HomeMy WebLinkAboutFCS-12-096 - E12-043 Consultant Services - Blueprinting - SAP CREPORT TO:
Committee of the Whole
DATE OF MEETING:
2012-05-14
SUBMITTED BY:Larry Gordon, Director of Supply Services, 2214
PREPARED BY:
Larry Gordon, Director of Supply Services, 2214
WARD(S) INVOLVED:N/A
DATE OF REPORT:2012-05-08
REPORT NO.:
FCS-12-096
SUBJECT:
E12-043 – Consultant Services – Blueprinting to Determine
Scope and Budget for Implementation of an SAP Customer
Relationship & Billing Solution
RECOMMENDATION:
That Expression of Interest E12-043 – Consultant Services – Blueprinting to Determine Scope
and Budget for Implementation of an SAP Customer Relationship & Billing Solution, be awarded
Sparta Consulting Inc., Folsom, California
to at their estimated fee of $200,000., plus H.S.T.
of $26,000., for a total of $226,000., based on a satisfactory contract being negotiated and an
upset fee being established; and further,
That the Mayor and City Clerk be authorized to execute an agreement satisfactory to the City
Solicitor.
BACKGROUND:
The Customer Information System (CIS) is a critical application used at the City of Kitchener
(the City) to manage and bill approximately 68,000 property tax accounts and 72,000 utility
accounts for the following:
• Property Tax
• Gas
• Water
• Sewer
• Stormwater
• Rental Water Heater
An assessment of CIS was undertaken by Prior & Prior Associates Ltd. in 2009-2010 to
determine if the City is achieving value from the funding of the CIS application, and whether
there are other opportunities that should be pursued in the future. The assessment resulted in a
recommendation to pursue the acquisition of an SAP solution to replace CIS.
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In 2011, city staff conducted further research into the SAP Customer Relationship & Billing
(CR&B) software and met with a number of utility companies and municipalities who have
implemented or are currently investigating SAP CR&B.
Based on the findings of this research, Council directed staff on March 26 to continue to pursue
the acquisition of the SAP Customer Relationship & Billing (CR&B) solution to replace the
existing Customer Information System (CIS) and issue an Expression of Interest for a business
requirements discovery and solution scoping engagement to deliver a detailed business design
document and the technical specifications of an SAP CR&B solution that meets the City’s
requirements (staff report FCS-12-040).
REPORT:
In accordance with Chapter 170 of the Municipal Code pertaining to the Selection of
Professional Services/Consultants, a Consultant’s Review Committee was established
consisting of A. Ahkoon, Manager of Enterprise Resource Planning, J. Evans, Director of
Revenue/Deputy City Treasurer, S. Saleh, Supervisor of Collections/Payment Processing, R.
Bunn, Executive Director Integrated Planning, M. Bolger, Manager Business Systems &
Database, L. Piotrowski, Business Systems Project Manager and L. Gordon, Director of Supply
Services.
Expressions of interest were advertised publicly in The Record, on the City of Kitchener website
and on the internet through the Ontario Public Buyers Association Electronic Tendering
Information System relative to this project. Documents were downloaded by twenty-four (24)
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interested parties, and by the closing date of Friday April 20, 2012, five (5) responses had
been received.
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The review committee met on Tuesday, April, 24, 2012, to review the submissions and a
shortlist of two (2) candidates was selected for further interviews. The Committee met on
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Tuesday, May 1, 2012 to interview the shortlisted candidates. The Committee elected to
award the project to Sparta Consulting Inc., Folsom, California.
The Committee rated consultants on the following criteria:
Qualifications/Expertise
Proposed Project Team
Cost of Consultant’s Fees
Ability to work with resource-constrained clients such as COK
Effectiveness of work plan
A listing of the responding parties follows for your reference:
CONTAX Inc. Toronto ON
PacificInfo Solutions Ltd. Scarborough ON
SAP Canada Inc. Toronto ON
Sparta Consulting Inc. Folsom CA
Systech Integrators, Inc. San Jose CA
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ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Theme: Financial Management
Strategic Direction: Ensure responsible use of public funds within a supportive policy
framework.
The City of Kitchener’s purchasing policies and practices ensure openness, fairness and
transparency in the procurement of goods and services.
FINANCIAL IMPLICATIONS:
The budget for the blueprinting phase (E12-043) had been estimated to be in the range of
$171,000- $257,000 exclusive of HST. The $203,520 cost for this project ($200,000 bid plus
$3,520 unrebated HST) will be funded from Internal Order # 56000145-
CAP/FINANCE/Utility/Tax/System capital account.
COMMUNITY ENGAGEMENT:
Not applicable.
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
Services
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