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HomeMy WebLinkAboutContract 39065 CITY SECRETgR CONTR,gCT NO. PROFESSIONAL SERVICES AGREEMENT This PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into by and between the CITY OF FORT WORTH (the "City"), a home rule municipal corporation situated in portions of Tarrant, Denton and Wise Counties, Texas, with its principal place of business at 1000 Throckmorton Street, Fort Worth, Texas, acting by and through Karen L. Montgomery, its duly authorized Assistant City Manager, and GARTNER INC., ("Consultant"), a Delaware Corporation, with its principal place of business at 56 Top Gallant Road, Stamford, CT, 06904 and acting by and through William F. Mohan, Jr., Sr. Director, Government Contracts, duly authorized signatory by certified Delegation of Authority on behalf of Consultant. Individually referred to as a "Party," and collectively referred to as the "Parties," WHEREAS, the City wishes to review its current Information Technology (IT) Services to determine which services should be outsourced; and WHEREAS, the City seeks to engage the services of a qualified Consultant to provide expert guidance, oversight, recommendations and planning assistance to the City in the management and execution of this outsourcing initiative; and WHEREAS, the Consultant will serve as the City's Principal IT Outsourcing Strategic Plan Consultant for the IT Outsourcing project; and WHEREAS, the City acknowledges that this Agreement is executed pursuant to Consultant's Contract for Deliverables-Based Information Technology Services DIR Contract No. DIR-SDD-973, administered by the Department of Information Resources (the "DIR Contract" or "DBITS"), the terms and conditions of which are incorporated into this Agreement by reference and made part hereof NOW THEREFORE, for the mutual covenants and considerations set forth below, the Parties hereby agree as follows: CONTRACT DOCUMENTS The contract documents shall include: 1) This Professional Services Agreement a) Exhibit A—Statement of Work b) Exhibit B— Payment Schedule c) Exhibit C—Non-Disclosure Agreement d) Exhibit D—Vendor Network Access Agreement e) Exhibit E—Milestone Acceptance Document 2). Department of Information Resources (DIR) Contract No. DIR-SDD-973 (the "DIR Contract" or "DBITS"), as amended, which is incorporated herein by reference. In the event of any conflict between the documents, this Professional Services Agreement plus any attachments shall control. 1. SCOPE OF SERVICES. Consultant hereby agrees to provide the City with professional consulting services for the purpose of providing an IT Sourcing Strategic Plan. Attached hereto and incorporated for all purposes incident to this Agreement is Exhibit"A," Statement of Work, more specifically describing the services OKofessional Services Agreement GARTNER INC. .., 'Page 1 of�.8'=. :ARY JRTH,TX to be provided hereunder. 2. TERM. This Agreement shall commence upon the last date that both the City and Consultant have executed this Agreement("Effective Date") and shall continue in full force and effect until completion of all services contemplated herein, but no later than April 13, 2010, unless otherwise extended by the Parties or terminated earlier in accordance with the provisions of this Agreement. 3. COMPENSATION. The City shall pay Consultant an amount not to exceed $514,000.00 in accordance with the provisions of this Agreement and Exhibit "B" Payment Schedule, attached hereto, incorporated herein and made a part of this Agreement. Consultant shall not perform any additional services for the City not specified by this Agreement unless the City requests and approves in writing the additional costs for such services. The City shall not be liable for any additional expenses of Consultant not specified by this Agreement unless the City first approves such expenses in writing. 4. TERMINATION/DISPUTE RESOLUTION. 4.1. Written Notice. The City or Consultant may terminate this Agreement at any time and for any reason by providing the other party with 30 days written notice of termination. 4.2 Non-appropriation of Funds. In the event no funds or insufficient funds are appropriated by the City in any fiscal period for any payments due hereunder, City will notify Consultant of such occurrence and this Agreement shall terminate on the last day of the fiscal period for which appropriations were received without penalty or expense to the City of any kind whatsoever, except as to the portions of the payments herein agreed upon for which funds shall have been appropriated. 4.3 Duties and Obligations of the Parties. In the event that this Agreement is terminated prior to the Expiration Date, the City shall pay Consultant for services actually rendered up to the effective date of termination and Consultant shall continue to provide the City with services requested by the City and in accordance with this Agreement up to the effective date of termination. 4.4 Dispute Resolution. Except in the event of termination pursuant to Section 4.2 above, in the event of a dispute or controversy between the parties for any matters related to this Agreement, the parties shall, in good faith, exercise their best efforts to negotiate and attempt to resolve any disputes that may arise pursuant to this Agreement as set forth in this Section 4.4 as follows: (a) If either Party (the "Disputing Party) disputes any provision of this Agreement, or the interpretation thereof, or any conduct by the other party under this Agreement, that party shall bring the matter to the attention of the other party at the earliest possible time in order to resolve such dispute. (b) If such dispute is not resolved by the employees for the subject matter of the dispute within ten (10) business days, the Disputing Party shall deliver to the first level of representatives below a written statement(a "Notice of Dispute") describing the dispute in detail, including any time commitment and any fees Professional Services Agreement GARTNER INC. Page 2 of 19 or other costs involved. (c) Receipt by the first level of representatives of a Notice of Dispute shall commence a time period within which the respective representatives must exercise their best effort to resolve the dispute. If the respective representatives cannot resolve the dispute within the given time period, the dispute shall be escalated to the next higher level of representatives in the sequence as set forth below. (d) If the parties are unable to resolve the dispute in accordance with the escalation procedures set forth below, the parties may assert their rights under this Agreement. Escalation Timetable Gartner City of Fort Worth (Business Days) Representative Representative(s) 0-5 th day Rob Cohan, Managing Partner Project Manager 6th— 10th day Brett Rugroden, VP Public Sector Department Director 11th— 15th day Bill Kumagai, GVP Consulting Asst. City Manager 4.5 Notwithstanding the fact that the Parties may be attempting to resolve a dispute in accordance with the informal dispute resolution procedures set forth in Section 4.4, the Parties agree to continue without delay all of their respective duties and obligations under this Agreement not affected by the dispute. 4.6 Notwithstanding the foregoing, either Party may, before or during the exercise of the informal dispute resolution procedures set forth in Section 4.4 apply to a court having jurisdiction for a temporary restraining order or preliminary injunction where such relief is necessary to protect its interests. 5. DISCLOSURE OF CONFLICTS AND CONFIDENTIAL INFORMATION. Consultant hereby warrants to the City that Consultant has made full disclosure in writing of any existing or potential conflicts of interest related to Consultant's services under this Agreement. In the event that any conflicts of interest arise after the Effective Date of this Agreement, Consultant hereby agrees immediately to make full disclosure to the City in writing. Consultant, for itself and its officers, agents and employees, further agrees that it shall treat all information provided to it by the City as confidential and shall not disclose any such information to a third party without the prior written approval of the City Consultant shall store and maintain City Information in a secure manner and shall not allow unauthorized users to access, modify, delete or otherwise corrupt City Information in any way. Consultant shall notify the City immediately if the security or integrity of any City information has been compromised or is believed to have been compromised. In accordance with DBITS Section 9(d), Confidentiality, Consultant further agrees to keep confidential any information communicated by City to Consultant in connection with this Agreement that City desires Consultant to keep confidential provided that such material is (i) clearly marked confidential if provided in written form, (ii) is preceded by a statement that such information is confidential, if provided in oral form, and such statement is confirmed in writing or (iii) due to the nature of the information, Consultant should reasonably know that the information is confidential. This obligation of confidence shall not apply to any information that: (1) is in the public domain at the time of its communication; (2) is independently developed by Consultant; (3) entered the public domain through no fault of Consultant subsequent to City's communication to Consultant; (4) is in Consultant's possession free of any obligation of confidence at the time of City's communication to Consultant; or (5) is communicated by the City to a third party free of any obligation of confidence. Additionally, Consultant may disclose such information to the extent required by legal process. Professional Services Agreement GARTNER INC. Page 3 of 19 6. RIGHT TO AUDIT. Consultant agrees that the City shall, until the expiration of three (3) years after final payment under this contract, have access to and the right to examine at reasonable times any directly pertinent books, documents, papers and records of the consultant involving transactions relating to this Contract at no additional cost to the City. Consultant agrees that the City shall have access during normal working hours to all necessary Consultant facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this section. The City shall give Consultant reasonable advance notice of intended audits. Consultant further agrees to include in all its subcontractor agreements hereunder a provision to the effect that the subcontractor agrees that the City shall, until expiration of three (3) years after final payment of the subcontract, have access to and the right to examine at reasonable times any directly pertinent books, documents, papers and records of such subcontractor involving transactions related to the subcontract, and further that City shall have access during normal working hours to all subcontractor facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this paragraph. City shall give subcontractor reasonable notice of intended audits. 7. INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Consultant shall operate as an independent contractor as to all rights and privileges granted herein, and not as agent, representative or employee of the City. Subject to and in accordance with the conditions and provisions of this Agreement, Consultant shall have the exclusive right to control the details of its operations and activities and be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors and subcontractors. Consultant acknowledges that the doctrine of respondeat superior shall not apply as between the City, its officers, agents, servants and employees, and Consultant, its officers, agents, employees, servants, contractors and subcontractors. Consultant further agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between City and Consultant. 8. LIABILITY AND INDEMNIFICATION. CONSULTANT SHALL BE LIABLE AND RESPONSIBLE FOR ANY AND ALL PROPERTY LOSS, PROPERTY DAMAGE ANDIOR PERSONAL INJURY, INCLUDING DEATH, TO ANYAND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, TO THE EXTENT CAUSED BY THE NEGLIGENT ACT(S) OR OMISSION(S), MALFEASANCE OR INTENTIONAL MISCONDUCT OF CONSULTANT, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. CONSULTANT COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNIFY, HOLD HARMLESS AND DEFEND THE CITY, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO CONSULTANT'S BUSINESS AND ANY RESULTING LOST PROFITS) ANDIOR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR MALFEASANCE OF CONSULTANT, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. Professional Services Agreement GARTNER INC. Page 4 of 19 IN ACCORDANCE WITH DBITS APPENDIX A, SECTION 7(J), LIMITATION OF LIABILITY, FOR ANY CLAIM OR CAUSE OF ACTION ARISING UNDER OR RELATED TO THE CONTRACT.• (1) TO THE EXTENT PERMITTED BY THE CONSTITUTION AND THE LAWS OF THE STATE OF TEXAS, NONE OF THE PARTIES SHALL BE LIABLE TO THE OTHER FOR PUNITIVE, SPECIAL, OR CONSEQUENTIAL DAMAGES, EVEN IF IT IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; AND (II) EXCEPT FOR DAMAGES FOR PERSONAL INJURY, INCLUDING DEATH, OR DAMAGE TO TANGIBLE PROPERTY, CONSULTANT'S LIABILITY FOR DAMAGES OF ANY KIND TO THE CITY SHALL BE LIMITED TO THE TOTAL AMOUNT PAID TO CONSULTANT UNDER THE CONTRACT DURING THE TWELVE MONTHS IMMEDIATELY PRECEDING THE ACCRUAL OF THE CLAIM OR CAUSE OF ACTION. FURTHER, THIS LIMITATION OF CONSULTANT'S LIABILITY SHALL NOT APPLY TO CLAIMS OF PATENT, TRADEMARK, OR COPYRIGHT INFRINGEMENT. 9. ASSIGNMENT AND SUBCONTRACTING. Consultant shall not assign or subcontract any of its duties, obligations or rights under this Agreement without the prior written consent of the City. If the City grants consent to an assignment, the assignee shall execute a written agreement with the City and the Consultant under which the assignee agrees to be bound by the duties and obligations of Consultant under this Agreement. The Consultant and Assignee shall be jointly liable for all obligations under this Agreement prior to the assignment. If the City grants consent to a subcontract, the subcontractor shall execute a written agreement with the Consultant referencing this Agreement under which the subcontractor shall agree to be bound by the duties and obligations of the Consultant under this Agreement as such duties and obligations may apply. The Consultant shall provide the City with a fully executed copy of any such subcontract. 10. INSURANCE. Consultant shall provide the City with certificate(s) of insurance documenting policies of the following minimum coverage limits that are to be in effect prior to commencement of any work pursuant to this Agreement: 10.1 Coverage and Limits (a) Commercial General Liability $1,000,000 Each Occurrence $1,000,000 Aggregate (b) Automobile Liability $1,000,000 Each accident combined single limit Coverage shall be on any vehicle used by the Consultant, its employees, agents, representatives in the course of the providing services under this Agreement. "Any vehicle" shall be any vehicle owned, hired and non-owned (c) Worker's Compensation Statutory limits Employer's liability $100,000 Each accident/occurrence $100,000 Disease - per each employee $500,000 Disease- policy limit Professional Services Agreement GARTNER INC. Page 5 of 19 This coverage may be written as follows: Workers' Compensation and Employers' Liability coverage with limits consistent with statutory benefits outlined in the Texas workers' Compensation Act (Art. 8308 — 1.01 et seq. Tex. Rev. Civ. Stat.) and minimum policy limits for Employers' Liability of $100,000 each accident/occurrence, $500,000 bodily injury disease policy limit and $100,000 per disease per employee (d) Technology Liability (Errors& Omissions) $1,000,000 Each Claim Limit $1,000,000 Aggregate Limit Technology coverage may be provided through an endorsement to the Commercial General Liability(CGL) policy, or a separate policy specific to Technology E&O. Either is acceptable if coverage meets all other requirements. Coverage shall be claims-made, and maintained for the duration of the contractual agreement and for two (2)years following completion of services provided. An annual certificate of insurance shall be submitted to the City to evidence coverage. 10.2 Certificates. Certificates of Insurance evidencing that the Consultant has obtained all required insurance shall be delivered to the City prior to Consultant proceeding with any work pursuant to this Agreement. All policies shall be endorsed to name the City as an additional insured thereon, as its interests may appear. The term City shall include its employees, officers, officials, agent, and volunteers in respect to the contracted services. Any failure on the part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirement. A minimum of thirty (30) days notice of cancellation or reduction in limits of coverage shall be provided to the City. Ten (10) days notice shall be acceptable in the event of non-payment of premium. Such terms shall be endorsed onto Consultant's insurance policies. Notice shall be sent to the Risk Manager, City of Fort Worth, 1000 Throckmorton, Fort Worth, Texas 76102, with copies to the City Attorney at the same address. 11. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS. Consultant agrees to comply with all applicable federal, state and local laws, ordinances, rules and regulations. If the City notifies Consultant of any violation of such laws, ordinances, rules or regulations, Consultant shall immediately desist from and correct the violation. 