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HomeMy WebLinkAboutResolutions - 2026.08.13 - 43130 AGENDA ITEM: Extensions Beyond Five-Year Term with Marsh & McLennan Agency, LLC, Qualtrax, Environmental Systems Research Institute (ESRI), Equature, and Ferguson Enterprises DEPARTMENT: Purchasing MEETING: Board of Commissioners DATE: Thursday, August 13, 2026 9:30 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2026-6897 Motion to approve the contract exceptions submitted pursuant to Section 2400.6 of the Oakland County Purchasing Policy and authorize the extension of existing contracts beyond a five (5) year term, including a three-year contract with Marsh & McLennan Agency, LLC for Human Resources - Benefits Administration in the amount of $480,000.00; a three-year contract with Qualtrax for the Oakland County Sheriff’s Office in the amount of $47,639.41; a three-year contract with Environmental Systems Research Institute (ESRI) for the Information Technology Department in the amount of $2,925,000.00; a one-year contract with Equature for the Information Technology Department - Public Safety Division in the amount of $155,755.00; and a five-year contract with Ferguson Enterprises for the Information Technology Department in support of the Water Resources Commissioner’s Office in an amount not to exceed $200,000.00, subject to review and approval by Corporation Counsel of the finalized agreements. ITEM CATEGORY SPONSORED BY Exception to Purchasing Policy Gwen Markham INTRODUCTION AND BACKGROUND The following items request approval to extend current contracts beyond a five-year term. Duration of Contracts: PURPOSE To establish formal guidelines and uniform time period for all contractual agreements. APPLICATION All contractual agreements to procure goods and services. PROCEDURE The majority of contractual agreements run for a period of one to three years. In some instances, the Oakland County Purchasing Division may consider longer contractual terms when advantageous, up to a total of five years. Such considerations include anticipated price increases, or when the vendor requires a lengthy startup time for the delivery of goods and services. Contracts, which exceed three years, shall require the approval of the Purchasing Division manager. The Board of Commissioners shall approve contracts beyond five years. POLICY ANALYSIS The proposed action would approve five exceptions under Section 2400.6 of the Oakland County Purchasing Policy, authorizing contract extensions beyond the five-year limit with Marsh & McLennan Agency, LLC; Qualtrax; Environmental Systems Research Institute; Equature; and Ferguson Enterprises. Based on the corrected contract amounts provided by the departments, the combined potential value of the extensions is $3,808,394.41. This total reflects a revised three-year amount of $480,000 for Marsh & McLennan Agency and a revised amount of $47,639.41 for Qualtrax. The requests identify legitimate continuity concerns involving benefits consulting, forensic laboratory accreditation, countywide geographic information systems, emergency communications, and water- meter infrastructure. The additional information provided by Purchasing and the using departments resolves several of the initial concerns regarding contract amounts, price reasonableness, utilization, and future procurement planning. Marsh & McLennan Agency, LLC – Three Years, $480,000 The extension would maintain benefits consulting services during implementation of the County’s five-year benefits roadmap and upcoming procurements for disability, life, and medical insurance. Human Resources clarified that Marsh & McLennan will maintain its fee at $160,000 annually, for a total of $480,000 over the three-year extension. The previously reported amount of $929,966.68 has been corrected. The $480,000 represents Marsh & McLennan’s compensation, including commissions or payments received from benefit carriers. Commissions associated with the stop- loss arrangement that cannot be separated by the carrier are credited back to the County monthly. Additional services may occasionally be provided on a direct pass-through basis and invoiced through a contract addendum. Human Resources also clarified that the Board-approved five-year benefits roadmap projected total savings of approximately $12.4 million over five years. Estimated 2026 savings ranged from $1.5 million to $9.5 million depending on employee elections, and the County currently estimates that approximately $3.6 million has been saved in 2026 to date. The corrected amount and additional savings information substantially strengthen the justification for the extension. Continued reporting of any pass-through addenda will be important so the County can distinguish Marsh & McLennan’s fixed compensation from additional project-specific expenses. Qualtrax – Three Years, $47,639.41 Qualtrax supports forensic laboratory accreditation, document control, training records, and audit workflows. Replacing the system would require the transfer of records and the redevelopment of established accreditation and quality-control processes. The Sheriff’s Office clarified that the annual amount originally listed in the report was incorrect. The annual cost has been revised from $12,482 to $15,876.47, and the total contract amount has been revised from $47,629.41 to $47,639.41. The revised annual amount largely resolves the original discrepancy. However, a minor mathematical difference remains: $15,876.47 multiplied by three years equals $47,629.41, which is $10 less than the revised total of $47,639.41. The final report should reconcile this remaining difference so the annual and total amounts are consistent. Environmental Systems Research Institute – Three Years, $2,925,000 ESRI provides the County’s core geographic information system and supports more than 1,200 employees, the Road Commission, local communities, public-facing applications, and emergency and infrastructure operations. The operational case for maintaining the platform is substantial because it is integrated into workflows across the County. The proposed annual cost of $975,000 represents an approximately 14 percent increase following five years of fixed pricing. The department reports that ESRI recently changed its licensing model and pricing across its customer base and that the proposed increase is consistent with those broader changes. The agreement is structured as a countywide enterprise agreement rather than a per-user license arrangement. It is intended to accommodate current use and anticipated growth without additional per-user costs. The County also performs annual departmental reviews of specialized analytical licenses to ensure they are appropriately allocated and accounted for within the enterprise agreement. The department has also established a longer-term review process. During the first year of the extension, Information Technology and Procurement intend to begin a comprehensive analysis of the County’s strategic direction for GIS technology, with recommendations targeted for completion during the second year. The evaluation will consider a complete vendor transition, incremental changes to individual GIS components, and the development of alternative products in the marketplace. This information addresses the principal concerns regarding utilization and long-term planning. Because a full transition could require multiple years, adherence to the proposed first- and second-year review milestones will be important to ensure the County has sufficient time to implement any recommended changes before the extension expires. Equature – One Year, $155,755 Equature records and transcribes 911 radio and telephone communications for all 20 Oakland County dispatch centers and interfaces with several other public-safety systems. The extension is intended to provide sufficient time for a competitive solicitation and coordinated implementation of either a replacement system or a renewed solution. The current contract expires January 31, 2027. The proposed one-year extension would continue the agreement through January 31, 2028. Although the extension itself is for one year, the department will have approximately 18 months from the present planning period to complete the procurement and transition. An RFP is scheduled to begin in October 2026, with evaluation, vendor selection, implementation, and any required transition targeted for completion by January 31, 2028. The department does not currently anticipate requesting another exception. The principal remaining consideration is timely completion of the RFP and implementation milestones, particularly because Equature interfaces with multiple public-safety systems and all 20 dispatch centers. Ferguson Enterprises – Five Years, Not to Exceed $200,000 The Neptune 360 platform is used to manage more than 40,000 Neptune water meters, making replacement of the underlying software and installed meter infrastructure potentially cost-prohibitive. The report therefore provides a strong operational justification for continuing the Neptune product. Procurement conducted a pricing comparison using historical pricing published by Waterford Township in its February 28, 2025 Board meeting minutes and compared those amounts with the County’s historical pricing for the same product. Based on that review, Procurement determined that the Ferguson Enterprises pricing represents an approximate 50 percent discount compared with pricing paid by other municipalities. The initial report described the discount as approximately 60 percent. That figure has been corrected to approximately 50 percent in the updated report. Procurement concluded that conducting a competitive solicitation would not be in the County’s best interest because the County is already receiving substantially discounted pricing. The cost comparison strengthens the price-reasonableness justification for continuing with Ferguson Enterprises. FISCAL IMPACT: No Budget Amendment Needed Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at 248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional information. CONTACT Alycia Williams, Chief Procurement Officer ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 8/13/2026 AGENDA DEADLINE: 07/30/2026 4:30 PM ATTACHMENTS 1. Exceeds 5 Year Term - August COMMITTEE TRACKING 2026-08-16 Finance - Recommend to Board 2026-08-13 Full Board - Adopt Motioned by: Commissioner Gwen Markham Seconded by: Commissioner Yolanda Smith Charles Yes: Ann Erickson Gault, Marcia Gershenson, Robert Hoffman, Brendan Johnson, Karen Joliat, Penny Luebs, Gwen Markham, William Miller III, Angela Powell, Robert Smiley, Yolanda Smith Charles, Michael Spisz, Linnie Taylor, David Woodward (14) No: Charles Cavell, Christine Long, Kristen Nelson (3) Abstain: None (0) Absent: Michael Gingell, Philip Weipert (2) Passed