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State of Ohio - Controlling Board Request
STATE OF OHIO
CONTROLLING BOARD
30 East Broad Street, 34th Floor
Columbus, Ohio 43215-3457
(614) 466-5721 FAX:(614) 466-3813
OPERATING REQUEST Controlling Board No.
DOT0100931
Status:  Approved
Meeting Date:  6/15/2020

GENERAL INFORMATION
Agency
Transportation


Division/Institution
Information Technology
Waiver of Competitive Selection  (Revised Code Section 127.16B)
      No Competitive Opportunity
      Agency Released Competitive Opportunity
Agency Released Competitive Opportunity (Revised Code Section 127.162)
Other Statutory Authority/Bill Section:
Operating Transfer Request  (Revised Code Section 127.14)
      Appropriation
      Cash
      Other Statutory Authority/Bill Section:
Fiscal Year(s)
2021
Bill No.
HB 62
Eligible for OBM
Director Approval?
No

VENDOR INFORMATION
For FYAmountNameAddressCityStateCountyZip Code
DOT01 2021 $418,638.00 Micro Focus US Inc. 9420 KEY WEST AVE STE 320 Rockville MD 60055

FUNDING INFORMATION
Fund GroupFund CodeAppropriation Line ItemAppropriation Line Item NameFYAmountFYAmount
HOF 7002 779491 ADMINISTRATION - STATE 2021 $418,638.00 $.00

SIGNATURES
     
Jack Marchbanks 06/15/2020
   
Agency Director or Authorized Agent On The Date Of
   
05/18/2020 W. Fletch Zimpher
   
Date Controlling Board President/OBM Director
   
AGENCY CONTACT
Name:  Will Hinman Title:  Legislative Liaison
Phone:  (614) 752 - 0401 Fax:  E-Mail:  William.Hinman@dot.ohio.gov
REQUIRED EXPLANATION OF REQUEST
  The Department of Transportation respectfully requests Controlling Board approval for a waiver of competitive selection in the amount of $418,638.00 from fund 7002, ALI 779491 (Administration-State), for FY 21 to contract with Micro Focus US Inc., Rockville, MD, to provide professional services to continue migrating all Appropriation Accounting COBOL programs from mainframe COBOL to Windows based COBOL.  
  This request for approval is for year 2 of the 2-year contract established in FY20. FY20 Controlling Board submission, DOT0100915, for $43,500 was for the initial portion of the contract and was approved by the Controlling Board on 5/11/2020. This is expected to be the final phase in the project to upgrade the Ohio Department of Transportation's (ODOT's) Appropriation Accounting system (AA). Appropriation Accounting is ODOT's core financial system. This includes the management of the agency's budget, revenue, purchasing, expenditures and is used to bill the Federal Highway Administration (FHWA). For relevance, Appropriation Accounting is used to manage ODOT's $4.0 billion annual budget. Appropriation Accounting downtime or errors jeopardize not only the agency's day to day operations, but also public safety. For these reasons, ODOT considers the continuation of this project to be mission critical even under current circumstances.

At this stage of the project, the impact of a delay includes:
1. An increase in the Micro Focus cost for the proposed work
2. An additional annual license fee for the current, outdated SUPRA database of approximately $550,000
3. Additional and increased annual license fees for the newly created SQL database that cannot be used until project
completion
4. A one-year delay in the usability of the system
5. Risk of an additional year working in an unsupported mainframe system
6. The loss of vendor resources with key project knowledge
7. An additional year with dedicated ODOT resources
8. The opportunity cost of not being able to complete needed system enhancements

Additional details for consideration are attached under the attachment named Appropriation Accounting Upgrade - Additional Justification Detail.

Micro Focus requires the installation of its own software be completed only by the manufacturer. They are unique in that they have their own implementation team, eliminating the need for a third party system integrator, who would need to resource back to Micro Focus in order to successfully implement the software. Micro Focus has previously worked with Cincom, who has been contracted by ODOT to perform the migration project, and has a long working history together. There will be a crossover effort between Micro Focus and Cincom regarding the COBOL update with database calls that are being converted from SUPRA 1X to SQL. Cincom will update the COBOL programs to SQL and Micro Focus will take over to fully integrate the programs into the Micro Focus COBOL environment. Micro Focus has proprietary tools that will fast-track the timeline of this effort, as they are the industry leader in COBOL for Windows.

