ICANN Resolutions » Contract Renewal and Disbursement for ERP Initiative (Oracle Cloud)
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Whereas, ICANN has an established a need to renew contracts for ERP solution, Oracle Cloud.
Whereas, the Board Finance Committee has reviewed the financial implications of contract renewal with Oracle Cloud for ICANN's ERP solution and has considered alternatives.
Whereas, both the organization and the Board Finance Committee have recommended that the Board authorize the President and CEO, or his designee(s), to take all actions necessary to execute the contracts with Oracle Cloud for ICANN's ERP solution and make all necessary disbursements pursuant to those contracts.
Resolved (2019.01.27.12), the Board authorizes the President and CEO, or his designee(s), the take all necessary actions to renew the contracts with Oracle Cloud for ICANN's ERP solution and make all necessary disbursements pursuant to those contracts.
Resolved (2019.01.27.13), specific items within this resolution shall remain confidential for negotiation purposes pursuant to Article 3, section 3.5(b) of the ICANN Bylaws until the President and CEO determines that the confidential information may be released.
ICANN has successfully utilized Oracle Cloud ERP since implementation Go Live in December 2016. Over the past years, ICANN organization has gradually increased the ERP systems and transactional processing knowledge and is in a position to make incremental efficiency improvements to maximize original investment. The Oracle Cloud ERP replaced a then aging Finance, Human Resources and Procurement legacy systems. This solution provided ICANN org with an integrated ERP solution under a single system of record improving systems capacity, global reporting and analysis capability, leading to improved productivity and cross-functional efficiencies, and enhance internal controls.
ICANN's current contract with Oracle Cloud ERP was for a three-year period. This contract expired in December 2018. Oracle Cloud has provided ICANN with a one-month contract extension. Annual cost is [REDACTED – FOR NEGOTIATION PURPOSES].
After thorough analysis, negotiations, and an adjustment to the number of licenses with the supplier, the organization has two options available: (i) three-year contract at [REDACTED – FOR NEGOTIATION PURPOSES] annually with three-year total cost of [REDACTED – FOR NEGOTIATION PURPOSES], (ii) five-year contract at [REDACTED – FOR NEGOTIATION PURPOSES] annually with five-year total cost of [REDACTED – FOR NEGOTIATION PURPOSES].
After careful analysis of options submitted by the organization, the five-year contract option is considered a viable, cost-effective solution. This solution has lower total cost, lock-in pricing for protection against increases for five years, and flexibility for the organization to perform another overall ERP systems analysis in three years (2021-2022) to determine if the solution set is best for ICANN.
The Board reviewed the organization's and the Board Finance Committee's recommendations for contracting and disbursement authority for Oracle Cloud ERP contract renewal.
Taking this Board action fits squarely within ICANN's mission and the public interest in that it ensures that payments of large amounts for one invoice to one entity are reviewed and evaluated by the Board if they exceed a certain amount of delegated authority through ICANN's Contracting and Disbursement Policy. This ensures that the Board is overseeing large disbursements and acting as proper stewards of the funding ICANN receives from the public.
There will be a financial impact on ICANN to renew Oracle Cloud ERP contract. This impact is currently included in the FY20 Operating Plan and Budget that is pending Board approval. This action will not have a direct impact on the security, stability and resiliency of the domain name system.
This is an Organizational Administrative function that does not require public comment.