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HomeMy WebLinkAboutAgreement A-21-363 with Fujitsu.pdf1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AGREEMENT THIS AGREEMENT (“Agreement”) is made and entered into this day of September, 2021 (“Effective Date”), by and between the COUNTY OF FRESNO, a political subdivision of the State of California ("COUNTY"), and Fujitsu America, Inc., a California corporation, whose address is 2821 Telecom Parkway, Richardson, TX 75082 ("CONTRACTOR"). Recitals A.The COUNTY relies upon its Property Management Information System (PMIS) to run its entire property tax assessment and collection system. The PMIS is used by both the Assessor-Recorder’s office and the Auditor-Controller/Treasurer-Tax Collector’s office for work that is essential to the operation of the COUNTY. B.The PMIS is more than 50 years old and was designed to be run and supported in COBOL. C.The COUNTY desires to convert the PMIS from its existing mainframe infrastructure to a .NET environment to enable better support and maintenance of the PMIS with existing COUNTY staff. D.The COUNTY released a Request for Proposal (RFP# 21-022) on December 18, 2020, seeking proposals for modernization of its property tax system E.CONTRACTOR submitted a proposal and COUNTY selected CONTRACTOR’s proposal. F.COUNTY and CONTRACTOR desire to execute this Agreement for converting the PMIS from its existing mainframe COBOL infrastructure to a .NET environment. NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions herein contained, the parties hereto agree as follows: 1.DEFINITIONS The following terms are defined as follows for purposes of this Agreement : Final System Acceptance means all conversion services are completed and User Acceptance Testing is complete, the converted PMIS software has been installed and tested, the PMIS data is converted, and the PMIS performs all functions in accordance with its specifications set forth in the SOW, the post-implementation support provided in section 4 of Exhibit B to this Agreement is complete, and the COUNTY has delivered to CONTRACTOR a written notice of acceptance. The COUNTY’s Director of Internal Services / Chief Information Officer is authorized to give the COUNTY’s written 7th Agreement No. 21-363 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 notice under the preceding sentence. First Production Use is the date of first use of the system in a production environment as established by a written notice of First Production Use, to be delivered by the COUNTY to CONTRACTOR within five COUNTY business days of First Production use. For purposes of this Agreement, production environment means the converted PMIS software with the County data incorporated and ready for use. Notwithstanding the foregoing, First Production Use shall occur no later than the Production Cut-over milestone. ISD is the COUNTY’s Internal Services Department. Converted System Software is the PMIS computer software as converted under this Agreement into a Microsoft Windows, .NET environment, using C# and PowerShell as appropriate, and its associated data converted into associated SQL databases. Converted System Software does not include operating system software, or any other third -party software that is necessary for the COUNTY to use the Converted System Software. The Converted System Software shall be the property solely of the COUNTY upon payment in full of amounts pay able to CONTRACTOR. Capitalized terms not defined above have the meanings given to them in Exhibit B to this agreement, titled “Statement of Work.” 2.OBLIGATIONS OF THE CONTRACTOR A.CODE AND DATA CONVERSION CONTRACTOR shall perform the services provided in Exhibit B to this Agreement, titled “Statement of Work.” B.TIMELINE CONTRACTOR and COUNTY shall commence the project within one (1) month of the effective date of this Agreement. The anticipated duration of the project is nineteen (19) months after project commencement. C.DATA SECURITY The parties agree that CONTRACTOR shall only require limited access to Personal Information (as defined in Exhibit A) in order to perform the services described in the SOW. As such, COUNTY agrees that CONTRACTOR shall only be provided with access to any Personal Information in 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 accordance with the SOW. For such Personal Information to which CONTRACTOR requires access in order to properly perform the services described in the SOW, CONTRACTOR shall comply with all provisions of Exhibit A to this Agreement, titled “Data Security.” 3.OBLIGATIONS OF COUNTY A.STATEMENT OF WORK COUNTY shall perform the COUNTY’s obligations provided in Exhibit B to this Agreement. B.COUNTY CONTRACT ADMINISTRATOR The Director of Internal Services/Chief Information Officer, or their designee, is the COUNTY’s Contract Administrator authorized to deal with CONTRACTOR in the administration of this Agreement. The COUNTY’s Contract Administrator is authorized to approve changes in the project scope, plan, or schedule, as needed under Exhibit B, unless such changes would increase the total compensation payable to the CONTRACTOR by more than 10 percent. Changes in the project scope, plan, or schedule that would increase the total compensation payable to the CONTRACTOR by more than 10 percent must be approved by the COUNTY’s Board of Supervisors under section 8 of this Agreement. The authority of the COUNTY’s Contract Administrator does not include modifications under section 8 of this Agreement. C.SYSTEM HARDWARE AND SYSTEM SOFTWARE COUNTY will, at its own expense, provide and properly maintain and update on an ongoing basis all necessary hardware required to operate the System Software. For the System Software in its converted form, COUNTY’s hardware shall meet or exceed CONTRACTOR’s recommendations , as provided in P370 Architecture Design. D.TECHNICAL ASSISTANCE CONTRACTOR will provide technical assistance to COUNTY’s ISD staff. In addition to the responsibilities detailed on Section 6 of Exhibit B , COUNTY will provide all of the following: 1)Network connectivity as reasonably necessary and troubleshooting assistance; 2)Monitoring of network traffic and isolation of bottlenecks to ensure that the COUNTY network is capable of supporting the Converted System Software; 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3)Technical assistance concerning the integration with existing COUNTY systems; and 4)Expertise to handle issues with COUNTY PCs, printers, and cabling at all times. 4.TERM The term of this Agreement shall be for the duration of the project described in Section 2, or a maximum of three (3) years. 5.TERMINATION A.Non-Allocation of Funds The terms of this Agreement, and the services to be provided hereunder, are contingent on the approval of funds by the appropriating government agency. Should sufficient funds not be allocated, the services provided may be modified, or this Agreement termi nated, at any time without penalty by giving the CONTRACTOR thirty (30) days advance written notice. B.Breach of Contract This Agreement may be terminated by either party (the “non -defaulting party”) if any of the following events occur by or with respect to the other party (the “defaulting party”): (i) the defaulting party commits a material breach of any of its obligations hereunder and fails to cure such breach within thirty (30) days following receipt of written notice from the non-defaulting party with the particularities of such breach (or if such breach reasonably cannot be cured in thirty (30) days, such longer period of time as may be reasonably necessary to effect such cure if the defaulting party furnishes to the non -defaulting party within such thirty (30) day period a feasible plan demonstrating that it is capable of curing the breach and diligently proceeds to implement such plan to completion); or (ii) any insolvency of the defaulting party, any filing of a petition in bankruptcy by or against th e defaulting party, any appointment of a receiver for the defaulting party, any assignment for the benefit of the defaulting party’s creditors or any ceasing of conducting business in the ordinary course. The COUNTY may immediately suspend or terminate this Agreement in whole or in part, where in the determination of the COUNTY there is an illegal or improper use of funds. In no event shall any payment by the COUNTY constitute a waiver by the COUNTY of any breach of this Agreement or any default which may then exist on the part of the CONTRACTOR. Neither shall such payment impair or prejudice any remedy available to the COUNTY with respect to the breach or default. 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The COUNTY shall have the right to demand of the CONTRACTOR the repayment to the COUNTY of any funds disbursed to the CONTRACTOR under this Agreement, which the COUNTY can reasonably prove were not expended in accordance with the terms of this Agreement. The CONTRACTOR shall promptly refund any such funds upon demand, subject to confirmation of such improper disbursement by COUNTY. C.Without Cause Under circumstances other than those set forth above, this Agreement may be terminated by either party by giving 45 days’ advance written notice to the other party of an intention to terminate. 6.COMPENSATION AND INVOICING COUNTY agrees to pay CONTRACTOR, and CONTRACTOR agrees to receive compensation, as follows: A.CONVERSION PROJECT The total fixed price for the Project (as that term is defined in Exhibit B) is $3,152,108.00. B.ADDITIONAL SERVICES Additional or supplemental services may be approved in writing by COUNTY and CONTRACTOR via revisions to Exhibit B as provided in this Agreement. The total aggregate cost for those additional services shall not exceed $500,000.00. CONTRACTOR shall submit an invoice for each payment milestone as provided in section 14 of Exhibit B referencing the provided contract number via mail, to the County of Fresno, Department of Internal Services, Attention: Director of Internal Services/Chief Information Officer, 333 W. Pontiac Way, Clovis, CA 93612. COUNTY shall pay CONTRACTOR within thirty (30) days of receipt of an invoice. COUNTY shall remit payment to CONTRACTOR’s address specified in the approved invoice. The total maximum compensation payable to CONTRACTOR during the term of this Agreement without additional or supplemental services is $3,152,108. The total maximum compensation payable to CONTRACTOR during the term of this Agreement if additional or supplemental services are approved as provided in this Agreement is $3,467,319.00. All expenses incidental to CONTRACTOR's performance of services under this Agreement shall be borne solely by CONTRACTOR. 7.INDEPENDENT CONTRACTOR In performance of the work, duties and obligations assumed by CONTRACTOR under this 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Agreement, it is mutually understood and agreed that CONTRACTOR, including any and all of the CONTRACTOR'S officers, agents, and employees will at all times be acting and p erforming as an independent contractor, and shall act in an independent capacity and not as an officer, agent, servant, employee, joint venturer, partner, or associate of the COUNTY. Furthermore, COUNTY shall have no right to control or supervise or direct the manner or method by which CONTRACTOR shall perform its work and function. However, COUNTY shall retain the right to administer this Agreement so as to verify that CONTRACTOR is performing its obligations in accordance with the terms and conditions the reof. CONTRACTOR and COUNTY shall comply with all applicable provisions of law and the rules and regulations, if any, of governmental authorities having jurisdiction over matters the subject thereof. Because of its status as an independent contractor, CONTRACTOR shall have absolutely no right to employment rights and benefits available to COUNTY employees. CONTRACTOR shall be solely liable and responsible for providing to, or on behalf of, its employees all legally -required employee benefits. In addition, CONTRACTOR shall be solely responsible and save COUNTY harmless from all matters relating to payment of CONTRACTOR'S employees, including compliance with Social Security withholding and all other regulations governing such matters. It is acknowledged that during the term of this Agreement, CONTRACTOR may be providing services to others unrelated to the COUNTY or to this Agreement. 8.MODIFICATION Any matters of this Agreement may be modified from time to time by the written consent of all the parties without, in any way, affecting the remainder. 9.NON-ASSIGNMENT Neither party may assign its rights or delegate its obligations this Agreement without the prior written consent of the other party. 10.INDEMNITY A.CONTRACTOR agrees to indemnify, save, hold harmless, and at CONTRACTOR’S election, defend the COUNTY, its officers, agents, and employees from any and all costs and expenses (including attorney’s fees and costs), damages, liabilities and losses awarded in a final judgment and occurring or resulting to COUNTY as a result of a third party claim by any person, firm, or corporation (a) who may be injured or suffered physical damage to real or tangible personal property (excluding 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 software, data and documentation), to the extent caused directly and proximately by the negligence or willful misconduct of CONTRACTOR, its officers, agents, or employees under this Agreement , or (b) alleging infringement in a deliverable of such third party’s valid U.S. patent or copyright or misappropriation of such third party’s trade secret . B.If an infringement or misappropriation claim as described in Section 10. A. arises, or if CONTRACTOR reasonably believes that a claim is likely to be made, CONTRACTOR may, at its option: (i) modify the applicable deliverables so that they become non-infringing but functionally equivalent; (ii) replace the applicable deliverables with material that is non -infringing but functionally equivalent; or (iii) obtain for COUNTY the right to use such deliverables upon commercially reasonable terms to both parties but at no cost to COUNTY; or (iv) remove the infringing or violative Deliverables and refund to COUNTY the fees received for such deliverables that are the subject of such a claim based on a fiv e (5) year straight line depreciation. CONTRACTOR shall have no obligation under this Section 10 or other liability for any infringement or misappropriation claim resulting or alleged to result from: (1) use of the deliverables or any part thereof in combination with any non-CONTRACTOR approved equipment, software or data, or in any manner for which the same was not designed, or if same has been modified or altered by an person or entity other than CONTRACTOR; (2) any aspect of COUNTY’S software, documentation or data which existed prior to CONTRACTOR’S performance of Service; (3) any use of a superseded or altered release of some or all of the deliverables if infringement would have been avoided by the use of a subsequent unaltered release of the deliverabl es; or (4) any claim arising from any instruction, information, design, specification, software, data or other materials furnished by or any third party to CONTRACTOR hereunder. This Section 10 sets forth the exclusive remedy of the COUNTY and entire liability and obligation of CONTRACTOR with respect to intellectual property infringement or misappropriation claims, including patent or copyright infringement claims and trade secret misappropriation. The provisions of this Section 10 survive the termination of this Agreement. 