As AA is a critical ODOT system, reducing project risk and time is important. Micro Focus can document risk reduction and reduced time with direct manufacturer support. A third party system integrator could be using off shore resources which poses a security risk with code being sent off shore. The scripting & tools surrounding the software are in place to reduce risks and increases time to market.

Due to the age of the legacy systems and attrition of ODOT fulltime employees, knowledge of the mainframe is minimal and Micro Focus is best positioned to work with Cincom. Risk: due to the criticality of ODOT's procurement functions, it is imperative that ODOT find the most qualified source to complete this upgrade. Any systematic issues or delays with this project could affect ODOT's ability to carry out numerous financial functions and have major implications to many projects.

ODOT is in the process of purchasing the Micro Focus licenses and environment through a bidding process using the CDW STS state contract. ODOT has a long working history with Cincom, who has been contracted to complete this migration project, and Cincom has a working history with Micro Focus.
 
  DOT0100915, DOT0100794, DOT0100851 & DOT0100857  
Attachments Controlling Board Request No.: DOT0100931
Attachment TypeAttachment Description
Other Appropriation Accounting Upgrade - Additional Justification
Contract SOW
Release and Permit FY21 Release & Permit Renewal
Sole source justification letter Single Source Justification Letter
 
Release and Permit Information
NameFYAmountR & P #R & P DateIssued ByComments
Micro Focus US Inc. 2021 $418,638.00 DOT01210008 03/31/2020 State Purchasing

Operating Request Required Information
Contract Renewal - Micro Focus US Inc.
Controlling Board Request No.: DOT0100931
1.  Identify the contractor and provide the contractor's address of their principal place of business.
Micro Focus US Inc.
9420 KEY WEST AVE STE 320
Rockville, MD 60055

 

2. Provide a brief history of the project or program being affected by the work of the contractor.
  This project will provide professional services to migrate all Appropriation Accounting COBOL programs from mainframe COBOL to Windows based COBOL .Appropriation Accounting is ODOT's core financial system. This includes the management of the agency's $4 billion annual budget, revenue, purchasing, expenditures and is used to bill the Federal Highway Administration (FHWA).
3. Specify the deliverables of this contract or describe the scope of the services to be performed by renewing this contract.
The deliverables included in the continuation of this project will be as follows: 1) Analysis & Design Phase 2) Construction Phase 3) Test Phase 4) Implementation Prep & Dry Run 5) Implementation Phase 6) Post Implementation Phase and 7) Training
 
4.
Cite the account category of expense being used for this purchase of service(s).
Account CategorySubobjectAmountNon-Exempt Amount
510055 $418,638.00 $418,638.00
Total Amounts $418,638.00 $418,638.00
   

5.

Provide the dates of previous Controlling Board approvals for this contract. Indicate whether the approvals were for the initial contract, amendments to this contract, or previous renewals for this contract. In addition to the date(s) of Controlling Board approval, provide the following information depending upon the type of contract previously approved by the Controlling Board.
   
  Initial Contract - Total amount of the initial contract or number of hours and the rate per hour.
  Amendment - Total amount of the amended contract (initial + amendment) or total number of hours (initial + amendment) and the total rate per hour (initial contract + contract amendment + contract renewals within the biennium).
  Renewal - Total amount of the renewed contract or the total number of hours and the total rate per hour.
NOTE: All amounts must be shown in amounts per fiscal year.
CB Approval DateType of ContractAmount per FY# of HoursRate per Hour per FY
6. Provide the total amount of the contract renewal or total number of hours and total rate per hour.
Total Contract Amount Total # of Hours Total Rate per Hour FY 
$418,638.00 1616  $259.05  21  
 
7. Is this contract rate an increase in the total amount of the contract or the rate per hour over the previous contract rate? No
 
8. Duration (beginning and ending dates) of this contract renewal within the biennium.
Beginning Date Ending Date
07/01/2020 06/30/2021
 
9. Provide all subsequent renewal schedules (beginning and ending dates) and amounts associated with this contract.
   
Beginning DateEnding DateTotal Amount
  Explain contract provisions. 
10.
Provide the following employee information: Nationwide Ohio
Total Number of Employees 3260    46   
Percentage of Women 27.74% 21.74%
Percentage of Minorities 27.98% 21.74%