HomeMy WebLinkAbout05. Draft Position Paper to authorize agreement to upgrade SunGard Naviline softwareCentral Contra Costa Sanitary District
BOARD OF DIRECTORS Q
POSITION PAPER
Board Meeting Date: August 4, 2016
Subject:
5.
AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE -
SOURCE AGREEMENT WITH SUNGARD, INC FOR TECHNICAL
CONSULTING SERVICES FOR IMPROVEMENTS TO THE DISTRICT
ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM, DISTRICT
PROJECT 8240
Submitted By:
Initiating Dept./Div.:
John Huie, IT Manager Administration
Information Technology
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
Ann Sasaki, Deputy General Manager
Kent Alm
District Counsel
Roger S. Bailey
General Manager
ISSUE: Board approval is requested to enter into a sole -source agreement with
SunGard, the existing vendor and proprietary service provider of the District's ERP
system. Board authorization is also required for the General Manager to execute an
agreement in an amount greater than $100,000.
BACKGROUND: The SunGard HTE ERP system has been used by the District since
1993. This system manages the business data and processes for our Human
Resources, Procurement, Accounting, Billing and related subsystems. Every area of
District operations depends upon the ERP as a foundational technology. SunGard HTE
is a proprietary ERP system which is supported by the vendor through annual support
contracts that provide current software updates and ongoing technical assistance.
Sungard does not use multiple vendors to support their product and is the only viable
provider of these services.
Replacement of the ERP system was identified as a task in the IT Master Plan
presented to the Board on January 29, 2015. However, upon further investigation it
was determined that replacement of the system would take approximately 3 to 5 years,
cost an estimated $2 million and have major impact on our current business processes.
In comparison, the cost to implement optimization changes to our existing system to
increase productivity and efficiency will cost under $350,000 and can be implemented
in about a year. These incremental improvements will allow staff to further evaluate
ERP replacement options while providing almost immediate improvements to our
current tools, reports, and business processes.
The proposed SunGard ERP system improvements will focus on Purchasing, Human
Resources, Finance, Accounts Payable, Customer Billing, Capital Projects and include
improvements to the reporting system.
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POSITION PAPER
Board Meeting Date: August 4, 2016
Subject:
AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE -SOURCE
AGREEMENT WITH SUNGARD, INC FOR TECHNICAL CONSULTING
SERVICES FOR IMPROVEMENTS TO THE DISTRICT ENTERPRISE
RESOURCE PLANNING (ERP) SYSTEM, DISTRICT PROJECT 8240
The following additional SunGard contracts are already in progress or have been
recently completed. All of these are in accordance with the IT Master Plan
improvements.
Description
Cognos BI (Report services) bucket of hours used as needed only.
Cognos BI (Report software) & Click2Gov (Self-service software and
implementation services)
Naviline Edge User Interface (software and implementation services)
SunGard CX Customer Billing improvement services
ExecuTime timekeeping software and implementation services
Subtotal:
Cost
$95,120
$45,291
$25,550
$11,000
$50,910 1
$227,871 1
This proposed contract for targeted ERP Improvements $100,380
Total $328,251)
ALTERNATIVES/CONSIDERATIONS: An alternative would be to replace the existing
ERP system with a more modern system. Such a system would have more features,
capabilities, and would be easier to operate and support. This alternative is not
recommended at this time due to the timeline and potential disruptions mentioned
earlier. Staff will continue evaluating Tong -term replacement under the IT Master Plan.
FINANCIAL IMPACTS: The agreement will have a cost ceiling of $100,380. This work
is included and budgeted under the Information Technology Development Project,
District Project 8240, in the Fiscal Year 2016-17 Capital Improvement Budget.
COMMITTEE RECOMMENDATION: The Finance Committee reviewed this subject at
its meeting on July 25, 2016, and recommended approval of the agreement.
RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a
technical consulting services agreement with SunGard, Inc, with a cost ceiling of
$100,380 for improvements to the District's ERP system.
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