only the $128,410 annual software maintenance fees, not the support and service fees, are waived the first twelve months after the project start date, but are charged in years two thru five of the initial five-year agreement.
During the Enterprise Resource Planning (ERP) Software Update at the October 19, 2020 Committee of the Whole meeting staff estimated the total five year cost to purchase, implement, and maintain the Tyler on premise solution to be $1,818,882. This estimate was based on a preliminary Tyler quote prior to negotiations being initiated, which resulted in a more refined cost proposal. For that reason, the estimate did not include the annual Software as a Service (SaaS) fees for items that are only offered in the hosted environment (Tyler Notify, Analytics and Reporting, and MyCivic Bundle), as well as two required Tyler supplementary technical support services (Systems Management Services, and Disaster Recovery Services).
At the October 19, 2020 Committee of the Whole meeting, the Board directed staff to request a cost proposal for Tyler's completely hosted SaaS platform for comparison purposes. The total five-year cost for SaaS would be $2,460,020 or $412,234 more than the recommended on premise platform. The on premise proposal provides the security and control the Village desires at a lower annual and total cost as well as including Tyler's Systems Management and Disaster Recovery services providing the Village with similar technical and systems support as the SaaS platform.
Other indirect costs include an estimated $200,000 for a full time contracted project manager to facilitate implementation and $289,400 to replace the Village’s end of life server, storage hardware, and management software. Funds for each of these items are included in the FY 2021 Budget.
Implementation is projected to start in April 2020 and is projected to take 18-24 months from the start date due to its complexity and to lessen the impact to existing operations.
Recommended Action/Motion
I move to approve the contract with Tyler Technologies and the Village of Orland Park through the Sourcewell Purchasing Cooperative Contract #090320-TTI for public administration software for the cost of $2,047,786 plus a $35,000 contingency for a total not to exceed of $2,082,786;
And;
To authorize the Village Manager to approve change orders not to exceed the contingency amount.