Report No. COR 037-2016 Date: May 3, 2016 File No: 2320-20 To: From: Subject: Mayor and Council Lisa Pleadwell, Director of Finance Contract Award for SAP Partner RECOMMENDATIONS COUNCIL REPORT REGULAR COUNCIL 1. THAT lllumiti be awarded the SAP Partner contract for SAP System Upgrades and Enhancements (RFP 1220-2016-1870); and 2. THAT the Mayor and Corporate Officer be authorized to execute all documents related to this matter. SUMMARY OF THE ISSUE The purpose of this report is to award the contract for an SAP Partner to facilitate the reimplementation of SAP for the City. BACKGROUND SAP is the enterprise software used by the City of Abbotsford, initially implemented in the late 1990's. In 2015, a gap analysis was completed resulting in a recommendation to re-implement SAP at the City with a specific focus on HR/Payroll. A cross-functional steering committee at the City has been actively involved in the SAP review process. The purpose of the SAP Partner is to provide support (co-support) to the City of Abbotsford in streamlining and strengthening the re-implementation of specific modules within SAP, enabling functionality, documentation, upgrading versions, connections to other software and software implementation. The Partners' role will be to provide consulting and/or implementation services dependent on the knowledge gap of the City's resources on the specific tasks. The Partner will be responsible to lead the project with SAP tools and templates, for providing SAP knowledge, design and architecture, blueprinting, and will also lead the project in these areas: knowledge transfer, user acceptance testing, training, articulation of systems and connections. Resources from the City and the Partner will jointly deliver the project. Per Council Policy C013-05 Materials Management (Purchasing), all consultant contracts over $350,000 require Council approval.
Transcript
Report No. COR 037-2016
Date: May 3, 2016 File No: 2320-20
To: From: Subject:
Mayor and Council Lisa Pleadwell , Director of Finance Contract Award for SAP Partner
RECOMMENDATIONS
COUNCIL REPORT
REGULAR COUNCIL
1. THAT lllumiti be awarded the SAP Partner contract for SAP System Upgrades and Enhancements (RFP 1220-2016-1870); and
2. THAT the Mayor and Corporate Officer be authorized to execute all documents related to this matter.
SUMMARY OF THE ISSUE
The purpose of this report is to award the contract for an SAP Partner to facilitate the reimplementation of SAP for the City.
BACKGROUND
SAP is the enterprise software used by the City of Abbotsford, initially implemented in the late 1990's. In 2015, a gap analysis was completed resulting in a recommendation to re-implement SAP at the City with a specific focus on HR/Payroll. A cross-functional steering committee at the City has been actively involved in the SAP review process.
The purpose of the SAP Partner is to provide support (co-support) to the City of Abbotsford in streamlining and strengthening the re-implementation of specific modules within SAP, enabling functionality, documentation, upgrading versions, connections to other software and software implementation. The Partners' role will be to provide consulting and/or implementation services dependent on the knowledge gap of the City's resources on the specific tasks.
The Partner will be responsible to lead the project with SAP tools and templates, for providing SAP knowledge, design and architecture, blueprinting, and will also lead the project in these areas: knowledge transfer, user acceptance testing, training, articulation of systems and connections. Resources from the City and the Partner will jointly deliver the project.
Per Council Policy C013-05 Materials Management (Purchasing), all consultant contracts over $350,000 require Council approval.
Report No. COR 037-2016 Page 2 of 2
DISCUSSION
RFP No. 1220-2016-1870 was issued February 19, 2016. One compliant proposal was received, submitted by the SAP consulting firm/platinum SAP partner, lllumiti.
The RFP Evaluation Team conducted two follow-up phone calls with the proponent to clarify elements of the proposal, and was satisfied with the responses.
Overall project costs that were submitted as part of the RFP were approx. $1.0 M. As part of the blueprinting phase of the project, the Partner and the City will more precisely define scope and costing in accordance with the Financial Plan.
FINANCIAL PLAN IMPLICATION
The 2016 Financial Plan includes an amount of $1.1 M to engage a partner to provide support for the reimplementation of SAP. Staff will work with the partner to ensure value and to keep costs within the budgeted amount.
~-:l-"'1 Re2 and approved by the: Chief Financial Officer
IMPACTS ON COUNCIL POLICIES, STRATEGIC PLAN AND/OR COUNCIL DIRECTION
This contract award supports two of the cornerstones of the City's Strategic Plan: 1. Fiscal Discipline -Actively manage our City finances with exceptional care.
