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HomeMy WebLinkAboutItem 18 - Agreement With Nogalis For Lawson Managed Services Information Technology Information Tech Item # 18 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 6, 2021 TOPIC: Agreement With Nogalis For Lawson Managed Services AGENDA TITLE: Approve Agreement with Nogalis, Inc. for Lawson Managed Services in an annual amount not to exceed $150,000 (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an agreement with Nogalis, Inc. for Lawson Managed Services for a (4) four-year term expiring April 1, 2025, with the potential for two (2) additional (1) one-year renewal terms exercisable by the City Manager and the City Attorney, for a total amount not-to-exceed $150,000 annually and $900,000 over the life of the agreement if all extensions are utilized, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION The City of Santa Ana is utilizing the Infor Lawson Financial and Procurement ERP (Enterprise Resource Planning) financial system (“Lawson”) since September 2009 and has approximately 300 users citywide. The City uses the Infor Lawson financial system to process, account for, maintain, track, and report on the City’s financial information and transactions. This includes functions for general ledger, accounts payable, billing, accounts receivable, cash management, procurement, inventory, asset management, grant management, projects and activities, budgeting, business intelligence and reporting. The system is used to produce the Comprehensive Annual Financial Report (CAFR) required by California State Law and the City Charter. In order to be able to better support our users and to reduce costs, increase efficiency, and improve service delivery, the IT Department has selected Nogalis, Inc. to for their Lawson Infor Managed Services offering to assist in supporting, maintaining, optimizing, and upgrading Lawson, as well as to assist with new projects. The managed services offering makes Lawson expert personnel available on a monthly basis to provide necessary professional services. These experts are shared between many Lawson customers in order to provide a cost-effective service offering. Lawson Infor Managed Services is cost-effective and responsive way to deliver high quality service and meet our customer departments’ needs. It allows the Information Agreement With Nogalis For Lawson Managed Services April 6, 2021 Page 2 6 2 7 Technology Department to maintain a high level of Lawson maintenance and support, and access to specific technical expertise required for new Lawson projects, while maintaining low ongoing fixed costs to ensure that the system performs in the most optimal way. Additionally, the Managed Services offering also provides support for the Document Express application from MHC Software (MHC) that is used in conjunction with Lawson. In addition to day-to-day system support and maintenance, professional service assistance will be needed for several planned Lawson technology projects scheduled over the next four to six years. Anticipated projects include the following: Annual mandatory system upgrades (application and environment), year-end regulatory system updates, MHC system upgrades and year-end support, Lawson system migration to a latest supported version of Windows OS, ADFS (Active Directory Federation Services) upgrade, and a several new integration projects such is IC (OptiCrib) integration used by the Stores Division, Invoice Accounts Payable (AP) Automation integration with LaserFiche, new LMS (Learning Management Systems), and Business Tax systems integrations, etc. A request for proposals (RFP) for Information Technology Professional Services was issued on January 12, 2021 and closed on January 27, 2021. The RFP documents were made available on the Purchasing Division’s Planetbids website and 764 preregistered vendors were notified by email, 250 external and 514 City of Santa Ana vendors, and 34 downloaded bidding documents. A total of 5 responses were received from potential vendors, none of which were headquartered in Santa Ana. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds in the amount of $150,000 are budgeted and available in the current fiscal year contract professional services account 10920141-62300 and will be budgeted in future fiscal years for a total aggregate amount not-to-exceed $150,000 annually and $900,000 over the life of the agreements if all extensions are utilized. EXHIBIT(S) 1. Agreement with Nogalis, Inc. Submitted By: Jack Ciulla, Chief Technology Innovations Officer Approved By: Kristine Ridge, City Manager AGREEMENT WITH NOGALIS, INC TO PROVIDE thTHISAGREEMENTismadeandenteredintoonthis6dayof April, 2021, by andbetween Nogalis,Inc.,aCaliforniacorporationConsultantityof Santa Ana, achartercity andmunicipal corporation organized and existing under the Constitution and laws oftheState of California RECITALS OnJanuary12,2021,theCityissued Request for Proposal #21-toretain a Consultant having special