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HomeMy WebLinkAboutContract 31061 CITY SECRETAF VU—(4-CONTRACT NO Exhibit A: Technical Proposal for: The City of Fort Worth Bid Number: 04-0175 T R Vendor Name: Marsh USA Inc. Vendor Contact: Ben Willmann Assistant Vice President Marsh Risk Technologies 500 N. Akard Street, Suite 200 Dallas, Texas 75201 Phone: 214.765.8637 Fan: 214.765.8081 Email: ben.willmann @marsh.com This document contains proprietary and confidential business information and is intended solely for employees of The City of Fort Worth. No portion may be reproduced or shared with consultants or other third parties without advance written permission from Marsh USA,Inc. Windows is a registered trademark of Microsoft Corporation and STARS (Sm>is a service mark of Marsh USA, Inc. Table of Contents STATEMENTOF WORK............................................................................................................1 A. MISSION................................................................................................................................1 B. DELIVERABLES AND PROJECT BOUNDARIES ............................................................I Hardware/Software.................................................................................................................1 ImplementationServices...........................................................................................................3 SupportServices........................................................................................................................S C. MANAGEMENT REVIEW PROCESSES............................................................................7 D. PROCESS AND COMPLETION CRITERIA.......................................................................8 InitiatePhase............................................................................................................................8 PlanPhase................................................................................................................................9 Execute Phase 11 ClosePhase.............................................................................................................................1 S E. SCHEDULE...........................................................................................................................17 F. RESPONSIBILITIES.............................................................................................................17 MarshResponsibilities............................................................................................................18 G. COMPENSATION SUMMARY.........................................................................................20 LICENSEAND TERMS.............................................................................................................21 EXHIBIT B PREFERRED BENEFICIARY ACCEPTANCE FORM..................................29 EXHIBIT C THE STARS IMPLEMENTATION PROCESS................................................30 MARSH CERTIFICATE OF INSURANCE ............................................................................32 STARS Statement of Work This Statement of Work dated November 15, 2004 describes services to be performed by Marsh USA Inc. ("Marsh") for The City of Fort Worth ("Client"). This Statement of Work is divided into the following sections: A. Mission: Objective of the Project B. Deliverables and Project Boundaries: Identifiable work products resulting from the services C. Management Review Processes: Description of key management processes for this project D. Process and Completion Criteria: How Marsh will perform the services and the completion criteria for each phase of the project E. Schedule: Services start date and projected end date F. Responsibilities: Client and Marsh obligations on which this project depends G. Compensation Summary: Fixed price and payment schedule A. MISSION The mission of this project is to implement the STARS Risk Management Information System for use at The City of Fort Worth and provide ongoing service for 3 Years. B. DELIVERABLES AND PROJECT BOUNDARIES The products and services listed below will be delivered to The City of Fort Worth. Hardware / Software The following hardware and software deliverables are included in this contract: r � STARS Software Marsh will provide The City of Fort Each additional user is$625 per user Worth a license to access and use per year. STARS Version 8.6 on the terms of the attached License and Terms of Agreement for 5 named users. STARS Web Software STARS Web,Version 8.6,hosted on Marsh will initially install STARS The City of Fort Worth's web server Web on The City of Fort Worth's for up to 100 named users. server;however,The City of Fort Worth is responsible for all administration,maintenance,and connectivity. 1 STARS Escrow Agreement The City of Fort Worth will be listed as a named beneficiary to the Source Code Escrow Agreement between Marsh and DSI. New Releases of Software Any new versions of STARS Profesional Edition generally released during the term of this contract Microsoft SQL Server On-site installation on The City of The City of Fort Worth will be Installation at Client Site Fort Worth's network on a dedicated responsible for the purchase and server on a Windows operating maintenance of all hardware and other system. licensing including,but not limited to, Microsoft system licenses. STARS will run on a Microsoft SQL Server Relational Database Marsh will work in tandem with your Management System. system administrators to review installation, connection and backup routines. The City of Fort Worth will be responsible for on-going administration and backups of the server. 2 STARS Implementation Services The following implementation services are included in this contract: -Ow WWII� AIZIN�,,�,',�,1--,�.,�,,�-,, &N, Project Management Project Management Project results will be documented at the end of and Documentation throughout the implementation the implementation phase. phase using the STARS Pro Implementation Methodology. See Exhibit C—The STARS Implementation Process System Design Client Support Services as defined in this document specific to implementation, such as location structure design, screen design,code and field design,security design, and design of other STARS standard features. Data Conversion and Integration of data,validation Consolidation of financial accuracy,and evaluation of service provider coding practices.The sources included are: ➢ David System Conversion Data Quality Control: Financial reconciliation, identification of invalid location codes, identification of The following items are not included as a part of other invalid codes,check for the Data Quality Control Deliverable: duplicate claim numbers, check for improper date sequences, Data quality investigation and resolution of and production of mismatch corrupt data from the source system. reports. The client will provide data extracts from the David system along with records layouts,code definitions, code tables,and location stucture. Should any data corruption issues arise,the implementation team will use best efforts to work with and consult the client to correct these issues. 3 STARS a 0111 r Detailed Transaction The sources included are: Data Conversions Y David System Conversion Data Quality Control: Financial reconciliation, identification of invalid location codes, identification of The following items are not included as a part of other invalid codes, check for the Data Quality Control Deliverable: duplicate claim numbers,check for improper date sequences, . Data quality investigation and resolution of and production of mismatch corrupt data from the source system. reports. Should any data corruption issues arise,the implementation team will use best efforts to work with and consult the client to correct these issues. Custom Programming Custom programming to meet Additional custom programming can be The City of Fort Worth specific purchased for$225 per hour. needs, as specified below: Check Interface—BuySpeed: Per the specifications provided by the City of Fort Worth. 