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Item 15.a.
CENTRAL SAN
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CENTRAL CONTRA COSTA SANITARY DISTRICT
December 20, 2018
TO: HONORABLE BOARD OF DIRECTORS
FROM: JOHN HUIE, INFORMATION TECHNOLOGY MANAGER
REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: UPDATE ON ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM
VENDOR SELECTION PROCESS
Central San issued a Request for Proposal (RFP) in June 2018 to solicit vendors offering enterprise
resource planning (ERP) systems. The requirements for the new ERP system and the RFP were
prepared by the Government Financial Officers Association (GFOA), which has been engaged to assist
staff with this undertaking.
A total of five vendors responded by the August deadline. Finalists were selected using pre-
determined scoring sheets and methodologies. Staff recently completed intensive three-day product
demonstrations for the finalists, each of which also introduced its proposed implementation team.
A multi-department evaluation team was selected to evaluate the demonstrations. I n addition, key staff
from all levels across the District were invited for those portions that pertained to them. The general
consensus is that each of the vendor candidates appear very viable. The demonstrations have driven
home how complex ERP systems are and how much time staff must dedicate to this project on top of
their normal duties to ensure successful implementation. Nevertheless, staff is excited to embrace this
opportunity to improve access to information and streamline business processes.
The next steps will be vendor reference checks and, most likely, site visits with other agencies that have
recently implemented these systems. Initial discussion of contract terms with finalists is taking place, to
be followed by final contract negotiations with the selected vendor. This will include determining specific
details regarding the scope of the project as determined by the product modules offered, final product
licensing costs, rates and hours of the implementation team.
It is expected that the vendor selection process will be completed in January 2019 with the first stages
of implementation beginning in March.
Given that this is a decision that will have a significant long-term impact on Central San's operations,
making a highly informed decision is paramount.A very thorough assessment process up-front, which the
District has and is continuing to conduct, will improve the likelihood of success for this project. The goal is
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to implement an ERP that will meet Central San's needs now and into the coming decades, in a cost
effective and timely manner.
One issue that the District is investigating is where the ERP system should be located - at Central San or
"in the Cloud". The current HTE system is run from hardware maintained and located on site. Central
San purchases (or licenses)the software from the vendor but is then responsible for the activities to
ensure the system is up and running. This includes procuring and periodically updating the hardware and
operating system the software runs on, providing back-ups, and installing upgrades and patches to the
ERP software as it is available. Some ERP vendors continue to offer products using this approach. A
more recent model has the software vendor responsible for those activities - a delivery model known as
SaaS, or Software as a Service, with the software and data located on the vendor's premises or data
center in a"cloud." Certain ERP providers are offering models at either end of the spectrum, or even with
multiple variations in between. There are various factors to be considered in the choice of the delivery
model, including the overall cost of ownership, control of data, information security, integration with other
applications and vendors, and likelihood of keeping the software current. Mr. Huie will speak at the
meeting on these considerations and the approach Central San staff is using to reach an informed
decision on these alternatives.
Strategic Plan Tie-In
GOAL ONE: Provide Exceptional Customer Service
Strategy 2- Foster employee engagement and interdepartmental collaboration
GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility
Strategy 2- Manage costs
GOAL SIX.Embrace Technology, Innovation and Environmental Sustainability
Strategy 3- Encourage the review and testing of technology to optimize and modernize business operations
December 20, 2018 Regular Board Meeting Agenda Packet- Page 155 of 168