skillandknowledge inthefieldof providinInfor(Lawson) ERP System ManagedServices and Support TheConsultantsubmittedatimely responseto therequest, whichwas selected by the City. Consultant represents thatitis able andwillingtoprovide such services totheCityas detailed inthe RFP, andinitsproposalofJanuary25,2021,whichshallbeincorporated by reference to this Agreement. Inundertakingtheperformanceofthis Agreement, Consultant represents thatit is knowledgeableinitsfieldandthatanyservices performed byConsultant under this Agreement will beperformedincompliance with suchstandardsasmay reasonably be expected from aprofessional consulting firm inthefield. NOW THEREFORE, inconsideration ofthe mutual and respective promises, and subject to the terms and conditions hereinafter setforth, the partiesagree asfollows: 1.SCOPE OF SERVICES Consultant shallperform during the term ofthis Agreement, the tasks and obligations, including alllabor, materials, tools, equipment, and incidental customary workrequired tofully andadequately completethe services described and setforthinExhibit A, attached hereto and incorporated by reference. 2.COMPENSATION a.City agrees topay, and Consultantagreesto accept astotal payment forits services for City, the rates andcharges identified in Exhibit AandExhibit B.Thetotal amount to beexpended during the potential extended term ofthis Agreement shall not exceed 900,000, whichis comprised ofan estimated annual amount of $150,000 during the initial term of the Agreement and any extensions exercised persection 3, below. b.Payment by City shall bemade within forty-five (45)days following receipt ofproper invoice evidencing work performed, subject toCity accounting procedures. Payment need not bemade for work whichfails to meet the standards ofperformance set forth intheRecitals which may reasonably beexpected by City. Page1of9 111387v3 3.TERM This Agreement shall commence on the datefirst written above, with services tobegin on April6, 2021,and continue until April 5, 2025,withtheoption for theCity tograntup totwo (2) one (1) yearextensions, exercisable bythe City Manager andthe City Attorney, unless terminated earlier in accordance with Section 15, below. 4.INDEPENDENT CONTRACTOR Consultant shall, during the entire term ofthis Agreement, be construed to bean independent Consultant and notan employee ofthe City. This Agreement isnot intended nor shall itbeconstrued tocreate an employer-employee relationship, ajointventure relationship, orto allow the City toexercise discretion orcontrol over the professional manner inwhich Consultant performs theservices which are the subject matter of this Agreement; however, the services tobe provided by Consultant shall beprovided inamanner consistent with all applicable standards and regulations governing such services. Consultant shall pay allsalaries and wages, employer'ssocial security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for allapplicable withholding taxes. 5.OWNERSHIP OF MATERIALS This Agreement creates anon-exclusive and perpetual license forCity tocopy, use, modify, reuse, orsublicense any andall copyrights, designs, andother intellectual property embodied inplans, specifications, studies, drawings, estimates, and otherdocuments orworks of authorship fixed inany tangible medium ofexpression, including but notlimited to, physical drawings ordata magnetically orotherwise recorded oncomputer diskettes, which areprepared or caused to beprepared by Consultantunder thisConsultant shall require allsubcontractors toagree inwriting that City isgranted anon-exclusive and perpetual license for anyDocuments & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty inregard to Documents & Data which were provided toConsultant by theCity. City shall not be limited in any way initsuseof the Documents and Data atany time, provided that any such usenot within 6.INSURANCE Prior toundertaking performance ofwork under this Agreement, Consultantshall maintain and shall require its subcontractors, ifany, to obtain and maintain insurance asdescribed below: a.Commercial General Liability Insurance. Consultant shall maintain commercial general liability insurance naming the City, itsofficers, employees, agents, volunteers and representatives asadditional insured(s) and shall include, butnot be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage toproperty, resulting from any act oroccurrence arising out ofContractor Agreement, including, without limitation, acts involving vehicles. Theamounts of Page2of9 111387v3 insurance shallbe notlessthan the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, inthe total amount of $1,000,000 per occurrence, with $2,000,000in the aggregate. Suchinsurance shall (a) name the City, itsofficers, employees, agents, and representatives asadditional insured(s); (b) beprimary and not contributory with respect toinsurance or self-insurance programs maintained by theCity; and c)contain standard separation of insureds provisions. b.Business automobile liability