CITY OF GLENDALE, CALIFORNIA REPORT TO THE: Housing Authority D Successor Agency D Oversight Board D
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1 .. Joint D Cily Council 12] CITY OF GLENDALE, CALIFORNIA REPORT TO THE: Housing Authority D Successor Agency D Oversight Board D January 21, 2014 AGENDA ITEM Report: Recommendation to award a contract to Nexlevel Information Technology, Inc. to conduct a needs assessment related to the functional requirements of an upgrade or replacement Enterprise Resource Planning application. 1) Motion awarding a contract to NexLevel Information Technology, Inc. (NexLevel) to conduct a needs assessment related to the functional requirements of an upgrade or replacement Enterprise Resource Planning (ERP) application. The City Council further authorizes the City Manager to amend a professional service agreement with Nexlevel to expand the scope of work to include the needs assessment. COUNCIL ACTION Public Hearing D Ordinance D Consenl Calendar 12] Action Item D Report Only D Approved for January calendar ADMINISTRATIVE ACTION Submitted by: Brian Ganley, Chief Information Officer Robert P. Elliot, Director of Finance Prepared by: Dennis Joe, Technical Staff Associate Hagop Hovsepian, ISD Applications Administrator Approved by: Scott Ochoa, City Manager Reviewed by: Yasmin K. Beers, Assistant City Manager Michael J. Garcia, City Attorney Robert P. Elliot, Director of Finance ' "'"" 5 C I
2 RECOMMENDATION Attached for City Council's consideration is a motion awarding a contract to Nexlevel Information Technology, Inc. (Nexlevel) to conduct a needs - assessment related to the functional requirements of an upgrade or replacement Enterprise Resource Planningapplication. The City Council further authorizes the City Manager to amend a professional service agreement with Nexlevel to expand the scope of work to include the said-. needs assessment. BACKGROUND Enterprise Resource Planning (ERP) applications allow organizations to manage and automate its back office functions and integrate all facets of an organization's business operations. The system acts as a central repository for all information that is shared by various ERP modules to streamline the flow of data across an organization. As early as 1991, the City implemented PeopleSoft as its human resource and payroll application. To date, PeopleSoft has expanded as the citywide solution to manage all aspects of Purchasing, Payroll, General Ledger, Asset Management, Enterprise Service Automation, Benefits, Workforce Data Management, Workforce Development, Compensation Management, and Budgeting. This software application has been integrated with 13 other application systems that service various departments. Since the inception of PeopleSoft two decades ago, the City's operations, goals and infrastructure has progressed and changed. In order to evaluate the City's business management tools with its current operational requirements, a needs assessment related to the functional requirements of an upgrade or replacement ERP application is necessary. The goal of the needs assessment is to evaluate the existing ERP's costs, resources, and activities as they relate to the common functions and features of an ERP application. ANALYSIS On October 18, 2013, the Information Services Department (ISO) posted a Request for Information (RFI) for a needs assessment related to the functional requirements of an Upgrade or replacement Enterprise Resource Planning (ERP) application. The proposais were evaluated by a selection team consisting of ISO staff and included input from the Finance Department. All proposals were reviewed and graded according to criteria in the areas of approach and understanding of requirements, qualification and experience, ability to meet proposed schedule and cost. 25% 20% 4. Cost 30% Total 100% Upon review of the bids, staff finds Nexlevel Information Technology, Inc. (Nexlevel) to be the lowest responsible bidder. This company received the highest scores by the selection team and was ranked first. NeXLevel's bid presented itself of having the optimum combination of 2
3 experience, capability, cost and strategic approach to the project. Nexlevel provided a response with the most comprehensive solution addressing the general requirements outline of_ the RFI. Secondly, Nexlevel presented itself as the best value of all received bids. SoftResources, LLC 72, $ 72,402 ThirdWare Car oration 88, $ 150,368 Stern Consultin $ 113, $113,050 While Nexlevel did not submit the lowest total bid amount, the consultant's fees addressing the minimum requirements alone were the lowest at $56,550. The minfmum requirements outlined within the RFI were to review the City's existing system (cost, resources, and activities), interview key departmential staff, draft a written assessment and draft a Request tor Proposal (RFP) seeking a qualified vendor for an upgrade or replacement system. As part of Nexlevel's bid beyond general requirements, the vendor recommended assistance in qualifying and selecting the most qualified vendor, as well as contract negotiation. These additional recommended services are being included in the contract due to the selected vendor's experience_ with similar successful projects. Last, the selected vendor's proposal includes the most detjicated resources and hours to the project. Nexlevel has proposed to position four well-experienced staff consultants and up to 821 hours dedicated to this project, more than any other proposal. ln order to re-align the City's operations with a "best fit" ERP application, a needs assessment is necessary. Staff respectfully requests the City Council award the contract to the recommended vendor. At present, Nexlevel!s developing a strategic plan for the Information Services Department. Staff is also recommending the City Council authorize the City Manager to amend the existing agreement to expand fhe scope of work to include the subject request. FISCAL IMPACT Nexlevel Information Techno.logy, lnc.'s (Nexlevel) bid for the project came in at $126,510. For precautionary purposes, staff is requesting a ten _percent (10o/o) contingency amount of $12,651 to accommodate any unforseen incidental services necessary to complete the project. The total not-to-exceed amount of the contract will be $126,510, with a contingent amount of $12,651. The budget for this project is available in the ISO Applications lnternal_services Fund, ALTERNATIVES Alternative 1: AWard a contract to NexLevel and amend an existing Professional Service Agreement (PSA) - A needs assessment related to the functional requirements of an upgrade or replaceme-nt ERP application is necessary to evaluate the costs, resources and activities as they relate to the common functions and features of an ERP applicatlon. Alternative 2: City Council may consider any other alternative not proposed by staff. 3
4 CAMPAIGN DISCLOSURE In accordance? with the City Campaign -Finarfce Ordina nce No. 5744, the following are the names and business addresses of the members of the board of directors, the ch"airperson, CEO, COO, CFO, Subcontractors and any p_erson or entity with more than 10% interest in the company proposed for contract in this Agenda Item Report: Officers of Nexlevel Information T echnolo - - Managing Principal; 6829 Fair Oaks Blvd., Carmichael CA Terry Hackelman Founder Suite 100 Managing Principal; 6829 Fair Oaks Blvd. Carmichael CA Frank Otlo Founder Suite 100 Principal 6829 Fair Oaks Blvd. Carmichael CA Craig Price Suite 100 Principal 6829 Fair Oaks Blvd. Carmichael CA Joe Blackwell Suite 100 EXHIBITS Exhibit 1: None 4
5 MOTION Moved by Council Member ' seconded by Council Member that the City Council finds that Nexlevel Information Technology, Inc. is the lowest responsible bidder to conduct a needs assessment related to the functional requirements of an upgrade or replacement of the Enterprise Resource Planning (ERP) application. -The bid of Nexlevel Information Technology, Inc. in the amount of $126,510 is hereby accepted and approved, and all other bids are hereby rejected. The City Council further authorizes the City Manager to amend a professional service agreement with Nexlevel Information Technology, Inc. in the not-to-exceed amount of $126,510, plus a contingent amount of $12,651. Said agreement shall be approved as to form by the City Attorney. Vote as follows: Ayes: Noes: Absent: Abstain: ~ c 1
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