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Home My WebLink About06. Review draft Position Paper to authorize the General Manager to execute an agreement with CDM Smith for Professional Consulting Services for the Implementation of the Program Management Information System (PMIS) Software under District Project 8238 a Central San 6m BOARD OF DIRECTORBD D POSITION PAPER 9DL77 Board Meeting Date: J�uly 6, 2017 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CDM SMITH FOR PROFESSIONAL CONSULTING SERVICES FOR IMPLEMENTATION OF THE PROGRAM MANAGEMENT INFORMATION SYSTEM (PMIS) UNDER DISTRICT PROJECT 8238 Submitted By: Initiating Dept.lDiv.: Dana Lawson Engineering & Technical Services Senior Engineer Planning & Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell- Planning & Development Services Division Manager JM. Petit— Director of Engineering & Technical Services Roger S.Bailey General Manager ISSUE: Board, of Directors' authorization is required for the General Manager to execute a professional services agreement in an amount greater than $100,000. BACKGROUND i-. The Asset Management Program Development (District Project 8238) has a critical ranking in the Capital Improvement Budget (CIB) and supports Board Policy 15 (Asset Management) and the Strategic Plan for Fiscal Year (FY) 2016- 18 under Goal 5 (maintain a reliable infrastructure) and Strategy 2 (facilitate long-term capital renewal and replacement); also Goal 6 (embrace technology, innovation, and environmental sustainability) and Strategy 2 (evaluate business processes and optimize business operations). The Asset Management Implementation Plan, finalized in April 2015, identified the need for program and project management standards to establish consistent practices, improve the ability to manage projects effectively and efficiently in a reliable and rigorous approach across the organization, and to assist staff by linking asset management into the capital investment process. The Comprehensive Wastewater Master Plan (CLAMP} for Central San has identified over 87 projects, with a 1 0-year Capital Improvement Program (CIP) of $873 million and a 20-year projection of capital spending of nearly $1 .8 billion, which more than doubles last year's expenditure projection of capital improvements. Implementation of a Program Management Information System (PMIS) will provide active program and project management, visibility into program performance and streamline project management functions and processes. The PMIS will be a tool that interactively organizes and reports information about the projects and programs in the CIP, enabling Central San's management to track program and project status, view program performance on a continual basis, and monitor work so that it is delivered on-time and on-budget. Page 1 of 4 POSITION PAPER Board Meeting Date: July 6, 2017 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CDM SMITH FOR PROFESSIONAL CONSULTING SERVICES FOR IMPLEMENTATION OF THE PROGRAM MANAGEMENT INFORMATION SYSTEM PMIS} UNDER DISTRICT PROJECT 8238 The Engineering and Technical Services Department is responsible for the planning, design, and construction of capital improvements. Currently, Central San's design and construction teams utilize Microsoft Office software to track and communicate project progress, schedules, and budgets. Due to the nature of these reports, data entry tends to be very repetitive, inefficient and time consuming. In addition, project documentation, submittals, and approvals throughout all project phases tend to be extensive and time consuming. Furthermore, these spreadsheets are not linked to our financial software, SunGard HTE. Given the projected annual workload presented in the newly adopted FY 2017-18 CIB and proposed 10-year CIP, the Engineering and Technical Services Department needs a tool that is efficient, easily accessible and that can manage and track all aspects of capital projects from inception through completion, including financial planning, project scheduling integration, monitoring and reporting capability. A Request for Proposals (RFP) was advertised from March 29 to April 26, 2017 on PlanetBids to select both the PMIS software and the implementation consultant. Four proposals were received from the following consultants and associated software: Implementation Consultant Software CDM Smith e-Builder CH2M Hill Engineers Inc. Integration of three software programs Gaea Global Technologies Inc. Oracle Hill International Inc. PMWeb An evaluation panel included staff from the Engineering and Technical Services Department's Planning section and Capital Projects Division, Operations