Title
Enterprise Resource Planning System and Related Services
Action
Action:
A. Approve the purchase of an Enterprise Resource Planning system including implementation, subscription, and other related services from cooperative contracts,
B. Authorize the City Manager to negotiate and execute a contract with Accenture LLP to implement the city’s Workday Enterprise Resource Planning system for an initial term of up to 28 months under the Texas Department of Information Resources agreement (#DIR-CPO-4923),
C. Approve a contract with Workday, Inc. to provide and support the city’s Workday Enterprise Resource Planning system for an initial term of 10 years under the National Cooperative Purchasing Alliance/Region 14 Education Service Center agreement (Contract #01-103, RFP #25-19),
D. Authorize the City Manager to extend the cooperative contracts for additional terms as long as orders placed under the cooperative contracts are in effect, at prices and terms that are the same or more favorable than those offered under the cooperative contracts,
E. Authorize the City Manager to negotiate and execute various other contracts that support the Enterprise Resource Planning system for services such as third-party applications, software implementation, change management, data conversion, hardware, and other specialized implementation, training, consulting, or support services,
F. Authorize the City Manager to renew the contracts with possible price adjustments and to amend the contracts consistent with the purpose for which the contracts were approved, and
G. Authorize the City Manager to purchase such additional software licenses, services, hardware, maintenance, and support as required to maintain the system for as long as the city uses the system.
Body
Staff Resource(s):
Reenie Askew, City Manager’s Office
Markell Storay, Innovation & Technology
Explanation
Actions A-D
§ Approval of contracts with Accenture LLP and Workday, Inc. will enable staff to begin implementing a new Enterprise Resource Planning (ERP) system, which will further integrate information technology systems for human resources, finance, budget, and procurement functions.
§ A comprehensive, robust, and fully integrated system is critical to enable the advancement of improved business processes across the organization, and to enhance information collection and reporting capabilities in support of analysis and decision making.
§ If approved, beginning in March 2023, city staff will partner with Accenture LLP on the implementation of the new Workday ERP system, with an estimated implementation timeframe, including all third-party applications, of 24-28 months.
§ On March 30, 2022, the city issued a Request for Qualifications (RFQ); five responses were received.
§ Accenture LLP and Workday, Inc. are the best qualified firms to meet the city’s needs on the basis of demonstrated competence and system performance, qualification of professional services and experience, and cost in response to the RFQ requirements.
§ NC General Statute Section 143-129(e)(3) allows local governments to purchase from formally organized cooperative purchasing contracts.
§ A cooperative purchasing agreement results from the consolidation and competitive solicitation of multiple public agency requirements. By aggregating common needs, all agencies are able to leverage economies of scale, such as volume discounts, improved terms and conditions, reduced administrative costs, and access to professional and technical expertise.
Actions E and F
§ In addition to the Workday system, four additional third-party applications are required to support the ERP System:
- NCR (cashiering);
- The Mortgage Office (loan management);
- Training Orchestra (training management); and
- Workiva (internal controls and financial reporting).
§ Staff are preemptively seeking authorizations for additional contracts that will be needed during implementation to enable an uninterrupted implementation process. Specific additional services include, but are not limited to:
- Consulting Services; and/or
- Business Process Mapping; and/or
- Organizational Change Management; and/or
- Data Conversion related services.
All Actions Summary
§ Initial aggregate expenditures across all contracts, including contingency, for the implementation are estimated to be $59,000,000.
§ Ongoing annual aggregate expenditures across all contracts are estimated to be $4,500,000.
Background
§ At the April 6, 2022 City Council Budget Workshop, Innovation and Technology staff presented the need for a new ERP system to City Council and outlined the next steps for replacing the current ERP system.
§ The FY 2023 Budget adopted by City Council in May 2022 included an initial appropriation of $10 million for the replacement of the ERP system.
§ Since then, staff have conducted a rigorous evaluation process including demonstrations, client reference checks, cost analysis, and hands-on workshops, before concluding that Accenture LLP and Workday, Inc. were the best qualified firms to meet the city’s needs.
Charlotte Business INClusion
These are cooperative purchasing contracts and are exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy). However, Accenture LLP has committed to use the following certified firm(s) to participate:
§ Random Bit (WBE) (5.1%) (technical architecture, change management)
§ Texcido LLC (MBE, SBE) (10.5%) (data management, test management, and project administration)
Fiscal Note
Funding: General Capital Investment Plan and Enterprise Funds