SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or his designee, to finalize and execute a contract with Diligent for a Governance, Risk, and Compliance system for a base period of 1 year and 3 option years in an amount not to exceed $1,537,786.
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FISCAL IMPACT:
Funding for this action is available in the FY2022 Capital Budget
STRATEGIC PLAN:
Strategic Goal Alignment:
☒ 1. Internal/External Customer Service Excellence ☐ 2. Stakeholder Engagement
☒ 3. Financial and Environmental Sustainability ☐ 4. Staff Development ☐ 5. Agency Growth Management
Strategic Objectives:
☒ 1.1 Safety & Risk ☒1.2 Continuous improvement ☐ 1.3 Dynamic Change
☒1.4 Culture of Innovation ☐2.1 Be an Employer of Choice ☐2.2 Organization Development
☐2.3 Organization Culture ☒3.1 Resource optimization ☒3.2 Safety Culture
☐3.3 Environmental Leadership ☐4.1 Educate & Call to Action ☐4.2 Build Partnerships
☒4.3 Value of Transit ☐4.4 Project Connect
EXPLANATION OF STRATEGIC ALIGNMENT: A robust Governance, Risk, and Compliance system (GRC) will allow Capital Metro to centralize management of all information used to track and monitor performance activities such as risk plans, internal audits, safety management plans, and contract performance management. Customer service excellence and financial sustainability will be achieved by having this centralized to achieve streamlined, efficient, and scalable management allowing Capital Metro to gain deeper insight and take actions based on quantifiable data.
BUSINESS CASE: The Internal Audit department uses a small system to track audits and store relevant information. This system is past its useful life and will need to be replaced. At the same time, many departments receive audit/compliance reports and conduct compliance management and safety management that are carried out manually using spreadsheets. The current system used by Internal Audit is only good for internal audits with limited functionality. Acquisition of a tool that serves multiple departments and documents the compliance program would significantly benefit Capital Metro and reduce risk. An FTA Quadrennial Performance Audit report issued in January 2021 recommended that Capital Metro explore implementing a system to drive consistency across all compliance activities that occur in Bus, Rail, and Demand Response related to their respective service provider contracts. This GRC will allow Capital Metro to achieve a more comprehensive view of all risk and compliance activities, streamline workflows, safety management, and analyze data to reduce risk, and also provide reports to enable data driven decisions. At the same time, the system will be scalable to address current and future business growth needs.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval by the Operations, Planning and Safety Committee on April 13, 2022.
EXECUTIVE SUMMARY: Capital Metro will be implementing a GRC system to achieve a more comprehensive view of all risk and compliance activities, streamline workflows, and analyze data to reduce risk, and provide reports to enable data driven decisions. Performance activities such as risk plans, internal audits, safety management plans, and contract performance management are essential to effectively manage the agency and comply with the recommendations received in the 2021 Quadrennial Performance Audit report. To help ensure that Capital Metro procures a best-fit system that meets the current and future business needs of the entire agency and to ensure that it is implemented most effectively, Capital Metro will be procuring the HighBond GRC system and implementation services from Diligent. The system will address all Capital Metro current needs and provide an excellent platform for growth. The implementation services will examine our business needs and deliver a fully functional system to include migration of data, training, organizational adoption, as well as ongoing managed services for maintenance and support.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: The Authority will utilize the Department of Information Resources (DIR) Contract No. DIR-TSO-4313 held by ACL Services Ltd., for Audit Management Solutions, providing Enterprise Risk, Governance Risk, Performance, and Compliance Management Software and Service.
DIR awarded contracts are made available for use by Capital Metro via Title 7, Intergovernmental Relations Chapter 791, Interlocal Cooperation Contracts and The Texas Interlocal Cooperation Act. Purchases made using DIR contracts satisfy otherwise applicable competitive bidding requirements. Texas Government Code, Section 2054.0565 (b) states that DIR Contracts meet competitive requirements for all governmental entities.
The Contract base term is one (1) year with three (3) one-year options for renewal. The following are not to exceed amounts provided by ACL Services Ltd. for base and option years:
The contract is fixed price.
RESPONSIBLE DEPARTMENT: Information Technology
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2022-354
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and Capital Metro management endeavor to implement a Governance, Risk, and Compliance System; and
WHEREAS the Capital Metropolitan Transportation Authority Board of Directors and Capital Metro management recognize the need to procure and implement a best-fit Governance, Risk, and Compliance System that will provide improved features for risk management, contract compliance management and other key performance tracking activities that will meet current and future business growth.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the President & CEO, or his designee, is authorized to finalize and execute a contract with Diligent for a Governance, Risk, and Compliance system for a base period of 1 year and 3 option years in an amount not to exceed $1,537,786.
____________________ Date: ____________________
Secretary of the Board
Leslie Pool