HomeMy WebLinkAboutFIN-07-075 - Corporate Integrated Financial System (CIFS) & Infrastructure Management System (IMS) Vendor Selection UpdateReport To:
Councillor B. Vrbanovic, Chair, and Members of the Finance
and Corporate Services Committee
Date of Meeting:
June 18, 2007
Submitted By:
Pauline Houston, General Manager of Financial Services &
City Treasurer
Prepared By:
Dan Chapman, Director of Financial Planning & Reporting
Dwayne Quinn, Director of Utilities
Rosemary Upfold, Director of Accounting
Ward(s) Involved:
All
Date of Report:
May 31, 2007
Report No.:
FIN-07-075
Subject:
CIFS / IMS VENDOR SELECTION UPDATE
I r 1
For discussion
Council has previously approved business cases and budgets for the implementation of a new
Corporate Integrated Financial System (CIFS) and an Infrastructure Management System (IMS)
for the City. The joint request for proposals for these two systems closed on May 7, 2007 and
staff are in the process of concluding demonstrations with the short listed vendors.
This report has been prepared to:
• update Council on the status of the vendor selection process; and
• confirm Council's expectations with respect to information required to facilitate Council's
final award decision.
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History of CIFS Project
In December 2005, staff presented Council with a project proposal for a CIFS. A full business
case for the project was then developed and presented to Council in December 2006. Total
funding of $3.93 million has been approved for the project in the capital forecast.
Highlights of the benefits of the project include:
• Process improvements resulting in increased timeliness of information and reduction of
errors;
• Higher level of service with respect to retrieval time of detailed information
• Improved integration with other corporate systems/databases;
• System compliance with current technological standards at the City of Kitchener
resulting in improved support, allowing for easier updates and improvements to the
system;
• Improved reporting resulting in better and more timely management decisions;
• Reduction of manual processes, duplicate record keeping and data entry; and
• Increased reliability and traceability of information.
Many of these benefits directly support the current strategies identified in the City's Corporate
Plan, the Strategic Directions for Finance and Financial Services internal Business Plan.
The following vendors have been short listed for the CI FS project:
• Focus
• PeopleSoft (Oracle)
• SAP (IDS Scheer)
History of IMS Proiect
Starting in the mid 1990's, the former Public Works department worked with a local consultant to
develop customized software to support work processes and asset management in the
department. While use of the system enabled some improvements in some areas, the full
functionality and implementation contemplated for the system was never achieved. In 2004, the
consultant unilaterally decided to exit software development leaving a system with differentiated
implementation, a lack of functionality and an inability to enhance the system.
In November 2004, the IMS Steering Committee sought and received approval from Council for
the replacement of the existing system and budgeted funds of $1.95 million are allocated. A
new system would achieve further functionality and complete implementation for the original
targeted divisions plus Facilities Management. While the original RFP was prepared for
distribution in the summer of 2005, it was decided to defer the request to ensure corporate
integration design. Subsequently, it was decided to send out the RFP for IMS jointly with the
CI FS RFP to ensure the appropriate interfaces between the two systems. While preparing the
joint RFP, capital asset accounting requirements for municipalities were passed by PSAB. The
passage of time and the concerted effort of staff have resulted in the opportunity for IMS to be
the foundation to be built on by the CI FS system, creating an integrated system to meet
provincial PSAB requirements and compliance with pending financial accountability for water &
wastewater systems.
The following vendors have been short listed for the IMS project:
• Maximo (Createch)
• SAP (IDS Scheer)
• SPL (Oracle)
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Linkages to PSAB 3150 (Tangible Capital Assets) Project
Subsequent to the approval of PSAB 3150 by the Public Sector Accounting Board in 2006, staff
ensured that the asset reporting requirements were integrated into the CIFS and IMS projects.
The following steps have been taken to ensure the alignment of PSAB requirements with other
financial and work management processes:
• A consultant was retained to develop systems requirements for capital asset reporting
that were included in the RFP's for the two systems;
• The PSAB 3150 Steering Committee Chair and Project Manager have been included on
the CIFS/IMS joint Steering Committee; and
• A substantial review of capital asset business processes was undertaken to ensure that
capital asset reporting processes are aligned with the approach to managing assets and
that there is not duplication between the systems.
Next Steps
The following deadlines are proposed for the remaining aspects of the vendor selection process:
• Vendor demonstrations complete — June 19
• Clarification/follow-up with vendors — July 6
• Completion of first phase of project risk assessment — July 30
• Finalize award recommendation — August 3
• Report to FCSC/Special Council — August 13
• Completion of contract negotiation — October 12
As indicated, staff proposes to bring forward a recommendation to FCSC on August 13,
followed by Special Council on the same day. This is suggested in view of the fact that the next
regular Council meeting is not until August 27. Holding off on ratification to this date would
delay proceeding with contract negotiation by two weeks, ultimately delaying the overall
implementation schedule.
Staff may request a special meeting of Council in July to consider an award recommendation in
the event that the selection process proceeds well ahead of schedule. However, this is not
anticipated as being necessary at this time.
Project Oversight
The following controls have been established to provide project oversight and peer review:
• Steering committee — A joint Steering Committee has been established, consisting of
the GM of Financial Services and GM of DTS, the Project Chairs (report authors), and
the Director of IT. The committee is supported by the three individual Project
Managers, along with a joint Project Manager who is responsible for overall planning
and coordination.
• Review of requirements — A firm was retained to review the requirements outlined in
the RFP and provided valuable feedback which led to refinements in content and
process.
• Ongoing risk assessment — In recognition of the significant risks associated with major
systems implementations as well as the high project failure rate, a firm has been
retained to provide risk assessment services for the duration of the contract.
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Specifically, the consultant is responsible to assess risks to successful completion,
review the project management process, review vendor contracts from a risk
perspective, verify the accuracy of project reporting, debrief the project upon
completion, and recommend risk management strategies. This consultant is
accountable to the City's Internal Audit Steering Committee.
• Independent total cost of ownership evaluation — A firm has been retained to provide an
independent assessment of the total cost of ownership for the top two vendors. This
will ensure that the Council is presented with a fully-evaluated, independently-assessed
cost when making an award decision.
• Legal review of vendor contract — a technology lawyer will be retained by the City
Solicitor to review the vendor contract. This firm will work with the risk assessor to
ensure a comprehensive review and avoid duplication of effort.
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Staff intends to bring the following items forward to facilitate Council's award decision:
• Recommendation for preferred vendor
• Results of the evaluation process highlighting some of the major factors that contributed
to the recommendation with an explanation of the evaluation process
• Total cost of ownership evaluation with comparison to approved budgets
Staff would appreciate Council's direction at this time if any additional information is likely to be
required, so that it may be prepared in advance of the Committee meeting.
FINANCIAL IMPLICATIONS:
As discussed above, a total budget of $5.88 million has been approved for the implementation
of the CIFS and IMS applications. An independent total cost of ownership evaluation is
currently underway, and a comparison of cost to budget will be supplied as part of the award
recommendation.
Council has approved businesses cases and budgets for the implementation of new CIFS and
IMS systems. The selection process is nearing completion, and staff is seeking to confirm
Council's expectations with respect to information required to facilitate the final award decision.
Pauline Houston, CA
General Manager of Financial Services
Chair, Joint CIFS/IIMS Steering Committee
Dwayne Quinn, MBA, P.Eng.
Director of Utilities
Chair, IMS Steering Committee
M
Dan Chapman, CA
Director of Financial Planning & Reportin
PS•B 3150 Steering Committee
Rosemary Upfold, CA
Director of Accounting
Chair, CIFS Steering Committee