insurance, orequivalent form, with acombined single limit ofnot less than $1,000,000per occurrence. Such insurance shallinclude coverage for owned, hired and non-owned automobiles. c.ewith the provisions of Section 3700 of theLabor Code, Contractor, ifConsultant hasany employees, is required insurance. Prior tocommencing the performance of the work under this Agreement, Consultant insurance with limits not less than $1,000,000 per accident. d.IfConsultant isor employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with acombined single limit ofnot less than $1,000,000 per claim with $2,000,000 in the aggregate. e.The following requirements apply tothe insurance tobe provided byConsultant pursuant tothis section: i.Consultantshallmaintain all insurance required above infull force and effect for theentire period covered by this Agreement. ii.Certificates ofinsurance shall be furnished tothe City upon execution of thisAgreement and shall be approved bythe City. iii.Certificatesand policies shall state that the policies shall notbecanceled or reduced in coverage orchanged in any other material aspect without thirty 30)days prior written notice tothe City. iv.Where the amounts or coverage provided by thecertificates ofinsurance provides coverage greater than those listed by thisAgreement, the amounts provided by the certificates ofinsurance shall beincorporated by reference into the Agreement. v.Consultantshallsupply City with afully executed additional insured endorsement. f.IfConsultantfailsor refuses toproduce or maintain the insurance required bythis section orfails orrefuses to furnish the City with required proof thatinsurance has been pr election, toforthwith terminate this Agreement. Such termination shall not affect Contractor oftermination. Consultantwaivesthe right to receive compensation and agrees to indemnify the Cityforany work performed prior toapproval ofinsurance by the City. Page3of9 111387v3 7. INDEMNIFICATION Consultant agrees todefend, and shall indemnify and hold harmless theCity, itsofficers, agents, employees, contractors, special counsel, and representatives from liability: (1) forpersonal injury, damages, justcompensation, restitution, judicial orequitable relief arising outof claims for personal injury, including death, and claims for property damage, which may arise fromthe negligent operations ofthe Contractor, its subcontractors, agents, employees, or other persons acting onits behalf which relates tothe services described insection 1ofthis Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial orequitable reliefisdue by reason ofthe terms oforeffects arising from this Agreement. This indemnity and holdharmless agreement applies toall claims for damages, just compensation, restitution, judicial orequitable relief suffered, oralleged tohave been suffered, byreason oftheevents referred to in this Section orbyreason ofthe terms of, oreffects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay allcosts forthe defense ofthe City, including fees and costs for special counsel tobe selected by the City, regarding any action byathird party challenging the validity ofthis Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial orequitable relief due topersonal orproperty rights arises by reason of the terms of, oreffects arising from this Agreement. City may make all reasonable decisions with respect toits representation in any legalproceeding. Notwithstanding the foregoing, totheextent Contractorservices are subject to Civil Code Section 2782.8, the above indemnity shall belimited, tothe extent required by CivilCode Section 2782.8, toclaims thatarise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct oftheContractor. 8. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including cost letters patent, trademark, orcopyright infringement, including costs, contained in the workproduct or documents provided by Consultant to theCity pursuant tothis Agreement. 9. RECORDS Consultant shall keep records andinvoices in connection withthework tobe performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and anyservices, expenditures, anddisbursements charged to the City for aminimum period ofthree (3) years, orfor any longerperiod required by law, from the date offinalpayment to Consultant under this Agreement. All such records and invoices shall beclearly identifiable. Consultant shall allow a representative of theCity to examine, audit, and make transcripts orcopies ofsuch records and any otherdocuments created pursuant tothis Agreement during regular business hours. Consultant shallallow inspection ofall work, data, documents, proceedings, and activities related to this Agreement for aperiod ofthree 3) yearsfrom the date of final payment toConsultant under this Agreement. Page 4of9 111387v3 10. CONFIDENTIALITY If Consultant receives from theCity information which due tothe nature ofsuch information isreasonably understood to be confidential and/or proprietary, Consultant agreesthat itshall not use ordisclose