4 ,STARS Support Services The following support services are included in this contract: 0 NO Client Support Services A primary support team that will The following items are not included as leverage resources and experience of part of the Client Support Services STARS personnel. Deliverable: Support time includes all phases of Service in accordance with software the project including implementation upgrades will be charged against and continuing service as described in Services Hours,and are included as the Process section of this Statement part of Client Support of Work. Additional service hours can be Implementation/Service: 190 hours purchased for$185 per hour. (Year 1) Annual Client Service: 50 hours (Years 2&3) Following the implementation and production(fii phase,Program errors and technical problems wi addressed as follows: -A Marsh technical support representative assigned to the issue will contact the Client representative and begin troubleshooting steps within 4 hours following notification from Client. Client shall notify the assigned Client Service Leader via phone and email. -Until a solution is determined,except in cases where Marsh is waiting for further information from Client regarding the issue,or except where otherwise agreed to or requested by Client,Marsh will work cooperatively with Client to resolve the problem. -Technical support representatives assigned to each issue will be adequately and extensively trained and knowledgable about the product that is the subject of the issue. -At any time upon Client's request,Marsh will escalate the issue to Marsh technical support management. -Marsh technical support will have the capability to receive by.ftp a copy of the Client database for problem solving if unable to correct by measures above. -Marsh technical support and Client will work jointly to research "bugs"defined as anomalies in the system where the system is not working as it was designed or to specifications. Marsh technical support will provide a reasonable "work around"and/or a patch fix in a reasonable period of time. 5 STARS Training The Client Service Leader will Maximum class size is 15 attendees. provide Seven day(s)of STARS training in the first year. Training can be held at The City of Fort Worth's facility or Marsh's training facility. Additional training hours and/or training resources can be purchased for$2,200 per day. 6 ,STARS C. MANAGEMENT REVIEW PROCESSES Deliverable Review Procedures The following steps outline the procedures to be followed for project deliverable review: 1.Deliverable Materials will be provided to The City of Fort Marsh will provide suggested review Worth for review according to the project schedule in the procedures for all deliverables at the time of Project Plan. delivery. 2.The City of Fort Worth will review the deliverables for If changes to a deliverable are required,The accuracy and correctness. City of Fort Worth will compile a list of issues and participate in a conversation to discuss the proposed changes to the document. 3.Marsh will make the required changes,and, if changes are required, will provide an updated copy or version of the Deliverable Material to The City of Fort Worth within an agreed upon timeframe. 4.The City of Fort Worth will make the final review of the deliverable. Additional issues or questions will be addressed in a similar fashion to Steps 2 and 3. Change Control Procedures The following steps outline a general process for handling requested changes in product deliverables during the implementation of STARS. Marsh will develop a more detailed change control process during the Plan Phase of the project, in conjunction with The City of Fort Worth: . 9 1.All change requrests must be forwarded to the STARS Marsh will track all change requests in a Project Manager by one designated representative of The City central location. of Fort Worth. 2.Marsh will assess the impact of the change to the project Marsh will provide feedback to The City of schedule and existing project scope as defined in this Fort Worth on these impacts within an Statement of Work. agreed upon timeframe. 3. One designated representative from The City of Fort Worth If additional time or fees are required,Marsh will have the authority to approve or reject changes. These will create an addendum to this Statement of changes may necessitate additional time for the Work to reflect these changes. Additional implementation schedule and/or additional fees from The City service hours can be purchased for$185 per of Fort Worth. hour. Additional custom programming can be purchased for$225 per hour. 4.Marsh will incorporate these changes into the project schedule and perform the work as requested. 7 STARS D. PROCESS AND COMPLETION CRITERIA Initiate Phase The purpose of the Initiate Phase is to prepare the project team for the Project by establishing initial Project Plans and risks. The Initiate Phase also trains project team members in the mechanisms that will be used to manage the Project Work Products are defined in Deliverables section U '»x.. ., $5�"ax Define Project The purpose of this activity is to Statement of Marsh Client define the scope of the Project in Work the terminology of Marsh's methodology. Validate Business The purpose of this activity is to Statement of Marsh Client Processes review The City of Fort Worth's Work existing Claims and Risk Management processes to gain required understanding and link to STARS program. Develop Data Request The purpose of this activity is to Data Request Marsh Client identify the required data sources and to initiate the data request. Project Kickoff Meeting The primary purpose of this Kickoff Marsh Client activity is to ensure that all team Meeting, members are educated in the Project implementation methodology as Communications well as the agreed-upon tools that plan, the project team will use to communicate,report status, Project Contact resolve issues, and manage the List day-to-day elements of the project. Another purpose of the Kickoff Meeting is to validate that the Statement of Work accurately reflects the desired scope of the implementation of STARS by The City of Fort Worth. The kickoff meeting is commonly held at The City of Fort Worth's facility two to three weeks after the contract has been signed. Initiate Phase Completion Criteria: The Initiate Phase will be considered complete when: • Signed Statement of Work has been delivered to The City of Fort Worth • Kickoff Meeting has been completed 8 STARS • Kickoff Meeting Minutes have been delivered to The City of Fort Worth within five(5)working days of Kickoff Meeting • Project Communications Plan and Contact List have been delivered to The City of Fort Worth within five(5)working days of Kickoff Meeting Plan Phase The purpose of the Plan Phase is to thoroughly plan the project and design the STARS System for The City of Fort Worth. g Plan Project The purpose of this activity is to Detailed Project Marsh Client create a project schedule and to Plan define project management activities and tools. Conduct Working Tasks accomplished at the Working Marsh Client Meetings working meeting(s)include Meeting Minutes in-depth discussion of data conversion(s),custom programming needs,custom reporting needs,and custom system design. Work products of the working meeting(s)include data conversion documentation, custom programming specifications,custom report specifications,and custom system design documentation. Some work products may require multiple installments. Working meetings are commonly held at The City of Fort Worth's facility. The first working meeting should not be scheduled until data has arrived at the Marsh Information Center and is appropriately analyzed. Depending on the complexity of the implementation, multiple working meetings may be required. Client Specific System The purpose of this activity is to Location Marsh Client Design define in detail the STARS Hierarchy configuration specific to The Worksheets, City of Fort Worth. Security Access Worksheets, 9 STARS Es ,fix xAi . System configuration will Code and Field commence once the design Mapping documentation and specifications Worksheets, have been accepted by The City Screen Design of Fort Worth. System design Worksheets, may also be dependent on data Other conversions. documentation as necessary Data Conversion The purpose of this activity is to Data Conversion Marsh Client Design define in detail the data Documentation conversion specifications for each data source specific to The City of Fort Worth. The STARS service team will collaborate with The City of Fort Worth to analyze the data, including determining data mappings and code mappings. Custom Programming The purpose of this activity is to Custom Marsh Client Design define in detail the specifications Programming for each item of custom Specifications, programming specific to The Custom Report City of Fort Worth as described Specifications in the"Custom Programming" section of Implementation Services. Plan Phase Completion Criteria: The Plan Phase will be considered complete when: • Detailed Project Plan has been distributed within three weeks(15 business days)of Kickoff Meeting • Working meetings have been completed and meeting minutes have been delivered within five(5) working days of each meeting • System design documentation reflects the STARS configuration for The City of Fort Worth • Data conversion design documentation has been provided to The City of Fort Worth • Custom programming specifications have been provided to The City of Fort Worth • Custom report specifications have been provided to The City of Fort Worth • An individual designated by The City of Fort Worth will provide sign off when all items in this phase are complete. 