title
A resolution approving Amendment Number 1 to a sole source contract between the Metropolitan Government of Nashville and Davidson County and Argano, LLC, to reflect scope of work changes and increase the value of the contract.
body
WHEREAS, BL2022-1172 approved a sole source contract, contract number 6493247, attached hereto, between the Metropolitan Government and CSS International Inc. for consulting, development, implementation, and managed services for Hyperion/EMP Cloud, HCM Cloud, R12 and Taleo Software Platforms, the value of which was beyond $250,000 and the term of which was more than 60 months; and,
WHEREAS, by letter dated January 16, 2024, attached hereto, the Metropolitan Government consented to the assignment of the rights and obligations of CSS International, Inc. under contract number 6493247 to Argano, LLC; and,
WHEREAS, due to R12 migration to Oracle Cloud and software upgrades, the parties desire to amend the contract to reflect scope of work changes and increase the value of the contract; and,
WHEREAS, Section 4.12.060 of the Metropolitan Code of Laws calls for Council approval by resolution of sole source contracts “with a total contract amount in excess of two hundred fifty thousand dollars ($250,000.00);” and,
WHEREAS, it is to the benefit of the citizens of the Metropolitan Government of Nashville and Davidson County that the amendment to the sole source contract be approved.
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That Amendment Number 1 to a sole source contract between the Metropolitan Government of Nashville and Davidson County and Argano, LLC, a copy of which is attached hereto and incorporated herein, is hereby approved, and the Metropolitan Mayor is authorized to execute same.
Section 2. That this Resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution approves an amendment to a sole source contract between the Metropolitan Government and Argano, LLC, originally approved pursuant to Ordinance No. BL2022-1172. The original, 120-month contract was for consulting, development, implementation, and managed services for Hyperion/EMP Cloud, HCM Cloud, R12, and Taleo Software Platforms. The original estimated contract value was $35,000,000.
Sole source contracts may be awarded under the Metro procurement code when it is determined that there is only one source for the supply or services rendered. Section 4.12.060 of the Metro Code requires all sole source contracts having a total value in excess of $250,000 to be approved by the Council by resolution. According to the sole source justification form attached to the original agreement, this contract requires Argano, LLC’s unique expertise and knowledge of the Oracle R12 system and the related business processes.
The amendment expands the scope of services due to R12 software migration to Oracle Cloud and related upgrades. The contractor would now provide consulting, development, implementation, managed services, and support for EBS R12, EPM Cloud, HCM Cloud, Cloud ERP, Taleo, and Primavera Software Platforms. The estimated contract value would be increased by $43,000,000 for a total estimated value of $78,000,000. Finally, the amendment adds language required by Tenn. Code Ann. § 12-4-119 prohibiting the contractor from engaging in a boycott of Israel for the duration of the contract.
Fiscal Note: This amendment to the sole source contract number 6493247 with Argano, LLC increases the contract value by $43,000,000 to a new estimated contract life value of $78,000,000 to be paid from Fund 51137, Business Unit 14521014.