Exhibit 10.12
AGREEMENT BETWEEN
METROPOLITAN GOVERNMENT OF NASHVILLE
AND DAVIDSON COUNTY
AND
ADVANCED TECHNOLOGY SYSTEMS, INC
FOR
LICENSING OF SOFFWARE PRODUCTS AND SERVICES
This contract is entered into on
this ___ day of _________, 2006, by and between The Metropolitan
Government of Nashville and Davidson County, a municipal
corporation of the State of Tennessee (“Metro”) and
Advanced Technology Systems (CONTRACTOR), a Virginia Corporation,
registered and licensed to do business in the State of Tennessee
whose business address is: 7915 Jones Branch Drive, McLean,
Virginia 22102.
This contract consists of the
following documents:
a)
any properly executed amendment or
change order to this contract (most recent with first
priority),
b)
This Contract,
c)
Contractor’s Best and Final
Offer,
d)
Contractor’s Payment
Schedule,
e)
ATS and Subcontractor Software
License Agreement
f)
Denali Software License
Agreement,
g)
Contractor’s Supplemental
Response to Request for Proposal 05-72,
h)
Contractor’s Response to
Request for Proposal 05-72,
i)
Contractor’s Software End-User
License Agreement,
j)
Request for Proposal 05-72,
including Amendments 1, 2, 3, 4, and 5,
k)
Source Code Escrow
Agreement,
1)
Performance Bond,
m)
Certificate of Insurance,
and
n)
Affidavit.
In the event of conflicting
provisions, all documents shall be construed according to the
following priorities:
a)
any properly executed amendment or
change order to this contract (most recent with first
priority),
b)
This Contract,
c)
Contractor’s Best and Final
Offer,
d)
Contractor’s Payment
Schedule,
e)
ATS and Subcontractor, Software
License Agreement
f)
Denali Software License
Agreement,
g)
Contractor’s Supplemental
Response to Request for Proposal 05-72,
h)
Contractor’s Response to
Request for Proposal 05- 72,
i)
Contractor’s Software End-User
License Agreement,
j)
Request for Proposal 05-72,
including Amendments 1, 2, 3, 4, and 5,
k)
Source Code Escrow
Agreement,
1)
Performance Bond,
m)
Certificate of Insurance,
and
n)
Affidavit.
1.
Definition
The following terms are defined for
the purpose of this Agreement as follows:
(a)
“Software” means Contractor’s software programs
(i) which contain systematic manipulative compilations of industry
data, (ii) which meet those requirements agreed upon by
Contractor and Metro set forth in RFP, which is incorporated into
and made a part of this Agreement by this reference, and (iii)
which will be specifically modified by Contractor to meet those
requirements agreed upon by Contractor and Metro and set forth in
Contractor’s Response to Request For Proposal 05-72, to be
attached hereto upon such agreement and to be incorporated into and
made a part of this Agreement by this reference. Software includes
software programs and all future versions of this program,
regardless of the computer language used to write them, and
documentation provided in direct machine executable for
human-readable, printed or imprinted form.
The Software can be used in
conjunction with Microsoft Access, Microsoft SQL Server and Oracle
database products. This contract provides appropriate licensing
with SQL Server, via Client Access Licenses and Embedded Server
Licenses to support the Advanced Records Management
application.
(b)
“Source Code” means that
series of machine instructions in human-readable form from which
Object Code may be generated.
(c)
“Object Code” means a
series of instructions in direct machine executable form, which
cause a computer to perform its functions or to perform specific
tasks in a pre-assigned order.
(d)
“Derivative Works” means
a revision, modification, translation, abridgement, compilation,
condensation or expansion of the applicable underlying work or any
form in which that work may be recast, transformed or adapted, and
which, if prepared without the consent of the copyright owner,
would be a copyright infringement.