10 STARS Execute Phase The purpose of the Execute Phase is to develop, integrate, and test the final packaged application configuration, as specified in the Plan Phase. Training Materials and documentation are also created during this Phase for use in training and testing sessions. � ` es z - 3 ,F Manage Project The purpose of this activity is to Status Reports, Marsh Client manage project execution and report on project status using Project regularly scheduled status Documentation meetings and status reports. Throughout the implementation phase,the STARS Project Manager will be responsible for project-related communications, and will manage issues and changes to scope. Develop Baseline The purpose of this activity is to Location Marsh Client System Design identify, document, and set the Hierarchy Configuration and parameters for the STARS Worksheets, System Security Program. Security Access Worksheets, The STARS service team will Code and Field use approved design Mapping documentation and specifications Worksheets, to customize the system,within Screen Design the boundaries of STARS Worksheets, standard functionality,to meet Other The City of Fort Worth's RMIS documentation needs. as necessary Client will review system design for adherence to approved specifications and documentation. Develop and Perform The purpose of this activity is to Converted Data Marsh Client Data Conversions develop and execute the data conversions for all sources identified in the Deliverables section of this document according to the data conversion specifications deliverable provided in the Plan Phase. Data conversions will begin once the data has arrived at the Marsh Information Center. The STARS 11 ,STARS conversion writer will prepare the data conversions,run and validate the data conversions, and perform reconciliation of any financial discrepancies for all data sources. System conversions will require more than one conversion since the system will still be in use by The City of Fort Worth during the initial conversion period. Test Data Conversions The purpose of this activity is to Testing Results Client Marsh have The City of Fort Worth test and validate the data conversions. Develop Custom The purpose of this activity is to Custom Marsh Client Programming develop the custom Programming programming identified in the and/or Reports Services Agreement according to the Custom Programming Specifications deliverable completed in the Plan Phase. Custom programming will commence once the custom programming and/or report specifications have been approved by The City of Fort Worth. Custom programming and report tasks may also be dependent on data conversions. Marsh Custom Solutions developers will develop the customization(s) and/or the report(s)and test the functions I i ty per the customization programming and/or n'j,(O specifications. Test Custom The purpose of this activity is to Testing results of Client Marsh Programming and/or have The City of Fort Worth test each Custom Reports and validate all custom solutions Program or (programming). Custom Report Develop Training and The puril )sc of this activity is to Training Plan Marsh Client Education Plan create aii ducation and training plan, inclu ling training logistics and agen& 12 STARS i . Develop End User The purpose of this activity is to Training Marsh Client Training Materials create education and training Materials materials based on The City of Fort Worth's needs and within standard STARS parameters. Marsh and The City of Fort Worth will collaborate to determine the training needs of The City of Fort Worth's user groups. Marsh will prepare training materials within standard STARS parameters and will collaborate with The City of Fort Worth to configure and test the training environment. Develop Final System The purpose of this activity is to Complete Marsh Client Design Configuration finalize the System Design System Design and System Security Configuration developed during and Security the Plan Phase and to finalize the Setup System Security in STARS developed in the Plan Phase. Prepare for Production The purpose of this activity is to Functional Marsh Client (Integration Testing) ensure that the system meets STARS Program agreed upon specifications and ready for documentation. production Initial System The purpose of this activity is to Functional Marsh Client Installation install the STARS system for The STARS Program City of Fort Worth to begin in Production Testing. Conduct End-User The purpose of this activity is to Training Marsh Client Training conduct the user training according to the education and training plan. Marsh will conduct training according to a schedule mutually agreed upon by Marsh and Client. Initial User Acceptance The purpose of this activity is for Client Marsh Testing of STARS The City of Fort Worth to review system design, data conversions, and custom programming and/or reports for adherence to agreed upon specifications and documentation. 13 STARS Prepare Post Go-Live The purpose of this activity is to Ongoing support Marsh Client Strategy investigate the Post Go-Live and transition requirements/options and to plan determine the Post Go-Live Support Strategy. Execute Phase Completion Criteria: The Execute Phase will be considered complete when: • Status reports have been distributed and discussed in the time period agreed to • At the conclusion of Initial User Acceptance Testing,the Client Project Sponsor has indicated areas where the system design,data conversions, and custom programming require further effort by the STARS team based on their use of the system and the adherence of the functionality of these items to the documentation prepared in the Plan Phase • System design has been completed per the System Design Specifications defined in the Plan Phase • Data conversions have been completed per the Data Conversion Specifications defined in the Plan Phase • Custom programming has been completed per the Custom Programming Specifications defined in the Plan Phase • Test data provided to The City of Fort Worth • Test custom programming,custom reports provided to The City of Fort Worth • The training plan has been delivered to The City of Fort Worth • The City of Fort Worth's system has been configured per the specifications defined in the Plan Phase • STARS Project Manager has provided approval that all areas of the STARS program are ready to be installed to begin initial Testing. • Software has been installed on all workstations, excluding workstations that do not meet hardware requirements or have not been properly configured • Ongoing support requirements document has been delivered to The City of Fort Worth • An individual designated by The City of Fort Worth will provide sign off when all items in this phase are complete. 14 STARS Close Phase The purpose of the Close Phase is to move the system into production and provide post production and implementation support, in compliance with the implementation strategy. Y t 3 '. r 3 ' y.8axf Final Installation The purpose of this activity is to Functioning Marsh Client install the complete STARS STARS system system, including converted data and all STARS software components. Upon completion of this activity,The City of Fort Worth's STARS system will be Final Testing of STARS The purpose of this activity is to Signed STARS Client Marsh allow The City of Fort Worth to Implementation perform final user acceptance Closure Letter testing of the entire STARS system. The City of Fort Worth will review system design, data conversions,and custom programming and/or reports for adherence to approved specifications and documentation. Closure Review Survey The purpose of this activity is to Client Closure Client Marsh give client an opportunity to give Review Survey formal,written feedback to Marsh on the implementation project Closure Review The purpose of this activity is to Closure Review Marsh Client indicate successful completion of Meeting all items in the Statement of Agenda, Closure Work,document ways to Review Meeting enhance the implementation Minutes process, and to formalize the end of the implementation for The City of Fort Worth and the entire project team. At this time,The City of Fort Worth will begin utilizing the Ongoing Services provided in t)e Statement of Work. Close Phase Completion Criteria: The Close Phase will be considered complete when: • Software has been installed on all workstations that STARS is responsible for. excludinp-workstations that do 15 STARS not meet hardware requirements or have not been properly configured • Project documentation has been delivered to The City of Fort Worth within three weeks(15 business days)of the final installation. • System design, data conversions, custom programming and/or custom reports are functioning as documented in the Plan Phase. • Closure Review Meeting has been completed and meeting minutes have been delivered within five(5)working days of Closure Review Meeting • An individual designated by The City of Fort Worth will provide sign off when all items in this phase are complete. 