11.INSURANCE; LIMITATIONS OF LIABILITY A.Required Policies Without limiting the COUNTY’s right to obtain indemnification from CONTRACTOR or any third 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 parties, CONTRACTOR, at its sole expense, shall maintain in full force and effect the following insurance policies throughout the term of the Agreement (which may be satisfied using any combination of primary or excess liability coverage): 1)Commercial General Liability. Commercial general liability insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence and an annual aggregate of Four Million Dollars ($4,000,000). This policy must be issued on a per occurrence basis. CONTRACTOR shall name the County of Fresno, its officers, agents, employees, and volunteers, individually and collectively, as additional insureds, but only insofar as the operations under this Agreement are concerned. Such coverage for additional insureds will apply as primary insurance and any other insurance, or self-insurance, maintained by COUNTY is excess only and not contributing with insurance provided under CONTRACTOR’s policy. 2)Automobile Liability. Automobile liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence for bodily injury and for property damages. Coverage must include any auto used in connection with this Agreement. 3)Workers Compensation. Workers compensation insurance as required by the California Labor Code. 4)Technology Professional Liability. Technology professional liability (errors and omissions) insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence. Coverage must encompass all of CONTRACTOR’s obligations under this Agreement, including but not limited to claims involving Cyber Risks. B.Additional Requirements Relating to Insurance 1)Verification of Coverage. Within 30 days after CONTRACTOR signs this Agreement, CONTRACTOR shall deliver, or cause its broker or producer to deliver, to the ISD Business Office at 333 W. Pontiac Way, Clovis, CA 93612, or at ISDBusinessOffice@fresnocountyca.gov certificates of insurance for all of the coverages required under this Agreement. a.Reserved. b.The commercial general liability insurance certificate must also state that: (1) the County of Fresno, its officers, agents, employees, and volunteers, individually and collectively, are additional insureds insofar as the operations under this Agreement are concerned; (2) the 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 coverage shall apply as primary insurance and any other insurance, or self -insurance, maintained by COUNTY shall be excess only and not contributing with insurance provided under CONTRACTOR’s policy. c.The automobile liability insurance certificate must state that the policy covers any auto used in connection with this Agreement. 2)Acceptability of Insurers. All insurance policies required under this Agreement must be issued by admitted insurers licensed to do business in the State of California and possessing at all times during the term of this Agreement an A.M. Best, Inc. rating of A:VII or greater. 3)Notice of Cancellation of Coverage. For each insurance policy required under this Agreement, CONTRACTOR shall provide to COUNTY, or ensure that the policy requires the insurer to provide to COUNTY, written notice of any cancellation or change in the policy below the limits set forth herein, as required in this paragraph. For cancellation of the policy for nonpayment of premium, CONTRACTOR shall, or shall cause the insurer to, provide written notice to COUNTY not less than 10 days in advance of cancellation. For cancellation of the policy for any other reason, and for any other change to the policy below the limits set forth herein, CONTRACTOR shall, or shall cause the insurer to, provide written notice to COUNTY not less than 30 days in advance of cancellation or change. COUNTY in its sole discretion may determine that the failure of CONTRACTOR or its insurer to timely provide a written notice required by this paragraph is a breach of this Agreement. 4)Reserved. 5)Waiver of Subrogation. CONTRACTOR waives its right to recover from COUNTY, its officers, agents, employees, and volunteers any amounts paid under the policy of worker’s compensation insurance required by this Agreement. CONTRACTOR is solely responsible to obtain any policy endorsement that may be necessary to accomplish that waiver, but CONTRACTOR’s waiver of subrogation under this paragraph is effective whether or not CONTRACTOR obtains such an endorsement. 6)County’s Remedy for Contractor’s Failure to Maintain. If CONTRACTOR fails to keep in effect at all times any insurance coverage required under this Agreement, COUNTY may, in addition to any other remedies it may have, suspend or terminate this Agreement upon the occurrence of that failure . C.Limitations of Liability 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1.IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY OTHER PERSON OR ENTITY FOR ANY SPECIAL, EXEMPLARY, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES. 2.Except for any liability of CONTRACTOR under Section 10 hereof, in no event shall the liability of CONTRACTOR to the COUNTY arising out of, related to or in connection with this Agreement, the Services or any deliverables exceed, in the aggregate, two (2) times the total fees paid by COUNTY to CONTRACTOR during the preceding six (6) month period under the SOW. 3.If CONTRACTOR has been engaged by COUNTY to install, implement, integrate, maintain or upgrade a third-party software program or application (“Third Party Software”), COUNTY acknowledges that CONTRACTOR is not the author, developer, provider or seller of such Third Party Software, but instead has been retained by COUNTY solely to install, implement, integrate, mainta in or upgrade such Third Party Software in COUNTY’s current computing environment. As such, COUNTY agrees that CONTRACTOR will not be liable for any defects, flaws, programming errors, inefficiencies or malfunctions in any such Third Party Software, or for any lack of functionality in or non-performance of the Third Party Software. 12.AUDITS AND INSPECTIONS Upon reasonable prior written request of the COUNTY, t he CONTRACTOR shall at any time during business hours, and as often as the COUNTY may deem necessary but in any case not more often than once per each year of the term of this Agreement , make available to the COUNTY for examination all of its records and data with respect to the matters covered by this Agreement. The CONTRACTOR shall, upon reasonable prior written request by the COUNTY, but in any case not more than once per each year of the term of this Agreement, permit the COUNTY to audit and inspect all of such records and data necessary to ensure CONTRACTOR'S compliance with the terms of this Agreement. If this Agreement exceeds ten thousand dollars ($10,000.00), CONTRACTOR shall be subject to the examination and audit of the California State Auditor for a period of three (3) years after final payment under contract (Government Code Section 8546.7). 13.NOTICES 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The persons and their addresses having authority to give and receive notices under this Agreement include the following: COUNTY CONTRACTOR COUNTY OF FRESNO Fujitsu America, Inc.Director of Internal Services/CIO Erik Olson, Sr. Client Executive 333 W. Pontiac Way 1270 East Arques Avenue, #M1Clovis, CA 93612 Sunnyvale CA, 94085 ISDContracts@FresnoCountyCA.gov erik.olson@fujitsu.com All notices between the COUNTY and CONTRACTOR provided for or permitted under this Agreement, excluding communication through the escalation contacts as provided in section 14, must be in writing and delivered either by personal service, by first-class United States mail, by email to the address listed above, or by an overnight commercial courier service. A notice delivered by personal service is effective upon service to the recipient. A notice delivered by first -class United States mail is effective three COUNTY business days after deposit in the United States mail, postage prepaid, addressed to the recipient. A notice delivered by an overnight commercial courier service is effective one COUNTY business day after deposit with the overnight commercial courier service, delivery fees prepaid, with delivery instructions given for next day delivery, addressed to the recipient. A notice delivered by email is effective when transmission to the recipient is completed (but, if such transmission is completed outside of COUNTY business hours, then such delivery shall be deemed to be effective at the next beginning of a COUNTY business day), provided that the sender maintains a machine record of the completed transmission. For all claims arising out of or related to this Agreement, nothing in this section establishes, waives, or modifies any claims presentation requirements or procedures provided by law, including but not limited to the Government Claims Act (Division 3.6 of Title 1 of the Government Code, beginning with section 810). 14.ESCALATION CONTACTS Each party’s Project Manager, as provided in Exhibit B, shall contact the persons listed in Exhibit C, titled “Escalation Contacts,” to escalate issues, risks, and problems to the other party in the event they are not resolved informally by the persons directly involved, as provided in Exhibit B. Communication through the escalation contacts is only for purposes of facilitating project management, including timely completion of the Project, and is not a notice under section 13 of this Agreement, a modification under section 8 of this Agreement, or a change in the project scope, plan, or schedule 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 under section 3.B. of this Agreement . Contract administration issues shall not be handled by communication through the escalation contacts. 15.CONTRACTOR INTELLECTUAL PROPERTY “CONTRACTOR IP” means all software, methodologies, tools, compilers, specifications, concepts, techniques, documentation and/or data utilized by CONTRACTOR in the performance of s ervices hereunder, together with any and all additions, enhancements, improvements or other modifications thereto (whether or not made during the performance of the services), which (a) has been originated or developed by CONTRACTOR, its affiliates or by third parti es outside of the scope of the s ervices, or (b) has been purchased by or licensed to CONTRACTOR. CONTRACTOR IP includes all patent, copyright, trade secret and other intellectual property rights related to any of the foregoing. Nothing contained in this Agreement or otherwise shall be construed to grant to COUNTY any right, title, license or other interest (whether by estoppel, implication or otherwise), in any CONTRACTOR IP. 16.VENUE AND GOVERNING LAW Venue for any action arising out of or related to this Agreement shall only be in Fresno County, California. The rights and obligations of the parties and all interpretation and performance of this Agreement shall be governed in all respects by the laws of the State of California. 17.DISCLOSURE OF SELF-DEALING TRANSACTIONS This provision is only applicable if t he CONTRACTOR is operating as a corporation (a for-profit or non-profit corporation) or if during the term of the agreement, the CONTRACTOR changes its status to operate as a corporation. Members of the CONTRACTOR’s Board of Directors shall disclose any self-dealing transactions that they are a party to while CONTRACTOR is providing goods or performing services under this agreement. A self-dealing transaction shall mean a transaction to which the CONTRACTOR is a party and in which one or more of its directors has a material financial interest. Members of the Board of Directors shall disclose any self -dealing transactions that they are a party to by completing and signing a Self-Dealing Transaction Disclosure Form, attached hereto as Exhibit D and incorporated herein by reference, and submitting it to the COUNTY prior to commencing with the self -dealing transaction or 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 immediately thereafter. 18.ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the CONTRACTOR and COUNTY with respect to the subject matter hereof , and supersedes all previous Agreement negotiations, proposals, commitments, writings, advertisements, publications, and understanding of any nature whatsoever unless expressly included in this Agreement . If there is any inconsistency between the terms of this Agreement and the terms of the exhibits, then the inconsistency will be resolved by giving precedence first to the terms of this Agreement without its exhibits, and then to the terms of the Exhibit B, and then to the terms of Exhibit A. IN WITNESS WHEREOF, the parties hereto have execut ed this Agreement as of the day and year 2 first hereinabove written. 3 4 5 6 7 8 9 10 11 12 13 14 15 e Wichman , Senior Commercial Di rector 16 FOR ACCOUNTING USE ONLY: 17 Fund : 1020 18 Subciass: 10000 19 ORG: 8905 20 Account: 731 1 21 22 23 24 25 26 27 28 ::~::Zl.