12. NON-DISCRIMINATION COVENANT. Consultant, for itself, its personal representatives, assigns, subcontractors and successors in interest, as part of the consideration herein, agrees that in the performance of Consultant's duties and obligations hereunder, it shall not discriminate in the treatment or employment of any individual or group of individuals on any basis prohibited by law. If any claim arises from an alleged violation of this non- discrimination covenant by Consultant, its personal representatives, assigns, subcontractors or successors in interest, Consultant agrees to assume such liability and to indemnify and defend the City and hold the City harmless from such claim. Professional Services Agreement GARTNER INC. Page 6 of 19 13. NOTICES. Notices required pursuant to the provisions of this Agreement shall be conclusively determined to have been delivered when (1) hand-delivered to the other party, its agents, employees, servants or representatives, (2) delivered by facsimile with electronic confirmation of the transmission, or (3) received by the other party by United States Mail, registered, return receipt requested, addressed as follows: To The CITY: To CONSULTANT: City of Fort Worth/IT Solutions Gartner, Inc. Attn: Rob Cohan 1000 Throckmorton 222 W. Las Colinas, Suite 1220N Fort Worth TX 76102-6311 Irving, Texas 75039 Facsimile: (817) 392-8654 +1.866.278.7924 Fax 14. EMPLOYEES. 14.1 Non-solicitation - Neither the City nor Consultant shall, during the term of this agreement and additionally for a period of one year after its termination, solicit for employment or employ, whether as employee or independent contractor, any person who is or has been employed by the other during the term of this agreement, without the prior written consent of the person's employer. 14.2 Staffing Changes — City reserves the right to approve staffing substitutions made by Consultant. Any approved substitutions must be in place within fifteen (15) business days of receipt of City's approval, unless otherwise agreed to by the Parties. 14.2 Immigration Nationality Act —The City actively supports the Immigration & Nationality Act (INA) which includes provisions addressing employment eligibility, employment verification, and nondiscrimination. Consultant shall verify the identity and employment eligibility of all employees who perform work under this Agreement. Consultant shall complete the Employment Eligibility Verification Form (1-9), maintain photocopies of all supporting employment eligibility and identity documentation for all employees, and upon request, provide City with copies of all 1-9 forms and supporting eligibility documentation for each employee who performs work under this Agreement. Consultant shall establish appropriate procedures and controls so that no services will be performed by any worker who is not legally eligible to perform such services. Consultant shall provide City with a certification letter that it has complied with the verification requirements required by this Agreement. Consultant shall indemnify the City from any penalties or liabilities due to violations of this provision. The City shall have the right to immediately terminate this Agreement for violations of this provision by Consultant. 15. GOVERNMENTAL POWERS. It is understood and agreed that by execution of this Agreement, the City does not waive or surrender any of its governmental powers. 16. NO WAIVER. The failure of the City or Consultant to insist upon the performance of any term or provision of this Agreement or to exercise any right granted herein shall not constitute a waiver of the City's or Consultant's respective right to insist upon appropriate performance or to assert any such right on any future occasion. Professional Services Agreement GARTNER INC. Page 7 of 19 17. GOVERNING LAW/VENUE. This Agreement shall be construed in accordance with the internal laws of the State of Texas. If any action, whether real or asserted, at law or in equity, is brought on the basis of this Agreement, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. 18. SEVERABILITY. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 19. FORCE MAJEURE. The City and Consultant shall exercise their best efforts to meet their respective duties and obligations as set forth in this Agreement, but shall not be held liable for any delay or omission in performance due to force majeure or other causes beyond their reasonable control (force majeure), including, but not limited to, compliance with any government law, ordinance or regulation, acts of God, acts of the public enemy, fires, strikes, lockouts, natural disasters, wars, riots, material or labor restrictions by any governmental authority, transportation problems and/or any other similar causes. 20. HEADINGS NOT CONTROLLING. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 21. REVIEW OF COUNSEL. The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or exhibits hereto. 22. AMENDMENTS/ MODIFICATIONS/EXTENSIONS. No extension, modification or amendment of this Agreement shall be binding upon a party hereto unless such extension, modification, or amendment is set forth in a written instrument, which is executed by an authorized representative and delivered on behalf of such party. 23. ENTIRETY OF AGREEMENT. This Agreement, which is executed pursuant to DIR Contract No. DIR-SDD-973, includes the schedule of exhibits attached hereto and any documents incorporated herein by reference, and contains the entire understanding and agreement between the City and Consultant, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. 24. SIGNATURE AUTHORITY. The person signing this agreement hereby warrants that he/she has the legal authority to execute this agreement on behalf of the respective party, and that such binding authority has been granted by proper order, resolution, ordinance or other authorization of the entity. The other party is fully entitled to rely on this warranty and representation into this Agreement. Professional Services Agreement GARTNER INC. Page 8 of 19 IN -M NESS WHEREOF, the parties hereto have executed this Agreement in multiples this —d day of 200'-A : CITY OF FORT WORTH: GARTNER INC.: By: By: Karen L. Montgomery Name: Wil m r. Mo an, r. Assistant City Manager Title: Sr. Director, Government Contra Date: �`�G /� Date: ATTEST: ATT T: By: By: s � Mart4Hendri City Secretary APPROVED AS TO FORM AND LEGALITY: J B . Mal hia B. Farnier Assistant City Attorney CONTRACT AUTHORIZATION: M&C: 0-1— Ol� I a-? Date Approved: q-:51 L OFFICIAL RECORD C17TYI�S�ECRETARY Professional Services Agreement T. r11'0 TH TX GARTNER INC. Page 9 of 19 EXHIBIT A STATEMENT OF WORK Professional Services Agreement GARTNER INC. Page 2 of 19 _ _ +*+ ' t i11r1i _ailfi Ilk .w*i* 7_7iffi las� l_r Statement of Work for City of Fort Worth s4killil IT Sourcing Support 24 AUGUST 2009 Engagement: 222628510 Gartner. City of Fort worth Engagement:222628510—Version 2 29 July 2009—Page i Table of Contents Statement of Work I Steps and Tasks 1 Phase I. Sourcing Strategy 2 Task 1. Engagement Kickoff 3 Task 2. Understand Business direction 3 Task 3. Develop IT Strategies for the City 5 Task 4. Review and Document IT Service Catalog(To be performed by the City) 6 Task 5. Finalize Sourcing Scope,Opportunity Identification 7 Task 6. Conduct Risk Identification and Mitigation 9 Task 7. Determine Sourcing Approach 10 PHASE I—Approval(To be performed by the City) 12 Phase II. Evaluation and Selection 14 Task 1. Review Bid Package Structure 14 Task 2. Collect IT Services Requirements 15 Task 3. Develop Statement of Work(SOWs) 16 Task 4. Prepare Pricing Schedule 18 Task 5. Create Relationship Management Schedule 19 Task 6. Customize Master Service Agreement—Terms and Conditions 20 Task 7. Prepare Evaluation Criteria and Scoring Model 21 Task 8. Prepare,Review and Release Bid Package 22 Task 9. Vendor Bidders Conference 23 Task 10. Evaluate Proposals and Provider Market Scaq 24 Task 11. Conduct Walkthrough with Finalists 26 PHASE II--Approval(To be performed by the City) 26 Phase III. Contract Negotiations 26 Task 1. Due Diligence(To be performed by the City) 27 Task 2. Develop Negotiation Strategy and Schedule 28 Task 3. Negotiate Master Service Agreement and SOWS 28 Task 4. Evaluate Best and Final Offers(BAFO) 29 Task 5. Final Drafting of the Agreement 29 PHASE III—Approval(To be performed by the City) 30 Phase IV. Sourcing Transition and Management 31 Task 1. Transition Planning and Management Structure 31 Task 2. Finalize Design of Retained Service Delivery Organization 32 Task 3. Define Sourcing Management and Governance Structure 33 Task 4. —Transition Support 34 PHASE IV—Approval(To be performed by the City) 35 Schedule 36 Scope 36 Assumptions 36 Changes to Scope 37 Project Fees 38 Authorization 44 ©Gartner Gartner,Inc.k of G its affiliates.All rights reserved. Gartner `� __ Gartner is a trademark of Gartner,Inc.or its affiliates. C ,r® For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 1 Statement of Work When signed by Gartner and the City of Fort Worth, this Statement of Work (SOW)will be based on the applicable terms and conditions contained in Gartner, Inc's Texas Department of Information Resources Contract Number DIR SDD-973, vendor ID 104-309-9750-100,for Deliverables Based IT Services provided under category IT Assessment and Planning. SOW Payments will be made in accordance with applicable Appendix A provisions of the DIR-SDD- TMP-115 Contract, which is hereby incorporated by reference. Gartner Research and Consulting recommendations are produced independently by the Company's analysts and consultants, respectively, without the influence, review or approval of outside investors, shareholders or directors. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity"on our Web site, www.gartner.com or contact the Office of the Ombudsman at ombudsman@gartner.com or+1 203 316 3334. Steps and Tasks The diagram below shows the flow and high-level tasks to be performed in executing this critical initiative for the City of Fort Worth. While several tasks show to run serially, Gartner will optimize the times and tasks to perform tasks concurrently as efficiently as possible. The tasks below shown in light gray indicate those that are the responsibility of the City of Fort Worth. Figure 1. High-Level Tasks Management Ur esbnd lwiraa Di..don nadrw w terrye - -Gw+p►f/statr✓rr In srt sm na+�,._ � � D Trarsltlon Finalize Design Agrert.ft..�n Dam CrrrnM� gwrr�rra wM NSement and Plarmwgraon d ofRwln•d � SrrroaCeaaSNnW Ds ►Cwrar MaI�r Or anhadon RMaldnalkadon pwssvrkYySoho" dY w rM►YWOIMf Sourcing Approach CwsR6iraA1►iayrMat �'� CrlrrYrea ►ol DdlnsSorrebrOMansyastsntand sdw,air ►etaFInalOnitlrr�e/tlra/ipoow�nt OovsmaneSStruean Gnwa vrwtwHlrwr sw° Transltlon Su City of Fort Werth Activky — �t cond" � _ Below is a description of each task within the projected work plan and it includes a defined set of deliverables to be developed in accomplishment of the City of Fort Worth's Sourcing Program engagement. Phase I: Sourcing Strategy Task 1: Engagement Kickoff Task 2: Understand Business Direction Task 3: Develop IT Strategies for the City of Fort Worth Task 4: Review and Document IT Service Catalog Task 5: Finalize Sourcing Scope, Opportunity Identification Task 6: Conduct Risk Identification and Mitigation Task 7: Determine Sourcing Approach Phase II: Evaluation and Selection 02009 Gartner,Inc.and/or its affiliates.All rights reserved. Gartner. Gartner is a trademark of Gartner,Inc.or its affiliates.For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 2 Task 1: Review Bid Package Structure Task 2: Collect IT Services Requirements Task 3: Develop Statements of Work (SOWs) Task 4: Prepare Pricing Schedule Task 5: Create Relationship Management Schedule Task 6: Customize Master Service Agreement—Terms and Conditions Task 7: Prepare, Review and Release Bid Package Task 8: Prepare Evaluation Criteria and Scoring Model Task 9: Evaluate Proposal Task 10: Conduct Provider Market Scan Task 11: Conduct Walkthrough with Finalists Phase III: Contract Negotiations Task 1: Conduct Due Diligence Task 2: Develop Negotiation Strategy and Schedule Task 3: Negotiate Master Service Agreement and SOWs Task 4: Evaluate Best and Final Offers (BAFO) Task 5: Final Drafting of the Agreement Phase IV: Sourcing Transition and Management Task 1: Transition Planning and Management Structure Task 2: Finalize Design of Retained Service Delivery Organization Task 3: Define Sourcing Management and Governance Structure Task 4: Transition Support Phase I. Sourcing Strategy The objective of this phase is to finalize "what" is the included scope and "how"the City will approach the Sourcing of its IT elements—including the identification of potential suitable providers and risk mitigation strategies for the City's assessment and consideration. Figure 2 depicts the overall structure of Phase I. ©2009Gartner Gartner,Inc. its affiliates.All rights reserved. Gartner Gartner is a trademarkk of of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 3 Figure 2. Sourcing Strategy Validation Understand Business Direction Develop IT Strategies r� Finalize Sourcing Scope, Service Catalog Review Opportunity Identification Risk Identification Determine Sourcing Approach Task 1. Engagement Kickoff Gartner will conduct an engagement kickoff meeting with key IT and business stakeholders to review scope, expectations, timeframes and availability of the City of Fort Worth and Gartner personnel, sites and locations for engagement work, and to commence data gathering for this program. The purpose of this meeting is to: ■ Ensure a mutual understanding of the objectives and scope of the engagement ■ Provide an orientation presentation on Gartner's approach and methodology ■ Confirm the City of Fort Worth assumptions and expectations ■ Agree to the key milestones and work activity schedule ■ Verify roles and responsibilities for all participants Task 2, Understand Business direction Fundamental to any strategic initiative is having a solid understanding of the business, operational and information technology context for evaluating current and future state requirements. The objective of this step is to: ■ Understand the business strategy and goals in sufficient detail to determine IT implications ■ Understand key business trends and their implications ■ Determine business imperatives During this step, Gartner will review any existing business strategy documentation and through business interviews (10 - 15 interviews - some interviews may be conducted in group settings), understand key business imperatives, process capabilities supporting the current business environment and develop an understanding of the City's business vision, mission, customers, , channels, constituents and other relevant factors. Figure 1 shows critical elements considered as part of this task. 02009 Gartner,Inc.andlor its affiliates.All rights reserved. Gartner. ��LG��r Gartner is a trademark of Gartner,Inc.or its affiliates.For For internal use of City of Fort Warth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 4 Figure 1 —Business Imperatives Definition E3usiness Imperatives Definition • City of Carrollton's business imperatives are those elements that the City and its Departments must do to be successful in the execution of its strategy and mission without regard to how they are accomplished. ■ Business imperatives are frequently articulated as a response to external and internal forces: - External Forces including: • Budget • Regulatory compliance • Legislative mandates ■ Public • Technology • Records and Information Management Requirements - Internal Forces including: • Change in City strategy ■ Organizational changes This analysis will provide the foundational context that Gartner and the City of Fort Worth will use in ensuring there is continuous business alignment and purpose. Gartner Deliverables ■ Documented business vision and overall business strategy ■ Documented Business imperatives and supporting drivers ■ Understanding of key business imperatives (strategies and issues) ■ Working session to review/validate business strategies and confirm findings City of Fort Worth Deliverables ■ Gather relevant business, operation and IT strategy documents for review ■ ID business imperatives and supporting IT initiatives/projects ■ Participate in working session to review business and IT plans and confirm findings ■ Validation of Gartner findings Gartner Estimated Work Effort Duration ■ Two weeks City of Fort Worth Task Duration ■ Two weeks © Gartner,Inc.and/or its affiliates.All rights reserved. Gartner. ��`C��__ Gartnertne r is a trademark of Gartner,Inc.or its affiliates. ® For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 5 Task 3. Develop IT Strategies for the City During this step the Gartner team will collect and assess information regarding City's IT direction with the objective of developing or refining the IT Mission statement, developing a set of IT Principles to provide a framework for making IT decisions, evaluating relevant technology trends to determine how they enable potential IT solutions and developing a clearly articulated list of IT imperatives driven by the business vision and linked to business imperatives. The development of the IT Strategies will be based on Gartner's IT Strategy Framework as shown in Figure 2. Figure 2—IT Strategy Framework r4P r-r CO During this step, Gartner will do the following: ■ Conduct interviews with IT Constituents (5 - 10 interviews) ■ Collect and Review IT Documentation