Orange County NC Website
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 15, 2021 <br /> Action Agenda <br /> Item No. 8-k <br /> SUBJECT: NEOGOV Multi-Year Contract <br /> DEPARTMENT: Information Technologies (IT) <br /> and Human Resources (HR) <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Jim Northrup, 919-245-2276 <br /> Brenda Bartholomew, 919-245-2551 <br /> PURPOSE: To review and authorize the Manager to sign a multi-year maintenance and support <br /> contract for $396,288.42 (paid over five years) with Govern (NEOGOV). <br /> BACKGROUND: Orange County first entered into an agreement with in <br /> October 2011 as a means to automate and enhance the employee recruitment and selection <br /> process. Since the original NEOGOV contract, other modules were added and have effectively <br /> developed into a fully integrated set of cloud based Human Resources tools such as NEOGOV <br /> Perform which has automated the County's performance evaluation system and NEOGOV Learn, <br /> an automated learning management system. These tools serve as keystones for Human <br /> Resources service delivery, i.e., recruitment, retention, training and performance. <br /> Annual software maintenance and support costs are centralized under the Information <br /> Technologies Department (IT) and are typically renewed on an annual basis. This renewal <br /> process involves getting an annual quote from each of the one hundred vendors IT actively <br /> manages. The best rates are subsequently negotiated for that particular year in order to prevent <br /> increases in maintenance costs. Decreasing agreement costs is always the goal. <br /> Often vendors annually increase their price by a certain percentage. This percentage can vary <br /> widely from year to year and from vendor to vendor. Negotiating multi-year contracts is a means <br /> to decrease support costs for any given product or to at least keep costs predictable for future <br /> years, with decreasing agreement costs always the goal. In recent years, an effort has been <br /> made to seek written contracts for all annual maintenance agreements and wherever possible <br /> negotiate multi-year agreements. Typically on new software acquisitions, IT assesses the value <br /> of multi-year support options and will build those costs into the initial purchase. Many new <br /> purchases see year one costs as a capital investment and year two and beyond are moved into <br /> the operational software maintenance budgetary line item. <br /> Information Technologies works in concert with the Finance and Administrative Services <br /> Department and County Attorney's Office to ensure that all procurement statutes and best <br /> practices are followed. The proposed contract with NEOGOV has been reviewed by the County <br />