AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH BERRY DUNN MCNEIL & PARKER, LLC, FOR ENTERPRISE RESOURCE PLANNING (ERP) SELECTION AND IMPLEMENTATION CONSULTING SERVICES
Staff Contact: Vicki Rios, Interim Director, Finance and Technology
Purpose and Recommended Action
This is a request for the City Council to authorize the City Manager to enter into an agreement with Berry Dunn McNeil & Parker, LLC (Berry Dunn), for ERP selection and implementation consulting services for an initial term of one (1) year, with the option to extend annually at the City Manager’s discretion for an additional four (4) years in an amount not to exceed $150,000 over the life of the agreement.
Background
On January 2016, the city issued a request for proposals (RFP) for a consultant to provide services related to the procurement of a new ERP system and, optionally, to manage the implementation of the resulting ERP application. Eleven proposals were received and an evaluation committee consisting of staff from the Finance & Technology and Human Resources Departments reviewed the offers received. Specific evaluation criteria included: experience of the firm in developing written requirements for an ERP system, writing RFP documents, coordinating and conducting formal business process review for future ERP systems, leadership capabilities in evaluating RFP responses, contract negotiations, and selecting and implementing an ERP system. The proposal submitted by Berry Dunn was recommended by the committee for approval by the Council.
Analysis
Since 1995, the city has been using PeopleSoft’s Human Capital Management (HCM) and Supply Chain Management (SCM) Financials ERP solutions. In the HCM system, the city has implemented the Core Human Resources, Payroll for North America and Time and Labor. In the PeopleSoft SCM/Financials, the city has implemented Purchasing, Accounts Payable and General Ledger. The city is considering replacing PeopleSoft with a software solution that is mid-range in terms of complexity (Tier 2), less demanding to implement and maintain, and smaller in size but robust and agile enough to fit the city’s needs. The city is also open to the implementation of multiple software solutions that integrate to achieve optimum results. Berry Dunn is expected to provide expert guidance and assist the city with identifying and documenting the city’s system requirements, preparing an RFP for a fully integrated, proven, state-of-the art ERP solution, assisting in the evaluation of the responses to the RFP, performing project management functions and optionally, managing the implementation of the selected ERP application.
Berry Dunn is a consulting and certified public accounting firm with extensive experience in assisting municipal clients throughout the project lifecycle of ERP system selection and implementation. The firm’s government consulting group has been providing management and information technology consulting services to clients in local government since 1986 and has worked with more than 250 local and state agencies throughout the country including the cities of Surprise, Goodyear and Tucson. Berry Dunn’s team has knowledge and experience with all of the common ERP systems on the market. The proposed team members have implemented public sector ERP systems and are certified Project Management Professionals (PMP), Certified Fraud Examiners (CFE) and Certified Lean Six Sigma Green Belts.
The recommended agreement with Berry Dunn is for one (1) year, with an option, at the discretion of the City Manager, to extend the agreement for four (4) additional years in one-year increments. Budget for the PeopleSoft replacement project is available in the technology projects fund.
Budget and Financial Impacts
The estimated cost of $150,000 includes the following consulting services: identifying and documenting the city’s system requirements; preparing an RFP for a fully integrated, proven, state-of-the art ERP solution; assisting in the evaluation of the responses to the RFP; contract negotiations; selecting the ERP solution and performing project management functions. The implementation project management is an optional service at an additional cost of $185 per hour. If the city chooses Berry Dunn to provide additional consulting services to assist with implementing the ERP solution, staff will seek Council approval for the additional cost.
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Cost |
Fund-Department-Account |
|
$150,000 |
2592-18500-518200, Professional & Contractual |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?