related to the strategic direction of the City's IT environment ■ Conduct high level review of IT direction ■ Develop a clearly articulated list of IT imperatives, i.e., those things that must be accomplished regardless of how they are ■ Define the role of IT and the associated business value at corporate level ■ Prepare/conduct a 2 hour IT Imperatives session and document outcome ■ Consolidate & Validate Data ■ Formulate &Analyze Findings ■ Prepare and conduct Management Review At the conclusion of this step, the project team will articulate the IT vision, mission, principles, and IT imperatives that will serve as the parameters for the City's future state IT Direction and Strategy. This important step will articulate the future vision of the City as it aligns with the future of the City's information technology functions. Figure 3 shows and example of elements of an IT Strategy and its IT implications ©2tne Gartner,Inc.and/or its affiliates.All rights reserved. Gartner _Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 6 Figure 3—IT Strategy Example IT Strategy Implications •Support revenue and student Ensures consistency and thoroughness of analysis count growth goals Reduces post transition date business risk via a standard,repeatable and phased approach • Provides a means to better understand the current state of a student of prospects experience • Drives revenue grovth by introducing or improving system capabilities resulting in more effective marketing • Efficiently provisions new infrastructure to support growth •Realize the power of the Client Enables Client Network pr ring data across student facing systems Network and attainment of Improves the stur+^r• c ng a student to enter information once and have it appropiatr, ri operational efficiencies S r ties by eliminating the need to enter the same esolution work associated with inaccurate data ■Provide superior return o p nd project delivery technology investment ases exist Hess sponsorship sources to the right business needs and associated IT work sures strong leadership in the right places • Provides mechanisms for effective decision making •Assures appropriate checks and balances in decision making • Creates a target state'vision"that optimizes the value of Technology forthe business • Ensures IT investment is 100%tied to business strategies and the right priorities • Manages risk to the value proposition via an Enterprise security Plan • Creates operational efficiencies via economies of scale • Improves student,faculty and employee satisfaction and service levels Gartner Deliverables ■ Documented IT vision, mission and principles ■ IT Strategies: key statements of what the IT organization must do to meet business objectives over the planning horizon City of Fort Worth Deliverables ■ IT documentation and information necessary to support Gartner's work. Gartner Estimated Work Effort Duration ■ Two weeks City of Fort Worth Task Duration ■ Two weeks. Task 4. Review and Document IT Service Catalog (To be performed by the City) The City of Fort Worth will review its current set of IT services to determine performance, levels of service, pricing (if available), and the demand/ordering process for those IT services available to the City departments (Service Catalog). For the City of Fort Worth, understanding and being able to document the service catalog and current performance will establish the ongoing service requirements and service delivery expectations. Figure 4 and Figure 5 depict the Service Portfolio and Service Catalog frameworks that Gartner will provide the City to review the services and to establish expectations of IT service delivery. This effort will be performed by the City with Gartner's oversight. ©Gartner Gartner,Inc.k of G its affiliates.All rights reserved. Gartner. Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 7 Figure 4. Service Portfolio Service Portfolio service Set appropriate expedalions. Portfolio Arms en percaptiom in ln,ewdh Relationship reality De ription III leis With Sell What it is,what it does the Tools ro: Bundling Subserviees,packaging Service 'Articulate and prwevalue. Diff—atitiun Portfolio Arms •Make lad m-based,not edion all/ Multiple offenngs at R t,ahagers based,sourcing decisions. dnlerent price points With the Tools 'set Pr— to: Create meaningful chargeback Value propwillion buckets. Why should they buy it? •Leverage insider advantage. •Prioritize performance imprwemem initiatives Ca paMRAw Advanta" •Transfer accountability for Why shouldthey buy it from you? utilization decisions back tothe bosin— Figure 5. Service Catalog •Produolk.rvice options at The catalog "no us price points, Productand informs Internal What to emect in terms of Service Catalog clients of; service/product performance •Howto request a service or Supported product. •How to escalate satisfaction producls.'rersions issues. Pricing and charg ebeck •How long a service or product will be supported Ordering.teyumi procedures The cat:doy Manage versions and standards. Service-le,rel agreements enables II Articulate price. •Control service request points of Service and support mdnageffnent tu: entry. •Manage demand and,therefore, Escalations.'exceptlon resources more effectively. handling •Transparently connect somice requests to back-office fulfillment process4 s, This activity is a predecessor to establishing service requirements for a contract bid package for outsourced services—if that decision is made. Gartner Deliverables ■ Provide the Service Portfolio and Service Catalog frameworks City of Fort Worth Deliverables ■ Service Portfolio and Catalog analysis ■ Documented list of IT Services that are part of the Service Catalog including IT Security ■ Findings and implications for the sourcing strategy ■ Workshop to review findings and results Gartner Estimated Work Effort Duration ■ Two weeks City of Fort Worth Task Duration ■ Four weeks Task 5. Finalize Sourcing Scope, Opportunity Identification Gartner will conduct a review and assessment of all IT service towers to identify the most critical opportunity areas and finalize the scope of potential IT services to be outsourced. During the task, the City will be able to gain an understanding of the strategic importance of the IT effectiveness of service delivery, and the opportunity to source to third parties, given risk and transition complexity. The execution of this assessment will be facilitated by utilizing Gartner ©2009Gartner Gartner,Inc.and/or its affiliates.All rights reserved. Gartner. �■ `■ V�® Gartner is a trademark of Gartner,Inc.or its affiliates. `r ,r® For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—version 2 24 August 2009—Page 8 tools and templates and will allow the City to determine at a high level the specific areas of IT that have the greatest opportunities for Outsourcing. This information will help determine the ultimate scope of the Sourcing initiative. During this review Gartner will evaluate individual IT service towers against Gartner best practice service SOWs by individual task, assessing whether a Service Provider(SP)or the City of Fort Worth (SR) is in the best position to deliver the services. Further, key groupings of tasks are evaluated against the strategic value provided by the set of activities. This evaluation will include effectiveness of delivery, the risk in having a third party deliver the services, the complexity of potential transition and the overall sourcing potential. Figure 6 depicts a sample of the Service Tower Effectiveness Review tool for a particular service tower and Figure 7 shows a sample effectiveness review summary of the overall infrastructure which serves as a preliminary indicator of potential sourcing opportunities for specific IT areas. Figure 6. Service Tower Effectiveness Example for Specific IT Tower Distributed Computing Evaluation Summary SP SIR Strategic Service as Outsourcing Transition S.ur.Ing 1.00 Desktop/End-User Capabilities Med Med t,-y. Redd nu 2.00 Desktop/End-User Infrastructure Products Standards and Provis Med n■ 3.10 Services-Planning and Analysis Med Med Med Med 3.20 Services-Requirements Definition Med 3.30 Services-Design Specification Med L-,w Idtiurriip -naa 3.40 Services-Asset Acquisition and Management Med d _ 3.50 Services-Software Depfoyment/Management Med Med Med 3.60 Services-Integration and Testing Med Med Avg Med 3.70 Services-Implementation and Migration _ Med 4.00 Operations and Administration Med Med Med Avg Med 5.00 Maintenance Med 6.00 Technical Support lipvr Med 7.00 Monitoring and Reporting 8.00 Configuration Management/Change Control Med Med Avg_ Med 9.00 Training Activities 10.00 Technical Documentation - Lqy/ NIMIP walm 11.00 Security(physicalllogical access to systems/subsystems) Med i, Med Avg Med 12.00 Disaster Recovery(DR) Med Avg 13.00 Technology Refreshment and Replenishment Med LL'W Avg Med Distributed Computing Summary Med Med Med Avg Med Figure 7. Service Tower Effectiveness Review Summary Example Cross Functional Services Generally Moderate Q%l Gnoid Distributed Computing Service Important Moderate Moderate Y;a ad ��'mc Help Doak Services Generally �! :n e� b-pnd Data Center Services GenerallyIlk- Wide Area Data Network Important Moderate Difficult Applications Services Important Moderate Moderate Difficult Some Voice Communication Services0. Moderate r+. .j 02009 Gartner,Inc.and/or is affiliates.All rights reserved. Gartner Gartner is a trademark of Gartner,Inc.or its afBFaten_ For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 9 Gartner will facilitate an assessment orientation workshop with City representatives to introduce the tool, analysis process and expected results from this exercise. Gartner Deliverables ■ Service Tower Effectiveness tool ■ Orientation workshop covering the use of the tool and review of expected output from the City of Fort Worth assessment ■ IT effectiveness assessment results ■ Documented scope of the selected IT areas that have the greatest opportunities for Outsourcing ■ Operational recommendations that need to be considered as part of Sourcing Decision framework City of Fort Worth Deliverables ■ Participate in workshop to review/validate assessment results ■ Consensus on finalized Sourcing Scope ■ Approval of the IT areas that have the greatest opportunities for external sourcing Gartner Estimated Work Effort Duration ■ Two weeks City of Fort Worth Task Duration ■ Four weeks Task 6. Conduct Risk Identification and Mitigation During this task, Gartner will provide the City of Fort Worth with a risk identification and mitigation framework and tool to log any sourcing issues and risks that may be identified during this initiative and assignment of ownership, escalation, and risk mitigation. Figure 8 and Figure 9 depict a sample of the Risk Assessment Framework and tool that the Gartner team will utilize to help the City identify and mitigate potential sourcing risks such as security and privacy of City's technology assets. Figure 8. Risk Assessment Attributes Priority Issue/Risk Life Cycle Deal Area of Risk Status ..�,' Low,Med, Capabilities High Stage Elements Risk is often times overlooked when making decisions relative to sourcing, but in many cases it is the determining and driving factor in choosing to outsource or not. © Gabler,Inc.and/or its affiliates.All rights reserved. Gartner. Gartnertne r is a trademark of Gartner,Inc.or its affiliates. - ® For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 10 Figure 9. Risk Assessment Outputs Risk Assessment Risk Mitigation Higher Cost Higher Risk &Harder to 3 4 3 4 Execute Cost Effort Impact on Business 2 3 4 2 3 4 2 3 2 3 Low Likelihood Low Complexity Outsourcing Risk Insource outsource k Mitigation Est.. Mitigat. Area Risk Risk 0,10� A Broach Cost Leve! Priority Key Personnel Retention 2 Retention Incentive Pr $$$ 3 1 Loss of Critical Knowledge gr Knowledge $ 2 2 Tr nQuality Is Lower Than ExpectedService-Level A reements 2 3Mismatched Roles Assess Skills, DefineRol $ 2 4 Hard to Find Skills v Ind 4 2 vendor Eval.&Mgt.. 5 Gartner Deliverables ■ Issue and Risk Management framework focused on key sourcing life cycle events. ■ Gartner ongoing input ■ Weekly review of Risk Items and mitigation progress City of Fort Worth Deliverables IN The City of Fort Worth will be responsible for compiling issues, concerns and risks and assigning owners for resolution and mitigation purposes. Gartner will review the list compiled by the City of Fort Worth in a workshop to discuss potential mitigation strategies. ■ The City of Fort Worth's Project Manager will maintain the current list of Risks and Mitigation options and will lead the review of them, on a weekly basis, with Gartner and other City key stakeholders. Gartner Estimated Work Effort Duration ■ One week (preparation) ■ Ongoing review sessions (project duration) City of Fort Worth Task Duration ■ Entire program duration Task 7. Determine Sourcing Approach During this step, Gartner will help the City determine the Sourcing approach to take forward. This is accomplished by evaluating different sourcing scenarios and considering the desired nature of a potential outsourcing agreement. This evaluation is conducted regardless of the 02009 Gartner Gartner,Inc.and/or its affiliates.All rights affiliates. reserved. Gartner ���n e.r Gartner is a trademark of Gartner,Inc.or its affiFates. frr ,r® For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 11 number of providers or IT services to be outsourced or whether the desired agreement would be utility, enhancement or transformational. Though Gartner can evaluate against many different servicing models, given the size of the City of Fort Worth's IT services, Gartner will evaluate against the In-sourcing, Multi-sourcing and Full Outsourcing models only based on the results of the final sourcing scope. Gartner will provide the City of Fort Worth with perspectives of the most common Sourcing Scenario models as shown on Figure 10. Figure 10. Sourcing Scenarios _ es 3 �- C Co ttl►41 C C Multisourcing Brand service company prime contractor i C w M Mix joint venture C I—i - Best-of-breed C consortium OS joint venture C_ r--i 1 1 . C 61 C C JVI C C Full Internal outsourcing delivery Insourcing Client organization consortium Once the potential Sourcing options are evaluated and IT Services are identified as having potential to be outsourced, the Gartner team will analyze different alternatives for optimal bundling to provide for optimal service delivery as shown in Figure 11. This will maximize value to both the City of Fort Worth and the potential Service Providers and will allow the City to determine potential sourcing alternatives outside the evaluated scenarios for those areas where it makes sense to use different contracting vehicles (that is, DIR). Output from the service tower effectiveness review will serve as input to this process. ©Gartner Gartner,Inc.k of G its affiliates.All rights reserved. Gartner Gartner is a trademark of Gartner,Inc.or its affiliates. C ,r® For internal use of City of Fort Worth only. City of Fort worth Engagement:222828510—Version 2 24 August 2009—Page 12 Figure 11. Service Bundling—Bundling Alternatives Evaluation Goysming Rviceptr •JY�pnnrnt•ahtrynrw•nprrbar •E7r�Ynp Ir'f Ynr rnrY wople •JYopnnm%Z%h.1..rdlr ecnFYYnrr• •IVrlYlopa i` "loll ml-..t•Y'%.. IIYIYI,..egrn t— •Idrerleernplolll:.