Title
PRESENTATION ON THE ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM SELECTION PROJECT
Staff Contact and Presenter: Vicki Rios, Director, Budget and Finance
Staff Presenter: Tom Duensing, Assistant City Manager
Staff Presenter: Lisette Camacho, Assistant Director, Budget and Finance
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Purpose and Policy Guidance
Recommendation
The purpose of this workshop presentation is to provide the City Council with additional information on the Enterprise Resource Planning System Selection Project.
Background
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 modules. 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.
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. BerryDunn was selected as the top vendor for these services. BerryDunn is a consulting and certified public accounting firm with extensive experience in assisting municipal clients throughout the project lifecycle of an ERP system selection and implementation. BerryDunn and the city began the ERP System Selection Project in July 2016.
The focus of the ERP System Selection Project is to identify, define, evaluate and plan for the replacement of the existing system software and for any other relevant applications that support related business processes. The city assessed the current environment and conducted a comprehensive evaluation of the various applications currently in use throughout the city. The evaluation included evaluating the city’s business needs and best practices in municipal agencies to determine the requirements and desired functionality for the future system.
Analysis
On November 2016, the city issued an RFP for ERP software and implementation services to replace PeopleSoft. The city received three responses to the RFP and those proposals were evaluated by a team comprised of employees from the Human Resources, Budget and Finance, and Innovation and Technology Department. As part of the evaluation process, the top three vendors were invited to demonstrate their software products. Each vendor was provided the same script that included scenarios for each functional area of the project and discussion items related to technical and implementation considerations. Employees from throughout the city participated in the demonstrations and provided their input to the evaluation team.
For the top two vendors, the city completed web-conference sessions to view certain in-depth functionality; made written inquiries to the vendors to clarify statements and receive Best and Final Offer (BAFO) pricing; and performed reference checks and/or site visits to current users of these software systems.
The team scored Tyler Technologies (Tyler) Munis software highest based upon the cumulative results of the evaluation process. Munis is used by many similar organizations nationwide and several local cities in the Phoenix area. The city published a Notice of Intent to award a contract to Tyler Technologies and is in the process of completing the contract negotiation process with Tyler. Staff will provide the City Council with an update on the ERP System Selection Project and discuss the potential benefits of the Tyler Munis system. Staff anticipates bringing a recommendation for award of a contract for the ERP system to Tyler to the Council in May 2017.
On March 21, 2017, Staff presented to City Council updated information on the ERP System Selection Project. At this meeting, City Council directed city staff schedule another workshop to provide additional information on the ERP System Selection Project.
Previous Related Council Action
On March 21, 2017, Staff presented to City Council an update the ERP System Selection Project.
On June 28, 2016, the City Council approved an agreement with BerryDunn for ERP selection and implementation consulting services.
Budget and Financial Impacts
This report is for information purposes only.