Title
Replacement of SunGard H.T.E. Application Software
History
In 1992, the Village purchased and implemented our current H.T.E. system software. At the time the H.T.E. system was one of the best municipal software packages on the market. Since then, the company has undergone multiple ownership changes and is currently owned by SunGard Public Sector. This software has reached end of life and the Village has not received substantial enhancements or improvements to the software in many years despite the hefty maintenance and support fees that are paid to SunGard Public Sector on an annual basis. The system has basically become obsolete and SunGard has not made any functional improvements or kept pace with new technology.
Dennis Harward, one of the principals that founded H.T.E. in 1981, originally sold the Village our current software system in 1992. Mr. Harward left H.T.E. in 1999 and in 2003 formed Innoprise Software. Innoprise targets much the same customer base as SunGard but with a much different approach. Instead of the more costly client-server based system that requires a proprietary IBM mid-range computer, Innoprise is a browser-based system that could run on virtually any hardware platform and operating system with the philosophy of empowering the end-user of the system with flexibility and increased productivity without technical knowledge or a special skill set to extract and analyze data. Since the Innoprise system is truly browser-based, it does not require any additional software to be installed on the client PC, and user or workstation licensing is not required. Attached you will find an overview of Innoprise Software - the company, its products and information about a number of Innoprise’s current clients.
Mr. Harward has approached the Village with a unique proposal that can potentially solve many of the issues that the Village has with the H.T.E. system, provide the Village with additional modules/functionality that H.T.E. does not offer and save the Village a great deal of money in the future, both on annual maintenance costs as well as ancillary costs that the Village incurs because H.T.E. has not kept pace with new technologies that have evolved. Mr. Harward’s proposal will provide the Village with their full suite of ERP software and training and implementation services; in exchange for the Village of Orland Park becoming an Innoprise strategic partner and showcase account in the Midwest. This strategic partnership will allow the Village to lock in the price of the Innoprise software for six (6) years; this price will equate to the amount that the Village would pay to H.T.E. for maintenance alone.
Innoprise personnel have vast knowledge of our existing software applications and experience in supporting other SunGard H.T.E. clients. In addition to migrating of all our historical H.T.E. data to the new Innoprise software suite, Innoprise would assume full support and maintenance of the current SunGard H.T.E. system and provide the Village of Orland Park with their full-line of ERP software, implementation and training services.
Innoprise hosted a two-day workshop for Village staff in June to demonstrate their software and staff was very impressed with the ease of getting data out of the system as well as the functions built into the system that normally would require the purchase of an additional module such as employee self service or document management.
The Innoprise Software Proposal includes:
• Immediate support and maintenance of the current SunGard H.T.E. software applications
• Provide on-site review of current workflow as it relates to the utilization of the Village’s ERP software
• Providing a full suite of Innoprise Enterprise Resource Planning (ERP) software designed specifically for government entities, including the following:
o Financial Suite - Accounting, Budgeting, Accounts Receivable, General Ledger, Purchasing/Inventory, Asset Management, Payroll, Human Resources and Centralized Cash Receipts
o Customer Information System for Water, Sewer, and Refuse Billing
o Community Development Suite - Code Enforcement, Occupational Licenses, Building Permits, Planning & Engineering and Citizen Access
o Work Orders & Facility Management
o Document Management & Imaging System - built into the Innoprise system at no additional charge
• Unlimited software usage with no user-based or tiered licensing fees
• Migration of all the historical SunGard H.T.E. data to the Innoprise system
• 436 days of implementation and training services at no additional charge; with the Village paying only for pre-approved travel and lodging expenses while Innoprise personnel are on site
• Help desk and technical support for both SunGard H.T.E. and Innoprise software
.
With the current H.T.E. system, the Village does not have Citizen Access, Planning & Engineering or Human Resources modules. These modules are included in the suite that Innoprise will provide to the Village; if H.T.E. were to provide these modules, we would have to purchase each module separately, as well as pay additional annual maintenance to support these modules.
The total cost of purchasing and implementing the full Innoprise Software suite, including training and on-going support will be $72,751 per year for six years; the same amount we are currently paying SunGard H.T.E. for annual maintenance. At the end of the six (6) year term, the Village will continue to pay Innoprise an annual amount of $72,751 plus a maximum annual increase of 4%. If the Village budget allows, Innoprise is also offering the Village the option of prepaying the six (6) year term at a discounted price of $349,200, saving the Village an additional $87,304.
The SunGard H.T.E. maintenance agreement is up for renewal at the end of the year for end user support, technical assistance, software fixes, legally mandated updates and other enhancements that sustain software functionality. Historically, this contract has increased in cost by 5% annually. By moving to the Innoprise system, the Village will save $58,340 over the six (6) year period in projected maintenance fee increases and receive all new software with all the features and functionality not available with the exiting SunGard H.T.E. system. In addition, once full implementation has occurred, the Village will save approximately $21,300 each year on extra hardware and/or software necessary to make the H.T.E. system meet the current needs of the Village.
Staff recommends approval of the Innoprise proposal. Replacing a system such ours through the bid/RFP process could cost us approximately $1M up-front, plus annual maintenance costs. Innoprise will provide the Village with functionalities that are currently lacking and allow us to operate more efficiently internally, as well as provide on-line citizen access to Village residents, at no more cost than we are already incurring. If approved, staff will begin to work with Innoprise to develop an implementation schedule. Implementation of the various modules will take place over the next six (6) to eighteen (18) months. Although implementation of the various modules will take place over a long period of time, upon contract signing Innoprise will immediately take over support of all H.T.E applications. We will not pay H.T.E. for any support services in FY2011. In addition, as we implement Innoprise, staff will look for ways to integrate other Village software, such as GIS and Class, with the Innoprise system.
On August 2, 2010, this item was reviewed and approved by the Finance Committee and referred to the Board for approval.
Financial Impact
Funding for the purchase and support of the Innoprise system in the amount of $72,751, will be requested in the FY 2011 budget and in the five following fiscal years. This amount, plus additional expenses necessary to operate the H.T.E. system will be necessary in each of these fiscal years should we choose to remain with the Village’s current H.T.E. system.
Recommended Action/Motion
I move to waive the bid process.
And
I move to approve an agreement with Innoprise Software, Inc. whereby Innoprise will assume support of the Village’s current SunGard H.T.E. software system, provide their complete suite of software, data migration services, implementation and training services, and provide annual software support and upgrades to the Village of Orland Park for a total of $436,505 over a six-year term and authorize the Village Manager to execute the agreement.