--InealMpY­II Race 11 •Inprel cn Wrnrw eprmYenY •llpplpnlnYlt C']prA01 lf•11�'JYIYitla r . •!Yi••rwnmle-eFln•1 n•w e-inYn•r.rdhmr ep:r:u•Y•r SttateglcTsclmolog,,nYertfnentl •IOY.r•Ycn c-O_"3'W rYpe llr• •Mon—t•rV'Ylaad Wd YYMAIe narY•rnY• Parkll�9alcincCrt itia Gartner Deliverables ■ Sourcing Scenario workshop which will include consideration of sourcing models that will be compatible with the City's business and IT operations, considering their current service delivery structure. ■ Service Bundling recommendations ■ Facilitate consensus building workshop City of Fort Worth Deliverables ■ Consensus and approval on final sourcing approach ■ Depending on the chosen approach, the City will determine the number of providers that will be considered for the evaluation and selection process. The number of service providers is not to exceed five (5). Gartner Estimated Work Effort Duration ■ One week City of Fort Worth Task Duration ■ Two weeks PHASE I—Approval(To be performed by the City) The City of Fort Worth will review Phase I deliverables and decisions to include the scope of outsourcing and sourcing approach going forward. City of Fort Worth Deliverables ■ City Executive Management will review and approve Phase I deliverables and decisions m rt 09 Gartner,Inc.k of G its affiliates.All rights reserved. ■ �■ ■�r Gartner is a trademark of Gartner,Inc.a its affiliates. `r! ,r® For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 13 City of Fort Worth Task Duration ■ Three weeks ©Gartner Gartner,Inc.and/or its affiliates.All rights reserved. Gartner. �rLnQ.r Gartner is a trademark of Gartner,Inc.or its affiliates. ,�®' For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 14 Phase II. Evaluation and Selection During this phase Gartner will assist the City of Fort Worth in developing the contract documents Bid Package which will include SOWs prepared by Gartner in concert with the City, a master services agreement provided by Gartner and modified by the City's legal counsel, and schedules and attachments drafted by Gartner for the City's review and approval. At the conclusion of this step the Bid Package will be prepared and ready for City posting/release. Gartner does not provide IT Outsourcing services and will not be bidding on the actual outsourcing work. Gartner will advise and assist the City of Fort Worth in evaluating and selecting a potential Vendor. Evaluation and Selection RFP Development& Vendor Review bid Package Structure Ca-Ilect� SOIL Prepare, Services Development Customize Review and �� Master Release Bid K(c'R Tn' Schedule, Develop Contract Service Package Fee deductions Agreement Prepare Prepare Pricing Schedule Evaluation ria Create Relationship Management Evaluate C o nand Schedule Proposal Conduct Provider Market Scan ; Conduct Walkthro Finalists Task 1. Review Bid Package Structure During this task, Gartner will facilitate an orientation session with the City of Fort Worth team to provide an understanding of the structure and process required to develop the Contract Bid package. This session will provide the City with the list of the documents (schedules, attachments and exhibits)that will be included in the bid package. Gartner Deliverables ■ Bid package document overview session ■ Facilitate session to review Bid package structure City of Fort Worth Deliverables ■ Participate in Bid package structure overview session ■ Establish City's Evaluation Team ©Gartner affiliates. Inc.and/or its affiliates.All rights reserved. Gartner Gartner is a trademark of Gartner,Inc.or its aates. For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 15 Gartner Estimated Work Effort Duration ■ One week City of Fort Worth Task Duration ■ One week) Task 2. Collect IT Services Requirements Before starting to develop the bid package, Gartner will provide the City with data collection documents to facilitate the gathering of information on the IT services environment that are part of the Outsourcing scope finalized in Phase I. Gartner would also review any information that may have previously been generated. The City of Fort Worth will need to provide the information that is identified in the templates. Gartner would provide assistance in clarifying questions and provide advisory support to this effort Gartner will review the analysis to identify key gaps that may need further definition by the City, based on our detailed SOW templates (for the identified areas in scope). We will review the City's requirements documentation covering areas including: ■ Technologies, inventory, vendors, sites ■ Work volumes and projected growth rates ■ Current and expected SLAs and metrics, with potential business impacts in mind ■ Current contracts for managed services, software, etc., that may impact services ■ Business continuity provisions: backup, DR ■ Information security and privacy requirements ■ Special compliance requirements (for example, regulatory, legal etc.) ■ Financial baselines, resource units and projections Subject to the City's review and approval, we will augment the requirements as needed to ensure that the prospective bidders can provide a valuable and detailed response which will enable the City team to select the best service providers for the outsourced effort. Together with the City of Fort Worth team, Gartner will finalize the IT services requirements that will become the input for the SOWs. Given the aggressive timetable, it is imperative to complete the requirements definition and have the City of Fort Worth approve them in a timely manner. Gartner Deliverables ■ Data collection tools ■ Finalized services requirements City of Fort Worth Deliverables ■ Completed Data collection templates Gartner Estimated Work Effort Duration ■ Three weeks ©Gartner Gartner,Inc.and/or its affiliates.All rights reserved. Gartner ���{rr„ner ,r®Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 16 City of Fort Worth Task Duration ■ Six weeks Task 3. Develop Statement of Work (SOWS) During this task, Gartner will utilize its leading practice templates to provide rapid SOW and service level requirement development for each of the IT Services tower in scope. A key part of the Gartner approach is to develop a Bid Package that prescribes to prospective Service Providers a clear way to differentiate their proposal, while at the same time identifying areas that are exceptions to the City of Fort Worth requirements. This exception base response provides a focused manner in reviewing different responses and accelerates the negotiations process. Further, the Bid Package establishes the rules of engagement and process that will be followed to arrive at a clear understanding of service requirements, roles and responsibilities and terms and conditions. This will allow the City of Fort Worth to make an "apples to apples" comparison when evaluating and selecting the preferred provider. The Bid Package is comprised of the following key components: ■ Overview ■ Instructions to service providers ■ Business needs—Definition of services ■ Customized City of Fort Worth Master Service Agreement(MSA) ■ SOWs for selected IT Towers—and will include: ❑ Description of the service environment ❑ Work volumes ❑ Roles and responsibilities ❑ Service level metric requirements ❑ Implementation specifications ■ Operational and Billing requirements ■ Key Service and Relationship Management processes ■ Pricing specifications ■ Incentive and Fee Reduction process tied to Service Level Achievement/Failure ■ Transition Requirements ■ Opportunity to present alternative solutions A good Bid Package must clearly define the nature, quantity and quality of services to be provided. This information must be assembled, collated, and synthesized into an accurate representation of the required services. Gartner's robust Bid Package, templates and process framework, will provide 80% of the package content. Gartner consultants will work to collect from the City of Fort Worth team the remaining data and customize the MSA, SOWs and supporting schedules to meet your specific needs. Further, Gartner will assist in clarifying content, reviewing finalized SOWs for completeness and content quality, and assisting in development of appropriate service level metrics. The MSA, SOWs and supporting schedules will become essential elements of the final agreement, along with negotiated pricing. All these © Gartner,Inc.and/or its affiliates.All rights reserved. Gartner. Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510-Version 2 24 August 2009-Page 17 items are included in the Bid Package and the responses will be evaluated by their content and exceptions, along with the criteria the City of Fort Worth establishes. Figure 12. Sample Applications Services SOW-Table of Contents 1.0 Service Environment 1 Table 1.Planning and Analysis Roles and Responsibilities 6 1.1 General Description of Required Service Environment 1 Table 2.Requirements Definition Roles and Responsibilities 7 1.2 Applications to be Supported 1 Table 3.High-Level Design Activities Roles and Responsibilities 7 1.3 Applications Management Environment 1 Table 4.Detail Design Activities Roles and Responsibilities 9 1.4 Equipment and Software 2 Table 5.Acquisidon Roles and Responsibilities 10 1.5 Facilities,Entities and Locations 2 Table 6.Programming and Develo ent Roles and Responsibilities 10 1.6 Personnel 3 1.7 Application Deployment Locations 3 Table 7.Integration and Testi s and Responsibilities 11 1.8 Policies,Procedures and Standards 3 Table&Implementation tion Roles and Responsibilities 13 1.9 Production Applications and Programs 3 Table 9.Code Migra es and Responsibilities 13 1.10 Applications and Middleware Standards 3 Table 10.S are C figuration Management Roles and Responsibilities 14 1.11Agreements and Licenses 4 Table 1 e Control Roles and Responsibilities 15 1.12 Work in Progress 4 raining Activities Roles and Responsibilities 16 2.0 Applications Services Requirements 5 bl 3.Documentation Roles and Responsibilities 17 2.1 Application Development Services r23Table able 14.Technical and End-user Support Roles and Responsibilities 19 2.2 Application Maintenance Services able 15.Monitoring,Reporting and Review Roles and Responsibilities 22 2.3 Application Warranty Services able 16.Applications Services Severity Levels 25 2.4 Monitoring,Reporting and Review Services ``3.0 Service Management ♦ V able 17.Application Development Service Level Requirements 26 3.1 Objectives �( able 18.Application Operations 8 Maintenance Service Level Requirements 27 3.2 Transition Period ��rr 19.Customer Satisfaction 28 3.3 Definitions 23 3.4 Customer Satisfaction 28 3.5 SLR Weighting 28 3.6 Service Specific Milestones 28 3.7 Reports 29 4.0 List of Attachments 30 Figure 13. Sample Service Level Template 411 XYZ Service Level A eement.doc-Microsoft Word ® ■ t� File Edit View Insert Format Tools Table Window Help Acrobat XJ 8 IService-Level Agreement 8.1 Service-Level Performance Commitments At all times,XYZ shall perform the Services at levels of accuracy,quality,completeness, timeliness,responsiveness,cost-effectiveness,productivity and user satisfaction that are equal to or higher than the Service Levels as specified within this SOW(the"Service Level'.In the event that more than one SLA applies to any particular obligation of XYZ, XYZ shall perform in accordance with the most stringent such SLA.During the Startup and Migration Services Phase,XYZ shall meet or exceed the individual and collective Service Levels stated in this SOW[the"Service-Level Agreement"or"SLA'). 8.1.1 SLA Tracking and Reporting XYZ shall measure,track,record,maintain and report on its SLA performance on an ongoing basis,in accordance with the metrics setforth within this SOW for the various Service Levels. 8.1.2 Adjustment of Service Levels EitherABC or XYZ may upon notice to the other Party initiate negotiations to review and, upon agreement by ABC and XYZ,adjust any SLAthat both parties in good faith believe is inappropnate atthat time.EitherABC or XYZ may request negotiations to review and adjust SLAB not more than twice during each calendaryear of the Term.However,in no event shall ABC be required to accept a SLA performance target lowerthat those stated in the SOW. 8.1.3 Continuous Improvement Reviews. ABC and XYZ shall periodically review the SLAB and the respective performance data collected and reported by XYZ in accordance with the SOW.As part of this review process,the Parties(a)shall increase the SLAB to reflect the higher performance levels actually attained by XYZ;and(b)shall increase the Service Levels to reflect improved performance capabilities associated Wth advances in the proven technologies and methods available to perform the Services.In addition,subject to the Change Control Procedures,the Parties shall,to the extent reasonable and appropriate,(i)add new Gartner Deliverables ■ IT Service Tower Statement-of-Work(SOW) © Gartner,Inc.andlor its affiliates.All rights reserved. Gartner` Gartnertne r is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 18 ■ Target Service Level Requirements ■ Master Service Agreement (MSA) template City of Fort Worth Deliverables ■ Participate in SOW customization workshops Gartner Estimated Work Effort Duration ■ Four weeks City of Fort Worth Task Duration ■ Eight weeks Task 4. Prepare Pricing Schedule After discussing different pricing methods, a schedule will be developed for specifying ongoing service pricing. The Gartner pricing schedule template provides a framework for projecting unit pricing for associated resource volumes by resource consumption units for the IT infrastructure and Operations components that are in scope. The template is designed to feed the overall financial analysis model with pricing and transition costs. Gartner will assist the City of Fort Worth team with the customization of the pricing template using financial data collected by the City. It is our experience that the development of a complex pricing schedule is best accomplished with a small core team of two to four people. 02009 Gartner,Inc.and/or its affiliates.All rights reserved. Gartner. Gartner is a trademark of Gartner,Inc.or its affiliates. ® For internal use of City of Fort Worth only. City of Fort Worth Engagement:222626510—Version 2 24 August 2009—Page 19 Figure 14. Sample Pricing Template A B C 0 I E F G 1 DawCeror0perations ServicesClick links for 2 Client Info 3 Rev 07A1r2003 Confidential and Pro ary d lVendet Nam$ PRICUGASS11WTiCNiS 6 Vendor PrwAded S+rry m Prkn AN Month Baseline 6 Resource Categoty Unit of Measure 01141111 Monthly Total Dwei tion of Services 7 Mana em9ni Services Fixed 1 0 $ Mainframe(specify 1 e S oc' Unit 0 0 9 saws Ufli1C 10 Class 1 1-2 CPUs Oty of Servers 01 0 11 Class -4 CPUs Oty of Servers 01 0 12 Class 3 or more CPUs Oty of Servers 0 0 13_Alto,Nor ke wwo Serv*s WNllftOM 14 Class 1 1 2 0PUs Oty of Servers 0 0 15 Class 2 -4 CPUs Oty of Servers 0 0 16 Class 3 or more CPUs Qtj of Servers 0 0 17 DBA Support oty of Servers 0 0 18 Storage Network Per Gbyle 01 0 19_Tape Backup Oty of la es 01 0 20 IMACs .0ty per month 01 0 21 MONMY FEE FOR VMnR SERVICE S 22_ 23 Paw.thrw h Are "(rNrdpwty pwdded famducle,soMess,snftr ct ex Pass.Thiough Description it Planned Monthly Total 24 Vendor ouamity Price Description of Services w , ► N%TOC/ hwtruca 15 r{ srrrrnary Year 1 / %mr►yy-5 Year Roli p �De .Rec&*V� Dtsftuted-Ream X Gartner Deliverables ■ Pricing schedule template ■ Pricing tool ■ Assist with customization of the pricing template City of Fort Worth Deliverables ■ Customize pricing template to meet City of Fort Worth pricing requirements Gartner Estimated Work Effort Duration ■ One week City of Fort Worth Task Duration ■ One week Task 5. Create Relationship Management Schedule Gartner identifies five key roles required for effective governance of an outsource relationship. This task addresses the requirements for the Vendor Management role specifically, and produces the Relationship Management Schedule. Relationship management is an essential 02009 Gartner Gartner,Inc.k of G its affiliates.All rights reserved. ■ `�V m Gartner is a trademark of Gartner,Inc.or its affiliates. G erm For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 20 component for successful contract management and ongoing Service Recipient—Service Provider relationship satisfaction. Developing a Relationship Management Schedule, and including it in the overall outsourcing SOW that is sent to potential service providers, is critical to establish clear expectations for co-managing the relationship between the parties. A Relationship Management schedule serves to codify the key resources, requirements, day-to-day responsibilities, processes, and roles that will govern the outsourcing relationship. To perform this task, Gartner will review existing City of Fort Worth documentation, and then conduct a half-day workshop to discuss best practice roles, governance and successful co management of the outsourcing relationship, including service provider roles and responsibilities. Gartner will prepare a draft Relationship Management Schedule based on industry best practices as well as City of Fort Worth's unique needs identified during the documentation review and working session for review and approval. Gartner will work with the working session participants to answer questions and incorporate any suggested edits or modifications into the final document. The result of this process will provide City of Fort Worth with a Relationship Management Schedule that can be incorporated into the overall outsourcing SOW and provided to potential service providers. Gartner Deliverables ■ Relationship Management Schedule City of Fort Worth Deliverables ■ Participate in Relationship Management Schedule customization session Gartner Estimated Work Effort Duration ■ One week City of Fort Worth Task Duration ■ One week Task 6. Customize Master Service Agreement—Terms and Conditions Gartner will include in the Bid Package the master service agreement prepared by the City of Fort Worth's legal counsel and will, as requested, provide such counsel with Gartner's contract template containing Gartner's suggestions relative to "best practices"to assist counsel in preparing the master service agreement. We will, if and as requested, review contract terms and conditions with City of Fort Worth's legal counsel and provide expert outsourcing commentary relative to service levels, pricing, and overall assumption of commercial risk. The documents approved by the City of Fort Worth's legal counsel and business team will be included as part of the package that will be delivered to the service providers. The activity will result in a customized base contract for outsourcing. Gartner Deliverables ■ Final Master Services Agreement—Terms and Conditions ■ Orientation session ©Gartner Gartner,Inc.and/or its affiliates.All rights reserved. ���`��__ Gartner is a trademark of Gartner,Inc.or its affiliates. ,r® For internal use of City of Fort Worth only. C City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 21 City of Fort Worth Deliverables ■ Customize draft of Master Services Agreement—Terms and Conditions ■ Participation on review session with Gartner team to address changes made on the document ■ final Customized Master Services Agreement—Terms and Conditions Gartner Estimated Work Effort Duration ■ Three weeks City of Fort Worth Task Duration ■ Three weeks Task 7. Prepare Evaluation Criteria and Scoring Model Prior to finalizing the bid package, an evaluation model will be developed (for the City of Fort Worth's review and approval) using a proven scoring model template. The model is a weighted, hierarchical model that contains major criteria and sub elements. Weight factors are decided by the City of Fort Worth, reflecting business priorities and technical requirements. Representative high-level categories could include: ■ Business ■ Technical ■ Cost ■ Risk A half-day workshop is conducted to customize the model definitions and assign weightings. This important step is critical to obtaining team and stakeholder buy-in and understanding of the selection process. It is recommended that the Executive Sponsor(s) and key stakeholders provide representation to the work session and be involved in the scoring process. This helps establish an evaluation and scoring process that is agreed upon by the stakeholders © Gartner,Inc.and/or in affiliates.All rights reserved. Ga�`ne Gartner is a trademark of Gartner,Inc.or its affiliates. C ,r® For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 22 Figure 15. Sample Scoring Model - Fa5 Ebt •acw (rrc.r rf,o,lr 7rrk, (ate wr,aow trvdri. adOp6 P°F •-c.....z^" I�•,®®la B x. d ,. eax Ear a,3o �,s it n I � -X—L o n—_ o• � t ;. Del.3ile1]poles snuuoat - -_. .