16 ,STARS E. SCHEDULE The implementation will begin when the contract is signed. The implementation phase typically lasts 16 to 20 weeks, and will vary based on the complexity of the implementation. Upon completion of the Kickoff Meeting, the STARS Project Manager will provide an estimated completion date and an approximate project schedule. Upon completion of working meeting(s), the STARS Project Manager will provide a complete, detailed project plan including the final project schedule. This project schedule will be based on a number of assumptions which the Project Manager will outline, but these assumptions include the timely receipt of accurate data from legacy system, the timely completion and approval by The City of Fort Worth of design specification documents, and resource availability. F. RESPONSIBILITIES The following is a list of client responsibilities necessary for the successful completion of this effort. Marsh has used this information in establishing the schedule and pricing for the services. In the event an item identified below does not occur in the manner shown, such circumstance shall constitute a change that will require an adjustment to the schedule and/or price. A more detailed list of project roles and responsibilities for The City of Fort Worth and Marsh resources will be developed during the Plan Phase of the project as well. This more detailed document will supplement what is included below. rp M� Client Business • Serve as the executive point of contact for the client with Estimated 8-10 Sponsor Marsh during the execution of this Statement of Work hours total, or as • Monitor the progress of work associated with the Statement needed of Work and provide the first level of quality assurance to the Client Project Sponsor • Participate in Kickoff Meeting • Attend training for STARS system Client Project • Provide single point of contact for the client for MARSH 3-6 hours per week Sponsor . Provide leadership and direction to the Client Project Team • Review Project progress with the MARSH Project Manager • Resolve deviations from the Project Plan with the Marsh Project Manager • Support Project change control in accordance with defined Project Change Control Procedures • Participate in kickoff meeting, working meeting,and status calls • Coordinate access to representative end users, technology resources, and carrier contacts as needed 17 ASTARS WN IN .. .. • Provide input to STARS system design and customization; support STARS recommendations • Review final deliverables • Provide input to training design and coordinate training for end users • Plan and coordinate training logistics Client Functional • Participate in kickoff meeting,working meeting,and status 1-2 hours per week Project Owners calls • Provide input to STARS system design and customization • Attend training for STARS system Client • Participate in kickoff meeting 8-10 hours total Representative End , Provide input to STARS system design Users p Y gn and customization • Attend training for STARS system Client Technical • Participate in kickoff meeting 10-20 hours total Resource(s) . Provide system data, if necessary • Procure necessary hardware and software components • Assist with installation of database and STARS system on servers and end user PCs • Assist with setup for training Client System • Maintain user lists and security Ongoing Administrator(s) . Enhance the system design as needed • Maintain report templates • Perform regular data updates, if necessary Marsh Responsibilities Marsh will provide the following resources for the project. All resources should have knowledge of their functional areas and be capable of performing the assigned tasks. In the event that such resources are unable to perform assigned tasks, STARS' Project Manager will replace them with suitably qualified individuals. If there are mutually approved changes to the Statement of Work, the resources below may not represent a complete list of all resources required. Marsh may staff their roject team with personnel to fulfill the following roles: ev STARS Marsh Project • Prepare detailed project plan,communications plan,risk management plan, Manager change control plan, and status reporting plan • Measure,track and evaluate progress against the Project Plan 18 STARS • Resolve deviations from the Project Plan with the Client Project Manager • Review Project tasks,schedules and resources and make changes or additions, as appropriate • Prepare and maintain Issues Log • Prepare Status Reports and an updated Project Plan and provide them to Client Project Manager • Review Project progress with the Client Project Manager • Conduct Project Status Meetings • Support Project change control in accordance with defined Project Change Control Procedures • Provide leadership and direction to the Project Team • Assign tasks to team members • Communicate/coordinate with STARS Project Executive • Provide all Deliverable Materials in accordance with the dates defined in the Project Plan STARS Client Service . Assist the Project Manager in day-to-day tasks associated with the implementation of the Software • Provide ongoing service and support to The City of Fort Worth Conversion Specialist(s) • Responsible for all data conversions included in this Statement of Work • Utilize data mappings performed by STARS and The City of Fort Worth to create data conversion programs • Responsible for data accuracy, including balancing to control totals and record counts in initial data conversions Custom Solutions • Overall project management responsibility for custom development Project Manager deliverables in the project: •Provide assistance with specification writing •Manage custom solution developer resource(s) • Communicate/coordinate with STARS Project Manager Custom Solution(s) • Design, develop,test,and assist with the deployment of all customizations to Developers the Software according to the specification documents signed off on by The City of Fort Worth in the Plan phase of the implementation Custom Reports • Design, develop,test, and assist with the deployment of all custom reports Developer according to the specification documents signed off on by The City of Fort Worth in the Plan phase of the implementation Client Technical . Assist The City of Fort Worth with the hardware and software needs analysis Services Group Member 0 Assist The City of Fort Worth with the installation and configuration of the procured hardware and software, if necessary • Assist the STARS Project Manager and Client Service with the initial installation of the Software and its components on the installation platform, if necessary 19 STARS G. COMPENSATION SUMMARY The following table summarizes the fees and expenses associated with this contract. Travel Expense Travel and Expense outside a 50 mile radius of the Dallas-Fort Worth metroplex will be billed as incurred. First Year Fee $184,850 to be paid by Client in four equal installments as follows. • Installment#1 paid at contract inception • Installment#2 paid at completion of Plan Phase of Implementation • Installment#3 paid at completion of Execute Phase of Implementation • Installment#4 paid at completion of Close Phase of Implementation Annual Fee in Second and $28,900 Third Year Payable on a quarterly basis starting one year from contract inception. Escrow Fees Included in the Annual Fee amounts Contract Term 3 years, commencing November, 15, 2004 20 License and Terms General Terms and Conditions of Agreement for STARSsM Program and Services. 