HomeMy WebLinkAbout05.e. Authorize GM to enter into sole-source agreement with SunGard, Inc. for improvements to ERP System, DP 8240Central Contra Costa Sanitary District
BOARD OF DIRECTORS
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'S
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
1 v ' .
Roger S. Bail
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.
5.e.
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. 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 the District's current business processes. It became apparent
that a number of improvements were deemed to be urgently required. The cost to
implement the alternative of optimizing the District's existing system was less than
$350,000, including training, and could be implemented within about a year.
Direction was given to staff to begin immediately implementing changes to optimize the
existing system. Small upgrades within staff authority were immediately undertaken
(see Table A below). Most of these incremental improvements are already in process
or have recently been completed. They will allow staff to further evaluate ERP
replacement options while providing almost immediate improvements to current tools,
reports, and business processes.
Page 1 of 2
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'S ENTERPRISE
RESOURCE PLANNING (ERP) SYSTEM, DISTRICT PROJECT 8240
This particular upgrade for targeted ERP improvements exceeds staff authority and is
anticipated to be the last of the small projects to maximize the use of SunGard until a
project for future replacement of the current ERP system is undertaken. This proposed
contract for SunGard ERP system improvements will focus on Purchasing, Human
Resources, Finance, Accounts Payable, Customer Billing, Capital Projects and include
improvements to the reporting system.
Table A: SunGard Optimization Projects
Description Cost 1
Cognos BI (Report services) bucket of hours used as needed only. $95,120
Cognos BI (Report software) & Click2Gov (Self-service software and $45,291
implementation services)
Naviline Edge User Interface (software and implementation services) $25,550
SunGard CX Customer Billing improvement services $11,000
ExecuTime timekeeping software and implementation services $50,910
Subtotal: $227,871
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 long-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 sole -
source technical consulting services agreement with SunGard, Inc. with a cost ceiling of
$100,380 for improvements to the District's ERP system, District Project 8240.
N:\ADMINSUP\ADMIN\DIST-SEC\Position Papers\2016\PP Sungard ERP 8-4-16.doc
Page 2 of 2