C7J - Waive Bidding and Authorize Software License Ag...

Resolutions - C7 J

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends that the Mayor and City Commission adopt the Resolution and waive by 5/7ths vote, the formal bidding requirement in Section 2-367(e) of the City Code, finding such waiver to be in the City’s best interest; and further authorize the City Manager to negotiate, and execute a software license agreement with JLL Technologies for the Corrigo computerized maintenance management system (CMMS).

BACKGROUND/HISTORY

On May 8, 2019, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 2019-201-JC, for Computer Maintenance Management System. On December 19, 2019, the City (“Licensee”) and Corrigo Inc. (“Corrigo”) entered into software license purchase agreement (the “Agreement”) pursuant to Resolution No. 2019-30894. The term of the Agreement is for three (3) years, with two (2) one-year renewal options. The Agreement is set to expire on April 15, 2025.

ANALYSIS

The Computerized Maintenance Management System (CMMS) is an essential tool for managing maintenance activities, improving operational efficiency, and ensuring optimal asset performance in industries such as facility management. The Corrigo CMMS software is used by used by the Facilities and Fleet Management Department, Parks and Recreation Department, and the Miami Beach Convention Center, for which JLL Technologies is the sole source provider.

Maintaining and optimizing the established Corrigo CMMS presents more benefits in terms of cost, efficiency, data continuity, and user familiarity.

One of the primary benefits of continuing with Corrigo software is cost efficiency. Implementing a new CMMS typically involves significant initial investment in software, hardware (potentially), and training. In contrast, an existing system already represents an investment in infrastructure, licenses, and user training. Additionally, the costs associated with migrating data, configuring the system, and retraining staff on new processes can be substantial.

Established CMMS platforms accumulate valuable data over time, including maintenance logs, asset histories, performance metrics, and more. This historical data is crucial for identifying trends, predicting failures, optimizing maintenance schedules, and improving decision-making. When transitioning to a new system, migrating this data can be a complex and error-prone process. There is also the risk that some critical data may be lost or improperly transferred, reducing the value of the historical insights that have been gathered.

Retaining Corrigo CMMS preserves this critical data, ensuring continuity in maintenance operations. The ability to analyze long-term trends and use predictive analytics becomes increasingly powerful with years of data, and the knowledge embedded in the system is irreplaceable.

Additionally, an established CMMS often benefits from a high level of user familiarity. Maintenance staff, managers, and other key personnel are likely well-acquainted with the system's interface, functionalities, and workflows. This familiarity results in increased efficiency, as employees can navigate the system with minimal training or learning curve.

In contrast, introducing a new CMMS requires not only new software training but also a period of adaptation. Even with the most intuitive interfaces, employees may face productivity losses as they learn how to use the system effectively. The learning curve and potential frustrations associated with a new system can lead to inefficiencies, errors, and delays. Transitioning to a new CMMS involves risks associated with the migration process, such as data corruption, system downtimes, or unforeseen technical issues. These disruptions can impact maintenance workflows, causing delays, loss of productivity, and potential damage to assets. Using the established CMMS significantly reduces these risks, as it is already a proven solution. Maintenance operations continue without major interruptions, and the system is already optimized to handle the organization’s specific requirements.

Moreover, CMMS service contracts often provide ongoing support, bug fixes, and regular system updates. These systems are typically stable, reliable, and supported by a community of users who can share best practices and solutions to common issues. For organizations with established systems, there is often a wealth of knowledge and resources to ensure the CMMS continues to meet evolving needs.

In light of the aforestated, the Administration recommends the continued use of Corrigo CMMS, by JLL Technologies. The benefits of cost savings, data continuity, user familiarity, customization, and reduced risk of disruption make it a wise decision for most organizations. By leveraging an existing system and making incremental improvements, departments can maintain high levels of operational efficiency while avoiding the risks associated expenses and allow the City to continue maximizing its investment in maintenance management, fostering long-term success.

CITY MANAGER RECOMMENDATION

In order to continue managing maintenance activities, improving operational efficiency, and

ensuring optimal asset performance in facility management through Corrigo CMMS, the City Manager recommends that Mayor and City Commission waive, by a 5/7ths vote, the formal competitive bidding permitted under Section 2-367(e) of the City Code, as being in the best interest of the City.

FISCAL IMPACT STATEMENT

The fiscal impact for these services is approximately $85,000.00 per year, subject to a flat 3% escalation at each renewal cycle.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

520-1720-000325-34-413-592-00-00-00- 440-0441.000325-35-413-551-00-00-00- 011-0950-000325-28-406-545-00-00-00-

CONCLUSION

Based on the foregoing, it is recommend that the Mayor and City Commission of Miami Beach, Florida, waive by 5/7ths vote, the formal bidding requirement in the Section 2-367(e) of the Miami Beach Code, finding such waiver to be in the City’s best interest, for the purchase of software license agreement with JLL Technologies for Corrigo CMMS. The Resolution also authorizes the City Manager to negotiate and execute a software license agreement with JLL Technologies for the necessary software, service, and related items, subject to the amount appropriated for these products and services through the City’s budgeting process.

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Facilities and Fleet Management

Sponsor(s)

Co-sponsor(s)

Condensed Title Waive Bidding/Execute SLA w/ JLL Technologies, Corrigo CMMS Software. FF 5/7

Previous Action (For City Clerk Use Only)