- s / Rwi4.RFP asw O Lewgw.✓nm Wvpw,•� 03'i. I 2 J I l 026 405 3 U>n OBJ 1]Y $t..aa...dna.Pnar«w. 07x 1 3 3 3 3 036 0. 08J 063 170 0)O«�7ddlk«4 pMiw O3s: 9 a = 3 to 0.56 003 lM q C.yY.p dHw.w1«aeywJfNy 0.3s[ t 3 3 7 3 2H O83 OA3 0.55 08: I}e 1)C'ay1w..ILLh..J«O«uarwr 0]x 1 3 1 3 1 3 3 016 OBJ OH3 OHS OH3 �..' a10«cryr npw.«eea�.w.�:» o0x I 3 a 3 O.K 11H S.HS US IY •+ M vp,3 0.16 UI 1H6 ow 3.3% L3 L6 f.l 6.f PrMNI RaIN q n h-..s:, v ram,.a..,., sip,. J Sri S.t9 *. •. 21w«eo t5.,w.aawaw+a w«M. 2S. 3 3 3 3 en 632 as: sl rp.q,.w wwe.sr..ew«awn ZY. 3 3 3 60% n" O' .a. al u«af.Fwuawors 3 J J i 3 1p 6q S.q 3q Iw •, �~'. 5)CM.Y�»pv4w7 3 J Ea5 a65 a A .tix 7a6 l/5 316 3.6 l23 ,'/I 33 27 OPfMN Sf1111U _ }1y 51 M.w+«ae..e.wq OBv. 2 3 2 is 333 260 Op in aV J I I t6l 767 2S0 0.p OH3 at7 3.3x 7S IrI.6 n• f.6 6.7 16.7 50 6arNeef W tl>..-w.i-w Q'9>•��r��^*••^• 13'.: l J 3 5JY 5!! 5YY an 571 162 T a 1—N.w T— .....e 11. 3 i 1 3 5.7f S77 5,77 M 3.111 .1/ 967� 'I Y^c w sl O.,v.vw: J 3 3 J 3M i.a6 3.a6 346 3M 5.77 DEtal9d(terr3s w .c. - _> er#Its �Verdb A�4fY1fyJ 6�Vendor C f.YE73dct E,(score 5tmna'y�DetakN Scl3rflg Y/ «I>s rr ae0dy Gartner Deliverables ■ Customized Scoring model City of Fort Worth Deliverables ■ Participate in scoring model workshop ■ Approve final scoring model Gartner Estimated Work Effort Duration ■ One week City of Fort Worth Task Duration ■ Three weeks Task 8. Prepare, Review and Release Bid Package Gartner will assist the City of Fort Worth in the development of the bid package. This will ensure the development of a complete and detailed document that would give clear and unambiguous instructions to the service providers. Once all the components of the Bid Package have been developed, Gartner will assemble the draft components of the Bid Package for submission to the provider candidates and the City will ultimately finalize for distribution. It will include all necessary components to allow service providers to prepare complete bid proposals. © Gartner,Inc.and/or its affiliates.All rights reserved. Gartner. �■ C`■ ■�Y Gartner is a trademark of Gartner,Inc.or its affiliates. ,r® For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 23 Response format instructions would also be included to facilitate response evaluation per the evaluation scoring model to be developed prior to the response receipt deadline. In addition, innovative responses are encouraged to take advantage of the service provider's experience and knowledge of the City of Fort Worth as well as other clients. Figure 16. Example Components of a Bid Package Outsourcing Agreement Key focus should be: Master Services Agreement ■SLRs balTermandconda.w,-- sows all Pricing schema 1 ■RFP instructions Countr MSA Attachments Statements of Work Schedules ■Contract integration 1 consistency Porronnance-ElandMg ;_._._,.�. _- Fee Reductions _ Fee s dieduie ._...vie"swullim RFP N _ _ Instructions Contains the ' s.K..xy ,� �eC`ei11`It.SairUkw Terms and { Conditions 0ramge regarding RFP fees Response PAa4ore hid Manattemrnl Format ustc HAV Pe,roamml,A.acris,Fir Asset LigsLL Camas Contains the \ Locallone RFP Baseline,Pncing Pricing elements,prices, Attachments •.•. Matrix hourly rates and I Response assumptions Gartner Deliverables ■ Customized Contract Bid Package City of Fort Worth Deliverables ■ Review and approve customized Contract Bid Package ■ Identify the MWBE Goals and objectives and align with bid package Gartner Estimated Work Effort Duration ■ Two weeks City of Fort Worth Task Duration ■ Two weeks (task activities with Gartner) ■ Two weeks (Purchasing processes) ■ 30 days to advertise Task 9. Vendor Bidders Conference After approximately one week following the release of the bid package, Gartner will assist the City in facilitating a Bidder's Conference for the potential service providers. This session allows the providers to get a summarized introduction to the content and structure of the Bidder's Package as well as ask any pertinent questions as they relate to the services requested. ©2009 Garner,Inc. ofandlorG its affiliates.All rights reserved. Gartner ,r®_ Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 24 Gartner Deliverables ■ Participation in the Bidder's Conference as assistance to City's resources City of Fort Worth Deliverables ■ Schedule and facilitate Bidder's Conference ■ Facilitate site visit, if appropriate Gartner Estimated Work Effort Duration ■ Half day session City of Fort Worth Task Duration ■ Half day session Estimated Duration ■ Half day Task 10. Evaluate Proposals and Provider Market Scan At the end of the proposal development period proposals will be received by the City. Using the evaluation and scoring model prepared and approved in earlier tasks, each City member of the project evaluation team will individually score the proposals (assume no more than eight team members). The City will then facilitate a one day workshop with the evaluation team members to review the individual scoring, discuss differences and try to reach consensus on a group score for each provider. Then the City will use these scores as a basis for down selecting to no more than five potential vendors. Gartner will conduct a separate evaluation of the proposals and will provide the City with recommendations. Once the list of potential vendors has been reduced to five or less, Gartner will perform a Market Scan analysis which will document any issues limiting these vendors and perform a Strengths, Weaknesses, Opportunities and Threats (SWOT)analysis of them. Gartner will compile pertinent information into a workshop format so that each candidate service provider can be discussed according to the SWOT chart. The charts will be constructed before the workshop and updated as necessary during the workshop. The charts will be used to evaluate each vendor against mandatory requirements. A formal team discussion will be held to review requirements, decision making criteria, and review the information gathered and prioritize the service providers to select its two finalists. In case of a Multi-sourcing scenario, the City might choose up to five (5) services providers for contract negotiation Once the Market Scan workshop is completed, the City of Fort Worth will then be able to down select its list of potential service providers to its two finalists. © Gartner,Inc.and/or its affiliates.All rights reserved. Gartner. ,'®Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 25 Figure 17. Market Scan Summary Example r Market Scan Surrimar Crit�ri� Aennbr� CGEXY FN bw M IBM 8 CSC 9rrwgic Ran and Nuon Vr � � � (rl NFanbeand PadnM�GS (� • � • • • MxUung and Saks CaMMltc: `' • � � • Froncld SlaElFr . � � •... •.-. • Curlmur Sridadon '� G Q Mnrerca bPlgnYM ilnTRC onbUOrA • � � • Q • Cirutl Ftl�lM r'Ornp E4lMIx� • • O Q O • arroon Rr. Q Q O 0 curry of nawp.ln.r 0 Caaopraphic ilaacM O Q • • • C apa[Lrto OolwatFJL$OYa QIpaVOnA � � � • . • 12h � 4% 211 4% 1% 90Fh Gartner Deliverables ■ Service provider recommendations ■ Provider research and market intelligence ■ Provider SWOT analysis report ■ Service provider candidate selection and confirmation City of Fort Worth Deliverables ■ Individual Evaluated proposals ■ Group score consensus ■ Approve service provider short list (finalists) Gartner Estimated Work Effort Duration ■ Two weeks City of Fort Worth Task Duration ■ Four weeks © Gartner,Inc.and/or its affiliates.All rights reserved. Gartner �■ `rr`■ ■�r Gartner is a trademark of Gartner,Inc.or its affiliates. ,r For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 26 Task 11. Conduct Walkthrough with Finalists A walkthrough will be conducted with the finalist(s)to review the proposal response, address any questions from the City, and to clarify the provider responses for all bid package documents. This activity typically takes one day per provider and addresses the technical solution, MSA, and financials in concurrent sessions. Gartner Deliverables ■ Facilitation of walk-through sessions City of Fort Worth ■ Participate in walk-through sessions ■ Approve finalist service provider Gartner Estimated Work Effort Duration ■ Two weeks City of Fort Worth Task Duration ■ Two weeks PHASE H—Approval(To be performed by the City) The City of Fort Worth will review Phase II deliverables and decisions to include the vendor finalist. City of Fort Worth Deliverables ■ City Executive Management will review and approve Phase II deliverables and decisions City of Fort Worth Task Duration ■ Three weeks Phase III. Contract Negotiations During this phase, Gartner will work with the City in the development of the negotiation strategy and finalizing the contract. © Gartner,Inc.and/or its affiliates.All rights reserved. Gartner. Gartner is a trademark of Gabler,Inc.or its affiliates. ® For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 27 Figure 18. Final Selection and Contract Negotiation Final Selection & Contract Negotiation Negotiate Maste7Negotiation op Service Agreement and andsows ue r-Eva'luat Conduct Die Diligence .and Fins! Offer (BAFG) Final Drafting of the Agreement [— City of Fort Worth activity Task 1. Due Diligence (To be performed by the City) It is extremely important to perform due diligence activities on both service provider finalists as a part of the overall outsourcing service provider selection process. The service providers will present a very positive account of their capabilities in their proposals. It is important to verify these capabilities with visits to each service provider facility that will be performing the primary service delivery function to the City of Fort Worth. During this task, Gartner will provide guidance to the City's team in due diligence activities of both service providers. The City will be responsible for conducting the due diligence effort. This City performed effort will include participation in the site visits and ongoing coordination of due diligence activities. Service Provider site visits will be led by the City of Fort Worth with an agenda prepared by the City to include the following areas of review: IT management processes; service provider IT infrastructure and support facilities; technology used in the delivery of services and interviews with key executives; service delivery managers and proposed account executive. To provide the City of Fort Worth with direct input from service provider references, it is assumed that the City of Fort Worth will be responsible for the reference checking activity. Gartner will provide a reference checking questionnaire template to assist in the process. Gartner Deliverables ■ Provide reference checking questionnaire template City of Fort Worth Deliverables ■ Due Diligence Process and results Gartner Estimated Work Effort Duration ■ Four weeks G Gartner,Inc.and/or its affiliates.All rights reserved. Gartner Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 28 City of Fort Worth Task Duration ■ TBD (City Input) Task 2. Develop Negotiation Strategy and Schedule City of Fort Worth and Gartner will collaboratively work to establish the negotiation strategy and schedule. In this step, Gartner will conduct a half-day work session to determine City of Fort Worth's priority items for negotiations and the timing of discussion of each contract section. The schedule will be communicated to the selected vendor candidates. Gartner utilizes an approach that focuses on exceptions to requirements, terms and conditions to focus negotiations to speed the process. Items that are agreed are removed from the negotiations table, leaving time to focus on critical business and contractual issues. Gartner recommends a dual negotiation approach to maximize negotiating potential for terms and pricing. The process generally includes clarification sessions with the Service Providers, an initial set of negotiations, a set of final negotiations, and review of Service Provider Best and Final Offer, followed by drafting of the final agreement Gartner Deliverables ■ Negotiations Strategy document ■ Workshop to prepare the Fort Worth team City of Fort Worth Deliverables ■ Establish City's negotiating team(s) Gartner Estimated Work Effort Duration ■ One week City of Fort Worth Task Duration ■ One week Task 3. Negotiate Master Service Agreement and SOWS Service Providers will aggressively negotiate terms and conditions, as well as the service level requirements in the SOWs. Gartner's experience in similar engagements with the same providers limit"gaming"at the table, as both parties are usually aware of where the issue will finally be resolved. Gartner will support City of Fort Worth's legal and contracts team, if requested, by providing advice during this process. Gartner can "sit at the table"as a member of the City of Fort Worth negotiating team, if desired. This proposal includes up to three days of on-site negotiation support. Additional negotiating time is available on a time and materials basis and will be scoped separately as needed by the City of Fort Worth. ©2009Gartner Gartner,Inc.and/or its affiliates.All rights reserved. Gartner ��`C��__ ,r®Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 29 Gartner Deliverables ■ Three days of negotiations expertise City of Fort Worth Deliverables ■ Manage contract negotiations Gartner Estimated Work Effort Duration ■ TBD (depending on provider—this will be elapsed time) City of Fort Worth Task Duration ■ Five weeks Task 4. Evaluate Best and Final Offers (BAFO) Following the negotiations process outlined above, the providers' BAFO proposals will be evaluated, refining previous scores in the evaluation and scoring model. Again, City of Fort Worth team members will evaluate the service providers individually, as with the evaluations in the initial proposal round. At the conclusion of their individual evaluations, Gartner will lead a half-day consensus workshop where a single overall evaluation will be developed. Based on the best and final proposals, a consensus is reached based on individual evaluations and scoring model results. Gartner will facilitate a working session to allow the City of Fort Worth to select their Service Provider. Gartner Deliverables ■ Half-day consensus workshop City of Fort Worth Deliverables ■ Individual BAFO evaluations ■ Group score consensus Gartner Estimated Work Effort Duration ■ TBD City of Fort Worth Task Duration ■ Two weeks Task 5. Final Drafting of the Agreement Having negotiated the key terms, services, service level requirements, and pricing with the selected Service Providers (no more than three), all that is left is the final drafting of the agreement, incorporating negotiated and accepted elements of the agreement into the final MSA, SOW and supporting schedules. Gartner, as part of their negotiations strategy and support time outlined above, will, if requested, assist in supporting the City of Fort Worth counsel by providing appropriate business advice relative to the Agreement. ©Gartner Gartner,Inc.k of G its affiliates.All rights reserved. Ga��t'1@� Gartner is a trademark of Gartner,Inc.or its affiliates. Gartner For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 30 Gartner Deliverables ■ Draft of final agreements City of Fort Worth Deliverables ■ Process Mayor and Council Communication ■ Approved final agreement Gartner Estimated Work Effort Duration ■ One to two weeks (depending of providers) City of Fort Worth Task Duration ■ Four weeks PHASE 111—Approval(To be performed by the City) The City of Fort Worth will review Phase III deliverables and decisions to include an approved Mayor and Council Communication. City of Fort Worth Deliverables ■ City Executive Management will review and approve Phase III deliverables and decisions City of Fort Worth Task Duration ■ Three weeks © Gartner,Inc.and/or its affiliates.All rights reserved. Gartner Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 31 Phase IV. Sourcing Transition and Management The objective of this phase is to establish the basis for the City's future Sourcing Management capability in terms of organization structure and Governance process to effectively manage the City's sourcing relationship and prevent value leakage. Gartner will advise and assist the City in establishing the Sourcing Management capability that the City will use to manage the transition and the on-going sourcing relationship with the selected Service Provider. Gartner will also assist in the oversight of the Transition phase. Figure 19. Sourcing Transition and Management Sourcing Transition & Management Transition Finalize Design Planning and of Retained Management Service Delivery Structure Organization Define Sourcing Management and Governance Structure Transition Support Task 