HomeMy WebLinkAboutFCS-14-194 - T14-110 Two (2) Hitachi Appliances and Services
REPORT TO: Jeff Willmer, Chief Administrative Officer
DATE OF MEETING: 2014-11-24
SUBMITTED BY: Larry Gordon, Director of Supply Services, 519-741-2200 ext.
7214
PREPARED BY: Ryan Scott, Buyer, 519-741-2200 ext. 7216
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2014-11-24
REPORT NO.: FCS-14-194
SUBJECT: T14-110 Two (2) Hitachi Appliances and Services
___________________________________________________________________________
RECOMMENDATION:
That Tender T14-110 Two (2) Hitachi Appliances and Services, be awarded to Capgemini
Canada Inc, Toronto, Ontario, at their tendered price of $268,500, plus H.S.T. of $34,905,
for a total of $303,405.
BACKGROUND:
Council approved SAP Customer Relationship & Billing (SAP) as the replacement for the
existing Customer Information System (CIS) as part of the 2014 budget process. CIS is a critical
application used at the City of Kitchener to manage and bill over a half billion dollars of revenue
in property tax and utilities annually. An external assessment of CIS concluded that the existing
application is approaching the end of its lifecycle and cannot be sustained. Council's final
decision to replace the aging CIS system with SAP resulted from four years of detailed analysis
and extensive discussions with Council, which included:
•
An external assessment of CIS leading to Council direction to pursue due diligence on the
acquisition of SAP tax and utility solutions to replace CIS in 2010
•
Further detailed research into SAP solutions and other alternatives from 2011 to 2013
•
Definition of business requirements and the fit with SAP through a “mini-blueprinting”
process in 2012, based on an Expression of Interest process awarded by Council
•
Findings and recommendations presented through three staff reports and a budget issue
paper in 2012 and 2013
Hitachi servers and installation services are key components of the systems landscape that will
support the SAP software environment.
The project budget represents the total estimated cost for the implementation project, including
systems integration fees, project management and change management fees, software and
hardware costs, staff secondments to the project team, contingency, HST, and other charges.
REPORT:
Tenders were advertised publicly on the City of Kitchener website and the Internet through the
Ontario Public Buyers Electronic Tendering Information System. Documents were downloaded
by four (4) interested parties and by the closing date of Friday November 21, 2014, two (2)
tenders had been received.
The following tenders were received:
Bid Price
Capgemini Canada Inc. Toronto ON $303,405.00 *
Hitachi Data Systems Toronto ON $338,984.71
The tender was reviewed by M. Bolger, Manager of Business Systems & Database
Administration and M. Daugherty, Database Administrator, who concur with the above
recommendation.
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 net cost for this tender (A), is fair and reasonable for a purchase of this scope and the
upset limit is within the budget allowance (B) provided within the budget. Funding for this
purchase is included within the approved capital budgets. The estimated surplus (D) will
remain within the SAP Implementation Project budget, and will be used to fund additional
hardware required and budgeted for this project.
Tender T14-110
Hardware for SAP Implementation Project
The total budget for all phases of this project is $ 19,912,661.00
Estimated Cost for this Phase of Work
Tender T14-110 costs including HST 303,405.00
less: HST rebate on tender (30,179.39)
Net Cost Being Awarded 273,225.61 A
Costs Incurred to Date -
Total Estimated Cost for this Phase of Work 273,225.61 C
Budget for this Phase of Work
Contribution from Revenue 63,501.62
Gas Utility 240,398.99
Sanitary Utility 49,894.13
Stormwater Utility 49,894.13
Water Utility 49,894.13
Total Budget for this Phase of Work 453,583.00 B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) 180,357.39 D
COMMUNITY ENGAGEMENT:
INFORM - Potential vendors are informed of bid opportunities through the public posting of bid
documents as outlined in the City’s Purchasing By-Law. Vendors, local media and the general
public are informed of purchasing recommendations to Council through the public reports which
are included with the Council agenda the week prior to the Council meeting.
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services