HomeMy WebLinkAboutFIN-07-066 - E07-057 - Consultant Services - Project Risk Assessment - Financial & Infrastructure Management Systems
Report To:
Mayor Carl Zehr and Members of Council
Date of Meeting:
2007 -06-11
Prepared By:
Larry Gordon
Date of Report
2007 -06-04
Report No:
FIN 07-066
Subject:
E07 -057 - Consultant Services - Project Risk Assessment - Financial
and Infrastructure Management Systems
RECOMMENDA TION
That Expression of Interest E07 -057, Consultant Services - Project Risk Assessment - Financial
and Infrastructure Management Systems, be awarded to KPMG LLP, Toronto, Ontario at their
estimated fee of $105,824., including disbursements of $5,535. and G.S.T., based on a
satisfactory contract being negotiated and an upset fee being established, and further that the
Director of Purchasing be authorized to execute an agreement satisfactory to the City Solicitor.
BACKGROUND
The City of Kitchener has embarked on a large and strategic system implementation comprised
of three interrelated components, namely a financial management system, an infrastructure
management system and a new method of accounting for fixed assets (PSAB 3150). It is a
complex, mission critical project and represents a significant investment for the City of
Kitchener. The project requires not only effective technical management, but also strong
leadership and significant commitment from the business' operations throughout the initiative in
order to fully achieve the intended business objectives. However, published statistics suggest
that such projects rarely fully achieve their intended benefit to the organization, on-time and
under-budget.
In recognition of these challenges, the City of Kitchener has requested that an independent
project risk assessment be conducted to assist with the analysis of the:
· Risks related to the successful implementation of the project on time and within budget;
· Appropriateness of the project management processes and implementation approach being
applied;
· Proposed vendor contract(s) (in conjunction with the legal firm retained by the City for legal
advice );
· Accuracy of project reporting concerning project progress to date;
· Post implementation assessment of the project; and
· Risk mitigation strategies
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 P. Houston, General Manager of Financial Services and City Treasurer, D. Chapman, Director
of Financial Planning and Reporting, and L. Gordon, Director of Purchasing.
Expressions of interest were requested from six (6) potential consultants, advertised on the City
of Kitchener website and on the internet through the Ontario Public Buyers Electronic Tendering
Information System. By the closing date of Wednesday, May 30th, 2007, three (3) responses had
been received. The Review Committee met on Thursday May 31 st, 2007 to review the
submissions and elected to award the project to KPMG LLP, Toronto, Ontario.
A listing of the responding parties follows for your reference.
KPMG LLP
Deloitte & Touche LLP
Chartwell IRM Inc.
Toronto, ON
Kitchener, ON
Toronto, ON
FINANCIAL IMPLICATIONS
Funding will be provided from index 335100 CIFS and 861352 IIMS
REVENUES
335100 CIFS
861352 IIMS
$3,930,000.
$1 ~950~000.
TOTAL REVENUES
$5,880,000.
EXPENSES
YTD Expenditures (Salaries for staff assigned)
$ 210,000.
E07-057
Less G.S.T. Rebate
$105,824.
($ 5~989.)
$ 99,835.
$ 99~835.
TOTAL EXPENSES
$ 309,835.
SURPLUS
$5,570,165.
* A projection of the total cost of implementation for the two systems will not be available until
after a preferred vendor is identified and the fully-evaluated cost is assessed. The joint project
team recommends that the City move forward with the risk assessment as soon as possible, prior
to making further significant project commitments or decisions, to ensure that all future planning
and decision-making is supported by the risk assessment and risk mitigation strategies.
Larry Gordon
Director of Purchasing