HomeMy WebLinkAboutFIN-08-115 - Delta Project Purchase Order Extension1
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Financial Services
REPORT
Report To: Councillor B. Vrbanovic, Chair, and Members of
the Finance and Corporate Services Committee
Date of Meeting: September 8, 2008
Submitted By: Dan Chapman, General Manager of Financial Services
Prepared By: Rosemary Upfold, Director of Accounting (Ext. 2353)
Ward(s) Involved: ALL
Date of Report: August 19, 2008
Report No.: FIN-08-115
Subject: Delta Project Purchase Order Extension
RECOMMENDATION:
THAT staff be authorized to increase purchase order #0701436 to IDS Scheer Canada for
consulting services related to the Delta Project by up to 20% from $2,016,200 up to a limit of
$2,419,440 plus G.S.T. to be funded from within the approved Delta Project capital budget
BACKGROUND:
In August 2007, Council approved a staff recommendation to award the Request for Proposal
for a Corporate Financial and Infrastructure Management System (Delta) to IDS Scheer
Canada, SAP Canada Inc, ESRI Canada Inc. and Loki Innovations (RIVA). SAP, ESRI and Loki
are the providers of the system software and IDS Scheer is providing consulting services for the
implementation and integration of the system.
Rigorous cost control and change order management have helped maintain the Delta Project on
budget and allow project contingencies to be preserved for high-priority change requests, which
are expected on a project of this scale and complexity. Staff recommends that Council extend
the consulting purchase order to incorporate two (2) existing change orders and provide
additional flexibility for change orders that may be deemed necessary as the City proceeds to
final integration testing and cut-over at the end of 2008. Seeking this purchasing approval has
been indentified as an important element of risk management in the final phase of the project.
REPORT:
To date, the Delta Project Joint Steering Committee has approved two (2} change orders for
IDS Scheer Consulting services in accordance with the change control process outlined in the
project charter. The combined cost of these change orders is within the variance permitted
under the Purchasing By-Law of 10% relative to the original purchase order. These change
orders engaged IDS Scheer to perform services that were originally contemplated to be
undertaken by staff roles that were not filled.
The project continues to make good progress towards going "live" at the end of 2008. However,
considering the value of the consulting change orders approved to date and the sensitivity of the
project timeline, staff believes that it is prudent from a risk management perspective to receive
approval to increase the IDS Scheer purchase order to cover the two (2} existing change orders
and provide additional approval for further consulting services, if they are deemed necessary
before or after going live with the system. Suitable contingencies were established in the
project budget for change orders.
FINANCIAL IMPLICATIONS:
The increase to the purchase order for IDS Scheer for consulting services will be funded out of
the contingencies provided as part of the capital budget approved for the Delta Project.
Rosemary Upfold, CA
Director of Accounting
Dan Chapman, CA MPA
General Manager of Financial
Services
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