Department, Finance, and Information Technology (IT) sections. The panel evaluated the proposals with valuable input from subject matter experts from the IT and Finance work groups, and criteria stated in the RFP, including usability, technical requirements, data migration and integration with SunGard, system administration and security, implementation team, and demonstration of meeting Central San's specified software functional requirements. The panel developed a short-list of the following three consultants: (1) CDM Smith with e-Builder; 2) CH2M Hill with the integration of three software programs; and 3) Hill International with PMWeb, that were interviewed on May 19, 2017 to present their proposed software, implementation plan and team. A second interview was held with the two-top ranking finalists, CDM Smith and PMWeb, on June 2, 2017. The evaluation panel selected the CDM Smith team to implement the e-Builder software for PMIS. CDM Smith provided the most qualified implementation team, familiar with the wastewater industry, and with experience integrating SunGard with e-Builder, and was the most comprehensive in meeting Central San's requirements. Overall CDM Smith was selected for this important project for the following reasons: Page 2 of 4 POSITION PAPER Board Meeting Date: July 61 2017 Subject: AUTHORIZE THE GENERAL MANAGER TMJ EXECUTE AN AGREEMENT WITH CDM SMITH FOR PROFESSIONAL CONSULTING SERVICES FOR IMPLEMENTATION OF THE PROGRAM MANAGEMENT INFORMATION SYSTEM (PMIS) UNDER DISTRICT PROJECT 8238 • e-Builder is a leading provider of fully integrated, cloud-based project management software from inception through completion • The software is used by similar public agencies locally and nationally • e-Builder met Central San's software requirements • CDM Smith has a proven implementation methodology • Proposed team has experience implementing the software with public agencies • Proposed team has experience integrating with SunGard • Implementation approach includes meeting with staff and ensuring that work flows and processes are adopted in the software • Provided an 18-month implementation schedule that is logical and reasonable • Provided extensive training and support to ensure stakeholder and user buy-in Staff recommends CDM Smith for the PMIS implementation of the e-Builder software platform. Central San has negotiated a scope and budget of $900,000 for the implementation services, which includes e-Builder as a sub-consultant for configuration and integration services. Implementation will occur over the next two fiscal years through five phases: Phase 1 Program Management, Phase 2 Pilot Project Management, Phase 3 Pilot Construction Management, Phase 4 Roll-Out Project Management, and Phase 5 Roll-Out Construction Management. FINANCIAL IMPACTS: The estimated agreement cost for software implementation is $900,000. This agreement will be paid for by the newly adopted FY 2017-18 CIB under Asset Management Program Development, DP 8238, spanning FY 2017-18 through 2018-19. Central San will purchase the PMIS software subscription licenses directly from the software vendor, which will be funded annually through the IT O&M budget. The FY 2017-18 IT O&M budget includes approximately $105,000 for the annual software subscription licensing. While staff does not expect to use 75 licenses the first year, there may be a discount in purchasing the full quantity up front, so the $105,000 is a maximum amount. At least two major capital projects will pilot the software during the implementation plan. Staff time cost for Phases 2 and 3 will be funded by the specific capital projects that will be used as pilots. ALTERNATIVES/CONSIDERATIONS: (1) Reject all proposals. (2) Reduce the scope of work and re-negotiate the agreement, which could cause staff to spend more time implementing. Both alternatives are not recommended by staff. Page 3 of 4 POSITION P Burd Meeting Date: July 6, 2017 Subject= AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH GDM SMITH FOR PROFESSIONAL CONSULTING SERVICES FOR IMPLEMENTATION OF THE PROGRAM MANAGEMENT INFORMATION SYSTEM (PMIS) UNDER DISTRICT PROJECT 8288 COMMITTEE RECOMMENDATION: The Real Estate, Environmental, and Planning Committee reviewed this project at its meeting on June 21 , 2017 and XXX recommended the project. RECOMMENDED BOARD ACTION: Staff recommends that the Beard authorize the General Manager to execute a professional consulting services agreement with CDM Smith with a cast ceiling of $900,000 for the Program Management Information System Software Implementation Services for the Asset Management Program Development, District Project 8288. Page 4of4