~Board of Supervisors of the County of Fresno ATTEST: Bernice E. Seidel Clerk of the Board of Supervisors County of Fresno , State of Californ ia By : ---"~~\ M....,.,...,_) ___.,_.,~~~--- Depu~) 14 Exhibit A Data Security A-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A. Definitions. Capitalized terms used in this Exhibit A have the meanings set forth in this section A. “Authorized Employees” means CONTRACTOR’s employees who have access to Personal Information. “Authorized Persons” means: (i) any and all Authorized Employees; and (ii) any and all of CONTRACTOR’s subcontractors, representatives, agents, outsourcers, and consultants, and providers of professional services to CONTRACTOR, who have access to Personal Information and are bound by law or in writing by confidentiality obligat ions sufficient to protect Personal Information in accordance with the terms of this Exhibit A. “Director” means COUNTY’s Director of Internal Services -Chief Information Officer or his or her designee. “Disclose” or any derivative of that word means to disclose, release, transfer, disseminate, or otherwise provide access to or communicate all or any part of any Personal Information orally, in writing, or by electronic or any other means to any person. “Person” means any natural person, corporation, partnership, limited liability company, firm, or association. “Personal Information” means any and all information, including any data, identified in the SOW as necessary to be provided, or to which access is necessary to be provided, to CONTRACTOR by or upon the authorization of COUNTY, under this Agreement in order for CONTRACTOR to properly perform the services, which may include but is not limited to vital records, that: (i) identifies, describes, or relates to, or is associated with, or is capable of being used to identify, describe, or relate to, or associate with, a person (including, without limitation, names, physical descriptions, signatures, addresses, telephone numbers, e- mail addresses, education, financial matters, employment history, and other uni que identifiers, as well as statements made by or attributable to the person); (ii) is used or is capable of being used to authenticate a person (including, without limitation, employee identification numbers, government -issued identification numbers, passwords or personal identification numbers (PINs), financial account numbers, credit report information, answers to security questions, and other personal identifiers); or is personal information within the meaning of California Civil Code section 1798.3, subdivision (a), or 1798.80, subdivision (e). Personal Exhibit A Data Security A-2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Information does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records. “Privacy Practices Complaint” means a complaint received by COUNTY relating to CONTRACTOR’s (or any Authorized Person’s) privacy practices, or alleging a Security Breach. Such complaint shall have sufficient detail to enable CONTRACTOR to promptly investigate and take remedial action under this Exhibit A. “Security Safeguards” means physical, technical, administrative or organizational security procedures and practices put in place by CONTRACTOR (or any Authorized Persons) that relate to the protection of the security, confidentiality, value, or integrity of Personal Information. Security Safeguards shall satisfy the minimal requirements set forth in subsection C.(5) of this Exhibit A. “Security Breach” means (i) any act or omission that compromises either the security, confidentiality, value, or integrity of any Personal Information or the Security Safeguards, or (ii) any unauthorized Use, Disclosure, or modification of, or any loss or destruction of, or any corruption of or damage to, any Personal Information. “Use” or any derivative thereof means to receive, acquire, collect, apply, manipulate, employ, process, transmit, disseminate, access, store, disclose, or dispose of Personal Information. B. Standard of Care. (1) CONTRACTOR acknowledges that, in the course of its engagement by COUNTY under this Agreement, CONTRACTOR, or any Authorized Persons, may Use Personal Information only as permitted in this Agreement. (2) CONTRACTOR acknowledges that Personal Information is deemed to be confidential information of, or owned by, COUNTY (or persons from whom COUNTY receives or has received Personal Information) and is not confidential information of, or owned or by, CONTRACTOR, or any Authorized Persons. CONTRACTOR further acknowledges that all right, title, and interest in or to the Personal Information remains in COUNTY (or persons from whom COUNTY receives or has received Personal Information) regardless of CONTRACTOR’s, or any Authorized Person’s, Use of that Personal Information. (3) CONTRACTOR agrees and covenants in favor of COUNTY that CONTRACTOR shall: (i) keep and maintain all Personal Information in strict confidence, using such degree of care under this Subsection Exhibit A Data Security A-3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B as is reasonable and appropriate to avoid a Security Breach; (ii) Use Personal Information exclusively for the purposes for which the Personal Information is made accessible to CONTRACTOR pursuant to the terms of this Exhibit A; (iii) not Use, Disclose, sell, rent, license, or otherwise make available Personal Information for CONTRACTOR’s own purposes or for the benefit of anyone other than COUNTY, without COUNTY’s express prior written consent, which the COUNTY may give or withhold in its sole and absolute discretion; and (iv) not, directly or indirectly, Disclose Personal Information to any person (an “Unauthorized Third Party”) other than Authorized Persons pursuant to this Agreement, without the Director’s express prior written consent. Notwithstanding the foregoing paragraph, in any case in which CONTRACTOR believes it, or any Authorized Person, is required to disclose Personal Information to government regulatory authorities, or pursuant to a legal proceeding, or otherwise as may be required by applicable law, Contractor shall (a) immediately notify COUNTY of the specific demand for, and legal authority for the disclosure, including providing County with a copy of any notice, discovery demand, subpoena, or order, as applicable, received by CONTRACTOR, or any Authorized Person, from any government regulatory authorities, or in relation to any legal proceeding, and (b) promptly notify COUNTY before such Personal Information is offered by CONTRACTOR for such disclosure so that COUNTY may have sufficient time to obtain a court order or take any other action COUNTY may deem necessary to protect the Personal Information from such disclosure, and CONTRACTOR shall cooperate with COUNTY to minimize the scope of such disclosure of such Personal Information. CONTRACTOR shall remain liable to COUNTY for the actions and omissions of any Unauthorized Third Party concerning its Use of such Personal Information as if they were CONTRACTOR’s own actions and omissions. C. Information Security. (1) CONTRACTOR covenants, represents and warrants to COUNTY that Contractor’s Use of Personal Information under this Agreement does and shall at all times comply with all federal, state, and local, privacy and data protection laws, as well as all other applicable regulations and directives, including but not limited to California Civil Code, Division 3, Part 4, Title 1.81 (beginning with section 1798.80 ), and the Song-Beverly Credit Card Act of 1971 (California Civil Code, Division 3, Part 4, Title 1.3, beginning with Exhibit A Data Security A-4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 section 1747), to the extent as such laws, regulations and directives apply to CONTRACTOR. (2) CONTRACTOR covenants, represents and warrants to COUNTY that, as of the Effective Date, CONTRACTOR has not received notice of any violation of any privacy or data protection laws, as well as any other applicable regulations or directives, and is not the subject of any pending legal action or investigation by, any government regulatory authority regarding same. (3) Without limiting CONTRACTOR’s obligations under subsection C.(1) of this Exhibit A, CONTRACTOR’s (or Authorized Person’s) Security Safeguards with respect to the Personal Information shall be no less rigorous than accepted industry practices and, at a minimum, include the following: (i) limiting Use of Personal Information strictly to CONTRACTOR’s and Authorized Persons’ technical and administrative personnel who are necessary for the CONTRACTOR’s, or Authorized Persons’, Use of the Personal Information pursuant to this Agreement; (ii) ensuring that all of CONTRACTOR’s connectivity to County computing systems will only be through COUNTY’s security gateways and firewalls, and only through security procedures permitted under the SOW or otherwise approved upon the express prior written consent of the Director; (iii) to the extent that they contain or provide access to Personal Information, (a)taking reasonable measures to secure CONTRACTOR’s business facilities, data centers, paper files, servers, back-up systems and computing equipment, operating systems, and software applications, including, but not limited to, all mobile devices and other equipment, operating systems, and software applications with information storage capability (collectively, “Contractor Facilities and Equipment”); (b) employing adequate controls and data security measures with respect to Contractor Facilities and Equipment), both internally and externally, to protect (1) the Personal Information from potential loss or misappropriation, or unauthorized Use, and (2) the COUNTY’s operations from disruption and abuse; (c) having and maintaining reasonable network, device application, database and platform security; (d) maintaining authentication and access controls within media, computing equipment, operating systems, and software applications; and (e) installing and maintaining in all mobile, wireless, or handheld devices a secure internet connection, having continuously updated anti-virus software protection and a remote wipe feature always enabled in accordance with CONTRACTOR’s then-current security policies; (iv) encrypting all Personal Information at advance encryption standards of Advanced Encryption Standards (AES) of 128 bit or higher (a) stored on any mobile devices, including but not limited to hard disks, portable storage Exhibit A Data Security A-5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 devices, or remote installation, or (b) transmitted over public or wireless networks (the encrypted Personal Information must be subject to password or pass phrase, and be stored on a secure server and transferred by means of a Virtual Private Network (VPN) connection, or another type of secure connection, all of which is subject to express prior written consent of the Director); (v) strictly segregating Personal Information from all other information of CONTRACTOR, including any Authorized Person, or anyone with whom CONTRACTOR or any Authorized Person deals so that Personal Information is not commingled with any other types of information; (vi) having a patch management process including installation of all operating system/software vendor security patches; (vii) maintaining appropriate personnel security and integrity procedures and practices, including, but not limited to, conducting background checks of Authorized Employees consistent with applicable law; and (viii) providing appropriate privacy and information security training to Authorized Employees. (4) During the term of each Authorized Employee’s employment by CONTRACTOR, CONTRACTOR shall require such Authorized Employees to abide strictly by CONTRACTOR’s obligations under this Exhibit A. CONTRACTOR further agrees that it shall maintain a disciplinary process to address any unauthorized Use of Personal Information by any Authorized Employees. (5) CONTRACTOR shall, in a secure manner, backup daily, or more frequently if it is CONTRACTOR’s practice to do so more frequently, Personal Information received from COUNTY, and the COUNTY shall have immediate, real time access, at all times, to such backups via a secure, remote access connection provided by CONTRACTOR, through the Internet. (6) If required pursuant to the SOW or otherwise agreed in a change order, and subject to any additional terms set forth therein, CONTRACTOR shall provide COUNTY with the name and contact information for each Authorized Employee (including such Authorized Employee’s work shift, and at least one alternate Authorized Employee for each Authorized Employee during such work shift) who shall serve as COUNTY’s primary security contact with CONTRACTOR and shall be available to assist COUNTY twenty-four (24) hours per day, seven (7) days per week as a contact in resolving CONTRACTOR’s and any Authorized Persons’ obligations associated with a Security Breach or a Privacy Practices Complaint. (7) CONTRACTOR shall not knowingly include or authorize any Trojan Horse, back door, time bomb, drop dead device, worm, virus, or other code of any kind that may disable, erase, display any Exhibit A Data Security A-6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 unauthorized message or otherwise impair the System Software, with or without the intent to cause harm. D. Security Breach Procedures. (1)Promptly, and without undue delay, upon CONTRACTOR’s confirmation of a Security Breach, CONTRACTOR shall (a) notify the Director of the Security Breach, such notice to be given first by telephone at the following telephone number, followed promptly by email at the following email address: (559) 600-6200 / servicedesk@fresnocountyca.gov (which telephone number and email address COUNTY may update by providing notice to CONTRACTOR), and (b) preserve all relevant evidence (and cause any affected Authorized Person to preserve all relevant evidence) relating to the Security Breach. The notification shall include, to the extent reasonably possible, the identification of each type and the extent of Personal Information that has been, or is reasonably believed to have been, breached, including but not limited to, compromised, or subjected to unauthorized Use, Disclosure, or modification, or any loss or destruction, corruption, or damage. (2)Immediately following CONTRACTOR’s notification to COUNTY of a Security Breach, as provided pursuant to subsection D.