SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or his designee, to modify the KPMG, LLC contract # 200611 for Enterprise Resource Planning (ERP) Consulting services, increasing the previous Board authorized amount by $593,980, plus a contingency amount of $750,000, for the addition of two technical resources to work on integrations, security and workflows within the Oracle Enterprise Resource Planning (ERP) system for a new not-to-exceed amount of $4,384,356.
end
FISCAL IMPACT:
Funding for this action is available in the FY2022 Capital Budget
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Internal/External Customer Service Excellence ☐ 2. Stakeholder Engagement
☒ 3. Financial and Environmental Sustainability ☒ 4. Staff Development ☐ 5. Agency Growth Management
Strategic Objectives:
☐ 1.1 Safety & Risk ☐1.2 Continuous improvement ☐ 1.3 Dynamic Change
☐1.4 Culture of Innovation ☐2.1 Be an Employer of Choice ☐2.2 Organization Development
☐2.3 Organization Culture ☒3.1 Resource optimization ☐3.2 Safety Culture
☐3.3 Environmental Leadership ☐4.1 Educate & Call to Action ☐4.2 Build Partnerships
☐4.3 Value of Transit ☐4.4 Project Connect
EXPLANATION OF STRATEGIC ALIGNMENT: Our current financial management system is no longer actively maintained by the vendor and mainstream support for the system ended in October 2021. Capital Metro is implementing a new ERP system with Oracle facilitated by KPMG. As part of the State of Good Repair program, it is imperative to replace these mission-critical systems that are at the end of their useful life.
BUSINESS CASE: Capital Metro currently uses Microsoft Dynamics AX 2012 as the financial management system for the Authority, and UltiPro for human capital management and payroll. The systems are at the end of their useful life and do not satisfy current business needs for integrating mission-critical business data, budget management, grant management, project accounting, reporting, business intelligence, payroll, employee benefits, recruiting, onboarding and human capital management. Capital Metro is implementing a new ERP system with Oracle facilitated by KPMG. Due to the increased integration needs between the ERP system and existing systems such as banking services, fare payment systems, p-card, data warehouse, asset management and other key systems, as well as ensuring that role-based security and workflows are implemented correctly, a need has been identified for two technical resources.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval by the Finance, Audit and Administration Committee on April 13, 2022.
EXECUTIVE SUMMARY: Capital Metro is implementing a new ERP system to replace the out-of-lifecycle financial management, human capital management, and payroll systems. To help ensure that Capital Metro procures a best-fit system that meets the current and future business needs of the agency and to ensure that it is implemented most effectively, Capital Metro is seeking to add two technical resources to work on integrations, security and workflows within the new ERP system.
DBE/SBE PARTICIPATION: No SBE goal is assigned to this contract due to limited subcontracting availability.
PROCUREMENT: On July 20, 2020, following authorization by the Capital Metro Board of Directors, KPMG, LLP was awarded contract #200611 for Enterprise Resource Planning (ERP) Consulting services for a total not to exceed amount of $2,381,291. On November 22, 2021, the Capital Metro Board of Directors authorized a contract modification to increase the original Board authorized amount by $259,085, plus a contingency amount of $250,000, for a new not-to-exceed amount of $3,040,376. Modifications to the contract within the Procurement Policy of up to $150,000 above the board award have been made to cover additional technical resources above the modified contract amount. This proposed modification will increase the total not-to-exceed amount by an additional $593,980, plus a contingency amount of $750,000, bringing the new not-to-exceed amount to $4,384,356.
|
Description |
Amount |
|
Base Term |
$1,049,611 |
|
Option Periods 2 and 3 |
$1,331,680 |
|
Modifications through October 1, 2021 |
$150,000 |
|
Subtotal: July 2020 Board Award |
$2,531,291 |
|
Modification Amount |
$259,085 |
|
Contingency Amount |
$250,000 |
|
Subtotal: November 2021 Board Award |
$3,040,376 |
|
Proposed Modification |
$593,980 |
|
Contingency Amount |
$750,000 |
|
Final Not-to-Exceed Amount: April 2022 |
$4,384,356 |
RESPONSIBLE DEPARTMENT: Information Technology
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2022-398
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and Capital Metro management recognize the need to procure and implement a best-fit Enterprise Resource Planning (ERP) system that will provide improved functionality to meet current and future business growth with the required staffing to support a successful and seamless transition.
WHEREAS, a system has been selected that will meet the current and future needs in this area; and
WHEREAS, the requirement for the two technical resources to work on integrations, security and workflows of the new system has been identified as a component that will contribute to the success of implementation of the new system.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the President & CEO, or his designee, is authorized to modify the KPMG, LLC contract # 200611 for Enterprise Resource Planning (ERP) Consulting services, increasing the previous Board authorized amount by $593,980, plus a contingency amount of $750,000, for the addition of two technical resources to work on integrations, security and workflows within the Oracle Enterprise Resource Planning (ERP) system for a new not-to-exceed amount of $4,384,356.
____________________ Date: ____________________
Secretary of the Board
Leslie Pool