such information except intheperformance of this Agreement, and further agrees toexercise thesame degree of care ituses toprotect its own information oflike nonpublic information. Confidential information includes notonly written information, but also information transferred orally, visually, electronically, orbyother means. Confidential information disclosed to either party by any subsidiary and/oragent ofthe other party iscovered bythis Agreement. The foregoing obligations ofnon-use andnondisclosure shall not apply toany information that (a) hasbeen disclosed inpublicly available sources; (b) is, through nofault ofthe Consultant disclosed in apublicly available source; (c) is inrightful possession of the Consultant without anobligation ofconfidentiality; (d) isrequired tobedisclosed by operation oflaw; or (e) isindependently developed bythe Consultant without reference to information disclosed by the City. 11. CONFLICT OFINTEREST CLAUSE Consultant covenants thatitpresently has no interests and shallnot have interests, direct or indirect, which would conflict in any manner with performance ofservices specified under this Agreement. 12. NON-DISCRIMINATION Consultant shall not discriminate because ofrace, color, creed, religion, sex, marital status, sexual orientation, gender identity, gender expression, gender, medical conditions, genetic information, or military and veteran status, age, national origin, ancestry, ordisability, asdefined and prohibited byapplicable law, inthe recruitment, selection, teaching, training, utilization, promotion, termination orother employment related activities or any services provided under this Agreement. Consultant affirms that itis an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Contractor, andsupersedes any andall other agreements, oral orwritten, between theparties. In the event of aconflict between the terms ofthisAgreement and any attachments hereto, the terms ofthis Agreement shall prevail. This Agreement may not bemodified except by written instrument signed by theCity and by an authorized representative of Contractor. The parties agree that any terms or conditions ofany purchase order orother instrument that are inconsistent with, orin addition to, the terms and conditions hereof, shall not bindorobligate Consultant orthe City. Each party to this Agreement acknowledges thatnorepresentations, inducements, promises or agreements, orally or otherwise, have been made byany party, oranyone acting on behalf ofany party, which is not embodied herein. Page 5of9 111387v3 14. ASSIGNMENT Inasmuch asthis Agreement is intended to secure the specialized services of Contractor, Consultant may notassign, transfer, delegate, orsubcontract any interest herein without the prior written consent oftheCity and any such assignment, transfer, delegation or subcontract without the City'sprior written consent shall be considered null and void. Nothing in this Agreement shall are the subject tothis Agreement performed by Citypersonnel orby other Contractors retained byCity. 15. TERMINATION This Agreement may be terminated by theCity upon thirty (30) days written notice of termination. In such event, Consultant shallbeentitled to receive andthe City shall pay Consultant compensation forallservices performed by Consultant prior to receipt of such notice of termination, subject to thefollowing conditions: a. Asacondition of suchpayment, the Executive Director may require Consultant to deliver totheCityall work product(s) completed asofsuch date, and insuch case such work product shall be the property ofthe City unless prohibited bylaw, and Consultant consents totheCity's usethereof forsuch purposes asthe City deems appropriate. b. Payment need not be made for work which fails tomeet the standard of performance specified in the Recitals of this Agreement. 16. WAIVER Nowaiver of breach, failure of anycondition, or anyright orremedy contained inor granted bythe provisions of thisAgreement shall beeffective unless itisin writing and signed by the party waiving the breach, failure, right orremedy. No waiver ofany breach, failure orright, or remedy shall bedeemed awaiver of any other breach, failure, right or remedy, whether ornot similar, nor shallany waiver constitute acontinuing waiver unless thewriting sospecifies. 17. JURISDICTION - VENUE This Agreement hasbeen executed and delivered intheState ofCalifornia andthe validity, interpretation, performance, and enforcement ofany of the clauses of this Agreement shallbe determined and governed bythe laws ofthe StateofCalifornia. Both parties further agree that Orange County, California, shall bethe venue for any action orproceeding that may be brought or arise out of, inconnection with orby reason ofthis Agreement. 