1. The services to be provided by Marsh USA Inc. ("Marsh")to City of Fort Worth("you"or "your company") will be substantially as described in the Statement of Work attached as Exhibit A. 2. STARSsM is the Marsh proprietary trade name for the STARSsM software products (the "STARSsM Program Editions") offered for license by Marsh. For purposes of this agreement and the attached Statement of Work, the term"Program" shall mean the modules of the specific STARSsM Program Edition(s) identified in the Statement of Work as being licensed to you by Marsh, excluding source code, and including all updates and modifications thereto (individually and collectively referred to in this agreement as "Published Upgrades"), in each case prepared by Marsh and generally distributed by Marsh to customers licensing the Program, and all related documentation thereto (the "Program Documentation"). You are hereby granted a non-exclusive, non-transferable license to access and use only those modules of the Program,only for that number of licensed users, and only on that number of computers at the locations, specified in the Statement of Work. You may use the Program in accordance with such license to manage information relating only to your company or its subsidiaries or affiliates, but not any other companies, and not for any other purpose or in any other manner. Other than as stated in this Section 2, Marsh retains all rights, including copyrights, in and to the Program. 3. You may access and use the Program only within your company. You may not distribute, demonstrate, allow access to, or otherwise disclose the Program (or any part thereof)to anyone from outside your company. You may not sub-license, assign or transfer to anyone the Program or any part thereof or your license to use the Program or any part thereof. Any such sub-license, assignment or transfer will be void as from the outset. You agree to protect the Program with at least the same degree of care and confidentiality, but not less than a reasonable standard of care, which you utilize for information that you do not wish to disclose to the public. You agree to provide,throughout the term of this agreement, equipment and software to operate the Program in accordance with, and to otherwise comply with, the hardware/software specifications for the Program, and to make such equipment available so that the Program may be installed and accepted. You also agree to be responsible for obtaining all software licenses necessary to enable the Program to operate on such equipment, to take the actions described in the Statement of Work and to provide to Marsh access to such of your personnel, facilities, and information as is reasonably requested by Marsh to enable Marsh to fulfill its obligations under this agreement. You agree not to copy the Program, provided that you may make four(4) copies of the Program for your internal use only for standard back-up purposes or to test Program upgrades in a test environment only and not for any other use or purpose whatsoever and a reasonable number of copies (not to exceed five (5) copies) of the Program Documentation for your internal use with the Program so long as all copyright notices are reproduced. You will be responsible for the confidentiality and use of all IDs, passwords and other security data, methods and devices furnished to you in connection with the Program. You will be solely responsible for the use of any data and information obtained, and all 21 transaction requests electronically transmitted, by any person using your IDs and other security data. You will be responsible for all maintenance, including of site content, and security required or appropriate in connection with the Program, except as expressly referred to in the Statement of Work as being provided by Marsh. You will designate an employee of yours responsible for maintenance and security and shall provide Marsh notice in writing of the name of the person so designated and of any changes in said designee. YOU MAY NOT COPY THE PROGRAM OTHER THAN AS EXPRESSLY PERMITTED IN THIS SECTION 3 ABOVE. YOU MAY NOT REPRODUCE, RECOMPILE, DECOMPILE, DISASSEMBLE, REVERSE ENGINEER, DISTRIBUTE, PUBLISH, DISPLAY, PERFORM, MODIFY, UPLOAD TO, CREATE DERIVATIVE WORKS FROM, TRANSMIT OR IN ANY WAY EXPLOIT ANY PART OF THE PROGRAM,EXCEPT THAT YOU MAY DOWNLOAD MATERIAL FROM THE PROGRAM AND/OR MAKE COPIES OF SUCH MATERIALS FOR USE WITHIN YOUR ORGANIZATION, PROVIDED THAT ALL COPIES RETAIN ALL COPYRIGHT AND OTHER PROPRIETARY NOTICES. MODIFICATION OF THE PROGRAM'S CONTENT IS A VIOLATION OF MARSH'S COPYRIGHT AND OTHER PROPRIETARY RIGHTS. YOU MAY NOT OFFER ANY PART OF THE PROGRAM FOR SALE OR DISTRIBUTE IT OVER ANY OTHER MEDIUM INCLUDING BUT NOT LIMITED TO A COMPUTER NETWORK OR HYPERLINK FRAMING ON THE INTERNET WITHOUT THE PRIOR WRITTEN CONSENT OF MARSH. YOU MAY NOT USE THE PROGRAM AND THE INFORMATION CONTAINED THEREIN TO CONSTRUCT A DATABASE OF ANY KIND OR TO IMPROVE THE QUALITY OF ANY DATA SOLD OR CONTRIBUTED BY YOU TO ANY THIRD PARTY. THE PROGRAM MAY NOT BE STORED BY YOU (IN ITS ENTIRETY OR IN ANY PART) IN DATABASES FOR ACCESS BY YOU OR ANY THIRD PARTY. FURTHERMORE, YOU MAY NOT DISTRIBUTE ANY DATABASE SYSTEMS CONTAINING DATA OBTAINED FROM THE PROGRAM. YOU MAY NOT USE ANY OF MARSH'S NAMES OR MARKS IN ANY MANNER THAT CREATES THE IMPRESSION SUCH NAMES OR MARKS BELONG TO OR ARE ASSOCIATED WITH YOU OR IMPLY ANY ENDORSEMENT BY MARSH, AND YOU ACKNOWLEDGE THAT YOU HAVE NO OWNERSHIP RIGHTS IN AND TO ANY OF THESE NAMES OR MARKS. 4. Marsh will not disclose to any third party any confidential information of your company to which it may be exposed in the course of providing the services required by this agreement, except as contemplated by the Statement of Work or in furtherance of insurance brokerage, risk consultancy, risk financing, risk transfer, employee benefits or other insurance-related services to be rendered by Marsh to your company, which may include in the normal course of business the release to insurers and other financial institutions of Confidential Information relevant to the underwriting and/or evaluation of your risks and the processing of your claims,provided that such insurers and financial institutions are informed of the confidential nature of such information. The following shall not be considered confidential information subject to this Section 4: information that(a) is publicly known prior to disclosure to Marsh hereunder or is publicly known, other than through acts or omissions of Marsh or its employees or representatives, after disclosure to Marsh 22 herewider; (b)as demonstrated by prior written records,is independently developed by Marsh or is already known to Marsh at the time of disclosure; (c) is disclosed to Marsh by a third party which Marsh had no reason to believe had any confidentiality or fiduciary obligation to you with respect to such information; or(d) is disclosed as required by law. If Marsh is required by law to disclose any portion of your confidential information, including, without limitation, pursuant to the terms of a subpoena or other similar document, it shall give prior timely notice of such disclosure to you to permit you to seek a protective or similar order, and, absent the entry of such an order, Marsh shall disclose only such confidential information that it is advised by its counsel must be disclosed by law. The obligations set forth in this Section 4 shall expire two years after termination of this agreement. 5. This agreement will commence on the date stated in the Compensation Summary included in the Statement of Work and will remain in effect for an initial term of three years (the "Initial Term"), unless earlier terminated in accordance with the provisions of this agreement. Upon expiration of the Initial Term of this agreement (or each successive term as the case may be), provided you are not in breach of this agreement and are current on all amounts due Marsh under this agreement, you may renew this agreement for a maximum of three (3) successive one-year renewal terms ("one-year renewal term") by giving Marsh written notice of your intention to so renew at least sixty(60)days prior to the expiration of the Initial Term and each such renewal term and by signing a renewal agreement with Marsh. For each such one-year renewal term, Marsh shall be entitled to increase the Annual Fee charged to you by eight percent (8%) over the Annual Fee charged to you in the prior contract year. In addition, you understand and agree that Marsh will also charge you for any additional Services agreed upon between you and Marsh, upon such renewal, at Marsh's then current rates. This agreement may be terminated by either party if the other party breaches any material term and fails to cure the same within thirty days after written notice thereof from the terminating party. If you so terminate in accordance with the preceding sentence, the annual services fee shall be pro-rated, and any amount due to either party shall be paid within 45 days. Upon the expiration or termination of this agreement, you will make no further use of the Program, will discontinue providing access to and remove all links to the Program and will either destroy or (if requested by Marsh) return to Marsh all copies of the Program (including Program Documentation) and will certify in writing to Marsh that you have done s:,. At the end of the term of this agreement, Marsh may(but will