1. Transition Planning and Management Structure The initial task will lay the foundation for the success of Transition by having all parties participate in review of the provider Transition Plan (timelines, critical milestones and deliverables)along with the roles and responsibilities for all parties. The planning task will be a collaborative session in which the goals and objectives for the Transition to the outsourced environment will be reviewed by the City of Fort Worth key stakeholders and provider representatives to ensure all are invested in the approach and success of the Transition. In this session Gartner will collaborate with all parties to confirm the activities that will be performed by the provider during the initial thirty day Transition Planning period and those responsibilities remaining with the City of Fort Worth transition team. Specific objectives during this Transition Plan review include: ■ An orientation presentation by the provider on Transition approach and methodology to the City of Fort Worth and Gartner as part of setting up Transition Plan oversight and governance ■ Establish change management and communication process ■ Ensuring mutual understanding of the objectives and scope of the work ■ Confirming assumptions with both provider and the City of Fort Worth and tasks, deliverables, timeframes and acceptance criteria ■ Assisting in the development of project management and independent verification activities that provide all parties visibility into Transition activities, issues and risks 02009 Gartner,Inc.and/orits affiliates.All rights reserved. Gartner. Gartner is a trademarkGartner,of Gartner,Inc.or its affiliates. ® For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 32 ■ Agreement by the City of Fort Worth and the provider on the key milestones and work activity schedule ■ Verify roles and responsibilities for all participants ■ Identification of key transition controls to manage the Transition This session will set the stage for the detailed planning necessary to complete a successful transition. The outcome of the session will be a thorough and complete understanding of the benefits of the change to the organization and the roles and responsibilities of the City's team and provider's team during the transition phase. Gartner Deliverables ■ Review of provider's Transition Plan, approach, methodology and activity schedule ■ Roles and responsibilities for the City of Fort Worth and provider Transition Plan governance and Transition Management Office (TMO) ■ Status reporting formats and schedule ■ Scope/change management process ■ Transition control and critical success factors lists City of Fort Worth Deliverables ■ Participate in review session ■ Establish change management and communication process Gartner Estimated Work Effort Duration ■ Two weeks City of Fort Worth Task Duration ■ Four weeks Task 2. Finalize Design of Retained Service Delivery Organization In this activity, Gartner will help the City of Fort Worth finalize and confirm the service delivery capability of the Retained Service Delivery organization. Key activities include: ■ Review specifics of the proposed retained organization ■ Validate the viability and capability of the new organization ■ Refine the design of the retained organization to ensure roles and responsibilities as well as accountability has been defined ■ Confirm the City of Fort Worth's People Process regarding: ❑ Timeframes for notification ❑ Severance and incentive determination process ❑ Identification of personnel to become available during Transition ❑ Coordination of personnel availability with posting of new opportunities ©Gartner Gartner,Inc.k of G its affiliates.All rights reserved. Gartner. ��`�V Gartner is a trademark of Gartner,Inc.or its affiliates. G ,r® For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 33 ■ Identification of requirements for service management function to include management of outcomes ■ Providing initial retained organization position descriptions, development plans and suggested training for further refinement by the City of Fort Worth The end result will be a finalized design for the retained organization. Gartner will provide assistance to the City of Fort Worth's HR and employment staff to create a plan that meets the organizational needs to implement a new staffing model and yet will be consistent with any regulatory or legal requirements and employee policies or contracts. Gartner Deliverables ■ Finalized retained organization design City of Fort Worth Deliverables ■ Approved final retained organization design ■ Approved personnel transition Plan Gartner Estimated Work Effort Duration ■ Two weeks City of Fort Worth Task Duration ■ Two weeks Task 3. Define Sourcing Management and Governance Structure Gartner will facilitate a working session on sourcing management and governance to cover key elements of required governance, tied to guiding principles, organization and service delivery processes. Roles and responsibilities for key sourcing management and service delivery roles will be reviewed including technical, business and behavioral competencies. During this step, Gartner will utilize its Sourcing Governance frameworks to determine minimum required Governance and organizational elements that the City of Fort Worth will require for effective management of its sourcing agreement. Figure 20 and Figure 21 depict a sample of the Governance and competency frameworks that the Gartner team will utilize during this important step Figure 20. Required Competencies There are 3 types of competencies required within the IT Services Groups SM — • Wo-stinn Sysbms Krowl.dp Based on • M.NWture Fundarnentals Knowedge Technical j Tawd o l skif}s • Enterprise Resoure.Planning ORP) Competencies • Emaging Technologles Knowledge (nov how) • Business RequireffwKs An" • Project Cat ManagemarR • Business Knowledge Based on • Business Strategic Planting RelsgvOy Business Business a Financial Mansp rneN Knowledge Eery CompetenciesKnerl.lge • Business Process Knowledge (Know what) ■TecMology Advisory • Business Process Modet nil Based on • C"lon Chang. Personal • Results Oriented Behavioral Attitudes arts • LndasNpvMh Vision Competenciev Attributes • Wonn�on Seats Skills • Customer R.baorr.hitn Hard (Know why) • pobbm 9o1ring Skilb © Gartner,Inc.and/or its affiliates.All rights reserved. Gartner Gartner is a trademark of Gartner,Inc.or its affiliates. Gartner For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 34 Figure 21. Governance Relationships r"— —7 Policy bib.---Jhlq GOVERNANCE FRAMEWORK s . Gartner Deliverables Sourcing management and governance working session to review elements of: ■ Sourcing Management functions ■ Service Delivery functions ■ Key roles and responsibilities City of Fort Worth Deliverables ■ Participate in Sourcing Management session Gartner Estimated Work Effort Duration ■ One week City of Fort Worth Task Duration ■ One week Task 4. — Transition Support It is critical to closely monitor the Transition and identify potential issues and risks. Gartner will work with the City to manage the transition to the key milestones and work activities developed in Task 1. Gartner will assist the City in Transition preparation, status meetings and milestone review. Gartner will facilitate a half day training workshop to prepare the City for Transition management and will recommend an ongoing communication, meeting and reporting process to support Transition. Gartner will conduct weekly transition status meetings for a four (4) month period with the City and the selected Service Provider and will also facilitate weekly sessions for review of key milestone and work activities. Gartner Deliverables ■ Training and workshop materials for Transition preparation workshop ■ Recommended communication, meeting and reporting process ■ Conduct Transition preparation workshop (half day) © Gartner,Inc.and/or its affiliates.All rights reserved. Gartner. ��`C��,�®' Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 35 ■ Conduct weekly Transition status meetings ■ Conduct Transition review of key milestone and work activities City of Fort Worth Deliverables ■ Participate in Transition preparation workshop ■ Participate in Transition status meetings and milestone review sessions City of Fort Worth Task Duration ■ 4 months (estimated transition duration) PHASE IV—Approval(To be performed by the City) The City of Fort Worth will review Phase IV deliverables and decisions to include the transition plan. City of Fort Worth Deliverables ■ City Executive Management will review and approve Phase IV deliverables and decisions City of Fort Worth Task Duration ■ Three weeks ©Gartner Gartner,Inc.and/or its affiliates.All rightsreserved. Gartner. Gartner is a trademark of Gartner,Inc.or its affiliates. ® For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 36 Schedule Gartner will use reasonable business efforts to complete the SOW in accordance with agreed schedules. The time it takes Gartner and the City of Fort Worth to execute a legally binding contract, and the cooperation and availability of the City of Fort Worth personnel, as well as third parties, may impact the schedule. Depending on the start date of the engagement, major holiday or trade show periods may also impact the schedule. Both parties shall inform each other of any necessary schedule changes as they arise. Scope The scope of this engagement includes the following IT towers: ■ Applications services ■ Help Desk ■ Desktop Support ■ Data Center ■ Network Services (Voice and Data and Radio Services) ■ Cross Functional Services (IT operations) Assumptions The following assumptions have been made in preparing this SOW: ■ The City of Fort Worth is responsible for the completion of the following tasks (as described within the SOW sections above) ❑ Phase I: Sourcing Strategy — Task 4: Review and document Service Catalog ❑ Phase III: Contract Negotiations — Due Diligence ■ Radio Services is included as part of the scope of the SOW. Gartner will use the "Network Services" tower SOW to customize this technology area. The City of Fort Worth will provide the input for this SOW. ■ Project execution will be at City of Fort Worth facilities in Fort Worth, Texas and/or Gartner locations. ■ The work effort described in this Statement of Work assumes that City of Fort Worth personnel are available to assist in the project as defined in each step above. In the event that City of Fort Worth personnel are not available, a change of scope may be necessary. ■ Gartner will utilize current baseline and cost data provided by the City of Fort Worth and can repurpose appropriately for use within the Gartner benchmarking models. ■ Gartner will make every effort to provide the staffing proposed, but final Gartner teaming is always subject to availability. ©Gartner Gabler,Inc.kand/orof its affiliates.All rights reserved. Gartner. Gartner is a trademark of Gartner,Inc.or its affiliates. C ,r® For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 37 ■ The City of Fort Worth team will include a project manager to act as point of contact for the Gartner engagement. ■ The City of Fort Worth will actively participate and contribute to all the efforts outlined in this proposal and Statement of Work. ■ The City of Fort Worth will arrange for the key staff functions that will perform data collection activities and/or validation. These key staff functions include those individuals who are responsible for, or hold information about, the full scope of the assessment. Generally, Gartner will provide templates for data collection and the City of Fort Worth will be responsible for data collection. ■ Gartner may require access to: ❑ Financial analysts with full access to cost data relating to people and technology ❑ Asset/inventory management staff with knowledge of the technologies that are used ■ With the exception of meetings and workshops, most Gartner work will be performed at Gartner locations. ■ Office space, telephones and internet access will be made available for Gartner staff at City of Fort Worth locations for on-site project time. ■ Gartner will have access to printing/copying services at City of Fort Worth locations. ■ The City of Fort Worth is to schedule City of Fort Worth resources for project activities and provide meeting facilities as necessary. Changes to Scope All City of Fort Worth requests for changes to this Proposal must be in writing and must set forth with specificity the requested changes. As soon as practicable, Gartner shall advise the City of Fort Worth of the cost and schedule implications of the requested changes and any other necessary details to allow both parties to decide whether to proceed with the requested changes. The parties shall agree in writing on any requested changes prior to Gartner commencing work. As used herein, "changes"are defined as work activities or work products not originally planned for or specifically defined by this Proposal. By way of example and not limitation, changes include the following: ■ Any activities not specifically set forth in this Statement of Work ■ Providing or developing any deliverables not specifically set forth in this Statement of Work ■ Any change in the respective responsibilities of Gartner and the City of Fort Worth set forth in this Statement of Work, including any reallocation or any changes in engagement or project manager staffing ■ Any rework of completed activities or accepted deliverables ■ Any investigative work to determine the cost or other impact of changes requested by the City of Fort Worth ■ Any additional work caused by a change in the assumptions set forth in this Statement of Work G Gartner,Inc.and/or its affiliates.All rights reserved. Gartner■� ,r®Gartner is a trademark of Gartner,Inc.or its affiliates. C For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 38 ■ Any delays in deliverable caused by a modification to the acceptance criteria set forth in this Statement of Work ■ Any changes requiring additional research analyst time or changes to research analyst resources Project Fees Professional fees for this engagement will be based on a fixed price of$514,000 including professional fees and expenses, with payment milestones as defined in the table below. Gartner will submit invoices for payment following completion of each Phase, per the table below.. Invoices are payable upon receipt, or in accordance with the City of Fort Worth's requirements, within 30 days. Per the Statement of Work, Gartner will invoice based on the following phase milestones: Phase Payment Phase I: Sourcing Strategy $190,000 Phase II: Evaluation and Selection $190,000 Phase III: Contract Negotiations $40,000 Phase IV: Sourcing Transition and Management (Tasks 1 $40,000 — 3) Phase IV: Sourcing Transition and Management (Tasks 4 $54,000 — Ongoing Transition Support) As a standard practice, Gartner's hourly consulting fees encompass more than our consultants' time, including: ■ Administrative support to produce high-quality deliverables. ■ Ad hoc internal support from Gartner Research on specific engagement issues. Customers of Gartner Research already have access to our unparalleled research information databases and support from our research analysts. However, our consultants additionally avail themselves of ad hoc internal consultation time with Gartner Research analysts on particular engagement-related issues, including briefings on late-breaking industry developments that have not yet been published through Gartner Research. This latter assistance is provided at no additional charge to the client, since it is included within Gartner's hourly consulting fees. A Detailed Listing of Phases, Tasks and Deliverables is included below for summary reference. Phase Payment Phase I: Sourcing Strategy $190,000 Task 1. Engagement Kickoff Deliverables ■ Direct Kickoff meeting © Gartner,Inc.and/or its affiliates.All rights reserved. Gartner ��`C��__ ,r®Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 39 Task 2. Understand Business direction Deliverables ■ Documented business vision and overall business strategy ■ Documented Business imperatives and supporting drivers ■ Understanding of key business imperatives (strategies and issues) ■ Working session to review/validate business strategies and confirm findings Task 3. Develop IT Strategies for the City Deliverables ■ Documented IT vision, mission and principles ■ IT Strategies: key statements of what the IT organization must do to meet business objectives over the planning horizon Task 4. Review and Document IT Service Catalog (To be performed by the City) Deliverables ■ Provide the Service Portfolio and Service Catalog frameworks Task 5. Finalize Sourcing Scope, Opportunity Identification Deliverables ■ Service Tower Effectiveness tool ■ Orientation workshop covering the use of the tool and review of expected output from the City of Fort Worth assessment ■ IT effectiveness assessment results ■ Documented scope of the selected IT areas that have the greatest opportunities for Outsourcing ■ Operational recommendations that need to be considered as part of Sourcing Decision framework Task 6. Conduct Risk Identification and Mitigation Deliverables ■ Issue and Risk Management framework focused on key ©Gartner Gartner,Inc.k of G in affiliates.All rights reserved. Gartner ��`��Y Gartner is a trademark of Gartner,Inc.or its affiliates. I ,r® For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 40 sourcing life cycle events. ■ Gartner ongoing input ■ Weekly review of Risk Items and mitigation