HomeMy WebLinkAboutCover MemoCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO :
FROM:
Honorable yo and Memb
he City ommission
'ola
f Administrator / City Manager
DATE:
SUBJECT:
REFERENCES:
ENCLOSURES:
March 16, 2004
FILE :
Recommendation for
Waiver of Competitive
Bidding - Enterprise
Resource Planning (ERP)
Software
Recommendation
It is respectfully requested that the City Commission adopt the attached Resolution, by a
four/fifths (4/5th) affirmative vote of the members of the City Commission, after a duly advertised
public hearing, ratifying, approving and confirming the City Manager's request for waiving the
requirements for c ompetitive sealed bids, and authorizing the n egotiation a nd e xecution of an
agreement for the purchase of Enterprise Resource Planning (ERP) software with the following
software vendors (listed in alphabetical order) Lawson, Oracle, PeopleSoft, SAP and any
necessary third -party application software, based on further evaluation of technical and functional
requirements that best fit the needs of the City of Miami, total cost of ownership, viability,
scripted demos, reference checks, experience of providing software to municipalities or
government agencies of similar size and/or complexity, and cost, in an amount between
$1,400,000.00 a nd $ 2,600,000.00. S hould n egotiations fail w ith t he first t op -ranked firm, it is
recommended the City negotiate with the next highest ranked firm(s), until a successful contract
is negotiated. Funding is available from the Information Technology Enterprise Resource
Planning Capital Improvement Account Code 311613, and additionally from various other
departmental operating budgets on a citywide basis and from various CIP accounts, subject to the
availability of funds.
Background
In 2001, the City of Miami partnered with Arthur Anderson Corporation for the provision of an
Information Technology Strategic Plan. This plan highlighted a number of strategic technology
initiatives the City needs to complete within the next few years. The second highest priority of
these initiatives is the acquisition and implementation of a Enterprise Resource Planning software
system (ERP) to provide modern, reliable, efficient and integrated support for the City's finance,
employee relations, budget, payroll and purchasing functions. This report recommended 7D
Edwards, PeopleSoft, Oracle and SAP
The first major phase of the ERP project, Business Process Reengineering (BPR) has been
completed. The BPR study included reviewing the current state of business processes in the key
areas mentioned above, documenting industry best practices and providing a gap analysis and a
road map for the City on how to implement industry best practices to improve efficiencies,
performance, and accountability to minimize customization during the ERP implementation.
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Waiver of Competitive Bidding - Enterprise Resource Planning Software
March 16, 2004
Page 2
The BPR Study also produced a Fit/Gap Analysis utilizing the Best Practice -driven solutions to
provide the City with a high level assessment of how the four (4) major ERP software packages
meet the City's "Zero Customization" ERP guiding principle. The BPR Study documented the fit
/ gap between the selected Best Practices and the ability of the packages to implement the
selected Best Practices. The Fit/Gap Analysis defined the impact of deploying each Best Practice
onto the four major ERP software packages.
Gartner, Inc. a leading IT research firm provided the City of Miami with a Decision Tool for
vendor selection called Decision Drivers Engine (DDI). Gartner's Decision Drivers Engine is a
software -based decision support tool that provides easy access to a host of validated data
spanning the tactical and strategic considerations in an evaluation. At the same time, the
software's what -if modeling capabilities allowed the City to personalize vendor and product
evaluations according to the City's preferences and priorities. The City of Miami used the DDI
model to create a ranking of the four major ERP software packages.
The findings of the BPR Fit/Gap Analysis and with the DDI ranking were then evaluated by the
ERP Executive Steering Committee. Both the BPR and DDI concluded the top 4 products were:
Lawson, Oracle, PeopleSoft and SAP. Following discussion, deliberation and evaluation, the
Committee recommended (listed in alphabetical order) Lawson, Oracle, PeopleSoft and SAP as
the recommended software firms.
The City of Miami will evaluate the (4) recommended firms based on technical and functional
requirements that best fit the needs of the City of Miami, total cost of ownership, viability,
scripted demos, reference checks, experience of providing software to municipalities or
government agencies of similar size and/or complexity, and cost. Should negotiations fail with
first top -ranked firm, the Committee recommended the City negotiate with the next highest
ranked firm(s), until a successful contract is negotiated.
FISCAL Il LPACT: None — Budgeted Item
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