not be obligated to) offer you a new license agreement or renewal. If a new license agreement or renewal is offered, it(1) may be for a different version of the Program than is licensed pursuant to this agreement, (2) may require additional custom or other work to be performed to enable you to use the Program (orsuch different version), (3) may pro via different or additional hardware and/or software requirements and(4) may be ; . , different terms than is contained in this agreement, including additional or different fees or other compensation to Marsh. If a new license agreement or ren ?wal is not offered or you decline to enter into such agreement or renewal, you will oe required, in accordance with this agreement, to cease using the Program, inch ding any custom features. In such case and upon written agreement betwee n you and Marsh, Marsh shall provide such Services to you, as are mutually agree d therein, for a period not to exceed six (6) months from the effective date of to mination (the "Transition Period") to facilitate the transition of your data from the vrogram. All such Services shall be provided to you at Marsh's 23 then current technical services rates. During such Transition Period, any use of or access to the Program by you and all Services provided by Marsh shall be subject to the terms of this agreement. 6. You agree to make the payments described in the Compensation Summary included in the Statement of Work. Payments will be made by you to Marsh on the schedule stated in the Compensation Summary. Fees for additional services or expenses, if any, will be invoiced monthly as incurred. If you do not pay an invoice by the later of 45 days after its date or 15 days after notice that Marsh intends to terminate this agreement for nonpayment, then this agreement and all your rights hereunder will terminate without further notice. You shall be liable for any taxes from which you are not legally exempt (including but not limited to federal manufacturers' and retailers' excise, state and local sales and use taxes, and personal property taxes),public charges, tariffs, and export and import duties, however designated, and any interest and penalties thereon, arising from this agreement, the license of the Program to you, its installation, maintenance or use or the provision of services by Marsh hereunder, other than taxes based on Marsh's income. Any taxes assessable on your copy of the Program on or after its delivery to you shall also be borne by you. All such taxes from which you are not legally exempt shall be included in amounts invoiced to you. You will provide Marsh with a copy of your current certificate of tax exempt status during the term of this agreement. 7. Marsh agrees to defend, settle, or pay, at its own cost and expense, any claim or action against you for infringement of any patent, copyright,trade secret, or similar property right arising from your use in accordance with this agreement of the Program or any other materials furnished by Marsh under this agreement. Marsh shall have the sole right to conduct the defense of any such claim or action and all negotiations for its settlement or compromise and to settle or compromise any such claim, and you agree to cooperate with it in doing so. You agree to give Marsh timely written notice of any threat, warning, or notice of any such claim or action, with copies of all papers you may receive relating thereto. If the Program or any part of the Program is held to infringe and the use thereof is enjoined or restrained or, if as a result of a settlement or compromise, such use is materially adversely restricted,Marsh shall, at its own expense and as your sole remedy therefor, either: (a)procure for you the right to continue to use the Program; or (b) modify the Program to make it non-infringing, provided that such modification does not materially adversely affect your ,mthorized use of the Program; or(c) replace the Program with an equally suitable, compatible, and functionally equivalent non-infringing program at no additional charge to you; or (d) if none o f the foregoing alternatives is reasonably available to Marsh,terminate this agreement and refund to you the payments actually made to Marsh under this agreement. Marsh shall have no liability to you pursuant to this Section 7 to the extent the alleged infringement is based on a modification of I!i. Pr(,iram by anyone other than Marsh or use of the Program other than in accordance with [[, ; wgram Documentation and this agreement or your use of a version of the Program other th�ni the most recent version provided to you by Marsh. 8. Marsh may Mblicize the fact that your company has purchased a license to the Program. Marsh may so use [; ,.c name of your company but not its logotype and will not state or imply that your company endo; scs or recommends the Program. From time to time Marsh may compile and sell databases of risk management information. You agree that Marsh may include in such databases the inform,ition to be processed by your copy of the Program,provided that neither the identity of your conil any nor of any individual claimant will be disclosed in any way. From time 24 to time, Marsh may (and you agree that Marsh may) compile and provide certain subsets of this anonymous benchmark data to all participating companies. 9. Marsh represents and warrants to you as follows: (a) that the Program will perform in all material respects in accordance with the Program Documentation when used on the hardware specified by Marsh for use with the Program from time to time. (b) that,to the best of Marsh's knowledge,prior to its delivery to you,the Program will not contain any programming devices (e.g., viruses,key locks, back doors,trap doors,etc.) which would (i) disrupt the use of the Program or any system, equipment or software to which your networks are interfaced or connected; (ii) destroy or damage data or make data inaccessible or delayed, except for file and purge routines necessary to the routine maintenance of the Program; or(iii)permit Marsh personnel or other individuals access to any portion of the Program after having their usual access privileges revoked or suspended. Marsh will use all reasonable practices and security procedures necessary to avoid insertion of such devices prior to the delivery of the Program to you and will immediately remove any such devices so inserted, at Marsh's cost and expense. Marsh shall not be responsible for: (i) any inaccuracies caused by your third party computer systems, or any inaccuracies that such systems may cause within the Program; (ii) any inaccuracies caused by you entering data into the Program tables through third party tools or caused by your use of a version of the Program other than the most recent version provided to you by Marsh; (iii) any third party applications used by you in conjunction with the Program or which interface with the Program; (iv) any data that it receives from you or third party sources, including its accuracy; or (v) the Program to the extent that it is modified by anyone other than Marsh. To the extent the Program utilizes Internet systems to transmit data or communications,Marsh will take reasonable security precautions,but Marsh disclaims any liability for interception of any such data or communications, including of encrypted data. Marsh shall not be responsible for, and makes no warranties regarding, the access, speed or availability of Internet or network systems. Except as may be specifically set forth elsewhere in this Agreement, you agree that Marsh shall have no responsibility or liability for: (i) any injury or damages arising in connection with access to or use of the Program by you or your employees other than as authorized by this agreement; or (ii) any fault, inaccuracy, omission, delay or any other failure in the Program caused by your computer equipment or arising from use of the Program on such equipment. The content of other Web sites, systems, products or advertisements that may be linked to the Program is not maintained or controlled by Marsh. Marsh is not responsible for the availability, content or accuracy of other Web sites, systems or goods that may be linked to, or advertised on,the Program. 