Title
Change Order for Technology Consulting Services (NB)
Staff recommends approval of a change order to the contract with AAC Utility Partners, LLC for technology consulting services for the Financial Management Information System and Customer Care System projects.
Explanation
On November 13, 2006, the City Commission authorized award of a contract for consulting services to AAC Utility Partners, LLC (AAC) in the amount of $420,000 to assist with SAP software projects, including evaluation and selection of an implementer for the Financial Management Information System (FMIS) project and implementation project oversight as well as Customer Relationship Management (CRM). At that time, the scope of the FMIS project exclusively included financials; however, the project scope was expanded to include the integration of Purchasing, Stores and Assets due to the network between these systems to financials.
Change orders within the City Commission threshold of 10% covered a portion of the extended time line of the deliverable based contract to complete the project. Additional expenditures in an estimated amount of $191,200 are required to complete the final nine (9) months of the FMIS portion of the contract through Go-live in 2009. These expenditures were included in the fiscal year 2008 and 2009 budgets.
The original scope of the SAP Customer Care System (CCS) included the development, testing, and implementation of corporate reporting tools. This function was scheduled to be completed after Go-Live. During the post go-live period, we have discovered that some of the corporate reporting tools implemented require restructure to meet the Utility's reporting requirements. Additional external resources will be required to manage the specific project. This will again be a deliverables based contract. The SAP reporting tools ensure the continuity of information needed to run the business on a daily basis. Many of these reports have regulatory or audit requirements which have time line implications. We feel it is best to engage AAC for this project management role. They have unique knowledge about both the CCS and FMIS implementations, both of which are building blocks for this reporting function. Their Project Manager role on these projects make them well suited to provide the expertise needed. The anticipated cost for a complete review and restructure of corporate reporting is $216,000 for all SAP related projects.
Staff recommends a change order to AAC to cover these additional expenses since they have a unique understanding of these projects and the reporting needs of the Utility.
Recommendations
The City Commission authorize the General Manager, or his designee, to execute a change order in the amount of $407,200 (new not to exceed amount of $869,200) for additional technology consulting services for the Financial Management Information System and Customer Care System projects, subject to the approval of the City Attorney as to form and legality.
Fiscal Note
Funds for this project have been included in the FY 2008 and the proposed FY 2009 budget.
Drafter
Prepared by Jennifer L. Hunt, Chief Financial Officer
Submitted by Robert E. Hunzinger, General Manager