(e)
“Underlying Works” means
all works of authorship fixed in any tangible medium of expression
that: (a) had already been conceived, invented, created or acquired
by Contractor or a third party prior to the effective date of this
Contract and that were not conceived, invented or created for
Metro’s use or benefit in connection with this Contract; or
(b) are conceived, invented, created or acquired by Contractor or a
third party after such effective date, but only to the extent such
works of authorship
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do not constitute Work
Product. An Underlying Work includes all intermediate and
partial versions thereof, as well as all source code, object code,
documentation, formulae, processes, algorithms, designs,
specifications, inventions, discoveries, concepts, improvements,
materials, program materials, software, flow charts, notes,
outlines, lists, compilations, manuscripts, writings, pictorial
materials, schematics, apparatus, methods, techniques, other
creations, and the like, whether or not patented or patentable or
otherwise protectable by law
(f)
“Work Product” means all
works of authorship fixed in any tangible medium of expression
(including, without limitation, computer programs), and all
intermediate and partial versions thereof, as well as all source
code, object code, documentation, formulae, process, algorithms,
designs, specifications, inventions, discoveries, concepts,
improvements, ideas, know-how, techniques, materials, program
materials, software, flow charts, notes, outlines, lists,
compilations, manuscripts, writings, pictorial materials,
schematics, apparatus, methods, techniques, other creations, and
the like, whether or not patented or patentable or subject to
copyright, or otherwise protectable by law, that are created,
invented or conceived for the use or benefit of Metro in connection
with this Contract: 9a) by any of Contractor’s personnel, any
Metro personnel, where “personnel’ includes employees,
contractors (including, in the case of Contractor, its
subcontractors), agents and the like, (b) any person who was an
employee of Metro and then became an employee of Contractor or any
of its contractors (including subcontractors) or agents, where,
although creation or reduction-to-practice is completed while the
person is an employee of Contractor or such contractors (including
subcontractors) or agents, any portion of the same was created,
invented or conceived by such person while an employee of
Metro. In Pursuit RMS software delivered pursuant to
this agreement and any enhancements or customizations to In
Pursuit RMS software are specifically excluded from the definition
of “Work Product”. MNPD is licensed pursuant to
Exhibit “D” to use RMS software.
(g)
“Metropolitan Nashville Police
Department Purposes License” (or “MNPD License”)
means a non-transferable, perpetual, fully paid-up, royalty free
license to possess, use, copy and modify Work Product exclusively
by and for the Metropolitan Nashville Police Department , to store
and retrieve information on crimes and arrests in Nashville and
Davidson County and its customers within the standard Metropolitan
Statistical Area including the following counties: Montgomery,
Robertson, Sumner, Macon, Jackson, Clay, Overton, Pickett,
Fentress, Trousdale, Dickson, Cheatham, Davidson, Wilson, Smith,
Putnam, Cumberland, White, DeKalb, Rutherford, Williamson, Hickman,
Lewis, Maury, Marshall, Bedford, Cannon, Coffee, Warren, Van Buren,
Bledsoe, Rhea, Meigs, Hamilton, Sequatchie, Marion, Grundy,
Franklin, Moore, Lincoln, Giles, and Lawrence.
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Further Contract and Service
Agreement Definitions can be found in Exhibit B, “MNPD
CONTRACT DEFINITIONS”.
2.
Duties and Responsibilities of Contractor
Upon execution of the Agreement,
Metro and Contractor shall begin work on the Developed Documents as
defined in paragraph 1.02. The Developed Documents shall be
completed within 90 days. When the Developed Documents are
completed and agreed to by the parties, such Developed Documents
shall become part of this Agreement by amendment
thereto.
In the event that Metro and
Contractor cannot agree with the Developed Documents, Metro
reserves the right to terminate the Agreement within ten days
written notice to Contractor after delivery of the Developed
Documents to Metro. In the event that the Developed Documents
materially modify Contractor’s Proposal and the material
modification is introduced by Contractor, Metro may reject the
Developed Documents, at its sole option, and be relieved of any
obligation in the Agreement and contractor shall refund to Metro
any payments made to Contractor under this Agreement in excess of
the costs incurred by Contractor in preparing the Developed
Documents.
2.01
Contractor shall provide Metro with a system and software for an
integrated, full-featured Advanced Records Management and Automated
Field Reporting System for the Metropolitan Nashville Police
Department (MNPD). Contractor shall provide the software set
forth in Contractor’s response to Request For Proposal, which
is attached hereto and incorporated by reference herein.
Contractor shall provide maintenance, support and services for this
system software during delivery, installation and testing.
Contractor shall provide maintenance, service and support for this
system pursuant to the service and support agreements attached
hereto.
