HomeMy WebLinkAboutMemoPedro G. Hernandez
City Manager
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September 1, 2006
September 28, 2006 Agenda Item —
Implementation of Oracle Software
On November 13, 2003, the City Commission adopted R-03-1140, as amended, authorizing the
City Manager to execute an agreement with Blackwell Consulting, LLC, to provide Business
Process Engineering ("BPR") services, in an amount not to exceed $2,875,000, which study
included reviewing the current state of business processes, documenting industry best practices
and providing a road map for the City on how to implement industry best practices to improve
efficiencies, performance, and accountability. As a result of said BPR several best practices
recommendations were made, one of which was to implement Enterprise Resource Planning
("ERP") software. On July 22, 2004, the City Commission adopted R-04-0508, as amended,
authorizing the City Manager to execute a Software License and Services Agreement with
Oracle Corporation, the top -ranked firm, pursuant to RFP No. 03-04-104 for the acquisition of
Oracle's Enterprise Resource Planning ("ERP") Application, Software, Training, support and five
year maintenance and any necessary third -party application software, as needed, from a third -
party provider, in a total contract amount not to exceed $2,638,136. Said ERP software will
allow the City to achieve best practices in the areas of Purchasing and Contract Management
outlined in the BPR as follows:
• Contract information centralized in an enterprise wide ERP system with 24/7 real time
access to city departments.
• Supplier information in master file automatically integrated to contract information.
• Prior to contract renewal, required resources will be notified within timeframes that allow
preparation for contract renewal process.
• Automatic, standardized notification of contract award.
• Web -based item catalogs used for self-service requisition and web -based tools used for
direct, indirect materials and services, and capital purchases.
• Pre -populated requisition with account and user information as well as other financial
information (e.g., terms, contract information etc.).
• Available budget verified automatically. The ERP's functionality will automatically
ensure that adequate, unencumbered funds exist in authorized accounts before a
requisition moves forward.
• Routing and approval verification automated through workflow.
• Approved requisitions converted to purchase orders automatically.
• High percentage of goods and services purchases to be acquired via blanket purchase
orders from active citywide contracts.
• High percentage of low dollar, high volume transactions purchased via Web based
catalogs.
• Web -based intranets used to transmit purchase orders and P.O. acknowledgements.
• Commodity coding information (e.g., NIGP) captured for each purchasing transaction.
• General -ledger accounts validated automatically.
• Ability to conduct thorough spend analysis.
The implementation of Oracle (iMiami) is scheduled to be launched on October 2, 2006. The
City is currently not using best practices as it is still approving contracts on a department specific
and/or account code specific basis. To increase overall efficiencies for the purchase -to -pay cycle
and with the current controls that will be inherent in the iMiami Oracle System, we are
respectfully requesting an amendment to all resolutions approving departmental term and
citywide contracts specifying account codes and/or amounts to citywide contracts with funds
allocated from the various sources of funds of the user Department, subject to the availability of
funds and budget approval at time of need.