2. Organization Alignment -Involved, safe and engaged workforce. Priority action item of implementing employee "self-serve" program.
SUBSTANTIATION OF RECOMMENDATION
The City of Abbotsford enter into an agreement with lllumiti to provide support for the reimplementation of SAP.
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ATTACHMENTS
Attachment "A": [Schedule A- Scope of Services, RFP 1220-2016-1870]
Attachment "A"SCHEDULE A- SCOPE OF SERVICES
OPPORTUNITY
The purpose of the SAP Partner is to provide support (co-support) to the City of Abbotsford in streamlining and strengthening there-implementation of specific modules within SAP, enabling functionality, documentation, upgrading versions, connections to other software and software implementation. The Partners' role will be to provide consulting and/or implementation services dependent on the knowledge gap of the City's resources on the specific tasks.
The Partner will be responsible to lead the project with SAP tools and templates, for providing SAP knowledge, design and architecture, blueprinting, and will also lead the project in these areas: knowledge transfer, user acceptance testing, training, articulation of systems and connections. Resources from the City and the Partner will jointly deliver the project. The City prefers the "train the trainer'' approach and the Partner's team will be responsible to train our trainers. The City will be involved in training, documentation, and Blueprints- knowledge transfer and learning.
The Partner will also be required to state the roles of the project team and resources; who owns each responsibility (RACI chart), the Partners team, the City, or joint responsibility.
Final documentation will be an all in one configuration document- what is in scope today and what we are considering using in the future.
PARTNER QUALITIES
• Streamline and strengthen the entire reimplementation. Have the ability, resources and knowledge to turn on additional SAP functionality.
• SAP gold/platinum certified provider (all proposed team members certified). Proponents without this certification will not be considered.
• PCOE compliant SAP maintenance provider • Must have prior Canadian municipal or government experience in providing similar solutions • Preference for a provider with local BC presence (for support reasons) and headquartered in
Canada. • Company must have a proven track record with implementing SAP Best Practice solutions • All team members must be Canadian based • Partner will be required to complete the entire scope of project- preference for stand alone
organizations (no subs required) • SAP Experience in FI/CO, HR, Payroll and PM to be provided by partner. • All proposed team members preferred to have experience working with public sector
environment • All proposed staff must have SAP certification in their specified domain.
CURRENT STATE AND SCOPE UNDER CONSIDERATION
1) Re-implement modules • Human Resources/Payroll • FI/CO
o new chart of accounts and accounting structure
RFP 1220-2016-1870 Page 9 of 37
2) Increased Functionality
• AP, MM, PM, FA
3) Upgrade from EHP4 to EHP7
4) Upgrade to Hanna
5) Integration and dependency points o Changes as required with software upgrade
6) Blueprinting -separated out o Implementation 151 piece a blue print process- review and more detailed level- design
document (what does this look like, technical configuration); process and procedures to execute SAP and this is what we are going to build. Unique component- or report that we need.
o SAP methodology - best practice o Functional specification document
CURRENT CONFIGURATION
• Hardware o Production and Sandbox Systems (2 servers)
• Dell PowerEdge R61 0 • 2 CPUs I 6 Cores per CPU (Xeon X5670) • 24GB RAM • Windows 2008 Enterprise SP2
o Development/QAS (3 Servers) • Virtual (VMWare ESXi 5.5 Update 3a) • 2 vCPUs • 8GB RAM • Windows 2008 SP2 Standard
• Software
System SAPVersian Database Version SAP ERP ECC 6 SAP ERP ECC 6.0 EHP4 Oracle 11.2.0.3.0
Total No of SAP licenses count owned by COA 215 (purchased 9 licenses in 2013) License Types: 160 - limited Professional 55 - Professional
Total number of Developer license 1 Payroll Processing Engine Own engine to process payroll for 1500
• Interfaces (SAP Integration with third party)- see attachments 1. Tempest ->SAP (revenue, some receivables) 2. SAP-> Tempest (receivables) 3. CLASS - > SAP (revenue, some receivables)
RFP 1220-2016-1870 Page 10 of37
4. PROFUEL ->fuel issuance recorded in Profuel system. Issuance data from Profuel manually loaded as a flat file which update fuel stock inventory in SAP as well as cost distribution to departments for fuel consumption.