2.02
This contract shall have two phases:
Phase I shall include the
development and completion of Developed Documents consisting of:
project work plan with specific assignments; hardware and software
schedule; functional specifications and detailed design document;
customization specifications; training plan; set-up of a pilot/test
environment for Metro, and Acceptance Test plan. These
documents shall be known, collectively, as the “Developed
Documents”.
i)
Metro and Contractor recognize the
critical nature of system performance on the success of the system
installation. During Phase I of this Agreement, Contractor
and Metro will develop specifications for hardware, software, and
network configurations. With these configurations, Contractor
and Metro will agree to a range of expected system response times
for critical system functions. Overall, the system
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shall be configured such that 95% of
all transactions complete within 1 second and 99% of all
transactions complete within 2 seconds. Transaction timing is
from keyboard transmit to the start of screen response. These
configurations and expected system response times will be a part of
the Phase I deliverable and will represent a commitment from
Contractor to deliver the response times specified. If during
subsequent phases of this Agreement, response times exceed the
range specified, and Metro can demonstrate that it has deployed the
hardware, software and network equipment as specified in the
Phase I deliverable, then Contractor will be notified of the
response time deficiency. Contractor will be given 10 (ten)
days to cure the response time deficiency. If the response
time deficiency is not cured in that timeframe, Contractor will be
responsible for all cost related to additional equipment, software,
or network infrastructure necessary to bring the response time to
the specified level. If the response time deficiency is not
cured within 30 (thirty) days, Metro will be entitled to liquidated
damages in the amount of $1,000 per day. Liquidated damages
shall be calculated from the date of notification to Contractor,
and will continue until the response times issue is resolved up to
a maximum of $90,000.
ii)
Phase II shall include the
delivery and installation of the equipment and software as required
by this contract and the Developed Documents, the completion of the
software customization and the implementation of network
connectivity. Phase II shall include the provision of
documentation, training and testing, in accordance with the
Acceptance Test Plan within the Developed Documents. The date
of acceptance of the system shall be the business day immediately
following the successful acceptance testing of the system.
The parties shall sign a document acknowledging the successful
acceptance testing on the date of acceptance. Acceptance of
the system activates the one year application warranty coverage and
post implementation support.
2.03
System Acceptance of and
Phase II shall be completed in accordance with the Developed
Documents. Completion of the Project is dependent upon
deliverables from both Contractor and Metro. Should Metro and
MNPD fail to meet their deliverable dates as defined in the
Developed Documents, the resultant time delay will be added to the
completion date.
2.04
Contractor warrants that the
software provided pursuant to this Agreement shall meet the
requirements as specified in Metro’s Request For Proposal and
Contractor’s response to Request For Proposal.
2.05
Contractor shall assume the overall
responsibility for the work, including the application, and shall
provide the project management and expertise necessary to complete
Phases I and II in a professional and timely manner in accordance
with the Contract and the Developed Documents
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2.06
Contractor will develop a project
control system to control items which directly affect project
progress, such as design change control, resource assignment and
allocations, project schedules and problem/issue escalation and
resolution.
2.07
All performance (which includes
services, materials, supplies and equipment furnished or utilized
in the performance of this Contract, and workmanship in the
performance of services) shall be subject to inspection and test by
Metro and MNPD at all times during the term of this Contract.
Vendor shall provide adequate cooperation to any inspector assigned
by Metro to permit him or her to determine Vendor’s
conformity with the specifications and the adequacy of the services
being provided under this Contract. All inspection by Metro
and MNPD shall be made in such a manner as not to unduly interfere
with Vendor’s performance.
3.
Term .
3.01
The term of this contract is five
(5) years.
3.02
This contract may be may not be
extended.
4.
Compensation.
4.01
The total cost for this contract
will not exceed $4,599,366, unless properly amended upon completion
of Phase I of this agreement. Reimbursements to Contractor
for travel and expenses shall be in accordance with Metro’s
travel regulations. There will be no other charges or fees
for the performance of this contract without a properly executed
amendment to the Contract. All payments by Metro shall be
made within thirty (30) days of receipt and approval of
invoice.
