Broward County Commission Regular Meeting


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AI-26316 35.       
Meeting Date: 06/05/2018  
Director's Name: George Tablack
Department: Finance & Administrative Services Division: Purchasing

Information
Requested Action
A. MOTION TO APPROVE only one reasonable source designation of Integration Point, Inc. ("Integration Point") as provider of a Foreign Trade Zone ("FTZ") software solution, including support and maintenance services for Broward County's Port Everglades Department.

ACTION:  (T-10:26 AM)  Approved.
 
VOTE: 6-0.  Commissioners Geller, Holness and Sharief were not present.

B. MOTION TO AUTHORIZE Director of Purchasing to negotiate and execute an Agreement between Broward County and Integration Point to provide a web-based Software-as-a-Service ("SaaS") solution, and related support and maintenance services for Broward County's FTZ  for an initial five-year term, and authorize the Director of Purchasing to renew the Agreement for up to five additional one-year periods. The Agreement will begin upon execution and terminate five years from the date of final acceptance.

ACTION:  (T-10:26 AM)  Approved.
 
VOTE: 6-0.  Commissioners Geller, Holness and Sharief were not present.
Why Action is Necessary
Motion A. In accordance with the Broward County Procurement Code, Section 21.34, an only reasonable source procurement above the award authority of the Director of Purchasing must be approved by the Board, and per Broward County Procurement Code, Section 21.43, the Board is required to approve all contracts for supplies and services of more than five years.

Motion B. In accordance with Section 21.14.c.6., the Director of Purchasing is authorized to execute agreements delegated by the Board for the Director's execution.
What Action Accomplishes
A. and B. Provides for FTZ software, and related support and maintenance services.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE PURCHASING DIVISION AND THE PORT EVERGLADES DEPARTMENT/BUSINESS ADMINISTRATION DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.

This item supports the Board's value of "Consistently delivering responsive, efficient, quality services to the public and internal customers"; its goal is to build into every process and service effective checks and balances that do not cause inefficiency, but rather ensure consistency, continuity, and quality.

Broward County's Foreign Trade Zone ("FTZ") No. 25 is the largest FTZ in Florida, and the third largest in the United States for export goods. Broward County's FTZ No. 25 contains 19 remote FTZ sites, 20 private company users, and five sub-zones that are stakeholders in the complex fast moving system of receiving, inventory tracking, reporting, and exporting various types of merchandise worth millions of dollars on an annual basis.

Broward County operates the general purpose FTZ No. 25 under a grant of authority from the Foreign-Trade Zones Board in Washington, D.C., and is required by law and regulation to maintain an Inventory Control and Recordkeeping System ("ICRS") capable of tracking all movements of foreign merchandise through the FTZ No. 25. Growing, high-volume, and complex general-purpose FTZs, such as Broward County's FTZ No. 25 require a user-friendly, automated ICRS to operate cost-effectively. Broward County's FTZ No. 25 is expanding and therefore needs a system that is robust, flexible, and capable to add FTZ user companies. Currently, Broward County receives $365,000 per year of direct revenue.

The Port Everglades Department is seeking a Software-as-a-Service (SaaS) web based system that provides automated processing and recording of data related to the admission, tracking, and transfer of foreign and domestic merchandise moving in and out of the activated facilities of FTZ No. 25; reporting capabilities that will enhance the ability of the Port Everglades Department to control and manage activities in FTZ No. 25; limited input and access to participating FTZ user companies to input and access their data; FTZ users and U.S. Customs and Boarder Protection (CBP) the ability to request reports and ad hoc information; backed-up data storage and secure processing related to inventory movements; and FTZ users with timely CBP permitting processes related to their merchandise import and export responsibilities. Additional cost associated with the system, which is essential to maintaining compliance with CBP requirements, will be recovered through a phased increase to the transaction fees charged to the FTZ users.

Integration Point's SaaS solution meets the specific requirements of Broward County's FTZ No. 25, provides the flexibility to add FTZ user companies, and is most capable of providing a smooth transition from Broward County’s current FTZ No. 25 software solution, EZ-FTZ, originally owned by HOMEDATA (Rochester), Inc. ("HOMEDATA"). Integration Point now owns HOMEDATA, currently maintains the EZ-FTZ software, and has extensive experience in setting up, transferring data, and training for other FTZs transitioning from the EZ-FTZ to Integration Point's SaaS solution.

History:
On September 11, 2007 (Item No. 33), the Board approved a software license agreement between the County and HOMEDATA to provide an FTZ ICRS (EZ-FTZ) and support and maintenance of the software. The cost of the software license, including initial services, and support and maintenance, for the first year was $200,000. The term of the agreement began on the date of execution and, with a five-year option period, ended six years after the final acceptance date. The final acceptance date was September 11, 2008.

On September 9, 2014 (Item No. 11), the Board approved a Second Amendment, which extended the term of the existing agreement with HOMEDATA for one year effective on September 11, 2014, and provided an additional 100 hours of support and training, under the same terms and conditions as set forth in the original Agreement.

On June 9, 2015 (Item No. 70), the Board authorized the Director of Purchasing to negotiate, approve and execute a Third Amendment to the existing software license agreement between Broward County and HOMEDATA, to continue software support for the EZ-FTZ software at Broward County's Port Everglades FTZ No. 25 for up to three one-year extensions commencing September 11, 2015, with a not-to-exceed value for software support and any additional services of $75,000.

Multiple Sunshined negotiation meetings were held to negotiate this Agreement: March 1, 2, 5, 6, 8, 14, 15, 16, 21, 22, 27, 28, 29; and April 9, 10, 17, 19, 26, 2018. These meetings were attended by representatives of Integration Point, Inc., the Port Everglades Department, Business Administration Division, the County Attorney's Office, the Enterprise Technology Services Division, and the Purchasing Division.
Source of Additional Information

Brenda Billingsley, Director, Purchasing Division, (954) 357-6070


Fiscal Impact
Fiscal Impact/Cost Summary:
Each requirement processed against this open-end contract, for the initial term estimated not-to-exceed amount of $1,000,000 and the ten-year potential estimated not-to-exceed amount of $2,700,000, will be funded by the appropriate source at the time of release.

Folder No. 2114707
Attachments
Exhibit 1 - Only Reasonable Source Memorandum signed November 27, 2017


    

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