ADMINISTRATIVE REPORT

Date: April 16, 1998

Author/Local:A.Pau/

T. Leung/6525

CC File No. 1805

TO:	Vancouver City Council
FROM:	Director of Operations Support
SUBJECT:	Award of Contact: Request For Proposal (RFP #8-98-03) Documentation Training Services - SAP Project.

RECOMMENDATION

A.THAT the Director of Operations Support be authorized to negotiate a contract with ISM-BC Telecom Solutions not to exceed $500,000 plus applicable taxes, for the purchase of training and documentation development services to support the implementation of the SAP Project. Funding for the contract is available from within the existing project budget previously approved by Council.

B.THAT the Director of Legal Services be authorized to execute the contract on behalf of the City.

GENERAL MANAGER’S COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of A and B.

SAP PROJECT COMMITTEE’S COMMENTS

The Project Steering Committee RECOMMENDS approval of A and B.

COUNCIL POLICY

Award of contracts in excess of $300,000 requires Council approval.

BACKGROUND

After 18 months of intensive work by staff to evaluate a number of software packages to replace the City’s Financial and Human Resources systems, City Council, on September 9, 1997, approved a project budget of $20.9 million for the purchase and implementation of SAP software under the partnership of SAP Canada and Ernest and Young Consulting. The financing for the project was based on the Long Term Financing Strategy-Information Technology Replacement Program report previously approved by Council on July 23, 1996.

Council approval of the report on September 9, 1997 also allowed staff to start the process to evaluate and negotiate the purchase of training and documentation consulting services required to support the implementation of the SAP software and the training of City staff in the new SAP system. The evaluation of suitable vendors have now been completed and the recommended vendor is being reported back to Council for approval to enter into contract negotiations with the vendor.

DISCUSSION

Under the direction of the Project Steering Committee, staff issued a Request For Proposal (RFP #8-98-03) with the assistance of the Manager of Purchasing Services. Three proponents responded to the RFP. A seven member selection committee consisting of staff, and consultants (Ernest & Young) reviewed the submissions. Two firms were short listed and interviews were conducted April 16, 1998. At the conclusion of the interviews, the selection committee was unanimous in its recommendation. The committee based its decision on minimizing risk and impact on the project, experience in training and documentation for SAP implementations, and that the quote from ISM-BC Telecom Solutions was the lowest of all submissions received.

The recommendation is to contract with ISM-BC Telecom Solutions to provide project management services and to work with City staff to develop "end user" system documentation and training materials to prepare City staff in using the new SAP system.

ALTERNATIVES/OPTIONS

Based on the criteria as noted above, the recommended solution offers the best value for the City.

IMPLEMENTATION

At this point in the SAP Project it is necessary to initiate work on the development of "end user" system documentation and requisite training materials as soon as possible. Any delays in the start of this work may have a negative impact on the overall project time line.

FINANCIAL IMPLICATIONS

Sufficient funding has been reserved from the $20.9 m project budget previously approved by Council on September 9, 1997 for the provision of these services. On-going maintenance of the documentation and training materials will either be achieved through existing City resources or will be clarified as part of the projects sustainment strategy to be reported later.

CONCLUSION

With the SAP project entering the second phase, development of end user system documentation and training needs to be initiated at this time to support the implementation of the new system at the end of 1998. The staff recommendation represents the best solution available in the market at this time, given the constraint of the project budget. * * * * *

(c) 1998 City of Vancouver