4.02
Subject to and in accordance with
the provisions of this Section, Metro may withhold payment of any
invoice from Contractor (or part thereof) that it in good faith
disputes as due or owing. In such case, Metro shall pay any
undisputed amounts and provide a written explanation to Contractor
of the reason it disputes the amount. The failure of Metro to
pay a disputed invoice, or to pay the disputed part of an invoice,
shall not constitute a breach or default by Metro, so loping as
Metro complies with the provisions of this Section 3.03. All
of Contractor’s obligations under this Contract shall
continue unabated during the resolution of the dispute.
5.
Taxes .
Metro shall not be responsible for
any taxes that are imposed on Contractor. Furthermore,
Contractor understands that it cannot claim exemption from taxes by
virtue of any exemption that is provided to Metro.
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6.
Warranty.
6.01
Warranty of Title - Contractor
represents and warrants to Metro that Contractor
(“Developer”) is the owner of the System Software
(“the Software”) and that Contractor has the right to
grant to Metro the license and rights set forth in this
Contract. In the event of breach or threatened breach of the
foregoing representation and warranty, the Contractor may, at its
option i.) procure, at Contractor’s expense, the right to use
the Software, ii.) replace the Software, or any part thereof that
is in breach, with software of comparable functionality that does
not cause any breach, or iii.) refund to Metro the full amount of
the license fee upon the return of the Software and all copies
thereof to Contractor.
6.02
Warranty of Functionality -
Contractor represents and warrants that during the term of the
Agreement that (1) the Software licensed in this Agreement
constitute all the software, applications required to operate the
system as specified in the RFP; (2) the Software shall perform
according to Developer’s published software manuals operate
as per specifications provided by the user documentation provided
with the system including any updated Software, as per the
specifications in the RFP; (3) the Software as delivered to User,
will meet these specifications, without the need for customization
or modification, or the delivery of any additional services; (4)
the Software will be free of any defect in material of the medium
in which the programs are delivered, or any virus, other program
routine designed to erase or otherwise harm User’s hardware,
data, or their programs.
6.03
Performance of the Services -
Contractor represents and warrants to Metro that it has the skills,
resources and expertise to provide all services in accordance with
the terms of this Contract. Without limiting the generality
of the foregoing, Contractor represents and warrants to Metro that
all services provided under this Contract shall be provided in a
timely, professional and workmanlike manner consistent with
industry standards of quality and integrity provided, however, that
where this Contract specifies a particular standard or criteria for
performance, this warranty is not intended to and does not diminish
that standard or criteria for performance.
6.04
Viruses and Disabling Devices.
Contractor shall implement and use industry best practices to
identify, screen, and prevent, and shall not introduce, and
Disabling Device in hardware, software or other resources utilized
by Contractor, Metro or any third party in connection with the
services. A “Disabling Device” is any
virus, timer, clock, counter, time lock, time bomb, Trojan horse,
worms, file inflectors, boot sector infectors or other limiting
design, instruction or routine and surveillance software or
routines or data gathering or collecting software or devices that
could, if triggered, erase data or programming, have an adverse
impact on the services, cause the hardware, software or other
resources to become inoperable or otherwise incapable of being used
in the full manner for which such hardware, software or other
resources were intended to be used, or that collect data or
information. At no cost or expense to Metro and without
adversely a impacting the services, Contractor shall reduce and/or
eliminate the effects of any Disabling Device including, without
limitation, by restoring and/or bearing the cost to recreate any
lost data and/or software programming.
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7.
License .
7.01
Contractor has the right to grant to
Metro the rights set forth in this agreement.
7.02
Contractor hereby grants to Metro a
perpetual, non-exclusive license to use the Software in Davidson
County and the Nashville MSA as set forth in this
agreement.
703
Metro understands the confidential
nature of the Software licensed by Contractor and agrees to use all
reasonable controls to protect the confidential nature of all
Software licensed by Contractor or licensed to Contractor by a
third party which shall in no event be less than the same standard
of care which User uses to protect its own most proprietary,
confidential information. Contractor understands and
recognizes that Metro is a government entity and as such is subject
to the Tennessee Open Records Act. In the event that a
request is received under or with reference to that Act, Metro
agrees to so notify Contactor at its earliest convenience.
