REPORT TO THE CITY COUNCIL
May 17, 2018
FROM: BRYON HORN, Chief Information Officer
Information Services Department
BY: DENNIS JONES, Systems & Applications Manager
Information Services Department
SUBJECT
Title
Action pertaining to the selection and implementation of an Enterprise Resource Planning System for the City of Fresno.
1. ***RESOLUTION - 68th Amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 appropriating $30,000 from the System Replacement Fund for the selection and implementation of an Enterprise Resource Planning (ERP) System. (Subject to Mayor’s veto) (Requires 5 votes)
2. Approve a Consultant Services Agreement with SDI Presence LLC., in an amount not to exceed $130,000, to assist in the preparation of a Request for Proposal for the selection and implementation of an Enterprise Resource Planning System for the City of Fresno.
Body
RECOMMENDATION
Staff recommends Council appropriate the project funding and authorize the Chief Information Officer, or his designee, to enter into a Consultant Services Agreement with SDI Presence LLC., in an amount not to exceed $130,000, to assist in the preparation of a Request for Proposal (RFP) for the selection and implementation of an Enterprise Resource Planning (ERP) System for the City of Fresno.
EXECUTIVE SUMMARY
In December 2017, the City released an RFP seeking assistance in assessing and creating an RFP to upgrade or replace its PeopleSoft Financial and HRMS software systems. The FY18 budget has $100,000 appropriated for this project. Having completed a competitive process to find a vendor, ISD, along with Personnel and Finance, seek approval for an additional $30,000 appropriated from the System Replacement Fund and approval to enter into a contract with SDI for assessment and RFP creation services.
BACKGROUND
On December 29th, 2017, the City of Fresno (City) released an RFP Bid File 3595 for Consulting Services for Solicitation of an Enterprise Resource Planning System. The City solicited proposals for consultants to assist the City in preparation of an RFP for the potential upgrade or replacement of the PeopleSoft software system.
The City received 11 responses to the RFP. An internal RFP review committee made up of staff from Personnel, Finance and ISD evaluated the proposals and narrowed the selection down to a list of the top four responses. The top four were invited to provide the review committee with a 90-minute presentation along with a question and answer session. The committee narrowed the selection to the top two proposers, and feedback was solicited from references and other agencies which included Clovis, Merced, Long Beach, Glendale, LAPD and others. From the committee’s evaluation, vendor proposals, references, and outside feedback, SDI was chosen unanimously as the committee’s recommendation. Key factors in the selection of SDI included: a large body of relevant experience with California municipalities far beyond other proposers; a demonstrated record of success with California municipalities including the City of Fresno; individuals within SDI who will have direct charge of the proposed work; demonstrated ability to work effectively with City staff and other public agencies; previous experience with and knowledge of the City of Fresno and its business environment; ability to meet and agreement to the City’s insurance requirements; proposed costs appropriate to the estimated body of work; and offices located in California and in close proximity to Fresno. The selection process carefully followed provisions and selection criteria in the City’s Administrative Order for Contracts and Consultant Services (AO 6-19).
ADDITIONAL BACKGROUND
The City’s current PeopleSoft Financials and HRMS systems went live in 1999 and although they have been maintained and upgraded through the years, the City has reached a crossroads on whether to allocate significant funds to upgrade PeopleSoft to the latest version or seek possible products to replace it.
In 2017, staff from Personnel, Finance and ISD undertook a process of evaluating the functionality of other Financial and HRMS systems to see if an RFP process to replace PeopleSoft was warranted. An RFI was issued and software vendors who responded were invited to demonstrate their latest solutions. Based on those demonstrations and functionality they experienced, City staff felt it is in the City’s best interest to begin the process of looking for replacement Financial and HRMS software.
Since this is very large undertaking and impacts the entire City, Personnel, Finance and ISD feel it is important to collaborate with a consultant who has assessed and created similar RFPs for other agencies. Although City staff may be able to create an RFP without outside help, the departments feel it is important to have an outside perspective of industry trends along with expertise and knowledge of what other agencies are doing and apply it to this project. With the additional challenge of a shortage of staff to develop the RFP internally, we feel it is important to have NexLevel help us through this process of assessing and creating an RFP to get it done in a timely manner.
ENVIRONMENTAL FINDING
The approval of this agreement is not a project as defined by the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference was not implemented because no local firms responded to the RFP.
FISCAL IMPACT
Funds are available in the Information Services Department’s (ISD) Systems Replacement Fund (54003) fund balance. The approval of this item will increase appropriations in ISD’s fiscal year 2018 budget.
Attachments:
Resolution - 68th Amendment to the Annual Appropriation Resolution No. 2017-165
Consultant Services Agreement
Evaluation Committee Report