(1) of this Exhibit A, the Parties shall coordinate with each other to investigate the Security Breach. CONTRACTOR agrees to reasonably cooperate with COUNTY (the cost to be split by both parties, unless the Security Breach was caused by CONTRACTOR’S material failure to comply with its obligation under this Exhibit A, in which case it shall be at CONTRACTOR’s expense), including, without limitation: (i) assisting COUNTY in conducting any investigation; (ii) providing COUNTY with physical access to the facilities and operations aff ected; (iii) facilitating interviews with Authorized Persons and any of CONTRACTOR’s other employees knowledgeable of the matter; and (iv) making available all relevant records, logs, files, data reporting and other materials required to comply with applicable law, regulation, industry standards, or as otherwise reasonably required by COUNTY. To that end, CONTRACTOR shall, with respect to a Security Breach caused by CONTRACTOR’S material failure to comply with its obligations under this Exhibit A, be solely responsible, at its cost, for all notifications required by law and regulation, and CONTRACTOR shall provide a written report of the investigation and reporting required to the Director within thirty (30) days after the CONTRACTOR’s discovery of the Secur ity Breach. (3) County shall promptly notify CONTRACTOR of the Director’s knowledge, or reasonable belief, of Exhibit A Data Security A-7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 any Privacy Practices Complaint, and upon CONTRACTOR’s receipt of notification thereof, CONTRACTOR shall promptly address such Privacy Practices Complaint, including taking any corrective action under this Exhibit A, all at CONTRACTOR’s sole expense if the Privacy Practices Complaint was due to CONTRACTOR’S material failure to comply with its obligations under this Exhibit A, in accordance with applicable privacy rights, laws, regulations and standards. In the event CONTRACTOR discovers a Security Breach, CONTRACTOR shall treat the Privacy Practices Complaint as a Security Breach. Within seventy-two (72 ) hours of CONTRACTOR’s receipt of notification of such Privacy Practices Complaint, CONTRACTOR shall notify COUNTY whether the matter is a Security Breach, or otherwise has been corrected and the manner of correction, or determined not to require corrective action and the reason therefor, in each case subject to the provisions of the security breach procedures set forth herein. (4)CONTRACTOR shall take prompt corrective action to respond to and remedy any Security Breach and take reasonable mitigating actions, including but not limiting to, preventing any reoccurrence of the Security Breach and correcting any deficiency in Security Safeguards as a result of such incident, all at CONTRACTOR’s sole expense if the Security Breach was caused by CONTRACTOR’S material failure to comply with its obligations under this Exhibit A, in accordance with applicable privacy rights, laws, regulations and standards. If the Security Breach was caused by CONTRACTOR’S material failure to comply with its obligations under this Exhibit A, CONTRACTOR shall, in addition to its other obligations under this Exhibit A, reimburse COUNTY for the following reasonable costs incurred by COUNTY in responding to, and mitigating the Security Breach, to the extent applicable: (1) the cost of providing affected individuals with credit monitoring services for a specific period not to exceed twelve (12) months, to the extent the incident could lead to a compromise of the data subject’s credit or credit standing; (2) call center support for such affected individuals for a specific period not to exceed thirty (30) days; and (3) the cost of any measures required under applicable laws. E. Oversight of Security Compliance. (1) CONTRACTOR shall have and maintain a written information security policy that specifies Security Safeguards appropriate to the size and complexity of CONTRACTOR’s operations and the nature and scope of its activities. Exhibit A Data Security A-8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (2)Upon COUNTY’s reasonably prior written request and not more than once during the term of the Agreement, to confirm CONTRACTOR’s compliance with this Exhibit A, as well as any applicable laws, regulations and industry standards, CONTRACTOR grants COUNTY or, upon COUNTY’s election, a third party on COUNTY’s behalf (who shall not be a competitor of CONTRACTOR), permission to perform an assessment, audit, examination or review of all controls in CONTRACTOR’s physical and technical environment in relation to all Personal Information that is Used by CONTRACTOR pursuant to this Agreement, with the final scope of such audit to be mutually agreed by the CONTRACTOR and the COUNTY in advance of the audit. CONTRACTOR shall reasonably cooperate with such assessment, audit or examination, as applicable, by providing COUNTY or the third party on COUNTY’s behalf, access to all Authorized Employees and other knowledgeable personnel, physical premises, documentation, infrastructure and application software that is Used by CONTRACTOR for Personal Information pursuant to this Agreement. In addition, CONTRACTOR shall provide COUNTY with the results of any audit by or on behalf of CONTRACTOR that assesses the effectiveness of CONTRACTOR’s inform ation security program as relevant to the security and confidentiality of Personal Information Used by CONTRACTOR or Authorized Persons during the course of this Agreement under this Exhibit A. The COUNTY or third party performing the audit shall comply with CONTRACTOR’s applicable security policies and procedure when conducting such audit, and in no event shall the COUNTY or THIRD PARTY be permitted to access the information of any other CONTRACTOR customer. (3) CONTRACTOR shall ensure that all Authorized Persons who Use Personal Information agree to the same restrictions and conditions in this Exhibit A. that apply to CONTRACTOR with respect to such Personal Information by incorporating the relevant provisions of these provisions into a valid and binding written agreement between CONTRACTOR and such Authorized Persons, or amending any written agreements to provide same. F. Return or Destruction of Personal Information. Upon the termination of this Agreement, CONTRACTOR shall, and shall instruct all Authorized Persons to, promptly return to COUNTY all Personal Information, whether in written, electronic or other form or media, in its possession or the possession of such Authorized Persons, in a machine readable form used by COUNTY at the time of such return, or upon the express prior written consent of the Director, Exhibit A Data Security A-9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 securely destroy all such Personal Information, and certify in writing (e-mail permissible) to the COUNTY that such Personal Information have been returned to COUNTY or disposed of securely, as applicable. If CONTRACTOR is authorized to dispose of any such Personal Information, as provided in this Exhibit A, such certification shall state the date, time, and manner (including standard) of disposal and by whom, specifying the title of the individual. CONTRACTOR shall comply with all reasonable directions provided by the Director with respect to the return or disposal of Personal Information and copies thereof. If return or disposal of such Personal Information or copies of Personal Information is not feasible, CONTRACTOR shall notify COUNTY according, specifying the reason, and continue to extend the protections of this Exhibit A to all such Personal Information and copies of Personal Information. CONTRACTOR shall not retain any copy of any Personal Information after returning or disposing of Personal Information as required by this section F. CONTRACTOR’s obligations under this section F survive the termination of this Agreement and apply to all Personal Information that CONTRACTOR retains if return or disposal is not feasible and to all Personal Information that CONTRACTOR may later discover. G. Equitable Relief. CONTRACTOR acknowledges that any breach of its covenants or obligations set forth in this Exhibit A may cause COUNTY irreparable harm for which monetary damages would not be adequate compensation and agrees that, in the event of such breach or threatened breach, COUNTY is entitled to seek equitable relief, including a restraining order, injunctive relief, specific performance and any other relief that may be available from any court, in addition to any other remedy to which COUNTY may be entitled at law or in equity. Such remedies shall not be deemed to be exclusive but shall be in addition to all other remedies available to COUNTY at law or in equity or under this Agreement. H.Indemnification. CONTRACTOR shall defend, indemnify and hold harmless COUNTY, its officers, employees, and agents, (each, a “COUNTY Indemnitee”) from and against any and all damages, costs or expenses of whatever kind, including attorneys’ fees and costs, awarded by a court pursuant to an award, final judgment, or settlement as a result of any third party claim or action against any COUNTY Indemnitee resulting from CONTRACTOR’s, its officers, employees, or agents, or any Authorized Employee’s or Authorized Person’s, negligence or willful misconduct in the performance or failure to perf orm under this Exhibit A Data Security A-10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit A. In the event of any such claim, the COUNTY shall provide prompt written notice of the claim, CONTRACTOR shall have the right to control the defense of the claim, and provisions of Section 11.C. of the Agreement shall continue to apply. The provisions of this section H do not apply to the acts or omissions of COUNTY. The provisions of this section H are cumulative to any other obligation of CONTRACTOR to, defend, indemnify, or hold harmless any COUNTY Indemnity under this Agreement. The provisions of this section H shall survive the termination of this Agreement. I. Survival. The respective rights and obligations of CONTRACTOR and COUNTY as stated in this Exhibit A shall survive the termination of this Agreement. J. No Third Party Beneficiary. Nothing express or implied in the provisions of in this Exhibit A is intended to confer, nor shall anything herein confer, upon any person other than COUNTY or CONTRACTOR and their respective successors or assignees, any rights, remedies, obligations or liabilities whatsoever. L. No County Warranty. COUNTY does not make any warranty or representation whether any Personal Information in CONTRACTOR’s (or any Authorized Person’s) possession or control, or Use by CONTRACTOR (or any Authorized Person), pursuant to the terms of this Agreement is or will be secure from unauthorized Use, or a Security Breach or Privacy Practices Complaint. County of Fresno Property Tax System Modernization M002 Statement of Work Version 0.5 10 August 2021 Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 3 of 29 Table of Contents Statement of Work ...................................................................................................................... 5 Project Overview ......................................................................................................................... 6 1. Project Name .................................................................................................................. 6 2. Project Objectives ........................................................................................................... 6 3. Project Description ......................................................................................................... 6 4. In Scope ......................................................................................................................... 8 a. Project Management ....................................................................................................... 8 b. Architecture .................................................................................................................... 8 c. Source Code Conversion ................................................................................................. 9 d. Data Conversion ........................................................................................................... 10 e. System Security ............................................................................................................ 10 f. System Utilities ............................................................................................................ 10 g. Modern Environment .................................................................................................... 10 h. Testing ......................................................................................................................... 10 i. Reporting...................................................................................................................... 11 j. Documentation ............................................................................................................. 11 k. Performance Testing ..................................................................................................... 11 l. Knowledge Transfer & End User Training .................................................................... 12 m. Production Cut-over...................................................................................................... 12 n. 60 Calendar days of post -implementation support ......................................................... 12 o. Post Implementation Review ........................................................................................ 12 5. Out of Scope ................................................................................................................. 13 6. County of Fresno Staff .................................................................................................. 13 a. Roles and Responsibilities ............................................................................................ 14 b. Additional County Responsibilities ............................................................................... 15 7. Fujitsu Staff .................................................................................................................. 16 8. Deliverables.................................................................................................................. 18 9. Acceptance Criteria ...................................................................................................... 23 a. Project Deliverables ...................................................................................................... 23 b. Code / Sprint Acceptance .............................................................................................. 24 10. Performance Criteria ..................................................................................................... 25 a. Code Sprint .................................................................................................................. 25 Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 4 of 29 b. System Performance ..................................................................................................... 25 c. Production Implementation ........................................................................................... 25 11. Location of Services ..................................................................................................... 26 12. Total Project Price ........................................................................................................ 26 13. Expenses ...................................................................................................................... 26 14. Payment Milestones ...................................................................................................... 27 15. Milestone Acceptance Criteria ...................................................................................... 27 16. Disaster Recovery ......................................................................................................... 28 17. Change Management .................................................................................................... 28 18. Point of Contact ............................................................................................................ 28 19. Warranty ...................................................................................................................... 