Contractor understands and recognizes that Metro will comply with
the Tennessee Open Records Act even if it conflicts with the terms
of this Agreement. Therefore, Contractor agrees that
compliance with the Tennessee Open Records Act is not a breach of
this Agreement and Contractor will not be entitled
to: terminate the License granted herein, a cause of
action against Metro, and/or any damages for Metro’s
complying with the Tennessee Open Records Act.
7.04
Metro as the Holder of a
“Metropolitan Nashville Police Department (MNPD)
Purposes” License to Work Product, Metro shall be the sole
and exclusive holder of a “MNPD Purposes” License to
possess and use all Work Product for the Metropolitan Government of
Nashville and Davidson County, Tennessee, to store and retrieve
information on crimes and arrests in Nashville and Davidson County,
and notwithstanding all other interests to the Work Product that
may be held by Contractor or any other entity or person, in the
nature of copyright, patent, trademark, trade secret, and other
proprietary rights in and to the Work Product. Ownership of
the MNPD License to the Work Product shall inure to the benefit of
Metro from the date of conception, creation, or fixation of the
Work Product in a tangible medium of expression (whichever occurs
first). Contractor shall obtain similar written undertakings
from all subcontractors, employees and consultants who will perform
any services for this Contract, so as to ensure Metro’s
ownership of the “MNPD Purposes” License to possess and
use the Work Product as provided herein, and shall not commence the
deployment of any such subcontractor, employee or consultant until
such a written undertaking has been obtained from any such
subcontractor, employee or consultant and delivered to
Contractor. Metro shall have unrestricted access to all
Contractor materials, premises and computer files containing the
Work Product, for any and all purposes within the “MNPD
Purposes” license. The parties will cooperate with each
other and execute such other documents as may be appropriate to
achieve the objectives of this Section.
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7.05
[Text deleted]
7.06
Intellectual Property. Contractor promptly and fully shall
disclose in writing and deliver to Metro a copy of all Work
Product, which delivery, in the case of computer programs, shall
include object code and all available user manuals and other
documentation, including any documentation specifically requested
by Metro. Contractor shall deposit all source code in strict
accordance with the Escrow Agreement marked as Exhibit D,
hereto. Contractor shall provide to MNPD, on a quarterly
basis, a written report identifying all items of information within
the body of Work Product
7.07
Contractor’s Underlying and
Derivative Works. Notwithstanding anything to the contrary
contained in this Contract, including this Section 6,
Contractor shall be the sole and exclusive owner of all of
Contractor’s Underlying Works and all Derivative
Works.
7.08
Third-Party Underlying and
Derivative Works. Notwithstanding anything to the contrary
contained in this Contract, including this Section 6, the sole and
exclusive owner of any third party’s Underlying Works, Work
Product and of all Derivative Works thereof that are created,
invented, conceived, and fixed in a tangible medium of expression
by such third party shall be the applicable third party; provided,
however, that Contractor shall not implement or utilize any
third-party Works in the provision of any services unless the
third-party Works are commercially available or Contractor has
obtained from such third parties all rights and licenses required
to deliver the MNPD Purposes License to the MNPD and required to
perform the services under this Contract. The terms and
conditions of all such rights and licenses shall be subject to the
review and approval of Metro prior to their implementation by
Contractor under this Contract. With respect to all
technology used and to be used by Contractor to perform the
services hereunder, whether proprietary to Contractor or
known to be proprietary to any other person, Contractor hereby
grants and agrees to grant to Metro, or shall cause to be granted
by the licenses thereof, as the case may be, without additional
charge, such licenses and sublicenses as may be necessary in order
for Metro, and its authorized representatives (including third
party service providers), to use, or receive the benefit of the use
by contractor of, such technology in connection with the services
under this Contract.
7.09
Advance Consents. Contractor
shall obtain advance consents from Contractor’s licensors and
lessors to the conveyance or assignment, at no cost to Metro, for
all licenses and leases related to the services under this Contract
upon Disengagement. If such advance consents cannot be
obtained, contractor shall promptly notify Metro so that Metro
shall have the option to enter into the applicable license or lease
in its own name.
