REPORT TO THE CITY COUNCIL
May 17, 2018
FROM: BRIAN S. SPINDOR, PE, Assistant Director
Department of Public Utilities, Wastewater Division
BY: JOHN TURNIPSEED, Project Manager
Department of Public Utilities, Water Division
SUBJECT
Title
Reject the proposal for Infor Enterprise Asset Management Implementation Services for the City of Fresno’s Department of Public Utilities Water Division. (Bid File # 3570) (Citywide)
Body
RECOMMENDATION
Staff recommends that the City Council reject all proposals for Infor Enterprise Asset Management (EAM) Implementation Services for the City of Fresno’s Department of Public Utilities (DPU).
EXECUTIVE SUMMARY
DPU is seeking to reject the proposal for Infor EAM Implementation Services for the Water Division. On November 9, 2017, Council approved the sole source purchase of additional EAM licenses and signing of a new Software License and Support Agreement. DPU sought professional consulting services to implement the additional EAM seat licenses approved by Council. After reviewing the proposal, staff has determined that an increase in scope of work will be necessary to implement the new and future EAM seat licenses and integrate with other City of Fresno software applications.
BACKGROUND
DPU and the Department of Public Works (DPW) currently use two separate Computerized Maintenance Management System (CMMS) solutions, Infor EAM and Infor Hansen, to manage the operation and maintenance of vertical and linear assets.
The Wastewater Management Division (WMD) has been using EAM to manage the operation and maintenance of vertical assets at the Regional Wastewater Reclamation Facility since 2010. In July 2017, the WMD went through an EAM upgrade and is operating the most current version of the software. In late 2017, DPU sought to purchase additional EAM seat licenses to increase the number of users that can utilize the system.
On November 9, 2017, Council approved the sole source purchase of additional EAM licenses and signing of a new Software License and Support Agreement. The increase in seat licenses was extended to DPU Water Division to manage the operations and maintenance of vertical assets in the electrical and production sections, Surface Water Treatment Facility, and for inventory control in the Water Division’s warehouse.
DPU sought professional consulting services to implement the additional EAM seat licenses approved by Council. A Request for Proposal (RFP) was posted on Planet Bids on October 20, 2017 and closed November 21, 2017. One proposal was received in the amount of $375,164.00.
Concurrent to the above process, in August 2017, DPU posted an RFP (#3513) for a CMMS upgrade to manage horizontal assets in DPU Sewer Collections, Water Distribution, and DPW Street and Landscape Maintenance. The results of this RFP would either upgrade the current CMMS to the latest version or replace it entirely with a new CMMS. The four proposals received for this RFP ranged in cost from $677,550 to $1,537,000.
A selection committee made up of staff from DPU, DPW, and one independent member from the County of Fresno reviewed the proposals and presentations for upgrading or replacing the horizontal asset CMMS. After reviewing the four proposals, staff determined that expanding the Department’s use of EAM (used to manage the vertical assets) to include horizontal assets, rather than using two separate CMMS systems, would be a more cost effective and efficient approach and would reduce redundant software applications. This new approach of combining the vertical and horizontal assets into a single CMMS system would result in an increase in scope of work for the implementation contract intended to only implement the vertical asset portion of the CMMS system. With this determination, staff’s recommendation was to reject all bids on RFP #3513 (the purchase of a horizontal asset CMMS) and expand the City’s use of EAM (the vertical asset CMMS) by purchasing additional licenses to extend to DPU Water Distribution, Sewer Collections, and DPW Street and Landscape Maintenance. City Council approved the rejection of all bids for RFP #3513 on April 19, 2018. (Item # ID18-0480). Staff now recommends that the City Council reject the proposal for Infor EAM Implementation Services (Bid File #3570).
Going forward, DPU seeks to leverage its current investment in EAM by purchasing additional licenses which will allow the Water and Wastewater Divisions and DPW’s Streets and Landscape Maintenance Divisions to utilize one CMMS to manage both horizontal and vertical assets. Upon Council approval for the purchase of additional EAM licenses, staff will submit a new RFP to include EAM implementation services and integration to other City of Fresno applications in DPU Water and Wastewater Divisions and DPW’s Streets and Landscape Maintenance Divisions.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the rejection of all bids does not qualify as a “project”, and is therefore exempt from the CEQA requirements.
LOCAL PREFERENCE
Local preference was not implemented because the Department of Public Utilities is seeking to reject the proposal received for Infor Enterprise Asset Management (EAM) Implementation Services.
FISCAL IMPACT
The rejection of all bids will have no impact to the General Fund or the Water Enterprise Fund.
Attachment: Evaluation of Bid Proposal No. 3570