29 Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 5 of 29 Statement of Work This Statement of Work is part of, and attached as Exhibit B to, the agreement (“Agreement”) between the County of Fresno, a political subdivision of the State of California (“County”) and Fujitsu America, Inc., a California corporation (“Fujitsu”). The objective of the project described in this Statement of Work (“SOW”) is for Fujitsu to migrate the County’s Property Management Information System (“PMIS”) from its current IBM mainframe environment to operate in a Windows server / C# / .Net / Structured Query Language (“SQL”) Server database environment (hereinafter, “new environment”) within County’s secure network or AZURE cloud platform. Fujitsu will convert existing applications and ensure that those converted, migrated applications function in the new environment. Numbers in this document in the format M### or P### (fo r example, “M036,” “M050,” “P120,” and “P219”) are organizational reference tags for convenience only. They refer to work product and deliverable documents that will be generated by Fujitsu and reviewed and approved by the County, as described in this SOW, and according to the terms of this Agreement. Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 6 of 29 Project Overview 1. Project Name The name of the project described by this SOW is “Property Tax System Modernization Project,” referred to below as “project” or “the project.” 2. Project Objectives The objective of the project is to migrate the PMIS from the IBM mainframe to the new environment within County’s secure network or AZURE cloud platform. 3. Project Description To complete the project, Fujitsu will provide all of the following services (“Services”) to County, subject to the terms of this Agreement including this SOW: • Convert the PMIS from the current IBM environment to a Windows .Net, C#, SQL Server environment. • Design and implement a SQL Server database and migrate Virtual Storage Access Method (“VSAM”) (both structure and data) into that SQL Server database so that the new SQL Server database is functionally equivalent to the old VSAM. • Convert COBOL programs from the current IBM environment to the new environment. • Convert IBM Job Control Language (“JCL”) jobs to PowerShell. • Assist in the setup, system rebuild , and deployment of the modernized PMIS into County testing environments. • Write test scripts to be used during Unit, Functional, Quality Assurance and User Acceptance testing activities. • Perform Unit and Functional testing of the modernized PMIS on Fujitsu’s test environment. • Perform performance testing of the modernized PMIS. • Create and deliver training for the County’s information technology (“IT ”) staff in the County’s Internal Services Department (“ISD”), and in the Offices of the County’s Assessor -Recorder (“Assessor”) and Auditor -Controller/Treasurer -Tax Collector (“Auditor”), and for users in the Offices of the Assessor and the Auditor . • Assist in the Production Cut-over process and activities. • Provide post-implementation support for the modernized PMIS for 60 calendar days beyond the date of First Production Use as defined in Section 1 of this Agreement. Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 7 of 29 The PMIS source code component per subsystem counts are as follows: Full Name COBOL BATCH COBOL CICS Includes / Copybook CICS Maps JCL/PROCLIB Count LoC Count LoC LoC Count LoC Count LoC Assessor Information Control System 34 56,140 9 62,840 5,620 7 3,421 28 4,963 Appraisal Information System 26 25,815 9 23,842 2,504 9 4,364 37 3,277 Homeowners System 19 10,948 3 7,248 409 4 2,201 26 2,481 Mobile Homes 2 997 2 3,103 231 2 821 5 292 Personal Property 69 56,851 13 35,917 2,103 13 7,261 73 14,343 Situs System 8 2,882 2 4,617 42 4 1,056 9 938 Secured Master System 61 4,277 8 19,353 1,012 5 3,060 60 12,613 Secured Values system 33 25,974 1 2,464 222 1 1,100 48 5,195 Collections System 67 58,425 4 3,015 187 1 210 57 10,406 Prior Years Unsecured 17 17,145 143 10 1,933 Rate Structure System 17 15,133 340 32 3,267 Secured Delinquent System 88 112,203 15 28,295 2,786 41 8,596 45 9,273 Secured Extension System 97 74,778 71 214,112 13,037 44 19,993 85 12,450 Supplemental System 88 94,959 45 148,845 11,081 24 8,365 60 12,202 Unsecured System 92 80,926 19 59,429 2,358 19 15,257 112 22,225 Totals 718 637,453 201 613,080 42,075 174 75,705 687 115,858 The PMIS batch utility source code components are as follows: Batch Utilities (COBOL) Count LoC CC 9 1523 UN 1 28 B098 18 5487 WK 1 301 SL 1 30 AL 1 210 Total 31 7579 Total PMIS source code components are as follows: COBOL Screen JCL/PROC Line of Code Total 950 174 687 1,491,750 Data components are as follows: GDG Models Generations VSAM Total 150 2800 377 Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 8 of 29 4.In Scope The following services to be performed by Fujitsu are included within the scope of this SOW: a.Project Management Fujitsu will use its methodology, Macroscope, as its primary management and delivery approach. Macroscope is Fujitsu’s methodology, file repository, and toolset that provides access to procedures, techniques, deliverable templates, report templates, and approaches for the entire lifecycle of IT solutions embracing Information Technology Infrastructure Library (ITIL), Project Management Body of Knowledge (PMBOK), Business Analysis Body of Knowledge (BABOK), Development Operations (DevOps), Agile, and many other standards and frameworks. Fujitsu will provide deliverables through Macroscope. Fujitsu will ensure that the County is able to revie w and monitor deliverables, and provide comments and responses, through Macroscope. Fujitsu will generate the following project management deliverables, which provide vital information promptly to help monitor and control the project: M036 – Project Schedule and Integrated Plan M050 – Bi-Weekly Status Report M016 – Resource Plan M017 – Communication Management Plan M018 – Project Risk and Issues Management Plan M047 – Project Risk Log M048 – Project Issue Log M052 – Deliverable Review and Approval Log M053 – Deliverables Status Log M042 – Change Request M044 – Change Request Log Each of the project management deliverables listed above is described in more detail in Section 8 of this SOW. b.Architecture Fujitsu will execute a full inventory assessment of the PMIS system. Fujitsu will use its PROGRESSION Code analysis tool to execute an automated code assessment, which includes: -the output of the PROGRESSION code analysis tool to understand the components type, references, dependencies, and code complexity; -a high-level analysis of the dependency references for any missing components; -identifies any 3rd party tools used within the PMIS application; and -an assessment for the PMIS application baseline inventory. Fujitsu will then determine the completeness of the inventory and build the technical scope for the conversion (including, but not limited to, every interface; and missing, obsolete, and 3rd party modules), dependencies, types, complexity, and break the work into successive sprints with intended timelines and functional areas. Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 9 of 29 During the inventory assessment activities, County supporting activities will include the following: -aid in locating and delivering any missing components that Fujitsu requires for the inventory assessment; -for the online applications, provide a list of in-scope online transaction codes for the applications; -for each batch application, provide a list of jo b streams dependencies that are part of the batch application, or provide a softcopy report of the job streams and dependencies for the batch application from the job scheduling system, whichever is appropriate to that batch application as agreed by the Project Managers; -assist in resolving any questions regarding duplicate components; -provide insight into areas of special processing, interfaces, etc.; and -verify the resulting reports’ contents, ensuring that the components that make up the applications are correctly classified. During the Architecture phase Fujitsu will generate the following deliverables: P120 Inventory P219 Software Architecture P370 Architecture Design P340 Data Conversion Rules P340 Production Data Conversion Strategy (will be produced later in the project) Each of the deliverables listed above is described in more detail in Section 8 of this SOW. c.Source Code Conversion Fujitsu will use its PROGRESSION automated tool suite to: -convert the County’s PMIS mainframe application COBOL/CICS/VSAM/JCL applications to a modern Microsoft Windows, .NET, C#, SQL Server platform; -convert all code and data “as-is,” which preserves current data, functionality, business rules, and “look and feel” that exists on the legacy mainframe; -migrate the user access security “as is”; and -replicate the current business processes and batch run stream, which will allow continuity of the assessment, billing, and collection of the County’s property tax revenue. The conversion and testing activities will be executed within Fujitsu’s secured AZURE managed lab that is located according to CSP security requirement and have data encrypted at rest and implement MFA. - Fujitsu will generate the following deliverable with each Sprint delivery: -P650/P600 Migrated Source Code & Database The deliverable listed above is described in more detail in Section 8 of this SOW. Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 10 of 29 d. Data Conversion Fujitsu will use its PROGRESSION tool suite to: - convert County data from VSAM to SQL tables and automatically generate a Data Access Component (DAC) based on the design of the old VSAM structure and the new database ; and - generate validation reports comparing the VSAM data to the target SQL Server database to verify data accuracy and integrity. • VSAM tables may contain the following types of Personal Information: - Property taxpayer name, address, and social security number e. System Security Fujitsu will work with the County to design a Single Sign On (SSO) user authentication and authorization for the converted mainframe application. With agreement from the County, Fujitsu will select an SSO solution during the project’s architecture phase, which the County will confirm the SSO solution meets the County’s security standard. The SSO will integrate with the County’s Active Directory. f. System Utilities Fujitsu will use its PROGRESSION assessment activities to identify all system utilities involved in the PMIS application, and will migrate or replace all relevant utilities to the new Microsoft Windows .NET environment g. Modern Environment Fujitsu will use its PROGRESSION tool suite to migrate the PMIS application to the Microsoft Windows .NET platform using C# language, SQL Server database . During the architecture, the target deployment platform will be decided between on premise or cloud AZURE deployment. h. Testing Fujitsu will write test scripts to be used during Unit, Functional, Quality Assurance and User Acceptance testing phases: - From the mainframe test environment with test data that will be provided to Fujitsu for conversion to SQL Fujitsu will execute a full test cycle to ensure that the modernized PMIS application retains all its integrity and robustness: - Unit Testing : performed by Fujitsu developers in their unit test environment - Functional Testing : performed by Fujitsu functional testers in a AZURE test environment - Quality Assurance : performed by County staff in a test environment and supported by Fujitsu - User Acceptance Test : performed by County staff in pre-production environment and supported by Fujitsu - Automated regression and performance tests after code delivery Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 11 of 29 Fujitsu will use Jira to track project related tickets / defects. If desired and approved by the County Project Manager, the County Test Team will have the ability to integrate their reporting process with Fujitsu for a single tracking system. Fujitsu will use Microsoft Azure DevOps for its internal Continuous Delivery/Continuous Integration (“CD/CI”) processes to support the PMIS conversion and testing activities. Any DevOps Repo setup and automated pipeline scripts created during the project can be included and provided to the County to create a County environment if desired. Fujitsu also uses internal automated test tools to execute regression and performance tests thru all testing phases of the project. These scripts can also be included and provided to the County for no additional cost if requested by the County’s Contract Administrator. Fujitsu will generate the following testing deliverables: P405 Test Strategy & Plan P770 Fujitsu Test Results Each of the testing deliverables listed above is described in more detail in Section 8 of this SOW. i. Reporting Fujitsu will convert existing report programs so that the report formats are migrated as -is from the legacy platform to the new platform. This allows for proper integration with existing external processes. The reporting migration strategy is as follows: - Generating a PDF file of the report: all converted reports will support PDF generation; - Storing the report file in the specified file system location: all converted reports will support a similar report file structure and file format as found in the legac y environment; - Handling report security: Fujitsu will deploy a security strategy following the Microsoft standard and best practices to provide similar or improved secure access to reports in the modernized application; and - Integration with web-based PDF report posting process. Fujitsu’s PROGRESSION tool suite supports integrating with different external processes and will retain the same file format as the legacy system. j. Documentation Fujitsu will provide updated documentation through test scripts in electronic format, which details how users, administrators, and staff perform specific functions in the system. Where applicable, Fujitsu will use the legacy documentation provided by the County as a foundation and update it to reflect the new platform. k. Performance Testing Fujitsu will validate the modernized PMIS application, and remediate if necessary , so that it performs as well, or better than, the Legacy Performance Baseline defined in Section 6. Fujitsu will generate the following performance testing deliverables: P415 Performance and Stress Testing Plan P914 Technical Performance Report Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 12 of 29 Each of the performance testing deliverables listed above is described in more detail in Section 8 of this SOW. l.Knowledge Transfer & End User Training Fujitsu will provide User Manuals, in electronic format, to be used in the project's training phase to present system functionality to end -users which will focus on the differences between the legacy environment and the new modern environment. Fujitsu will generate the following knowledge transfer and training deliverables: P710 Training and Knowledge Transfer Plan P710 Training Material Each of the knowledge transfer and training deliverables listed above is described in more detail in Section 8 of this SOW. m.Production Cut-over Fujitsu will assist the County in the creation of the cut-over and