18. PROFESSIONAL LICENSES Consultant shall, throughout the term ofthis Agreement, maintain allnecessary licenses, permits, approvals, waivers, and exemptions necessary for the provision oftheservices hereunder and required by the laws and regulations oftheUnited States, theState ofCalifornia, the City of Santa Ana and all other governmental agencies. Consultant shall notify theCity immediately and Page 6of9 111387v3 inwriting ofitsinability toobtain ormaintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall because for termination ofthis Agreement. 19. NOTICE Any notice, tender, demand, delivery, orother communication pursuant tothis Agreement shall be in writing and shall bedeemed to be properly given ifdelivered in person ormailed by first classor certified mail, postage prepaid, or sent byfaxor other telegraphic communication in the manner provided in this Section, tothe following persons: ToCity: Clerk of the City Council City ofSanta Ana 20 Civic Center Plaza (M-30) P.O. Box1988 Santa Ana, CA 92702-1988 Fax: 714- 647-6956 With courtesy copies to: Chief Innovations Officer, Information Technology City of Santa Ana 20 Civic Center Plaza (M-42) P.O. Box 1988 Santa Ana, California 92702 Fax: (714) 647-5381 To Contractor: Nogalis, Inc. Attn: Tan Rezaei, President 4540 Campus Drive Newport Beach, CA 92660 Aparty may change itsaddress by giving notice inwriting tothe other party. Thereafter, any communication shall be addressed andtransmitted tothe newaddress. If sent by mail, communication shallbe effective ordeemed tohave been given three (3) days after ithas been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed assetforth above. Ifsent by fax, communication shall beeffective ordeemed tohave been given twenty-four (24) hours after the timeset forth onthetransmission report issued by the transmitting facsimile machine, addressed asset forth above. For purposes of calculating these time frames, weekends, federal, state, County orCity holidays shall be excluded. Page 7of9 111387v3 20. MISCELLANEOUS PROVISIONS a. Eachundersigned represents and warrants that itssignature herein below has the power, authority andright to bind their respective parties to eachof theterms of this Agreement, and shall indemnify City fully, including reasonable costs and a orpower isnot, infact, held by the signatory oriswithdrawn. b. TheAgreement isthefinal and complete agreement and any prior or contemporaneous agreements for similar services between the parties issuperseded bythis Agreement. This shall notapply where the Parties are currently engaged and Consultant isproviding services not contemplated by this Agreement. c. All Exhibits referenced herein and attached hereto shall be incorporated asiffully set forth in the body ofthisAgreement. Ifthere are any conflicts between the terms inthis Agreement and the terms found in anyofthe Exhibits, the terms of this Agreement shallprevail. signatures on following page} Page 8of9 111387v3 IN WITNESS WHEREOF, theparties hereto have executed thisAgreement the date and year first above written. ATTEST:CITY OF SANTA ANA Daisy GomezKristine Ridge Clerk of the CouncilCity Manager APPROVED AS TOFORM: SONIA R. CARVALHONOGALIS, INC. City Attorney By: By: Ryan O. Hodge Title: Assistant City Attorney(title) Tax ID# RECOMMENDED FOR APPROVAL: Jack Ciulla Chief Innovations Officer, Information Technology Page9of9 111387v3 EXHIBIT A SCOPE OFSERVICES and RATES MANAGED SERVICE SERVICES AND DELIVERABLES The following is a statement of work to provide managed support for the Lawson application at City of Santa Ana.This thApril6, 2021 with its subsidiaries and affiliates ("CLIENT"). This SOW is subject to and hereby incorporates the terms and conditions of a 3¢®¯¤ /´³«¨-¤Technical support for the Lawsonand relatedapplications Functional support for the Lawsonand relatedapplications 3¤± µ¨¢¤Lawson Support Services: Manage day to day Infor Lawson support activities: o Break fix andtroubleshooting support o Infor user provisioningo Monitoring and maintenanceof scheduled jobs o Batch job andreport maintenance Functional application support Infor Process Automation ( IPA) Support LBI Support and maintenance Custom Modification Management and Support COBOL customization support Coordination of Infor update sets and CUs Ming.le / Portal configuration and support Maintenanceof security rolesand classes Third party integrations Review current business and system administration processes: o Identify and proposesystem process improvement opportunities o Implement system processchanges for greater efficiency o Identify business processimprovement opportunities o Identify training opportunitiesGeneral how-to support Monthly HealthChecks of the Lawson ApplicationServers On demand knowledge transfer Create and maintain technical and procedural documentation Apply MSPs and ESPs 7§µ¤±¤£ a. Nogalis does not provide hardware or network support. Our support staff will work with your team to determine how such issues are affecting Lawson and test their resolution. But the resolution of Hardware or VM related issues is not covered within this agreement. µ¤±The minimum base monthly hours is 40 hours.Any additional hours are considered "Overage". Overage continues the same service at an increased rate. Client can increase the base set of hours at any time. Any increase in base set of hours shall stay in affect for 6 months. The base monthly hours do not carry over to following months. 