C-12-8
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Recommendation of Award, Software and Implementation Services for an Enterprise Resource Planning System (ERP), P2012000021
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SUMMARY:
The Water Authority issued a Request for Proposals (RFP) for Software and Implementation Services for an Enterprise Resource Planning System (ERP) in February of this year. The City Purchasing Division issued the subject RFP on behalf of the Water Authority. The RFP was posted on the Sicomm website and advertised in the local newspapers. Six (6) responses were submitted for evaluation. An ad hoc evaluation committee appointed by the Executive Director, reviewed, evaluated, and scored the response in accordance with the evaluation criteria published in the RFP. The ad hoc evaluation committee selected the top two scoring companies, Ciber and SunGard, to make presentations to the committee as well as Water Authority staff. After completing the presentations, and question and answer sessions, the ad hoc evaluation committee rescored the responses of the top two respondents in accordance with the evaluation criteria published in the RFP. Listed below are the composite scores of Ciber and SunGard after the rescoring.
Offeror Total Composite Score
Ciber 4453
SunGard 5540
The committee recommended the award of contract to SunGard as that company had the highest composite score and is qualified to perform the work. The Executive Director concurs with the committee recommendation. The Board, with the approval of the recommendation of SunGard, authorizes for the Executive Director to enter into contract negotiations with SunGard for the implementation of an Enterprise Resource Planning System.
FISCAL IMPACT:
The estimated cost of this contract is approximately $2 million over a two year period. Funding for this contract is included in the Water Authority's FY 2013 Capital Implementation Program (CIP) budget.
COMMENTS:
The Water Authority currently uses multiple systems to support administrative business processes related to finance, time and labor, payroll, personnel, purchasing, utility billing and maintenance management, although they rely primarily on the City of Albuquerque's PeopleSoft system to administer their finance, payroll, and purchasing functions, internally developed systems support the majority of the human resource functions. Most of the tasks and key processes at the Water Authority rely on numerous Microsoft Excel spreadsheets and other shadow systems that result in the frequent development of silos of fragmented information. These independent data sources lead to a significant amount of redundant data entry and make reporting and data analysis difficult. In some cases, different modules of the same system are not integrated.
The Water Authority engaged the Government Finance Officers Association (GFOA) to conduct an analysis of its systems including developing process maps for most of the administrative functions included in the scope of RFP. In addition GFOA assisted in the development of the RFP and evaluation of the proposals that resulted from the RFP.
Preliminary findings for this project confirmed that the Water Authority could achieve significant organizational benefits by installing an integrated ERP system that interfaces to existing timekeeping, billing and asset management systems. The analysis demonstrated that existing systems and processes are unable to support the Water Authority's short and long term goals and revealed the following:
· The Water Authority is looking to implement its own enterprise system independent of the City of Albuquerque's PeopleSoft installation.
· The Water Authority relies on systems that are not integrated.
· The Water Authority needs to eliminate fragmented data.
· The Water Authority has limited access to robust end-user reporting capabilities.
· Systems lack the availability of real-time data.
· Existing systems lack web-based capabilities.
· Although the current Human Resource Management system is functional it lacks integration to the finance and payroll functions; an integration that is highly desirable to the Water Authority.
· Current systems are currently not reconciled in a timely manner leading to delays in the development of the CAFR and other mission critical reports.
· The Water Authority needs to provide information (ad hoc reports) to executives/management for decision support.
· The Water Authority needs to eliminate processes that are manually intensive.
· The Water Authority needs to eliminate duplicate data entry processes into multiple systems.
· The Water Authority lacks the ability to analyze data and forecast adequately based on data in the system(s).
The implementation of its own ERP system will enable the Water Authority to better address its financial and human resources information and process needs.
The ad hoc committee recommendation of award and scoring is attached.