implementation strategy based on a single go-live approach. Fujitsu will provide installation assistance and support to the County during the cut-over and implementation execution activities. Fujitsu will support the creation of the following cut-over deliverable by generating the first draft and then collaborating with the County on revisions : P450 Application Transition Document and Production Implementation Plan P720 Deployment and Installat ion Guide The cut-over deliverables listed above are described in more detail in Section 8 of this SOW. n.60 Calendar days of post-implementation support On the date of First Production Use Fujitsu will start a maintenance and post-implementation support period for the modernized PMIS. That period will last earlier of (i) 60 calendar days, or (ii)until the County gives notice of Final System Acceptance, as that term is defined in Section 1 of this Agreement. During that period, the Fujitsu team will provide maintenance services for the modernized PMIS to ensure that it performs in the production environment as specified in this Agreement. At the end of the 60 days of post-implementation support, or after the County gives notice of Final System Acceptance, the County will be fully responsible for the ongoing maintenance of the delivered code. o.Post Implementation Review Fujitsu will conduct a post-implementation review within 3 months after Final System Acceptance to evaluate if the system is working as specified. The review will be based on the f ollowing key questions: Did our conversion project meet the County’s goals and objectives?; Did we deliver the necessary functionality found in the legacy system?; Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 13 of 29 Did we accurately convert the data from the legacy system?; Did we deliver the necessary performance found in the le gacy system?; How well is the user community adapting to the new modernized PMIS application, and what is their level of satisfaction?; How well did the Fujitsu post-implementation team perform in providing maintenance services and the hand-off to the County IT support?; and Overall County of Fresno satisfaction regarding Fujitsu services. The results of this Post Implementation Review will be used only as a basis to discuss future services. 5.Out of Scope The following items are excluded from the scope of this SOW: •Conversion of any component whose source code is missing •Conversion of the tape backups (aka Archived data) •Conversion of the generations data files not needed for go-live (aka Archived data) •Further documenting the source code beyond the test scripts provided during the testing phases. •Training County technical staff on Microsoft or AZURE platform technologies •Any adjustments that would be needed to external applications •Architectural changes that are not necessary for the modernized PMIS to work as specified and required by the County •All activities related to batch scheduler migration, including procuring, installing, and maintaining a batch scheduling component •All activities related to any enterprise output management tool, such as PageCenter X software migration and/or integration. •All activities related to procuring, installing, maintaining, and managing all infrastructure (hardware and software) components and licenses for the Micro soft or AZURE platform, including Windows Server, .NET Framework, SQL Server, Microsoft Visual Studio, REACT.js, JSON, ASP.NET MVC/Web API, C# language, and PowerShell, including any AZURE account and platform related expenses. •Document Management Utility: Laserfiche document management system and enterprise PCX online access •Integration/testing activities of external PC-based software such as PRINT VIEWER, TAX COLLECTOR (RT Lawrence FIRST View – Remittance Processing System, Sonant Corporation – ClientCall (including attachmate) and WEB/IVR, Heartland payment solution) •Decommissioning of the legacy environment (after conversion and go -live of the modernized PMIS) 6.County of Fresno Staff In order for Fujitsu to perform the Services, County will appoint proper staff, with the knowledge, experience and availability to provide the input necessary for ensuring the project work products are Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 14 of 29 prepared accurately, completely and consistently. County staff responsibilities and expectations are outlined below. a.Roles and Responsibilities The County will designate individual persons for each of the following roles, and those persons collectively are the “County Project Team” and shall have the following responsibilities: Role Responsibilities Project Manager ◼Manage the activities of County personnel, including the County Project Team; ◼As needed, escalate issues, risks and problems to the Fujitsu authority identified in Exhibit C to the Agreement; ◼Main point of contact between County and Fujitsu for non-technical issues related to the administration of this Agreement, and may escalate issues within the County, as needed; ◼Along with Fujitsu’s Project Manager, ensure deliverables are reviewed and approved in a timely manner; and ◼Carry out project progress and status reviews with Fujitsu Project Team and County Project Team. Application Subject Matter Expert (for each application) ◼Represent the County’s users for the purpose of the project; ◼Provide guidance and advice to the Fujitsu Project Team about application functions and related business processes; and ◼Ensure that the County users are able to use the modernized PMIS for all of their business purposes. Technical Resource ◼Work collaboratively with Fujitsu to validate that the delivered system meets the functional, non-functional, and technical requirements of the project; and ◼Validate that the technical solution (hardware platform, application solution, system interfaces, etc.) is of acceptable quality and meets the County’s needs. Quality Assurance Lead ◼Coordinate County User Acceptance testing, and gather benchmark metrics and system baselines; and ◼Assemble a test team (“County Test Team”) consisting of several system experts (including IT staff) and user experts responsible for: •Supporting test scripts creation for the modernized applications by providing practical information about the County’s functions and workflows; and •Perform the User Acceptance testing for the project with the support of the Fujitsu test team. County will also make persons available to provide resources and support in the following areas as reasonable and necessary for Fujitsu to complete the project: Resources Degree of Access / How utilized Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 15 of 29 COBOL Developers Occasional assistance in understanding program logic related to a current business function, or help in finding missing source, etc. Database Administrators Occasional assistance in VSAM / Data file extraction. Network Administrators Assistance with VPN/remote access to the County network (getting started, troubleshooting). Infrastructure Team Lead Occasional discussions about target Server/Network configuration. Security Administrator Assistance with gaining access to data resources on a need-to-know basis throughout all phases. b.Additional County Responsibilities The County will: •Provide all source code and components to be modernized by Secure File Transfer Protocol (SFTP) within two weeks after this Agreement is signed. •Provide missing PMIS components, once identified, within a reasonable timeframe. In most instances, a component will be delivered within 3 business days. In the case of a complicated or difficult to find component, the timeline may be longer. The County will endeavor to provide each component as quickly as possible. •Within two weeks after this Agreement is signed, provide Fujitsu with remote access to a working mainframe test version of the PMIS Online application (including test data). •Provide Fujitsu with remote access to the future on-premise environment to facilitate Fujitsu support services to the County •Provide access to test data both in PMIS and related systems for integration testing •Support and execute data extract jobs and COBOL programs provided by Fuji tsu •Provide online and batch test data, including: ‒Extracted data files, provided to Fujitsu via SFTP ‒If needed, a list of attributes that require sanitization, which will be anonymized in the SQL database, to allow remote work resources for Fujitsu. ‒Batch files including permanent, intermediate and expected output data files , reports and control cards for batch testing. ‒Online reports and any input-output data files utilized for the transactions displayed in the reports. •Provide performance statistics of the online and batch components, processes and batch windows in the current environment and agree with Fujitsu on the which of these performance statistics will be used to measure system performance ( the “Legacy Performance Baseline”) before the start of Sprint 1 code conversion. •Put County test environment in place before delivery of Sprint 1 •Put modernized PMIS in place with testable data within production environment before the start of User Acceptance Testing. Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 16 of 29 •Subject to County’s security procedures, provide access to identified Fujitsu persons who need remote access to the County test and production environments. •Provide any adjustment to external applications by the start of the associated code conversion Sprint as defined in the P219 Software Architecture. 7.Fujitsu Staff Fujitsu will designate individual persons for each of the following roles, and those persons collectively are the “Fujitsu Project Team” and shall have the following responsibilities: Role Role and Responsibilities Project Manager ◼Manage the activities of Fujitsu personnel, including the Fujitsu Project Team; ◼Serve as the first point of escalation between County and Fujitsu for contractual issues, and escalate issues within Fujitsu, as needed; ◼In collaboration with County Project Manager, escalate issues, risks and problems to the identified authority as needed; ◼Perform quality assurance of all plans, schedules and other documents produced by the Fujitsu project team, including all deliverables under this Agreement including this SOW; ◼Control deliverable review and obtain internal written approval for them; ◼Provide bi-weekly project progress and status reviews to County Project Team ◼Ensure that the Fujitsu Project Team follows County security requirements as provided in Exhibit B to this Agreement, titled “Data Security,” and County standard practices, and Fujitsu Macroscope project processes, deliverables, and techniques where appropriate, for all phases of the project, including but not limited to initiation; planning; execution, which includes the following sub-phases: architecture, hosting installation and setup, application conversion, knowledge transfer and end user training, production cut-over, and post-implementation support; control; and closing; ◼Manage scope and project schedule; ◼Manage change control. Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 17 of 29 Role Role and Responsibilities Solution Architect ◼Lead the functional aspects of the modernization (“functional aspects” means those aspects related to ensuring that the modernized PMIS functions as specified and required by the County); ◼Reviews key project deliverables to manage the project within the scope according to the terms of this Agreement including this SOW; ◼Provide expertise and advice to County for the definition of the modernization processes, and selection of techniques and tools supporting those processes; ◼Monitor, support, and ensure the quality and delivery of project deliverables (including P120, P219, P370, P405, P340, P415, P914, P720, P710, P450, and P650/P600); ◼Resolve issues related to the modernized PMIS and the migration process, techniques, or tools; and ◼Ensure that the project deliverables (including P120, P219, P370, P405, P340, P415, P914, P720, P710, P450, and P650/P600) are compliant with the requirements of this Agreement including this SOW (quality control) and that scope is controlled to remain within the terms of this Agreement, including this SOW . Technical Architect ◼Lead the technical aspects of the modernization (“technical aspects” means those aspects related to the particular software, source code, and hardware of the PMIS); ◼Monitor, support, and ensure the quality and delivery of project deliverables (including P120, P219, P370, P405, P340, P415, P914, P720, P710, P450, and P650/P600); ◼Resolve issues related to the modernized PMIS and the migration process, techniques, or tools; ◼Coordinate the activities of the technical team (including the Data Architect / Migration Specialist, the Developer, and the Tester); and ◼Ensure that the project deliverables (including P120, P219, P370, P405, P340, P415, P914, P720, P710, P450, and P650/P600) are compliant with the requirements of this Agreement including this SOW (quality control) and that scope is controlled to remain within the terms of this Agreement, including this SOW . Data Architect / Migration Specialist ◼Design the target data model; ◼Create and/or review data models produced in support of the data analysis deliverables, including but not limited to P340 Data Conversion Rules and P650/P600 Migrated Source Code & Database; ◼Define the data migration processes, and select techniques and tools necessary to accomplish those processes; and ◼Support the execution of the data migration processes by providing advice, expertise, and review for the automated and manual processes of converting the data Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 18 of 29 Role Role and Responsibilities Developer ◼Clean compile modernized PMIS code and identify anomalies; ◼Perform Unit Testing; and ◼Support and address reported defects found during each level of testing, including but not limited to performance testing, stress testing, system integration testing, quality assurance testing, user testing, functional testing, quality assurance testing, user acceptance testing, and automated regression and performance tests after code delivery. Tester ◼Create test scripts and automated scripts, including documentation within test scripts; ◼Execute test scripts and validate results for both online and batch programs; ◼Execute defect management resolution process; and ◼Document platform differences for user training, as part of the documentation described under the heading “Documentation” in Section 4 of this SOW. 8.Deliverables Fujitsu will provide the project deliverables to the County under this SOW, as provided in the table below. With the exception of code and data files, each deliverable shall be provided as a shared document through a secure shared portal within Macroscope. Fujitsu will carry out each “Fujitsu Responsibility” and the County will carry out each “County Responsibility.” Deliverable Name Deliverable Description