5. RIVA-> SAP (tangible capital assets) 6. Ecommerce - Customer online payments uploaded into SAP via overnight batch job 7. Questica- Actuals from SAP uploaded via overnight batch job into Questica for
reporting and budgeting . 8. Telestaff- AFRS time entry management 9. Stone Orchard- SAP (revenue and receivables)- In design phase 10. Amanda- SAP (revenue and receivables) -In design phase
• Currently running in HR- organization management, personnel admin, benefits • Number of employees
o Approximately 1400 employees (PT, FT and auxiliary) • Number of union agreements (count and complexity)
o There are 4 Union Contracts but 9 major groupings of employees, 33 employee subgroups.
• Number Wage Types (count and complexity) o Wagetypes-895 o Absencetypes-51 o Attendance types -101 o Quota banks -18 o Time types -17
• Materials - Procurement within kind of things- running MRP, set up master contracts, source strategies. The city does not do bar coding.
CURRENT MODULE STATUS AND SCOPE UNDER CONSIDERATION
Components to Explore/Recommended for Deployment • Quotations • Contract Management • Sourcing Agreements/Auto PO • Vendor evaluation • Services/Service Entry Sheets
2) Finance Components in Use • Finance Organizational Structure • General ledger - Old G/L • Accounts receivable • Accounts payable • Fixed assets accounting • Bank accounting • Cash management • Cash journal accounting • Inventory accounting • Tax accounting • Accrual accounting • Local close (period-end functionality in general ledger and all sub ledgers) • Financial statements • Audit information system • Tax data retention tool • Profit centre accounting • Cost centre accounting • Project accounting • Investment management • Product cost accounting • Material ledger • Financial management reporting • Overhead cost analysis • Working capital analysis
Components to Explore/Recommended for Deployment • General ledger- New G/L and Funds Management/Grant Management • Treasury module- cash management (optional)
3) Human Resources Components in Use • Employee Administration • Organizational Management • Benefits Management and Reporting • Time and Attendance
• Shift planning • Time Evaluation • Absence management including quotas • Timesheet - CATS
• Wage types • Salary reports • WCB reporting • Remuneration statement • Long term disability • Union dues and reporting • Loans/ Advance • Overtime • Leave of Absence
Components to Explore/Recommended for Deployment • Concurrent employment (two different roles at different pay scales at different rates) • Time and Attendance
• Absence management substitutions • Talent Management and Learning Solution in ECC or SuccessFactors (later date)
• •
• Employee Assessment • Talent review and calibration • Competency management • Training and Events Management • Employee development • Performance Management • Compensation Management
HR Renewal or SuccessFactors for Employee and Manager Self Service eRecruitment or Success Factors for Recruitment (later date)
*SuccessFactors is considered a future phase
4) Plant Maintenance Components in Use • Maintenance org structure - planning and maintenance plants • Master data- equipment, functional locations, work centres • Maintenance scheduling • Maintenance work orders • Material reservations • Measuring Points • Object types • Plant Maintenance reports and analytics
Components to Explore/Recommended for Deployment • Maintenance Planning - planning groups • Notifications - including priorities • Task lists • Preventative Maintenance - Single Cycle Plans • Notification catalogues -for failure/RCM Analysis • Activity Codes to segregate type of work • Assembly BOMS • Value categories • Document management system • Permits • Warranties • Refurbishment • Linear Asset Management • Mean Time to Repair and Mean Time Between Failure
RFP 1220-2016-1870 Page 13 of 37
5) Project Systems Components in Use • Project structure - WBS • Project planning • Project execution • Project accounting - Internal Orders, • Program and project management reporting • Change management
Components to Explore/Recommended for Deployment • Project accounting -Budget carry forward, Budget control • Investment Management • Project documentation • Timesheets against project activity codes (integration with Fl and HR)
*Project Systems is used strictly for financial reporting today and the City is considering expanding its use.
SCOPE CHANGES Any changes to scope of the project will be approved by the project liaison
ESTIMATED TIMELINES
Activity Completion
RFP Submissions to City March 11, 2016
RFP Evaluation March 21, 2016
Notification of Short Listed Proponents (if applicable) March 22, 2016
Clarification and Negotiation (if applicable) March 25, 2016
Award Recommendation to Council April4, 2016
Contract Award April 5, 2016
Project fully implemented December 31, 2016
Note: lllumiti Inc. was contracted by the City of Abbotsford to complete a SAP value assessment of the current SAP system with a focus on functionality in the fall of 2015. lllumiti will maintain the right to submit a proposal and be considered in this RFP process.