25 Marsh does not: (a) make any warranty, express or implied, with respect to the use of the links provided on, or to,the Program; (b) guarantee the accuracy, completeness, usefulness or adequacy of any other Web sites, systems, products or advertisements that may be linked to the Program; or (c)make any endorsement, express or implied, of any other Web sites, systems, products or advertisements that may be linked to the Program. Marsh is also not responsible for the reliability or continued availability of the telephone lines and equipment you use to access the Program. You acknowledge that Marsh has the right to change the content or technical specifications of any aspect of the Program at any time at Marsh's sole discretion; provided, that, such changes do not have a material adverse impact on the functionality of the Program. THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS SECTION 9 SHALL BE IN FORCE,AS TO EACH ITEM OF THE PROGRAM, FOR A PERIOD OF ONE YEAR AFTER IT IS FIRST DELIVERED TO YOU BY MARSH AND, AS TO EACH PUBLISHED UPGRADE OF THE PROGRAM, FOR THE SAME PERIOD AFTER IT IS FIRST DELIVERED TO YOU BY MARSH PURSUANT TO THIS AGREEMENT. OTHER THAN AS STATED IN THIS AGREEMENT AND THE STATEMENT OF WORK, MARSH MAKES NO WARRANTY OR REPRESENTATION WHATSOEVER, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE PROGRAM, INCLUDING ITS QUALITY, PERFORMANCE, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, OR WITH RESPECT TO ANY SERVICES RELATED TO THE PROGRAM. 10. IN NO EVENT WILL MARSH BE LIABLE UNDER OR IN CONNECTION WITH THIS AGREEMENT FOR INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE SERVICES PROVIDED HEREUNDER OR THE USE OF OR INABILITY TO USE THE PROGRAM, OR THE BREACH BY IT OF ANY REPRESENTATION, WARRANTY, COVENANT OR AGREEMENT CONTAINED IN THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, INCLUDING, BUT NOT LIMITED TO, COSTS INCURRED AS A RESULT OF DECISIONS MADE IN RELIANCE ON THE PROGRAM, LOST PROFITS OR REVENUE, LOSS OF USE OF THE PROGRAM OR ANY SOFTWARE OR OTHER PROPERTY, LOSS OF DATA, THE COSTS OF RECOVERING OR RECONSTRUCTING SUCH DATA OR THE COST OF SUBSTITUTE SOFTWARE, SERVICES OR DATA, OR FOR CLAIMS BY THIRD PARTIES. 11. IN NO EVENT SHALL MARSH BE LIABLE OR OBLIGATED IN ANY MANNER UNDER OR IN CONNECTION WITH THIS AGREEMENT FOR ANY AMOUNT IN EXCESS OF THE PAYMENTS ACTUALLY MADE TO MARSH HEREUNDER. THIS LIMITATION OF MARSH'S LIABILITY IS CUMULATIVE. ALL OF MARSH'S EXPENDITURES ON ACCOUNT OF ANY LIABILITY OR OBLIGATION ARISING UNDER THIS AGREEMENT SHALL BE ADDED TO DETERMINE WHEN THIS LIMITATION OF MARSH'S LIABILITY IS EXHAU��TED. 12. If you choose to access the Program from outside the United States, you are responsible for compliance with foreign and local laws. The Program is not available through Marsh or its affiliates to any person located or organized in, controlled by or who is a national of Cuba, Iran, Libya, North Korea, Sudan or any other country with respect to which the U.S. has enacted trade embargoes or any other entity on the U.S. Treasury Department's list of"Specially Designated Nationals and Blocked Persons" (a "Restricted Entity"). You represent and warrant that you are 26 not a Restricted Entity and are not using the Program for the benefit of a Restricted Entity. 13. The trade names Marsh uses for the Program and the works and elements comprising the Program are protected by copyrights,trademarks, service marks, international treaties and/or other proprietary rights and laws of the U.S. and other countries. The Program is also protected as a collective work or compilation under U.S. copyright and other laws and treaties. You agree to abide by all applicable copyright and other laws, as well as any additional copyright notices or restrictions contained in the Program. You acknowledge that the Program has been developed, compiled, prepared, revised, selected and arranged by Marsh through the application of methods and standards of judgment developed and applied through the expenditure of substantial time, effort and money and constitutes valuable intellectual property and trade secrets of Marsh. You agree to protect the proprietary rights of Marsh and all others having rights in the Program (to the extent you are permitted to do so by law)during and after the term of this agreement and to comply with all reasonable written requests made by Marsh to protect its and others' contractual, statutory and common law rights in the Program. You agree to notify Marsh in writing promptly upon becoming aware of any unauthorized access or use of the Program by any party or of any claim that the Program infringes upon any copyright, trademark or other contractual, statutory or common law rights. All present and future rights in and to trade secrets,patents, copyrights, trade names, trademarks, service marks, databases,know-how and other proprietary rights of any type under the laws of any governmental authority,domestic or foreign,including rights in and to all applications, works of authorship, marks and registrations relating to the Program shall, as between you and Marsh, at all times be and remain the sole and exclusive property of Marsh. All present and future rights in and title to the Program(including the right to exploit the Program and any portions of the Program over any present or future technology) are reserved to Marsh. Without the specific, written consent by Marsh, you may not cause or authorize any Web site to be linked to any Marsh Web site utilized in connection with the Program or any internal or subsidiary page thereof or any other part of the Program, or bring up or present the content of any such Marsh Web site or other part of the Program within another Web site. 14. Neither party shall have liability for any failure or delay in performance of its obligations under this agreement because of circumstances beyond its reasonable control, including without limitation, acts of God, fires, floods, earthquakes, wars, civil disturbances, terrorism, sabotage, accidents, unusually severe weather, labor disputes, governmental actions,power failures, viruses that are not preventable through generally available retail products, inability to obtain labor, material or equipment, catastrophic hardware failures, usage spikes, attacks on Marsh's server, or any inability to transmit or receive information over the Internet,nor shall any such failure or delay give either party the right to terminate this agreement. 15. To the extent alloA ,d by law, You agree to indemnify, defend and hold harmless Marsh for and against any damage, ( )st, liability, expense, claim, suit, action or other proceeding, to the extent based on or arising in Oiinection with (i) a violation of this agreement by you or your employees or anyone using your c )niputers; or(ii)any deletions, additions, insertions or alterations to, or any unauthorized use of, th ! Program by you or your employees or anyone using your computers. 16. Subject to the paym ant annually to Marsh of the applicable fees as set forth in the Statement of Work, you shall become a Preferred Beneficiary of the Source Code Escrow Agreement dated April 4, 2002 between 1\i irsh and Iron Mountain Intellectual Property Management, Inc. (the 27 "Escrow Provider"). You shall execute the Preferred Beneficiary Acceptance Form attached to such Escrow Agreement, a copy of which Preferred Beneficiary Acceptance Form is marked as Exhibit B and attached to this agreement. The term "Program" shall exclude source code unless and until it shall be delivered to you pursuant to such Escrow Agreement, whereupon source code shall be included in the term "Program" and shall be subject to the terms of this agreement. 17. Marsh has obtained a performance bond securing its obligations under this agreement. 18. Marsh shall maintain for the term of this agreement the coverages shown in the attached Certificate of Insurance. 19. This License and Terms of Agreement takes precedence over any conflicting statement or provision in the Statement of Work and any other document furnished by Marsh. This agreement, including all Exhibits hereto,is the complete statement of the agreement of the parties with respect to the subject matter of this agreement and supersedes all prior oral and written agreements with respect to the subject matter hereof This agreement may only be amended by the written agreement of an authorized representative of each party. The validity and construction of this agreement shall be governed by the laws of the State of Texas applicable to agreements made and to be performed therein. Marsh's Statement of Work is valid through 3 years. Your acceptance of this agreement will be indicated by your signature below. If the services and terms detailed in this agreement are acceptable,please sign below and return to Ben Willmann, Marsh USA Inc., 500 N. Akard Street, Suite 2200, Dallas, Texas 75201. ACCEPTED. N BEHALF OF MARSH USA INC. BY: g ////0 cy Name (An officer of Marsh Ris Technologies) Date Title ACCE TED ON BEHALF F C O T WORTH BY: Name ( Dat Title MTESTED BY A�utbori zation _tom �r k�� I K ► x, �� � APPROVED AS TO -- - FORM A LEGALITY: 28 ASSISTANT CITY AT ORN Y -- EXHIBIT B PREFERRED BENEFICIARY_ ACCEPTANCE FORM Depositor,Preferred Beneficiary and Iron Mountain Intellectual Property Management, Inc. ("Iron Mountain"), hereby acknowledge that The City of Fort Worth is the Preferred Beneficiary referred to in the Master Preferred Escrow Agreement effective November 15, 2004 with Iron Mountain as the escrow agent and Marsh USA Inc. as the Depositor. Preferred Beneficiary hereby agrees to be bound by all provisions of such Agreement. Depositor hereby enrolls Preferred Beneficiary to the following account(s): Account Name Deposit Account Number STARS 16082-1301359 Notices and communications to Preferred Beneficiary should be addressed to: Invoices should be addressed to: Company Name: The City of Fort Worth Marsh USA Inc. Address:1000 Throckmorton 500 West Monroe St. Fort Worth, TX 76102 Chicago, IL 60661-3650 Designated Contact: Contact: Debbie Ladendorf Telephone: 7 7 e Facsimile: P.O.