CAPITAL PROGRAMS COMMITTEE. Enterprise Asset Management (EAM) Status Update. March 2014

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1 CAPITAL PROGRAMS COMMITTEE Enterprise Asset Management (EAM) Status Update March

2 EAM Project Objectives The EAM project was intended to achieve the following objectives: Provide asset tracking, condition assessments and replacement capabilities for METRO s assets; Replace existing work order systems for bus fleet maintenance, rail fleet maintenance and facilities maintenance; Provide State of Good Repair (SOGR) reporting. 2

3 Current State of EAM Project Through the Business Process Assessment (BPA) phase of the project, the stakeholders began questioning Trapeze on how certain processes were going to be accomplished and the following was learned: The Trapeze system would not be able to replace all of the functionality of the SAP work order system, leaving a significant delta of capability for the affected departments Trapeze s solution to the above problem was to continue with the SAP work order system and create several interfaces to duplicate data in both systems with the Trapeze application as the user s front-end interface This solution would mean many interfaces, with the final count at approximately 25, which is an extraordinary amount of interfaces and increases METRO s risk of having dependable data This solution would also mean that METRO would have to maintain, troubleshoot and regularly upgrade the original SAP work order system as well as the new Trapeze EAM system, along with 25 interfaces 3

4 Timeline October 2011 FTA grant awarded to METRO for SOGR program April 2012 METRO Board authorized contract with Trapeze for EAM system September 2012 Project began January Business Process Assessment (BPA) presented to METRO for review and approval January 2013 August Multiple meetings were held with stakeholders to review the specifics of the proposed processes October 2013 Project transitioned to IT and detailed meetings were held in an effort to resolve stakeholder process concerns November Trapeze proposed that SAP work order system stay in place with interfaces to their product to resolve some of the process concerns December 2013 to Present IT and Stakeholders discussed METRO s options going forward 4

5 Three Go-Forward Scenarios Scenario 1 Continue current EAM project with Trapeze Significant impact to business Throwing good money after bad Two systems to maintain instead of one 25 interfaces to maintain Difficult to upgrade in the future Scenario 2 Continue with Rail portion of EAM only Not viable. Such a significant scope modification would require a new procurement Scenario 3 SAP solution for SOGR and all work order functions Continue with SAP work order system for bus maintenance; bring in Rail and Facilities Maintenance Implement new user interface to provide mobile field work capability for SOGR Implement and build Business Intelligence (BI) for SOGR reporting 5

6 Recommend Scenario 3 - SAP solution for SOGR and all work order functions Elect to take off-ramp with Trapeze and terminate the contract Receive refund of software licenses Pay final BPA milestone payment Implement SAP solution for all SOGR and work order needs for Bus, Rail & Facilities Maintenance 6

7 Grant Expenditures and Sunk Costs Grant Grant Budget Actual Grant Draw Comments Hardware acquisition $80,000 $0 Software acquisition $2,630,000 $760,511 Project Management (labor) $502,000 $609,126 $3,212,000 $1,369,637 Estimated Sunk Costs Total costs to be written off initially $1,568,044 Reimbursement of license fees -$765,641 Reimburseable to METRO per the contract "off ramp" Payment of BPA milestone $257,397 Payable to Trapeze per the contract "off ramp" Other costs TBD $1,059,800 Does not include other costs that could arise 7

8 Next Steps Proceed with Trapeze contract termination Prepare scope and proceed with procurement for SAP SOGR solution implementation 8