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HomeMy WebLinkAboutFIN-08-164 - Delta Project Management Contract ExtensionsI L REPORT 74 Report To: Councillor Berry Vrbanovic, Chair, and Members of the Finance and Corporate Services Committee Date of Meeting: December 1, 2008 Submitted By: Dan Chapman, General Manager of Financial Services Prepared By: Dan Chapman Ward(s) Involved: Date of Report: November 21, 2008 Report No.: FIN-08-164 Subject: DELTA PROJECT MANAGEMENT CONTRACT EXTENSIONS W �ONE NE 0 THAT the Mayor and Clerk be authorized to execute an amending agreement with 1614310 Ontario Inc. to extend consulting services on the Corporate Financial and Infrastructure Management System (Delta) Project from April 29, 2009 to December 31, 2009 at an estimated cost of $135,200 plus GST; said agreement to be satisfactory to the City Solicitor. THAT the Mayor and Clerk be authorized to execute an amending agreement with CFO Services Group Inc. to extend consulting services on the Corporate Financial and Infrastructure Management System (Delta) Project from July 1, 2009 to December 31, 2009 at an estimated cost of $52,920 plus GST; said agreement to be satisfactory to the City Solicitor. The City initiated the Corporate Financial and Information Management System (Delta) Project to replace several aging financial and work management systems. Upon establishing the current organization structure for the project, the City entered into contracts with 1614310 Ontario Inc. and CFO Services Group Inc. for project management services. Under the terms of the original agreements, these contracts are set to expire on April 28, 2009 and June 30, 2009 respectively. The Project's Joint Steering Committee is recommending that these contracts be extended to the end of 2009 to ensure continuity of project management resources until all activities provided for in the work plan are complete. �014 The two major software applications forming part of the Delta Project (SAP and Cityworks) are set to go live on December 1, 2008 which represents a one-month improvement over the original project timeline. In 2009, after the use of the new system is settled in the organization, a work program will be launched that will complete activities which did not form part of the system implementation but were envisioned in the business case and project charter. These activities include, but are not limited to: • resolving system issues identified after the go-live; • implementation of mobile technology for Cityworks; • completion of the asset accounting (PSAB 3150) implementation; and • implementation of the RIVA asset accounting/management tool This work is funded within the overall project budget and is expected to be completed by December 31, 2009. The approach to project management has been highly successful to date, with the project progressing ahead of schedule and within budget. In order to ensure that continuity of project management resources is maintained, the Project's Joint Steering Committee recommends that the two project management contracts be extended to coincide with the completion date for the balance of the tasks identified above. This is an important element of risk management and will help to ensure that sufficient resources are allocated to complete the asset accounting implementation within the legislated timeline (end of fiscal 2009). FINANCIAL IMPLICATIONS: The contract extensions for project management consulting services are included within current financial projections and are funded from the approved capital budget for the Delta Project. Dan Chapman, CA MPA General Manager of Financial Services