Title
Financial Management Information System (B)
Staff recommends awarding a contract to Axon Solutions, Inc. for a Financial Management Information System.
Explanation
The Utility relies upon its Financial Management Information System (FMIS) to track revenues and expenditures of all its operating and administrative departments. The financial system assists staff with managing debt, transferring balances, and overseeing interest, liabilities, asset valuation and investments. The FMIS is a critical tool in producing accurate and timely information to staff while integrating with other Utility systems. This system supplies utility operating units and administrative divisions with monthly income statements and reports which allows departments the ability to track and analyze capital and operation and maintenance budgets against actual expenditures.
The Utility's existing FMIS, implemented in 1999, will be retired and no longer supported by the vendor within a year through a maintenance agreement. In addition, the system has limitations in its business process functionality. Much of the information is derived manually which is cumbersome and an inefficient use of staff time and resources. The recommended solution includes General Ledger, Accounts Payable, Accounts Receivable, Inventory, and Purchasing which will be implemented using the SAP software solution.
A Request for Proposal for the FMIS replacement was sent to eleven (11) prospective firms in August 2007 with five (5) responding. The proposals were evaluated in three phases. The first phase of the evaluation was based on functional requirements, implementation plan/strategy, company profile and solution cost. The three (3) highest ranked firms were evaluated in the second phase which included presentations, reference checks, and innovation and flexibility of the firm. At the end of phase two of the evaluation, Axon Solutions, Inc. was determined to have the best overall scoring. The third phase of the evaluation included a four day product demonstration and discussion with key team members.
If approved by the City Commission, the Utility will begin negotiations with Axon Solutions, Inc. If GRU is unsuccessful in negotiating a contract with Axon Solutions, Inc., staff requests approval to negotiate the second highest ranked firm.
Recommendations
The City Commission:
1) authorize the General Manager, or her designee, to negotiate and execute a contract with Axon Solutions, Inc. to implement a new Financial Management Information System, subject to the approval of the City Attorney as to form and legality and
2) authorize the General Manager, or her designee, to negotiate and execute a software license and maintenance agreement with SAP, subject to the approval of the City Attorney as to form and legality; and
3) approve the issuance of purchase orders to Axon Solution, Inc. and SAP in not to exceed amounts of $6,380,000 and $1,200,000, respectively; for the Financial Management Information System; and
4) authorize staff to procure various services, equipment and materials, as required, to implement the FMIS replacement project as budgeted, subject to the appropriation of funds in each fiscal year.
Fiscal Note
Funds for this project have been included in the FY 2008 budget and will be requested in future fiscal years.
Drafter
Prepared by Jennifer L. Hunt, Chief Financial Officer
Submitted by Karen S. Johnson, General Manager