HomeMy WebLinkAboutcover memoCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO :
FROM :
Honorable Mayor and Members
Of the City Conmission
v \
Joe; Arriola
C 'ief Administrator / City Manager
1 V a.
DATE :
SUBJECT:
REFERENCES:
ENCLOSURES:
July 13, 2004
Recommendation for
Award of contract for
Enterprise
Resource Planning (ERP)
Software
FILE :
Recommendation
It is respectfully recommended that the City Commission adopt the attached Resolution
authorizing the City Manager to execute an agreement, in substantially the attached form, with
Oracle Corporation, a non-local/non-minority firm, located at 1910 Oracle Way, Reston, Virginia
20190, the top -ranked firm, pursuant to an informal Request For Proposals (No. 03-04-104)
issued on April 22, 2004, for the acquisition of Oracle's Enterprise Resource Planning (ERP)
Application, Database, Tools Software and Training in the amount not to exceed $1,021,816;and,
a support and maintenance agreement for five (5) years at a total fixed cost of $1,009,320, for a
total contract amount of $2,031,136; and, any necessary third -party application software, as
needed, from a third -party provider, to best fit the requirement for the City of Miami, in the
amount not to exceed $357,000 and a contingency amount of $250,000 for unforeseeable
circumstances. Funding is available from the Information Technology Enterprise Resource
Planning Capital Improvement Account Code 311613, and additionally from various other
Information Technology and 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 L.L.P. 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 an 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
JD Edwards, PeopleSoft, Oracle and SAP as potential candidates for an ERP software system.
The first major phase of the ERP project, Business Process Review (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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June 30, 2004
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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 City of Miami used Gartner Group's Decision Drivers (DDI) Tool for software selection.
The DDI is a software -based decision support tool that provides easy access to a host of validated
data spanning functional, tactical and strategic considerations in an evaluation. The City of Miami
used the model to create a ranking of the four major ERP software packages' ability to meet the
City needs.
The findings of the BPR Fit/Gap Analysis and the DDI ranking were then evaluated by the ERP
Executive Steering Committee. Both the BPR and DDI concluded the top 4 ERP systems were
from: Lawson, Oracle, PeopleSoft and SAP. Following discussion, deliberation and evaluation,
the Committee recommended (listed in alphabetical order) Lawson, Oracle, PeopleSoft and SAP
software for final evaluation.
By unanimous vote of 5-0, the City Commission, on April 8, 2004, under Resolution # 04-00235,
approved a bid waiver and issuance of an informal Request for Proposals (No. 03-04-104) to
those top four ERP Software Firms (Lawson, Oracle, Peoplesoft and SAP).
The ERP Executive Steering Committee evaluated proposals submitted by the (4) recommended
firms in response to the informal RFP, 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. The ERP Executive Steering Committee was present for (8) full days
of scripted product demonstrations and met on three additional occasions, May 24th, May 25th,
and May 28th, 2004, at which time the Committee considered detailed analysis comparing the
functionality, scripted demos, end -user input, and cost analysis provided by ERP system technical
consultants.
Following discussion, deliberation and evaluation, the Committee's recommendations are, in rank
order: (1) Oracle, (2) PeopleSoft, (3) SAP and (4) Lawson.
FISCAL IMPACT: None — Budgeted Item
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