Fujitsu Responsibility County Responsibility M036 – Project Schedule and Integrated Plan The Project Schedule and Integrated Plan deliverable contains the Work Breakdown Structure (WBS), which forms the basis for costing, scheduling, and work assignments. The WBS definition is guided by the reporting and control requirements, set forth in M050 Bi-Weekly Status Report, M047 Project Risk Log, M048 Project Issue Log, M052 Deliverable Review and Approval Log, and M053 Deliverables Status Log and by the project documentation deliverables, including P710 Training and Knowledge Transfer Plan and P710 Training Material ,. Develop, deliver for review & approval, and maintain throughout the term of this Agreement, including this SOW Contribute, review, and approve Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 19 of 29 Deliverable Name Deliverable Description Fujitsu Responsibility County Responsibility M016 - Resource Plan The Resource Plan deliverable outlines the Fujitsu Project Team’s organization structure, roles and responsibilities Develop, deliver for review & approval, and maintain throughout the term of this Agreement, including this SOW Contribute, review, and approve M017 – Communication Plan The Communication Plan deliverable identifies the project individuals for both Fujitsu and County who requires what information and when it is required Develop, deliver for review & approval, and maintain throughout the term of this Agreement, including this SOW Contribute, review, and approve M018 – Project Risk and Issues Management Plan The Project Risk and Issues Management Plan deliverable outlines the strategy for managing the project's risks and issues and describes the corresponding approach, responsibilities, activities, and tools. This plan identifies the managers who have primary responsibility for managing the risks and issues and the domains for which they carry this responsibility. Develop, deliver for review & approval, and maintain throughout the term of this Agreement, including this SOW Contribute, review, and approve M050 – Bi-Weekly Status Report The Bi-Weekly Status Report deliverable documents and describes the state of the project. It provides information on project scope, schedule, cost, human resources, quality, risk, and issues, and includes reporting and control requirements. It focuses on the area of project management identified by the stakeholders. Develop, deliver for review & approval, and maintain throughout the term of this Agreement, including this SOW Contribute, review, and approve M047 – Project Risk Log The Project Risk Log deliverable contains all the project risks, regardless of their status. It also summarizes the main characteristics of each risk. It also includes reporting and control requirements. Develop, deliver for review & approval and maintain throughout the term of this Agreement, including this SOW Contribute, review, and approve Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 20 of 29 Deliverable Name Deliverable Description Fujitsu Responsibility County Responsibility M048 – Project Issue Log The Project Issue Log deliverable lists all the project problems or issues, regardless of their status. It also summarizes the main characteristics of each problem or issue. It also includes reporting and control requirements. Develop, deliver for review & approval and maintain throughout the term of this Agreement, including this SOW Contribute, review and approve M052 – Deliverable Review and Approval Log The Deliverable Review and Approval Log deliverable identifies the deliverable and the County Project Manager or other designated approver with space to indicate if the deliverable is accepted, rejected, or conditionally accepted by the County. It also includes reporting and control requirements. Maintain a log of reviews and approvals Review and monitor M053 – Deliverables Status Log The Deliverables Status Log deliverable is a master list of all project deliverables and their status. It lists all deliverable versions, regardless of their status, and summarizes their main review and approval characteristics. It also includes reporting and control requirements. Fujitsu will track comments and detailed information about each deliverable in the M052 Deliverable Review and Approval Log. Develop and Maintain Review and monitor M042 – Change Request The Change Request deliverable documents a change request, it contains the information that defines the change request as well as the information that documents each possible solution alternative to integrate the requested change into the project scope. Develop and Maintain Review and approve as needed M044 – Change Request Log The Change Request Log deliverable lists all the project change requests, regardless of their status. It also summarizes the main characteristics of each change request. Develop and Maintain Review and monitor Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 21 of 29 Deliverable Name Deliverable Description Fujitsu Responsibility County Responsibility P120 Inventory The Inventory deliverable lists the inventory of all the mainframe application components that will be migrated to the new platform. It also includes the composition (sub-system) to be included in each Sprint/delivery. Develop, deliver for review & approval and maintain throughout the project life cycle Contribute, review, and approve P219 Software Architecture The Software Architecture deliverable describes all the key components of the modernized PMIS. Develop and maintain Contribute, review and approve P370 Architecture Design The Architecture Design deliverable describes all the software and hardware components, every environment (production, test/staging, development, etc.), and how to build and deploy (DevOps/CI/CD) in each environment. Develop and maintain Contribute, review and approve P405 Test Strategy & Plan The Test Strategy & Plan deliverable outlines the approach for testing the modernized PMIS. It defines the sequence and types of testing to be conducted over the term of this Agreement including this SOW to ensure that all business functions, transactions and scenarios are considered, documented and tested. Develop and maintain Contribute, review, and approve P340 Data Conversion Rules The Data Conversion Rules deliverable documents the data conversion rules used to transform the County’s existing data to the new system. Develop and maintain Contribute, review, and approve P340 Production Data Conversion Strategy The Production Data Conversion Strategy deliverable documents the conversion strategy and approach for transitioning the large amount of data from the mainframe to the Windows environment while allowing acceptable downtime during implementation. Develop and maintain Contribute, review, and approve Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 22 of 29 Deliverable Name Deliverable Description Fujitsu Responsibility County Responsibility P415 Performance and Stress Testing Plan The Performance and Stress Testing Plan deliverable focuses on performance testing and stress testing. It includes the following: -Preparation, execution, and verification activities -Test case summary enumeration (i.e., the list of test activities) -List of participants (both County & Fujitsu resources) -Estimated duration of testing -Planned start and end dates -Software to be used to perform this testing Develop and maintain Contribute, review and approve P914 Technical Performance Report The Technical Performance Report deliverable provides the performance and stress testing results, which include statistics such as system response time, service level (including number of and response time for incidents), system availability, traffic volume, resource utilization, and incidents. Develop and maintain Contribute, review and approve P720 Deployment and Installation Guide The Deployment and Installation Guide deliverable provides the software component configuration to be installed including installation instructions for the modernized PMIS. Develop and deliver Contribute P770 Fujitsu Test Results The Fujitsu Test Results deliverable is provided to County with each code sprint and identifies Fujitsu’s functional testing results. Develop and deliver Review P710 Training and Knowledge Transfer Plan The Training and Knowledge Transfer Plan deliverable outlines the training structure and summarizes the nature, objectives, and delivery method of each portion of training. Develop and deliver Contribute and approve P710 Training Material The Training Material deliverable is the material used for knowledge transfer and training. It may consist of best practices, presentation, demonstration, or other format used to transfer knowledge. Develop and deliver Contribute and review Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 23 of 29 Deliverable Name Deliverable Description Fujitsu Responsibility County Responsibility P450 Application Transition Document and Production Implementation Plan The Application Transition Document and Production Implementation Plan deliverable itemizes in detail the production implementation activities. It also contains the rollback procedure if required. Develop and contribute Contribute, review and execute P650/P600 Migrated Source Code & Database The Migrated Source Code & Database deliverable contains all components including converted data for each scheduled delivery to the client (code drops). This also includes the data conversion and SQL data load programs. Develop and deliver Review 9.Acceptance Criteria a.Project Deliverables For each deliverable created under this SOW, Fujitsu will provide County with a Deliverable Acceptance Receipt (M052 Deliverable Review and Approval). This receipt will describe the deliverable and the County Project Manager or other designated approver with space to indicate if the deliverable is accepted, rejected, or conditionally accepted . Conditionally accepted deliverables will contain a list of deficiencies that need to be corrected in order for County to accept the deliverable. The County Project Manager will have five (5) business days from receipt of the deliverable to provide Fujitsu with the signed Acceptance Receipt unless either of the following is true: 1.An alternative schedule is mutually agree d to between Fujitsu and County in advance or via the M036 – Project Schedule and Integrated Plan. The County’s Contract Administrator is authorized to agree to such an alternative schedule. 2.The deliverable is one of the following, in which case County will have 20 business days from receipt of the deliverable to provide Fujitsu with the signed Acceptance Receipt: a.P770 Test Results (per sprint) b.P650/P600 Source Code (per sprint) If County conditionally accepts a deliverable, Fujitsu will review and update the deliverable and provide the updated version of the deliverable to County for acceptance. The approval duration for the updated deliverable will be re-started using the same timeframe listed in this section. For deliverables that are not subject to acceptance testing, namely, all deliverables except for P770 and P650/P600, acceptance will not be unreasonably withheld or delayed by the County. For deliverables for which no acceptance cr iteria or time period for acceptance are specified in writing, deliverables will be deemed accepted or approved by the County if Fujitsu has not received written notification of non-acceptance or rejection, including the reason for non-acceptance or rejection, within five (5) business days after delivery by Fujitsu. Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 24 of 29 b.Code / Sprint Acceptance The initial project plan is built around four (4) code sprints, the scope and composition of which are to be confirmed after the inventory assessment during the Architecture phase . Each successive code sprint will include content from all prior sprints. In order to allow work under this SOW to proceed without unnecessary delay in deliverable acceptan ce, the following graduated scale of criteria will be applied to code sprint acceptance (the “Permitted Allowance”). This scale tolerates some level of defects in code deliveries to avoid project delays. The level of tolerated defects decreases with each successive code delivery. The following table outlines the agreed-to defect severity definitions that County will assign to any found defect during System Integration / Quality Assurance testing activities. For purposes of this Agreement, “System Integration” means the process to bring the modernized PMIS online and connect it to existing processes and other systems; and “Quality Assurance” means the process of identifying defects in the modernized PMIS that cause it not to function as closely as possible to the legacy PMIS system. Severity of Defect Description of Defect Critical The execution of a functional operation leads to a catastrophic failure or system-wide crash and it is not possible to continue testing the reminder of the delivery . Very High The execution of a functional operation leads to a catastrophic failure or system-wide crash, but it is possible to continue testing the remainder of the delivery by bypassing the failing operation . High A functional operation does not produce the right results and negatively impacts results of other functional operations . Medium A functional operation does not produce the right results but does not impact results of other functional operations. A work around (using the system and using an alternate functional process to achieve the same business need) exists that allows going live with this defect. Low Defect relates to a cosmetic or annoying characteristic but does not materially affect the successful completion of functional operation. Number of total outstanding defects allowed at the completion of each sprint, per defect severity level Critical Very High High Medium Low Sprint 1 0 5 10 20 40 Sprint 2 0 3 7 16 32 Sprint 3 0 1 6 12 25 Sprint 4 0 0 5 10 20 Production Implementation 0 0 0 5 10 Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 25 of 29 The following also applies to the identification and categorization of defects: •If the same problem exists at multiple places in the application, then it is considered one defect, not multiple defects, unless it cannot be fixed with a single solution. •Accepted differences between the IBM and the Windows environment will not be considered defects. An example of such difference is the sort order impacted from the difference between Extended Binary Coded Decimal Interchange Code (EBCDIC) and American Standard Code for Information Interchange (ASCII) characters sequence. •Before Production Implementation, Fujitsu will conduct a review of all issues to ensure that the severity categorization of any remaining issues is mutually agreed upon by the Fujitsu Project Manager and the County Project Manager. 