progress Task 7. Determine Sourcing Approach Deliverables ■ Sourcing Scenario workshop which will include consideration of sourcing models that will be compatible with the City's business and IT operations, considering their current service delivery structure. ■ Service Bundling recommendations ■ Facilitate consensus building workshop Phase II: Evaluation and Selection $190,000 Task 1. Review Bid Package Structure Deliverables ■ Bid package document overview session ■ Facilitate session to review Bid package structure Task 2. Collect IT Services Requirements Deliverables ■ Data collection tools ■ Finalized services requirements Task 3. Develop Statement of Work(SOWS) Deliverables ■ IT Service Tower Statement-of-Work(SOW) ■ Target Service Level Requirements ■ Master Service Agreement (MSA) template Task 4. Prepare Pricing Schedule Deliverables ■ Pricing schedule template ■ Pricing tool ■ Assist with customization of the pricing template © Gartner,Inc.and/or its affiliates.All rights reserved. Gartner. ��`C��__ Gartner is a trademark of Gartner,Inc.or its affiliates. ® For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 41 Task 5. Create Relationship Management Schedule Deliverables ■ Relationship Management Schedule Task 6. Customize Master Service Agreement—Terms and Conditions Deliverables ■ Final Master Services Agreement—Terms and Conditions ■ Orientation session Task 7. Prepare Evaluation Criteria and Scoring Model Deliverables ■ Customized Scoring model Task 8. Prepare, Review and Release Bid Package Deliverables ■ Customized Contract Bid Package Task 9. Vendor Bidders Conference Deliverables ■ Participation in the Bidder's Conference as assistance to City's resources Task 10. Evaluate Proposals and Provider Market Scan Deliverables ■ Service provider recommendations ■ Provider research and market intelligence ■ Provider SWOT analysis report ■ Service provider candidate selection and confirmation Task 11. Conduct Walkthrough with Finalists Deliverables ■ Facilitation of walk-through sessions Phase III: Contract Negotiations $40,000 Task 1. Due Diligence (To be performed by the City) 02009 Gartner Gartner,Inc.and/or its affiliates.Inc..All rights reserved. Gartner �■ `��Y Gartner is a trademark of Gartner,Inc.or its affiliates. I ,r® For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 42 Deliverables ■ Provide reference checking questionnaire template Task 2. Develop Negotiation Strategy and Schedule Deliverables ■ Negotiations Strategy document ■ Workshop to prepare the Fort Worth team Task 3. Negotiate Master Service Agreement and SOWs Deliverables ■ Three days of negotiations expertise Task 4. Evaluate Best and Final Offers (BAFO) Deliverables ■ Half-day consensus workshop Task 5. Final Drafting of the Agreement Deliverables ■ Draft of final agreements Phase IV: Sourcing Transition and Management (Tasks 1 $40,000 — 3) Task 1. Transition Planning and Management Structure Deliverables ■ Review of provider's Transition Plan, approach, methodology and activity schedule ■ Roles and responsibilities for the City of Fort Worth and provider Transition Plan governance and Transition Management Office (TMO) ■ Status reporting formats and schedule ■ Scope/change management process ■ Transition control and critical success factors lists Task 2. Finalize Design of Retained Service Delivery Organization Deliverables ■ Finalized retained organization design © Gabler,Inc.and/or its affiliates.All rights reserved. Gartner ��`C��__ ,r®Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. City of Fort Worth Engagement:222628510—Version 2 24 August 2009—Page 43 Task 3. Define Sourcing Management and Governance Structure Deliverables Sourcing management and governance working session to review elements of: ■ Sourcing Management functions ■ Service Delivery functions ■ Key roles and responsibilities Phase IV: Sourcing Transition and Management (Tasks 4 $54,000 — Ongoing Transition Support) Task 4. Task 4 — Transition Support Deliverables ■ Training and workshop materials for Transition preparation workshop ■ Recommended communication, meeting and reporting process ■ Conduct Transition preparation workshop (half day) ■ Conduct weekly Transition status meetings ■ Conduct Transition review of key milestone and work activities © Gartner,Inc.and/or its affiliates.All rights reserved. ��■ `■ ■�,r®�® Gartner is a trademark of Gartner,Inc.or its affiliates. C For internal use of City of Fort Worth only. City of Fort worth Engagement:222628510—Version 2 24 August 2009—Page 44 Authorization Gartner has a Master Services Agreement with the State of Texas Department of Information Resources (DIR): DIR- SDD-973 Contract Number that provides that the City of Fort Worth may purchase the services described in this Statement of Work. By signing below, both the City of Fort Worth and Gartner agree to the terms of this Statement of Work SUBMITTED ON BEHALF OF GARTNER, INC SIGNATURE Rob Cohan, Managing Partner PRINT NAME AND TITLE DATE: AUGUST 25, 2009 AGREED ON BEHALF OF CITY OF FORT WORTH _ 4 6u� SIGNATURE Karen L. Montgomery Assistant City Manager PRINT NAME/AND TITLE DATE Billing address: City of Fort Worth PO number (if req'd): 1000 Throckmorton Street Fort Worth, Texas 76102 Engagement: 222628510 Attested by: APPR TO FORM AND LEGALITY; Mercy Handrixotity SO=taly Assistant City Attorney LOFFICIAL --�— RECCORD ©2009 Gartner,Inc.and/or its affiliates.All rights reserved. RE•ARYGartner Gartner is a trademark of Gartner,Inc.or its affiliates. TYFor internal use of City of Fort Worth only. 7H� 1/� Any questions regarding this Statement of Work should be addressed to: Carlos Hernandez Director, Gartner Gartner, Inc. 222 W Las Colinas Blvd Suite 1220N Irving, TX 75039-5421 Or Rob Cohan Managing Partner Gartner, Inc. 222 W Las Colinas Blvd Suite 1220N Irving, TX 75039-5421 © Gartner,Inc.and/or its affiliates.All rights reserved. �`■ ■ ,r® Gartner is a trademark of Gartner,Inc.or its affiliates. For internal use of City of Fort Worth only. EXHIBIT B PAYMENT SCHEDULE Project Fees Professional fees for this engagement will be based on a fixed price of $514,000 including professional fees and expenses, with payment milestones as defined in the table below. Gartner will submit invoices for payment monthly as worked. Invoices are payable upon receipt, or in accordance with the City of Fort Worth's requirements, within 30 days. Per the Statement of Work, Gartner will invoice based on the completion of the following phase milestones: Phase Payment Phase I: Sourcinq Strategy $190,000 Phase II: Evaluation and Selection $190,000 Phase III: Contract Negotiations $40,000 Phase IV: Sourcing Transition and $40,000 Management Tasks 1 —3 Phase IV: Sourcing Transition and $54,000 Management (Tasks 4—Ongoing Transition Support) As a standard practice, Gartner's hourly consulting fees encompass more than our consultant's time, including: • Administrative support to produce high-quality deliverables. • Ad hoc internal support from Gartner Research on specific engagement issues. Gartner has a Master Services Agreement with the State of Texas Department of Information Resources (DIR): DIR-SDD-973 Contract Number that provides that the City of Fort Worth may purchase the services described in this Statement of Work. Professional Services Agreement GARTNER INC. Page 3 of 19 EXHIBIT C NON-DISCLOSURE AGREEMENT THIS AGREEMENT is entered into and effective as of the day of 20_ ("Effective Date") between CITY OF FORT WORTH ("CITY") a home rule municipal corporation organized under the laws of the state of Texas, and GARTNER, INC. ("Company"), a Delaware Corporation, collectively referred to as the "parties" and individually as a "party." For purposes of this Agreement, the terms City and Company include parent and subsidiary companies of the party. 1. City and Company intend to disclose to each other information, which may include confidential information, for the purpose of providing information and receiving guidance and oversight for a Sourcing Plan for the City's Information Technology Services. The term "Confidential Information" will mean any information or data which is disclosed by a party to the other party under or in contemplation of the stated purpose and which (a) if in tangible form or other media that can be converted to readable form, is clearly marked as proprietary, confidential or private when disclosed, or (b) if oral or visual, is identified as proprietary, confidential or private at the time of disclosure. Confidential Information may be either the property of the disclosing party or information provided by a corporate affiliate of the disclosing party or a third party. Disclosures under this Agreement may be made from the Effective Date of this Agreement until termination of this Non-Disclosure Agreement, or expiration or termination of the Professional Services Agreement to which this Non-Disclosure Agreement is attached, unless extended in a writing signed by both parties. Disclosures and receipt of Confidential Information will be by authorized representatives designated by each party in writing. 2. For all Confidential Information, the recipient will: (a) use the Confidential Information only for the stated purpose; (b) restrict disclosure of the Confidential Information solely to those employees, consultants or agents of such party with a "need to know" and not disclose it to third parties without the prior written consent of the disclosing party; (c) advise those employees, consultants or agents who gain access to Confidential Information of their obligations regarding the Confidential Information; (d) make only the number of copies of the Confidential Information necessary to disseminate the information to those employees who are entitled to have access to it, and ensure that all confidentiality notices set forth on the Confidential Information are reproduced in full on such copies; and (e) safeguard the Confidential Information with the same degree of care to avoid unauthorized disclosure as recipient uses to protect its own confidential and private information; (f) notify disclosing party immediately upon discovery of any unauthorized use or disclosure of Confidential Information or any other breach of this Agreement by recipient, its employees, consultants or agents and will cooperate with disclosing party in every reasonable way to help disclosing party regain possession of the Confidential Information and prevent its further unauthorized disclosure or use. For purposes of this Agreement, a "need to know" means that the employee, consultants or agents requires the Confidential Information in order to perform his or her responsibilities in connection with the stated purpose. Professional Services Agreement GARTNER INC. Page 4 of 19 3.The obligations of Paragraph 2 will not apply to any Confidential Information which: (a) is or becomes available to the public through no breach of this Agreement; (b) was previously known by the recipient without any obligation to hold it in confidence; (c) is received from a third party free to disclose such information without restriction; (d) is independently developed by the recipient without the use of Confidential Information of the disclosing party; (e) is approved for release by written authorization of the disclosing party, but only to the extent of and subject to such conditions as may be imposed in such written authorization; or (f) is required to be disclosed pursuant to applicable law, rule, regulation or court order as set forth in section 12 below. 4. If the disclosing party inadvertently fails to mark as proprietary, confidential or private information for which it desires confidential treatment, it will so inform the receiving party. The receiving party thereupon will return the unmarked information to the disclosing party and the disclosing party will substitute properly marked information. In addition, if the disclosing party, at the time of disclosure, inadvertently fails to identify as proprietary, confidential or private oral or visual information for which it desires confidential treatment, it will so inform the receiving party. The receiving party's obligations under Paragraph 2 in connection with information encompassed by this paragraph will commence upon notice from the disclosing party of the failure to properly mark or identify the Confidential Information. 5. Each party acknowledges its obligation to control access to and/or exportation of technical data under the applicable export laws and regulations of the United States, and each party agrees to adhere to and comply with the laws and regulations governing any technical data received under this Agreement. 6. Confidential Information, including permitted copies, will be deemed the property of the disclosing party. The receiving party, will, within ten (10) calendar days of a written request by the disclosing party, return all Confidential Information, including all copies, to the disclosing party or, if so directed by the disclosing party, destroy all such Confidential Information. The receiving party will also, within ten (10)calendar days of a written request by the disclosing party, certify in writing that it has satisfied its obligations under this Paragraph 6. The receiving parry's obligations under Section 2 will expire two (2) years after return or destruction of the disclosing party's Confidential Information. 7. Both parties agree that an impending or existing violation of any provision of this Agreement would cause the disclosing party irreparable injury for which it would have no adequate remedy at law, and that the disclosing party will be entitled to seek immediate injunctive relief prohibiting such violation, in addition to any other rights and remedies available to it. 8. Nothing contained in this Agreement or in any discussions undertaken or disclosures regarding the stated purpose will be deemed a commitment to engage in any business relationship, contract or dealing with the other party. The parties acknowledge that in the event that they develop, market and sell similar products and services nothing contained herein is intended to limit a party's activities or dealings except as expressly provided herein with respect to the disclosing party's Confidential Information. 9. No patent, copyright, trademark or other proprietary right is licensed, granted or otherwise transferred by this Agreement or any disclosure hereunder, except for the right to use such Professional Services Agreement GARTNER INC. Page 5 of 19 information in accordance with this Agreement. No warranties of any kind are given for the Confidential Information disclosed under this Agreement. 10. The term of this Agreement shall commence on the Effective Date and shall continue until expiration of the confidentiality period stated in Section 6. 11. This Agreement may not be assigned by either party without the prior written consent of the other party. Any assignment in violation of this Paragraph will be void. This Agreement will be binding upon the parties and their respective successors and assigns. 12. The provisions of this Agreement shall not prohibit a disclosure required by law or any court of competent jurisdiction or any investigation of a governmental or regulatory body which is lawfully entitled to require any such disclosure; provided that prior to such disclosure the receiving party shall promptly notify the disclosing party of such requirement so that the disclosing party may contest such disclosure and otherwise protect its interests in the timing and content of such disclosure. The receiving party will exercise reasonable efforts to help disclosing party obtain a protective order or other reliable assurance that confidential treatment will be accorded to the Confidential Information. If a protective order or other remedy is not obtained, the receiving party will furnish only that portion of the Confidential Information that the receiving party is legally required to disclose. 13. If any provision of this Agreement will be held invalid or unenforceable, such provision will be deemed deleted from this Agreement and replaced by a valid and enforceable provision which so far as possible achieves the parties' intent in agreeing to the original provision. The remaining provisions of this Agreement will continue in full force and effect. 14. If either party employs attorneys to enforce any rights arising out of this Agreement, each party will be responsible for the payment of its own attorneys fees. 15. Each party warrants that it has the authority to enter into this Agreement and to lawfully make the disclosures contemplated hereunder. 16. This Agreement represents the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior communications, agreements and understandings. The provisions of this Agreement may not be modified, amended or waived, except by a written instrument duly executed by both parties. CITY OF F RT WORTH: GA THE I By: By: Karen L. Montgomery Name: Ro Cohan Assistant City Manager Title: Managing Partner By: .� � . Name: WilliarrkF. Mohan, Jr. Title: Sr. Director, Government Contracts Date: G Date: APPROVE TO FORM AMC IZGALITY A erd by^ Assist t City._Aty Marty Ono , City SOcret>ary Professional Services AgreeFICIAL RECORD GARTNER INC. Page 6 of 19 CITY SECRETARY FT.WORTH,TX EXHIBIT D NETWORK ACCESS AGREEMENT This NETWORK ACCESS AGREEMENT ("Agreement") is made and entered into by and between the CITY OF FORT WORTH ("City"), a home rule municipal corporation with its principal location at 1000 Throckmorton Street, Fort Worth, Texas 76102, organized under the laws of the State of Texas and situated in portions of Tarrant, Denton and Wise Counties, Texas, and GARTNER, INC.