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7.10
Metro Data. Metro shall permit
Contractor to have access to Metro data solely to the extent that
Contractor requires access to such data to provide the services in
accordance with the terms of this Contract. Contractor may
only access and process Metro data in connection herewith or as
directed by Metro in writing and may not otherwise modify Metro
date, merge it with other data, commercially exploit it or engage
in any other practice or activity that may in any manner adversely
affect the integrity, security or confidentiality of such data,
other than as specifically permitted herein or as directed by Metro
in writing. Contractor understands and agrees that Metro owns
all right, title, and interest in and to the Metro data and in and
to any modification, compilation or Derivative Works
therefrom.
7.11.
Cooperation. If at any time
Metro brings or investigates the possibility of bringing, any claim
against any person for infringement of any patent, trademark,
copyright or similar proprietary right of Metro, including
misappropriation of trade secrets and misuse of confidential
information, then Contractor, upon the request and at the expense
of Metro, shall cooperate with and assist Metro in the
investigation or pursuit of such claim, and provide Metro with any
information, in Contractor’s possession that may be of use to
Metro in the investigation or pursuit of such claim.
8.
Copyright, Trademark, Service Mark, or Patent
Infringement.
8.01
Contractor shall, at its own
expense, be entitled to and shall have the duty to defend any suit
which may be brought against Metro to the extent that it is based
on a claim that the products or services furnished infringe a
United States copyright, Trademark, Service Mark, or patent.
Contractor shall further indemnify and hold harmless Metro against
any award of damages and costs made against Metro by a final
judgment of a court of last resort in any such suit. Metro
shall provide Contractor immediate notice in writing of the
existence of such claim and full right and opportunity to conduct
the defense thereof, together with all available information and
reasonable cooperation, assistance and authority to enable
Contractor to do so. No costs or expenses shall be incurred
for the account of Contractor without its written consent.
Metro reserves the right to participate in the defense of any such
action. Contractor shall have the right to enter into
negotiations for and the right to effect settlement or compromise
of any such action, but no such settlement or compromise shall be
binding upon Metro unless approved by the Metro Department of Law
Settlement Committee and, where required, the Metro
Council.
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8.02
If the products or services
furnished under this contract are likely to, or do become, the
subject of such a claim of infringement, then without diminishing
Contractor’s obligation to satisfy the final award,
Contractor may at its option and expense:
i)
Procure for Metro the right to
continue using the products or services.
ii)
Replace or modify the alleged
infringing products or services with other equally suitable
products or services that are satisfactory to Metro, so that they
become non-infringing.
iii)
Remove the products or discontinue
the services and cancel any future charges pertaining
thereto.
iv)
Provided, however, that Contractor
will not exercise option b.iii until Contractor and Metro have
determined that options b.i. and b.ii. are
impractical.
8.03
Contractor shall have no liability
to Metro, however, if any such infringement or claim thereof is
based upon or arises out of:
i)
The use of the products or services
in combination with apparatus or devices not supplied or else
approved by Contractor.
ii)
The use of the products or services
in a manner for which the products or services were neither
designated nor contemplated.
iii)
The claimed infringement in which
Metro has any direct or indirect interest by license or otherwise,
separate from that granted herein.
8.04
Contractor is not liable if any
infringement claim is based upon (i) the interconnection, operation
or use of the equipment or software product in combination with
equipment, software or other devices not made or supplied by
Contractor, (ii) use of operation of the equipment or software
product in a manner for which it was not designed or recommended by
Contractor or (iii) alteration, adaptation or modification of the
equipment of software Subject to the limitation of liability
provision herein, Contractor shall pay damages finally awarded for
any settlement made with Contractor’s prior written
authorization.
9.
Termination-Breach.
Should Contractor fail to fulfill in
a timely and proper manner its obligations under this contract or
if it should violate any of the terms of this contract, Metro shall
have the right to immediately terminate the contract. Such
termination shall not relieve Contractor of any liability to Metro
for damages sustained by virtue of any breach by Contractor.
The foregoing notwithstanding, Metro shall provide Contractor
written notice of the alleged violation or breach and Contractor
shall have 30 days in which to cure said alleged violation or
breach. If at the end of such 30 day period Contractor has
failed to cure any such violation or breach, Metro may terminate
this contract In the event that contract is so terminated Metro
shall not be liable for any further payments under the Contract,
and Contractor shall, within 30 days following termination, refund
to Metro the system software and services by paying to Metro an
amount equal to the sums theretofore paid by Metro.
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