0±®¯®²¤£ 7®±ª0«The table below summarizes the proposed work plan. We view this as a starting place that we can review and adjust as needed. ServiceSummery Remote Lawson SupportThree (3) assigned Lawson resources available via remote connection 24/7 Additional ResourcesAll Nogalis MSP staff is available to clientas needed when the volume of work exceeds the assigned resources. All development, upgrade, and other projects including project management is included in the managed service offering. How remote work is performed:Our staff has been managing Lawson for many clients for several years via remote connection. We pride ourselves in our ability to respond quickly, anticipate user needs, and resolve issues expeditiously. Below are some of the highlights of how we deliver our services via remote connection: How to reach Nogalis remote support: Our support staff can be reached via, Phone, Email, or online ticket submission through JIRA 24/7/365. No specific way is preferred,and all three methods result in the same level ofsupport. How Nogalis approaches operation/user support:Our consultants are always monitoring your systems and JIRA for possible actions that need to be taken. When an issue is registered, our approach is as follows: o Assignownership internally to a specific person o Validatethe issue is a valid issue o Beginworking on issue resolution o Contactreporting user if necessary,immediately o UseWebEx to validate assumptions as soon as possible to ensure the issue can be replicated o Opena ticket with Infor if the issue is not readily resolved in case it ends up requiring the vendor involvement. We find that getting the ticket in the queue early on can be helpful in expediting issues. o Openissues are escalated internally based depending on agreed upon SLAs o Incase of critical production issues, a WebEx session is started immediately,and all involved parties are hands- on- o Rootcause analysis is performed for all issues that warrant it. 0±®©¤¢³ 7®±ªProjects are defined as work for hire that require the development ofnet new functionality in a new or existing application. Projects are differentiated from daily support in that a project requires gathering requirements for net new functionality. Projects are covered by this Statement of Work and are each tracked and approved on an individual statement of work. Project rates are negotiated on this statement of work as shownP time and materials basis unless otherwise stated within the project SOW. 0±¨¢¨-¦ 3³ 2 ItemDescriptionHourly Rate MSPManaged Support(40hours monthly base)$155.00 OverageManaged Support Overage$ 175.00 ProjectProject Hours$175. 00 3¤±µ¨¢¤ ,¤µ¤« !¦±¤¤¬¤-³ Severityof DescriptionInitial Follow up Corrective Customer IssueResponse Status Action 1, 2TimesTimesTimesONE ( 1)Lawson 1 hour2 hours3 business Applicationis stopped or so severely impacted that (24 x 7*)(24 x 7*)days Customer cannot reasonably continue work.(24 x 7*) TWO ( 2)Important features in the Lawson Application are 4 hours4 hours10 business unavailable with no acceptable workaround. days Lawson Application is continuing, however, there is and/ orservice levels. THREE ( 3)Important features in the Lawson Applicationare 12 hours72 hoursNone unavailable, but a workaround is available or less significant components in the Lawson Application are unavailable with no reasonable workaround. ronment or product usage, has experienced a minor loss ofserviceor functionality. 3 FOUR (4)An error exists in the Lawson Application, but 5 business NoneNone days impeded or there are only minor interruptions in Customer requests information, an enhancement or documentation clarification regarding the Lawson Application, but there is no impact on the operation of the Lawson Application. 1 Nogaliscannot guarantee final corrective action time on situations that require collaboration, input and deliverables from rd Customer, 3party vendors (e.g. hardware vendors or payroll software vendors, etc.) or Infor. 2 Nogaliscannot guarantee final resolution time on situations that are dependent on coordination of future releases, cyclic or point releases. 3 Forenhancement requests, Nogalis will commit to providing Customer a Product Requirements Document within fourteen ( 14) business days, depending on the complexity of the request and research effort required. EXHIBIT B PRICING and RATES Pricing Standard Rates: Item Description Rate MSP-40 Managed Support (up to 40 hours monthly) $6200/mo Overage Managed Support Overage $175.00 Project Project Hours $175.00 Clients canincrease/decrease base hours with 30day notice. Onboarding Costs: COSA has already been onboarded with Nogalis managed services and the onboarding cost will be waived for this engagement. Item Description Fixed Cost ONB Onboarding (40hour fixed bid project) One Time $7000.00 0.00 11