("Contractor") with its principal place of business at 56 Top Gallant Road, Stamford, CT, 06904 and its local business location at 222 W. Las Colinas, Suite 1220N- Irving, Texas 75039 1. The Network. The City owns and operates a computing environment and network (collectively the "Network"). Contractor wishes to access the City's network in order to provide professional consulting services. In order to provide the necessary support, Contractor needs access to the Internet and Intranet. 2. Grant of Limited Access. Contractor is hereby granted a limited right of access to the City's Network for the sole purpose of providing professional consulting services for the purpose of providing an IT Sourcing Strategic Plan. Such access is granted subject to the terms and conditions forth in this Agreement and applicable provisions of the City's Administrative Regulation D-7 (Electronic Communications Resource Use Policy), of which such applicable provisions are hereby incorporated by reference and made a part of this Agreement for all purposes herein and are available upon request. 3. Network Credentials. The City will provide Contractor with Network Credentials consisting of user IDS and passwords unique to each individual requiring Network access on behalf of the Contractor. Access rights will automatically expire one (1) year from the date of this Agreement. If this access is being granted for purposes of completing services for the City pursuant to a separate contract, then, this Agreement will expire at the completion of the contracted services, or upon termination of the contracted services, whichever occurs first. 4. Renewal. At the end of the first year and each year thereafter, this Agreement may be renewed annually if the following conditions are met: 4.1 Contracted services have not been completed. 4.2 Contracted services have not been terminated. 4.3 Within the thirty (30) days prior to the scheduled annual expiration of this Agreement, the Contractor has provided the City with a current list of its officers, agents, servants, employees or representatives requiring Network credentials. Notwithstanding the scheduled contract expiration or the status of completion of services, Contractor shall provide the City with a current list of officers, agents, servants, employees or representatives that require Network credentials on an annual basis. Failure to adhere to this requirement may result in denial of access to the Network and/or termination of this Agreement. 5. Network Restrictions. Contractor officers, agents, servants, employees or representatives may not share the City-assigned user IDS and passwords. Contractor acknowledges, agrees and hereby gives its authorization to the City to monitor Contractor's use of the City's Network in order to ensure Contractor's compliance with this Agreement. A breach by Contractor, its officers, agents, servants, employees or representatives, of this Agreement and any other written instructions or guidelines that the City provides to Contractor pursuant to this Agreement shall be grounds for the City immediately to deny Contractor access to the Network and Contractor's Data, terminate the Agreement, and pursue any other remedies that the City may have under this Agreement or at law or in equity. 6. Termination. In addition to the other rights of termination set forth herein, the City may terminate this Agreement at any time and for any reason with or without notice, and without penalty to the City. Upon termination of this Agreement, Contractor agrees to remove entirely any client or communications Professional Services Agreement GARTNER INC. Page 7 of 19 software provided by the City from all computing equipment used and owned by the Contractor, its officers, agents, servants, employees and/or representatives to access the City's Network. 7. Information Security. Contractor agrees to make every reasonable effort in accordance with accepted security practices to protect the Network credentials and access methods provided by the City from unauthorized disclosure and use. Contractor agrees to notify the City immediately upon discovery of a breach or threat of breach which could compromise the integrity of the City's Network, including but not limited to, theft of Contractor-owned equipment that contains City-provided access software, termination or resignation of officers, agents, servants, employees or representatives with access to City-provided Network credentials, and unauthorized use or sharing of Network credentials. 8. LIABILITY AND INDEMNIFICATION. CONTRACTOR SHALL BE LIABLE AND RESPONSIBLE FOR ALL DAMAGES THAT THE CITY MAY INCUR DIRECTLY ON ACCOUNT OF ANY BREACH OF THIS AGREEMENT BY CONTRACTOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. THE CITY, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, SHALL NOT BE LIABLE FOR ANY DAMAGES THAT CONTRACTOR MAY INCUR AS A RESULT OF THE CITY'S RESTRICTIONS TO OR DENIAL OF ACCESS TO CONTRACTOR'S DATA ON ACCOUNT OF ANY BREACH OF THIS AGREEMENT BY CONTRACTOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES, OR FOR ANY REASONABLE SECURITY MEASURES TAKEN BY THE CITY. IN ADDITION, CONTRACTOR SHALL BE LIABLE AND RESPONSIBLE FOR ANY AND ALL PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, AND ALL CLAIMS, DEMANDS AND JUDGMENTS THEREFOR, TO THE EXTENT CAUSED BY THE NEGLIGENT ACT(S) OR OMISSION(S) OR INTENTIONAL MISCONDUCT OF CONTRACTOR, ITS OFFICERS, AGENTS, SERVANTS AND/OR EMPLOYEES. CONTRACTOR, AT CONTRACTOR'S OWN COST OR EXPENSE, HEREBY AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS THE CITY, ITS OFFICERS, AGENTS, SERVANTS AND/OR EMPLOYEES FROM AND AGAINST ANY CLAIM, LAWSUIT, DEMAND OR OTHER ACTION TO THE EXTENT THAT THE SAME ARISES FROM THE NEGLIGENT ACT(S) OR OMISSION(S) OR INTENTIONAL MISCONDUCT OF CONTRACTOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. FOR ANY CLAIM OR CAUSE OF ACTION ARISING UNDER OR RELATED TO THE CONTRACT: (1) TO THE EXTENT PERMITTED BY THE CONSTITUTION AND THE LAWS OF THE STATE OF TEXAS, NONE OF THE PARTIES SHALL BE LIABLE TO THE OTHER FOR PUNITIVE, SPECIAL, OR CONSEQUENTIAL DAMAGES, EVEN IF IT IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; AND (II) EXCEPT FOR DAMAGES FOR PERSONAL INJURY, INCLUDING DEATH, OR DAMAGE TO TANGIBLE PROPERTY, CONSULTANT'S LIABILITY FOR DAMAGES OF ANY KIND TO THE CITY SHALL BE LIMITED TO THE TOTAL AMOUNT PAID TO CONSULTANT UNDER THE CONTRACT DURING THE TWELVE MONTHS IMMEDIATELY PRECEDING THE ACCRUAL OF THE CLAIM OR CAUSE OF ACTION. FURTHER, THIS LIMITATION OF CONSULTANT'S LIABILITY SHALL NOT APPLY TO CLAIMS OF PATENT, TRADEMARK, OR COPYRIGHT INFRINGEMENT. Professional Services Agreement GARTNER INC. Page 8 of 19 9. Confidential Information. Contractor, for itself and its officers, agents, employees, and representatives, agrees that it shall treat all information provided to it by the City as confidential and shall not disclose any such information to a third party without the prior written approval of the City. Contractor further agrees that it shall store and maintain City Information in a secure manner and shall not allow unauthorized users to access, modify, delete or otherwise corrupt City Information in any way. Contractor shall notify the City immediately if the security or integrity of any City information has been compromised or is believed to have been compromised. In accordance with DBITS Section 9(d), Confidentiality, Consultant further agrees to keep confidential any information communicated by City to Consultant in connection with this Agreement that City desires Consultant to keep confidential provided that such material is (i) clearly marked confidential if provided in written form, (ii) is preceded by a statement that such information is confidential, if provided in oral form, and such statement is confirmed in writing; or (iii) due to the nature of the information, Consultant should reasonably know that the information is confidential. This obligation of confidence shall not apply to any information that: (1) is in the public domain at the time of its communication; (2) is independently developed by Consultant; (3) entered the public domain through no fault of Consultant subsequent to City's communication to Consultant; (4) is in Consultant's possession free of any obligation of confidence at the time of City's communication to Consultant; or (5) is communicated by the City to a third party free of any obligation of confidence. Additionally, Consultant may disclose such information to the extent required by legal process. 10. Right to Audit. Contractor agrees that the City shall, during the initial term, any renewal terms, and until the expiration of three (3) years after termination or expiration of this contract, have access to and the right to examine at reasonable times any directly pertinent books, data, documents, papers and records, both hard copy and electronic, of the Contractor involving transactions relating to this Agreement. Contractor agrees that the City shall have access during normal working hours to all necessary Contractor facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this section. The City shall give Contractor reasonable advance notice of intended audits. Contractor further agrees to include in all its subcontractor agreements hereunder a provision to the effect that the subcontractor agrees that the City shall, during the initial term, any renewal terms, and until expiration of three (3) years after termination or expiration of the subcontract, have access to and the right to examine at reasonable times any directly pertinent books, data, documents, papers and records, both hard copy and electronic, of such subcontractor involving transactions related to the subcontract, and further that City shall have access during normal working hours to all subcontractor facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this paragraph. City shall give subcontractor reasonable notice of intended audits. 11. Agreement Cumulative. This Agreement is cumulative of and in addition to any written contracts, agreements, understandings or acknowledgments with the City signed by Contractor. This Agreement and any other documents incorporated herein by reference constitute the entire understanding and Agreement between the City and Contractor as to the matters contained herein regarding Contractor's access to and use of the City's Network. 12. Amendments. The terms of this Agreement shall not be waived, altered, modified, supplemented, or amended in any manner except by written instrument signed by an authorized representative of both the City and Contractor. 13. Assignment. Contractor may not assign or in any way transfer any of its interest in this Agreement. Any attempted assignment or transfer of all or any part hereof shall be null and void. 14. Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. Professional Services Agreement GARTNER INC. Page 9 of 19 is. Force Maieure. Each party shall exercise its best efforts to meet its respective duties and obligations as set forth in this Agreement, but shall not be held liable for any delay or omission in performance due to force majeure or other causes beyond their reasonable control (force majeure), including, but not limited to, compliance with any government law, ordinance or regulation, acts of God, acts of the public enemy, fires, strikes, lockouts, natural disasters, wars, riots, material or labor restrictions by any governmental authority, transportation problems and/or any other similar causes. is. Governing Law / Venue. This Agreement shall be construed in accordance with the laws of the State of Texas. If any action, whether real or asserted, at law or in equity, is brought on the basis of this Agreement, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. CITY OF RT WORTH:�/ GARTNER, INC. By: 'Z / !� By: Karen L. Montgomery Name:WilliarfLF. Moha , J . Assistant CityManager q Title: Sr. Director, Government C rac Date: //�/O ( Date: APpROVLU M TO FORM AND _ IT`S, ( lodfl�L Assistani City Atta,raey Attested by: many i iendriX, ity ►SCCfe>fA1'y O-MCIAL RECORJC'TYSECRETARY . ET. WORTH, TX Professional Services Agreement GARTNER INC. Page 10 of 19 City of Fort Worth Gartner,Inc. IT Sourcing Plan City Secretary Contract No. [xxxxxJ EXHIBIT E MILESTONE/DELIVERABLE ACCEPTANCE DOCUMENT Services Delivered: Milestone,'Deliverable Ref.#: Milestone, Deliverable Name: Unit Testing Completion Date: Milestone/Deliverable Target Completion Date: Milestone!Deliverable Actual Completion Date: Approval Date: Comments(if needed): Approved by Contractor: Approved by Director: Signature: Signature: Printed Name: Printed Name: Title: Title: Date: Date: For Director Use Only Contracted Payment Amount: Adjustments, including penalties: Approved Payment Amount: Professional Services Agreement GARTNER INC. Page 11 of 19 M&C Review ragC i vi 'ffi; the City of For Wo th Te)as CITY COUNCIL AGENDA FoR_ T� V oRm COUNCIL ACTION: Approved on 8/18/2009 DATE: 8/18/2009 REFERENCE NO.: C-23728 LOG NAME: 04GARTNER CODE: C TYPE: NON-CONSENT PUBLIC NO NO SUBJECT: Authorize Execution of an Agreement with Gartner, Inc., in an Amount Not to Exceed $514,000.00 to Develop an Information Technology Sourcing Plan Utilizing a State of Texas Department of Information Resources Contract RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute an Agreement with Gai Inc., in an amount not to exceed $514,000.00 to develop an Information Technology Sourcing Plan uti the State of Texas Department of Information Resources Contract No. DIR-SDD-973 for the Informatic Technology (IT) Solutions Department. DISCUSSION: The City Manager directed the evaluation of information technology outsourcing options in Fiscal Year 2009. The primary goal is to help alleviate the City's long term costs associated with approved positior addition to reducing the overall cost of providing information technology services to the City as an organization. The purpose of this M&C is to request authorization to contract with Gartner, Inc., (Gartner) an Adviso Consultant, to assist the City through the outsourcing process as described in the June 2, 2009, Memr Council, Subject: Information Technology Outsourcing — Update. Gartner has significant market information and experience in this area which will reduce the risk to the in deciding whether to outsource and if so, in implementing the outsourcing plan. At any point in the pr the City has the option to terminate the contract. As the City develops its future IT direction, this engagement with Gartner is a totally complete effort including all the necessary steps starting from evaluating the City's IT needs, to assessing IT services finally to transitioning any selected services to outsourcer(s). It is estimated to take 16 months and inc four major phases: 1 —Sourcing Strategy Review the IT services provided by the 197 IT employees(115 IT Services, 82 Other Departments), establish IT Strategy, identify risk, select services for outsourcing, and determine sourcing approach, 2 — Evaluation and Selection Establish service requirements, develop contract framework, complete RFP process, evaluate proposa and select vendor(s). 3—Contract Negotiations Perform due diligence, negotiate contract, evaluate best and final offers, complete agreement. 4—Sourcing Transition and Management Plan transition and management structure, design new IT organization, establish management and governance structure and provide support during transition. http://apps.cfwnet.org/council_packet/mc—review.asp?ID=l 1653&councildate=8/18/2009 8/26/2009 nnat,xeview Page 2 of 2 An Advisory Committee of key department stakeholders (Police, Fire, Water, PALS, Library, Municipa Courts, ITS, and Legal) provided the requirements to Gartner for the project as well as reviewed and finalized the draft Statement of Work. The State of Texas Department of Information Resources(DIR) Contracts are authorized to offer the cooperative purchasing programs to state agencies, public institutions of higher leaming, public schoo districts and local governments. Pursuant to Government Code Section 791.025, a local govemment t purchases goods and services under the Interlocal Cooperation Act satisfies otherwise applicable competitive bidding requirements. By leveraging the State DIR Cooperative Purchasing Program, the City will be able to execute this Agreement quickly and cost effectively. This Agreement will begin upon execution and expire upon completion of all services, but no later than April 13, 2011, to correspond with the DIR contract term. M/WBE-A waiver of the goal for M/WBE subcontracting requirements was requested by the IT Solutit Department and approved by the M/WBE Office because the purchase of goods and services is from sources where subcontracting or supplier opportunities are negligible. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies funds are available in the current operating bud as appropriated, of the General Fund and Information Systems Fund. TO Fund/Account/Centers FROM Fund/Account/Centers GG01 531200 0905500 $100,000.00 P168 531200 0043010 $95,000.00 P168 531200 0046010 $14,000.00 P168 531200 0041100 $305,000.00 Submitted for City Manager's Office by: Karen Montgomery (6222) Originating Department Head: Peter Anderson (8781) Additional Information Contact: Steve Streiffert(2221) ATTACHMENTS http://apps.cfwnet.org/council_packet/mc—review.asp?ID=l 1653&councildate=8/18/2009 8/26/2009