#, if required:N/A E-mail: The City of Fort Worth Marsh USA Inc. Preferred Beneficiary Depositor By: Aegy g By: Name:gS W"f ^r Name: .O.U.d6Ar Title: Date: or, 00F* oy Date: Iron Mountain Intellectual Property Managem C. By- Name: J la/I Titl Date: 29 Exhibit C The STARS Implementation Process The STARS Implementation process is broadly organized by the four major phases of project management: Initiate,Plan,Execute, and Close. In each of these phases,there are deliverables and sub-deliverables with their associated activities and work products. These deliverables and activities mirror the structure of the STARS Implementation Project Plan, a Microsoft Project document that will be provided to City of Fort Worth by the Marsh Project Manager. STARS has created standard implementation tools based on project management best practices as well as best practices from STARS implementation specialists. For each deliverable or sub-deliverable, a list of related files and form templates applies. STARS Project Managers are trained in using these files and form templates for facilitating the four phases of the implementation. These files and form templates will ultimately make up the work products of the implementation, and in many cases will serve as deliverables. Work Products The term "Work Product"means those literary works or other works of authorship in any form (such as programs, program listings,programming tools, documentation, or reports), which result from the project. Work Products may be included in activities or tasks within the overall Project Plan and are performed by either Marsh or City of Fort Worth. Work Products are not Deliverables unless identified as such in the appropriate Section of this Statement of Work. A Work Product is not subject to the Deliverable Materials Review Procedure specified in this document unless the Work Product is also a Deliverable. Deliverables A "Deliverable Material" or "Deliverable" is a key Work Product(or composition of Work Products),requiring the approval of City of Fort Worth prior to proceeding to the next phase of the Project. Deliverable Materials are subject to the Deliverable Materials Review Procedure specified in this document. MARSH and City of Fort Worth responsibilities for completion of the listed Deliverables are indicated within each Deliverable description. "Perform,"indicates that the listed entity is responsible for completion of the portion of the Deliverable described; "Assist," indicates that the entity will assist in completion of the work on the respective Deliverable. Project Phases The Project phases are: Initiate Phase: The Initiate phase creates high-level requirements for future capabilities and business performance. Plan Phase: Once the high-level requirements are documented and understood, the Plan phase uses industry best practices to define in more detail the requirements for the future processes, 30 organization, and I.T. infrastructure. The Plan phase creates detailed specifications to support the changes necessary to enable the STARS program at City of Fort Worth. Execute Phase: The Execute phase creates a programmed and tested solution that is ready for production. The solution is migrated to production in the Execute phase. Close Phase: The Close phase is to indicate successful completion of all items in the Statement of Work, document ways to enhance the implementation process, and to formalize the end of the implementation for City of Fort Worth and the entire project team. At this time City of Fort Worth will begin utilizing the Ongoing Services provided in the Statement of Work. Change Management Procedures The following process will be utilized if a change to this Statement of Work is required: 1. A Project Change Request will be the vehicle for communicating change. The PCR will describe the change;the rationale for the change and the effect the change will have on the Proj ect. 2. The Project Manager of the requesting party will review the proposed change and determine whether to submit the request to the other Party. 3. MARSH shall promptly and in good faith evaluate any PCR received from City of Fort Worth. MARSH will specify any charges for such evaluation. If the evaluation is authorized, the Project Managers will sign the PCR that will constitute approval for the evaluation charges. MARSH will invoice City of Fort Worth for any such evaluation charges. 4. Upon request by City of Fort Worth, MARSH will provide City of Fort Worth with: (i) a written estimate of the cost of making a change described in a PCR; (ii) an estimate of the resources to be provided by each Party to complete the change described in a PCR; (iii)the Services to be provided by MARSH in connection with the change described in a PCR; (iv) proposed time schedules or targets for implementation of the change described in a PCR; and (v) reports, completion criteria, and testing methodology. 5. A written Project Change Request must be signed by both Parties to authorize implementation of the evaluated changes. 31 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/28/2004 DATE: Tuesday, September 28, 2004 LOG NAME: 13PO4-0175 REFERENCE NO.: **P-10018 SUBJECT: Purchase of Risk Management Information Software (Stars Software License) from Marsh USA Inc. for the Risk Management Division, Finance Department RECOMMENDATION: It is recommended that the City Council: 1. Authorize the purchase of Risk Management Information Software (Stars Software license) from Marsh USA Inc., using the State of Texas CISV (Catalog Information Systems Vendor) contract provisions; and 2. Authorize an initial contract period of three years (continually renewable through annual maintenance payments) with a total first year cost of $184,850; and 3. Authorize the maintenance agreement to begin October 1, 2005, (first year free) and expire September 30, 2007, with an annual cost of$28,900 for each of the two years. DISCUSSION: The City's Risk Management function has become increasingly complex and financially sensitive over the past few years. Risk Management processes have become hampered by antiquated and disparate software support systems. The Finance Department solicited and received five (5) bids for this project. Based upon a detailed examination of each bid and presentations by each vendor, the review team selected Marsh USA Inc. as being the best value system to meet the City's Risk Management Information software needs. Marsh was selected based upon its superior features, reporting capabilities, anticipation of a seamless transition, financial stability and established client base. It also had superior value-added features including the linking capability to our GIS system, Loss Triangle reporting, pivot tables and graphic representation of reports. The Risk Management information software will include all facets of Incident Reporting, Claim and Lawsuit Management, Risk Exposure and Property Management. The contract provisions include the software cost, data conversions, customization, configuration of screens and processes, installation, training, testing and rollover into production. The contract price also includes necessary software enhancements and modifications for the first year and an interface into the financial system to prepare and process payments for claims. Maintenance funding for the system in year one is not required; the cost for year two and three is $28,900/year. BID TABULATION -See attached tabulation Logname: 13PO4-0175 Page 1 of 2 RENEWAL OPTIONS - This agreement may be renewed for up to two successive one-year terms at the City's option. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current operating budget, as appropriated, of the Insurance Fund. BQN\04-0175\VVW TO Fund/Account/Centers FROM Fund/Account/Centers FE71 539120 0137130 $184,850.00 Submitted for City Manager's Office bv: Richard Zalava (Acting) (8511) Originating Department Head: Jim Keyes (8517) Additional Information Contact: Robert Combs (8357) Logname: 13PO4-0175 Page 2 of 2