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HomeMy WebLinkAboutItem 6d. Approve an extension to the Oracle ERP Project Management Services Contract with Archer Street, LLC Item 6d Department: Information Technology Cost Center: Network Services For Agenda of: 9/21/2021 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Miguel Guardado, Information Technology Manager SUBJECT: APPROVE AN EXTENSION TO THE ORACLE ERP PROJECT MANAGEMENT SERVICES CONTRACT WITH ARCHER STREET, LLC RECOMMENDATION Approve a contract extension with Archer Street, LLC for Oracle ERP Project Management Services in the amount of $80,000. DISCUSSION This request is to approve continued Project Management support of the City’s Oracle ERP system to continue to deliver essential services. The amount of the contract is $80,000. The Motion project implemented Oracle’s Cloud Enterprise Resource Planning (ERP) system in 2018. Since the implementation City Staff have been working to resolve ongoing issues with configuration and system functionality. Staff have been working with the Human Resources and Finance functional teams to identify outstanding high importance issues from the implementation of the Motion project. The Motion Core Team has landed on a work plan for the next two years. Technology Project Management services allow the City to continue implementing and optimizing the City’s Enterprise Resource Planning (ERP) software application. Staff is currently contracted with Archer Street, LLC, to provide project management services to assist the staff team in the completion of specified projects. During the current engagement, City staff has been able to complete several important projects (such as improvements to Bank Reconciliation processes, implementation of a budgeting module, and implementation of labor cost modeling). Staff have also implemented recommendations from Archer Street, LLC, including establishing a governance structure, and coordination with vendors on project scoping and prioritization of projects for upcoming work plans. The IT Strategic Plan, approved and adopted in 2017, identified the need and recommended the creation of a Project Management Office to generate alignment between people, processes, and systems across the organization. As our organization continues to mature and the City increases reliance on enterprise systems, this request aligns and is supported by a Council approved position. City staff ran a recruitment last year and were unable to fill the vacancy. Page 27 of 359 Item 6d City staff is seeking to continue its engagement with Archer Street, LLC, specifically Tony Rice, II, one of Archer Street’s Principal Project Managers, which expired August 1, 2021. Mr. Tony Rice, II has over ten years of experience in consulting services in Project/Program Management, Data Analytics, Business Intelligence, Business Process Redesign, Organization Design, and Change Management. He has consulted with various public sector and education clients. This contract extension would run through the end of the 2022 fiscal year and allow the City to continue progress on important projects for the Motion system and complete the recruitment for the Technology Project Manager position. Staff has extensively discussed the duties and responsibilities for this position and this role for the City of San Luis Obispo would meet all the conditions of AB 5 Employment Status. Moreover, the work Archer Street LLC is performing is outside the usual course of the City’s business as it does not have an internal Technology Project Manager, and the work Mr. Rice is performing is more specialized and project specific focused and differs from the work the anticipated full-time employee will perform once hired. Mr. Rice is assisting the City through coordinating major system enhancements and implementations with Oracle Consulting Services whereas the future Technology Project Manager will be primarily focused on quarterly updates and enhancements handled by internal staff, along with other Technology Projects across the City.,. Further, Mr. Rice is free from the City’s control and direction in the performance of his services, has other clients, and is customarily engaged in project management consulting services. Previous Council or Advisory Body Action There is no previous Council action on this item. Per City purchasing policies, the original Archer Street, LLC contract was approved through a City Manager Report. Policy Context The original contract was approved through a sole source agreement on 2/26/2021 per the City’s establish purchasing policies. Public Engagement This is an administrative item, so no outside public engagement was completed. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. FISCAL IMPACT Budgeted: No Budget Year: 2021-22 Funding Identified: Yes Page 28 of 359 Item 6d Fiscal Analysis: Funding for the contract extension would come from the Network Services budget and the vacant Technology Project Manager position ($112,738). This contract extension would take the City through June 2022, but in the event that a full-time employee is hired prior to the end of the contract, the City has the option to terminate the contract early (thus not spending the full $80,000). Funding Source Current balance of Technology Project Manager Proposed Contract Extension Remaining Balance Salaries and Benefits $ 112,738 $80,000 $32,738 ALTERNATIVES Do not approve the Oracle ERP Project Management contract extension. This is not recommended as it would delay the identified projects in the IT two-year work plan that have been identified to move this project forward. ATTACHMENTS A – Amendment to Agreement with Archer Street, LLC B – Archer Street Project Management Services Quote dated 08/26/2021 C – Sole Source Archer Street LLC Page 29 of 359 Page 30 of 359 AMENDMENT TO AGREEMENT NO. 1 THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on September 1, 2021, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City, and Archer Street, LLC, Tony Rice II, hereinafter referred to as Contractor. WITNESSETH: WHEREAS, on March 1, 2021, the City entered into an Agreement with Archer Street, LLC, Tony Rice II for Project Management Services to the Motion Oracle ERP System; (the “Agreement”) and WHEREAS, the City and Archer Street LLC, Tony Rice II desires to amend the Agreement to extend the contract until June 30, 2022, and Archer Street LLC, Tony Rice II has submitted a proposal for this purpose that is acceptable to the City. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. The Agreement is hereby amended as set forth in Exhibit A attached hereto. 2. All other terms and conditions of the Agreement remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above. ATTEST: CITY OF SAN LUIS OBISPO ____________________________________ By: ___________________________________ Teresa Purrington, City Clerk Derek Johnson, City Manager APPROVED AS TO FORM: CONTRACTOR _____________________________________ By: ___________________________________ J. Christine Dietrick, City Attorney Tony Rice, II Page 31 of 359 Page 32 of 359 Archer Street LLC Tony Rice II 3894 Crenshaw Blvd. Chief Executive Officer Unit #8551 Archer Street Los Angeles, CA 90008 Tel. +1 202 215 7295 www.archerstreet.com tony@archerstreet.com Copyright © 2021 Archer Street LLC. All rights reserved. Quote #SLO20210826 Date: August 26, 2021 Expires: October 26, 2021 Customer: City of San Luis Obispo, CA Vendor: Archer Street LLC Project Management Services Quote Archer Street LLC will provide a consultant at the rate of $10 0.00 USD per hour for an average of 20 hours per week for 40 weeks (800 hours total) amounting to a sum not to exceed (NTE) $80,000.00 USD to perform Senior Project Manager services for the Information Technology Department. Under the direction of the IT Manager or designee(s), the consultant’s duties will include assisting staff with activities and work related to the planning and implementation of the Enterprise Resource Planning project. Services • Has primary responsibility for delivery of full scope of projects, on schedule and within budget • Manage the development of the scope definition and project plans to support project goals and successful completion of project • Provide team leadership for problem resolution by working with the lowest organizational levels possible and escalating, as necessary • Monitor schedule and costs for projects versus their progress; identify problems and possible solutions • Serve as central point of contact for project Deliverables • Project Charters, Project Plans, Project Status Reports, Project Closure Reports and other written deliverables, as required Rate Summary Archer Street utilizes an “all-inclusive” rate (see “Expenses” section for details) that decreases the administrative time required for both the Clie nt and Firm. Expenses Administrative and travel costs (i.e. gas, hotel and meals) are included assuming on -site travel is not required. Other project related costs including, but not limited to, software and equipment will be billed only with prior approval by the City designee at cost plus 10% administration fee. Archer Street terms accommodate pro-rata professional fees should work stop prematurely for any reason . Page 33 of 359 Page 34 of 359 City of San Luis Obispo Sole Source Justification Form Archer Street, LLC It is the policy of the City of San Luis Obispo to solicit quotations or bids for purchases of commodities or services for specified dollar amounts and to select vendors on a competitive basis (See City of San Luis Obispo Financial Management Manual, Section 201, Exhibit 201-B). Pursuant to San Luis Obispo Municipal Code Chapter 3.24.060, certain acquisitions in which the products or services may only be obtained from a single source may be purchased without engaging in bidding procedures. Such Sole Source acquisitions must be justified in sufficient detail to explain the basis for suspending the usual competitive procurement process and approved by the approving authority before such a purchase is made. 1. What product or service is being requested? Why is it necessary? The request is for Oracle ERP senior project management services for the planning and implementation of the Motion Enterprise Resource Planning Project. This service is necessary to provide the resource for project charters, project plans and the setup of a governance structure, identification of critical issues, analysis of necessary work efforts, and coordination with vendors. 2. Is this “brand” of product or services offered the only one that meets the City’s requirements? If yes, what is unique about the product/services? No 3. Is the product or service proprietary, or is it available from various dealers? Have you verified this? The service is not proprietary 4. Have other products/vendors been considered? If yes, which? And how did they fail to meet the City’s requirements? Yes, the City ran a recruitment for a project manager with a successful candidate. 5. Is the purchase an upgrade or addition to an existing system or brand of products adopted citywide? If so, will purchase of this product avoid “switching” costs as opposed to purchasing another product or service (e.g., additional training required; data conversion; implementation of a new system; etc.)? No 6. Is this a request for services by a contractor with necessary, unique, and critical knowledge of established City systems or programs? If so, will the use of the contractor’s services avoid other costs (e.g., significant staff time in compiling information, data transfers, etc.)? Yes, the City has been working with Archer LLC since November 2020 on a limited basis for project management. During this time, Archer LLC has been engaged and has knowledge of the Motion ERP project and staff. Page 35 of 359 7. What is the quoted price for the product or services, and is it reasonable (based on other products or services in the same field or based on historical pricing for the City for similar products or services)? The quoted price is $100/hour and is reasonable based on historical pricing for similar services. Josh Erquiaga, Network Services Supervisor Requester Dan Clancy/s/ 2/26/2021 Dan Clancy, Purchasing Analyst Date Page 36 of 359