10.Performance Criteria The parties will tolerate some level of performance defects in code deliveries to avoid project delays. However, performance levels must be at an acceptable level prior to Production Implementation of the system. Whether performance levels are at an acceptable level is in the sole determination of the County. a.Code Sprint If Fujitsu determines that any component of the modernized PMIS involved in a particular sprint requires extensive design or architectural changes to improve performance, and if the County agrees, that component will not be accepted by the County as part of the normal acceptance process for that sprint. Instead, the component will be addressed in a subsequent sprint and code delivery, and Fujitsu shall revise M036 Project Schedule and Integrated Plan to account for this change and present it to the County for review and approval. If the County does not agree that the component requires extensive design or architectural changes to improve performance, the County shall make the final determination between delaying acceptance for the current sprint and code delivery or rescheduling the component into a subsequent sprint and code delivery. b.System Performance Fujitsu shall ensure the modernized PMIS provides similar or greater level of business functionality and performance than was accomplished through the legacy system. The nightly batch processing will remain functionally equivalent to the current nightly batch processing and will not exceed the current execution window for nightly batch processing. c.Production Implementation Performance of the modernized PMIS expected at the production implementation will be for the P650/P600 Migrated Source Code & Database as provided in this section,. Agreed service levels, as set forth in the deliverables including but not limited to P415 Performance and Stress Testing Plan, P914 Technical Performance Report, and P450 Application Transition Document and Productio n Implementation Plan, will be based on the Legacy Performance Baseline and will be mutually agreed upon by both parties prior to the start of the comprehensive testing of the whole system during installation and before the production cut-over. Fujitsu will not be responsible for meeting the foregoing performance criteria to the extent that Fujitsu’s ability to meet the County’s applicable performance criteria is prevented by: Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 26 of 29 •Degradation of performance caused by failure and/or malfunction of equipment, hardware, and software that are not in Fujitsu’s scope, including but not limited to security software, virus prevention, malware prevention, and operating systems. •Degradation of performance caused by County’s failure to follow Fujitsu’s reason able recommendations for equipment, hardware, or software necessary to the modernized PMIS. •Circumstances beyond Fujitsu’s reasonable control, including without limitation, the intranet, the internet connectivity, third party services (such as the interface for printing and scheduling of certain operations), or failure of third-party hardware and software, acts of God; cyber or denial of service attacks; severe weather; fire; earthquakes; explosions; floods; strikes; work stoppages; slowdowns or other industrial disputes; accidents; riots or civil disturbances; acts of war, sabotage or terrorism; dangerous conditions which present a threat to the safety or health of Fujitsu personnel; disease, contagion, pandemic or epidemic; acts of government. Scheduled performance dates shall be extended for these causes. •County’s failure to provide hardware and/or software as agreed upon by County and Fujitsu Project Managers that is necessary to host the modernized PMIS. 11.Location of Services Fujitsu will perform the Services remotely, with travel by Fujitsu employees to the County’s Fresno, California, facility only when deemed necessary by mutual agreement of Fujitsu and the County. All Services will be performed by employees of Fujitsu America, Inc., from the United States, Canada, and India. 12.Total Project Price The total fixed price for the Project is $3,152,108 USD. The total fixed price includes travel expenses for key Fujitsu Project Team members (as reasonable and appropriate to the circumstances) to be onsite at the County’s Fresno, California, facility for workshops and delivery of deliverables, and onsite presence as needed and agreed by the parties’ Project Managers during the implementation. Fujitsu’s fixed price is based on the inventory components and counts provided in S ection 3 Project Description Any services not provided in this SOW that is documented as a Change Request will be charged as a fixed price. Subject to Section 6 of the Agreement, Fujitsu shall invoice and County shall pay invoices issued as set forth in the Payment Milestones in Section 14 13.Expenses County will reimburse Fujitsu all reasonable and necessary out-of-pocket travel, lodging, and related expenses (in excess of those included within the fixed fee as described in Section 12) incurred by Fujitsu in performing the services, but only if County approves those expenses in writing prior to Fujitsu incurring them. Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 27 of 29 14.Payment Milestones The following table identifies milestones that, upon occurrence, will allow Fujitsu to invoice County for the payments listed: Phase Deliverable Cost Initiation Signed Agreement including Exhibit B, this M002 Statement of Work $ 310,000 Planning Acceptance - Project Management Deliverables $ 150,000 Execution Acceptance - Architecture Deliverables $ 400,000 Application Conversion Deliver - Sprint 1 $ 350,000 Acceptance - Sprint 1 $ 250,000 Deliver - Sprint 2 $ 300,000 Acceptance - Sprint 2 $ 250,000 Deliver - Sprint 3 $ 300,000 Acceptance - Sprint 3 $ 250,000 Deliver - Sprint 4 $ 300,000 Acceptance - Sprint 4 $ 115,000 Knowledge Transfer & End User Training Acceptance - IT Staff Knowledge Transfer Deliverables $ 95,000 Production Cut-over System Accepted and Ready for GO -LIVE $ 82,108 Total Cost $ 3,152,108 15.Milestone Acceptance Criteria The following identifies the acceptance criteria for each milestone. Milestone Acceptance Criteria Signed Statement of Work Agreement including Exhibit B, this M002 Statement of Work approved and executed by both parties Project Management Deliverables Deliverables M017 Communication Management Plan, M018 — Project Risk and Issues Management Plan & M016 Resource Plan have been reviewed and approved by County Architecture Deliverables Deliverables P120 Inventory, P219 Software Architecture, P370 Architecture Design, and P340 Data Conversion Rules have been reviewed and approved by County Sprint 1 Delivery Sprint 1 code as described in deliverable P120 Inventory has been delivered to County Sprint 1 Acceptance County has executed all associated test scripts for sprint 1 code, defects are documented, discussed , and agreed by County that they are within the Permitted Allowance Sprint 2 Delivery Sprint 2 code as described in deliverable P120 Inventory has been delivered to County Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 28 of 29 Milestone Acceptance Criteria Sprint 2 Acceptance County has executed all associated test scripts for sprint 2 code, defects are documented, discussed , and agreed by County that they are within the Permitted Allowance Sprint 3 Delivery Sprint 3 code as described in deliverable P120 Inventory has been delivered to County Sprint 3 Acceptance County has executed all associated test scripts for sprint 3 code, defects are documented, discussed , and agreed by County that they are within the Permitted Allowance Sprint 4 Delivery Sprint 4 code as described in deliverable P120 Inventory has been delivered to County Sprint 4 Acceptance County has executed all associated test scripts for sprint 4 code, defects are documented, discussed , and agreed by County that they are within the Permitted Allowance Knowledge Transfer & End User Training Migrated system structure and daily operations training material has been developed for County system operators and maintenance developers; and that training material has been delivered and training sessions completed . User training material has been developed and delivered and training sessions completed Production Cut-over P450 Application Transition Document and Production Implementation Plan preparedness checklist has been completed and executed. Final Fujitsu onsite team review of the modernized PMIS prior to Production Implementation. All Fujitsu deliverables identified in the M036 Project Plan have been updated and ready for final handoff to County prior to Production Implementation 16.Disaster Recovery Backup and disaster recovery is a County responsibility. 17.Change Management Changes to the Project scope, plan, or schedule, or changes to this SOW, will be handled through a written M042 – Change Request. All changes shall be in writing and signed by the County and Fujitsu. As provided in section 3.D. of this Agreement, the County’s Contract Administrator is authorized to approve changes in the Project scope, plan, or schedule, as needed under this SOW, unless such changes would increase the total compensation payable to Fujitsu by more than 10 percent. Changes in project scope, plan, or schedule that would increase the total compensation payable to Fujitsu by more than 10 percent must be approved by the County’s Board of Supervisors under section 8 of this Agreement. The auth ority of the County’s Contract Administrator does not include modifications under section 8 of this Agreement. 18.Point of Contact For the duration of this project, the following project managers shall serve as the points of contact for day - to-day communication: •County Project Manager : Isaac Avina (iavina@FresnoCountyCA.gov) •Fujitsu Project Manager : Kathleen Payeur (Kathleen.Payeur@fujitsu.com) Property Tax System Modernization Project M002 Statement of Work 8/17/2021 9:47 AM Page 29 of 29 19.Warranty With respect to any deliverable or other services, excluding any County provided or third party materials, Fujitsu warrants for a period of thirty (30) days following acceptance by County of the particular deliverable or the performance of such other services (the “Warranty Period”) that (i) the applicable services rendered hereunder will be performed by qualified personnel and (ii) the deliverable or services will materially conform to the specifications, if any, and/or Acceptance Criteria, if any, for the specific corresponding deliverables or services as set forth and agreed to in the applicable SOW. In the event that any deliverable or Service fails to conform to the foregoing warranties in any material respect, Fujitsu, at its expense, shall have the right and obligation to cure such failure as soon as reasonably practical. If Fujitsu is unable to cure such failure within a commercially reasonable period of time, County may pursue its remedy at law to recover direct damages resulting from the breach of the limited warranties, subject to the limitations set forth in the Agreement. These remedies are the exclusive remedies and Fujitsu’s only obligation for breach of the warranties contained in this Section 19. Fujitsu does not warrant that any deliverable will operate uninterrupted or error-free, provided that Fujitsu shall remain obligated pursuant to this Section 19. The foregoing warranties are expressly conditioned upon (a) County providing Fujitsu with prompt written notice during the Warranty Period of any claim hereunder, which notice must identify with particularity the non -conformity; (b) County’s cooperation with Fujitsu in all reasonable respects relating thereto, including assisting Fujitsu to locate and reproduce the non- conformity; and (c) with respect to any deliverable, the absence of any alteration or other modification of such deliverable by anyone other than Fujitsu. The foregoing warranties will not apply if the alleged breach of warranty is due to third party hardware, software and any other services or goods supplied by third parties (including County) not conforming to their respective technical, functional and performance specifications and criteria, and Fujitsu shall have no liability or obligation as a result thereof. Fujitsu does not warrant and is not responsible for the products or services of any third party. EXCEPT AS EXPRESS LY PROVIDED IN SECTION 19, FUJITSU DOES NOT MAKE ANY REPRESENTATION OR WARRANTY OF ANY KIND, WHETHER SUCH WARRANTY BE EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY WARRANTY FROM COURSE OF DEALING O R USAGE OF TRADE. Exhibit C Escalation Contacts C-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (1) COUNTY CONTRACTOR Contact # 1: Contact # 1: Lily Ji Name: Kathleen Payeur Information Technology Manager Title: Project Manager Office Phone: (559) 600- Office Phone: Email: lji@fresnocountyca.gov Cell Phone: (978) 337-9887 Email: kathleen.payeur@fujitsu.com (2) COUNTY CONTRACTOR Contact # 2: Contact # 2: Eric Matthews Name: Young Cho Information Technology Division Manager Title: Director, Application Services Office Phone: (559) 600-5800 Office Phone: Cell Phone: (734) 516-7606 Email: ematthews@fresnocountyca.gov Email: younghyo.cho@fujitsu.com Exhibit D D-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Self-Dealing Transaction Disclosure Form In order to conduct business with the County of Fresno (“County”), members of a contractor’s board of directors (“County Contractor”), must disclose any self -dealing transactions that they are a party to while providing goods, performing services, or both for the County. A self -dealing transaction is defined below: “A self-dealing transaction means a transaction to which the corporation is a party and in which one or more of its directors has a material financial interest” The definition above will be utilized for purposes of completing this disclosure form. INSTRUCTIONS (1) Enter board member’s name, job title (if applicable), and date this disclosure is being made. (2) Enter the board member’s company/agency name and address. (3) Describe in detail the nature of the self-dealing transaction that is being disclosed to the County. At a minimum, include a description of the following: a. The name of the agency/company with which the corporation has the transaction; and b. The nature of the material financial interest in the Corporation’s transaction that the board member has. (4) Describe in detail why the self -dealing transaction is appropriate based on applicable provisions of the Corporations Code. The form must be signed by the board member that is involved in the self-dealing transaction described in Sections (3) and (4). Exhibit D D-2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (1) Company Board Member Information: Name: Date: Job Title: (2) Company/Agency Name and Address: (3) Disclosure (Please describe the nature of the self-dealing transaction you are a party to) (4) Explain why this self-dealing transaction is consistent with the requirements of Corporations Code § 5233 (a) (5) Authorized Signature Signature: Date: