Item - 2023.GG2.23

The General Government Committee recommends that:

1. City Council authorize the Chief Technology Officer to execute a non-competitive Non-Ontario Public Service (Non-OPS) Client Agreement to the Volume Licensing Agreement (VLA) with OpenText Corporation ("OpenText") for the purchase of Enterprise Information Management ("EIM") products and services for a term from the date of award to November 24, 2025, with an option at the City's discretion to extend for up to two (2) consecutive one (1)-year terms, and in the amount of $965,000 net of all applicable taxes and charges ($981,984 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the Chief Technology Officer and in a form satisfactory to the City Solicitor.

The purpose of this report is to seek authority to execute a non-competitive Non-Ontario Public Service (Non-OPS) Client Agreement to a Volume Licensing Agreement (VLA) with OpenText Corporation ("OpenText") for the purchase of Enterprise Information Management ("EIM") products and services. The cost will be $965,000 net of all applicable taxes and charges ($981,984 net of Harmonized Sales Tax recoveries).

It is estimated that more than 90% of City information is born in electronic form. The City has a continuing need for supporting infrastructure and technologies to manage the whole lifecycle of all City records, paper and electronic.

OpenText Records Management Application provides the City a complete centralized records lifecycle management solution. As the City's digital content grows, key benefits are the ability to manage information storage costs, reduce cybersecurity risks, and privacy compliance requirements set out in the City of Toronto Act.

In 2009, the Province of Ontario competitively procured OpenText as its Enterprise Information Management Vendor of Record (VOR) Number 1020 for Enterprise Document and Records Management ("EDRMS") Products and Professional Services. In 2015, the City received authority from City Council to leverage the Vendor of Record due to proper fit and favourable pricing and to negotiate and execute a separate non-exclusive three (3)-year agreement with OpenText Corporation for the purchase of professional services as well as licenses and associated support and maintenance. Following the 2015 award, the City used OpenText products and services to develop an enterprise platform to manage the City’s electronic records.

The Provincial Vendor of Record Number 1020 for OpenText products and services expired on May 19, 2019. Subsequently, the Province negotiated a new Volume Licencing Agreement (VLA) with OpenText. The initial term of the VLA was three (3) years, effective November 25, 2019, with two extensions of three (3) years and two (2) years, respectively. The new VLA is under Vendor of Record Number MGS-OPENTEXT-VLA, and it is non-competitive. The City leveraged this VLA and entered into a non-competitive Non-OPS Client Agreement (dated April 6, 2020) with OpenText, which enabled the City to save considerable time and effort in the Provision in this regard. The term of the agreement was set at a two (2)-year term from April 6, 2020, to April 5, 2022.

The City seeks a non-competitive Non-OPS Client Agreement with OpenText for a term from the date of award to November 24, 2025, with an option at the City's discretion to extend for up to two (2) consecutive one (1)-year terms which would align with the term of the Province’s VLA with OpenText to November 24, 2025 including the extension to November 24, 2027.   

The City is requesting authority to spend for the purchase of new licences and professional services for capital projects by leveraging the new VLA with OpenText  under Vendor of Record Number MGS-OPENTEXT-VLA which is valid until November 24, 2025, with the potential to extend for two more years.  In 2023, capital projects will support Solid Waste Management Services and Pension, Payroll and Employee Benefits divisions onboarding to the OpenText Records Management platform TRECS. This effort will require professional services delivered by OpenText. Without a contract, no spend authority allows purchasing of new licences and services.

City Council approval is required in accordance with Municipal Code Chapter 195-Purchasing, where the current request exceeds the Chief Procurement Officer's authority of the cumulative five-year commitment limit for each supplier under Article 7, Section 195-7.3D of the Purchasing By-Law or exceeds the threshold of $500,000 net of Harmonized Sales Tax allowed under staff authority as per the Toronto Municipal Code, Chapter 71-Financial Control, Section 71-11A.