HomeMy WebLinkAbout03-21-2017 Agreement between SLO City and Government Finance Officers Association (GFOA)AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on March 21, 2017 by and between
the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and Government Finance
Officers Association (GFOA), hereinafter referred to as Contractor.
WITNESSETH:
WHEREAS, City requested a proposal from Contractor as a sole source provider for consulting services related
to the City's Enterprise Resource Planning (ERP) system replacement.
WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City for said services.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained,
the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first
written above, until acceptance or completion of services.
2. INCORPORATION BY REFERENCE. Contractor's Proposal dated September 14, 2016 is hereby
incorporated in and made a part of this Agreement.
3. CITY'S OBLIGATIONS. For providing consulting services related to the implementation of the City's
replacement ERP system, as specified in this Agreement, City will pay and Contractor shall receive therefore
compensation in a total sum not to exceed $65,970. Payments by City shall be made upon acceptance of key
deliverables identified in Contractor's Proposal at page 12.
4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements
hereinbefore mentioned to be made and performed by City, Contractor agrees with City to do everything required by
this Agreement in conformity with Contractor's Proposal.
5. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in
writing and shall be effective only upon approval by the City's City Manager or Finance Director in compliance with
the City's purchasing policies.
6. LIMITATION OF LIABLITY Contractor's liability for any matter arising under this Agreement or from any
transaction contemplated herein, including without limitation the provision of the Services, shall not exceed the actual
amount paid by an insurer as a result of any claim made with respect to such matter under Contractor's insurance
policies as set forth in Exhibit A Section 28. (the "Liability Cap"). The City acknowledges that the Liability Cap is a
material term upon which Contractor has relied in entering into this Agreement and that Contractor would not have
entered into this Agreement in the absence of such provision.
7. OWNERSHIP. All work product produced as a result of the Services provided hereunder shall be the property of
the City; however, Contractor's methodologies (e.g., surveys, templates, tools, reference databases, documentation,
and best practice knowledge) that it has developed before and during this engagement are the property of Contractor
(collectively, and together with any Contractor proprietary assessment tools, the "GFOA Intellectual Property"). In
particular, in the course of performance hereunder, Contractor may use (and may authorize the City's personnel to
use) certain GFOA Intellectual Property to assist in engagement completion. The City shall not have or obtain any
right or title to or interest in such GFOA Intellectual Property (or in any modifications or enhancements thereto).
Contractor makes no express or implied warranties of any kind regarding the GFOA Intellectual Property.
7 COMPLETE AGREEMENT. This written Agreement, including the attached Exhibit A ("General Terms
and Conditions") and all writings specifically incorporated herein by reference, shall constitute the complete
agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and
specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or
representation be binding upon the parties hereto. In the event of a conflict the following order of precedence will
apply:
1) This Agreement
2) Exhibit A
3) Contractor's Proposal dated September 14, 2016
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by
registered or certified mail addressed as follows:
City City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Contractor Mike Mucha
Director, Research and Consulting
Government Finance Officers Association
203 N. LaSalle Street, Suite 2700
Chicago, IL 60601
8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual
executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements
for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first
above written.
CITY OF SAN LUIS OBISPO:
By:
City Manager
APPROVED AS TO FORM: CONTRACTOR:
, Christine Dietrick
City of San Luis Obispo — General Terms and Conditions Exhibit A
1. Business Tax. The Contractor must have a valid City of San Luis Obispo business tax certificate
before execution of the contract. Additional information regarding the City's business tax program
may be obtained by calling (805) 781-7134.
2. Ability to Perform. The Contractor warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out
and complete the work hereunder in compliance with any and all federal, state, county, city, and
special district laws, ordinances, and regulations.
Warranties. Contractor warrants that all goods delivered will be free from defects in workmanship,
material and manufacture; are new (not refurbished or reconditioned) unless otherwise stated in this Order;
are of merchantable quality and fit for the purpose intended by the City to the extent that purpose has been
disclosed to Contractor; complies with the requirements of this Order; and complies with all applicable
laws and regulations. Contractor also warrants that all services performed under this Order shall be
rendered in a good and workmanlike manner by skilled personnel in compliance with all applicable laws
and regulations.
4. Changes. No change or modification in terms may be made without express authorization, in writing by
the City's authorized representative.
5. Delivery. Contractor agrees that time is of the essence to delivery and any other performance required
under this Agreement. No charge for delivery, parcel post, packing, cartage, insurance, license fees,
permits, or any other purpose will be paid by the City unless it is expressly included on the face of this
Order. Contractor must arrange for the lowest -cost transportation and prepay and add freight to its invoice.
If delivery is made by a carrier, an itemized delivery ticket must be attached to the outside of the package.
Each container or package must be marked with the Specification number.
6. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and
comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances,
regulations and adopted codes during its performance of the work.
Payment of Taxes. The contract prices shall include full compensation for all taxes that the
Contractor is required to pay.
Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and
fees, and give all notices necessary.
9. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety
established by OSHA and the California Division of Industrial Safety.
10. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous
to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect
and maintain such fences, temporary railings, barricades, lights, signs and other devices and take
such other protective measures as are necessary to prevent accidents or damage or injury to the
public and employees.
11. Preservation of City Property. The Contractor shall provide and install suitable safeguards,
approved by the City, to protect City property from injury or damage. If City property is injured or
damaged resulting from the Contractor's operations, it shall be replaced or restored at the
Contractor's expense. The facilities shall be replaced or restored to a condition as good as when
the Contractor began work.
City of San Luis Obispo — General Terms and Conditions Exhibit A
12. Data Security. Contractor shall comply with Data Safeguards. Data Safegaurds means industry -
standard safeguards against the destruction, loss, misuse, unauthorized disclosure, or alteration of the
City's data or confidential information, and such other related safeguards that are set forth in
applicable laws, a statement of work or pursuant to the City's policies or procedures. Contractor
personnel and any subcontractors shall not attempt to access, and shall not allow access, to the City's
data and other confidential information that is not required for providing the ordered goods or
services.
13. Immigration Act of 1986. The Contractor warrants on behalf of itself and all sub -consultants
engaged for the performance of this work that only persons authorized to work in the United States
pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be
employed in the performance of the work hereunder.
14. Contractor Non -Discrimination. In the performance of this work, the Contractor agrees that it
will not engage in, nor permit such sub- consultants as it may employ, to engage in discrimination
in employment of persons because of age, race, color, sex, national origin or ancestry, sexual
orientation, or religion of such persons.
15. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done
hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire,
earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due
to federal government restrictions arising out of defense or war programs, then the time of completion
may, at the City's sole option, be extended for such periods as may be agreed upon by the City and
the Contractor.
16. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and
acceptance by the City of the materials, supplies, equipment or services provided by the Contractor
(Net 30).
17. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to
ascertain that the services of the Contractor are being performed in accordance with the
requirements and intentions of this contract. All work done and all materials furnished, if any,
shall be subject to the City's inspection and approval. The inspection of such work shall not relieve
Contractor of any of its obligations to fulfill its contract requirements.
18. Audit. The City shall have the option of inspecting and/or auditing all records and other written
materials used by Contractor in preparing its invoices to City as a condition precedent to any
payment to Contractor.
19. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not
acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree
with the performance of the work hereunder. The Contractor further covenants that, in the
performance of this work, no sub -consultant or person having such an interest shall be employed.
The Contractor certifies that no one who has or will have any financial interest in performing this
work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of
the work hereunder, the Contractor shall at all times be deemed an independent Contractor and not
an agent or employee of the City.
20. Hold Harmless and Indemnification. Contractor agrees to defend, indemnify, protect and hold
the City and its agents, officers and employees harmless from and against any and all claims
asserted or liability established for damages or injuries to any person or property, including injury
to Contractor's employees, agents or officers which arise from or are connected with or are caused
2
City of San Luis Obispo — General Terms and Conditions Exhibit A
or claimed to be caused by the acts or omissions of Contractor, and its agents, officers or
employees, in the performance of all obligations under this Agreement, and all expenses of
investigating and defending against same, provided, however, that Contractor's duty to indemnify
and hold harmless shall not include any claims or liability arising from the established sole
negligence or willful misconduct of the City, its agents, officers or employees.
21. Contract Assignment. The Consultant shall not assign, transfer, convey or otherwise dispose of
the contract, or its right, title or interest, or its power to execute such a contract to any individual or
business entity of any kind without the previous written consent of the City.
22. Termination for Convenience. The City may terminate all or part of this Agreement for any or no
reason at any time by giving 30 days written notice to Contractor. Should the City terminate this
Agreement for convenience, the City shall be liable as follows: (a) for standard or off-the-shelf
products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase price;
(b) for custom products, the less of a reasonable price for the raw materials, components work in
progress and any finished units on hand or the price per unit reflected on this Agreement. For
termination of any services pursuant to this Agreement, the City's liability will be the lesser of a
reasonable price for the services rendered prior to termination, or the price for the services reflected
on this Agreement. Upon termination notice from the City, Contractor must, unless otherwise
directed, cease work and follow the City's directions as to work in progress and finished goods.
23. Termination for Cause. If, during the term of the contract, the City determines that the Contractor
is not faithfully abiding by any term or condition contained herein, the City may notify the Consultant
in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten)
calendar day notice of time thereafter in which to perform said work or cure the deficiency.
If the Contractor has not performed the work or cured the deficiency within the ten days specified
in the notice, such shall constitute a breach of the contract and the City may terminate the contract
immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have
any further duties, obligations, responsibilities, or rights under the contract except, however, any
and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be
extinguished, reduced, or in any manner waived by the termination thereof.
In said event, the Contractor shall be entitled to the reasonable value of its services performed from
the beginning date in which the breach occurs up to the day it received the City's Notice of
Termination, minus any offset from such payment representing the City's damages from such
breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone
or task satisfactorily delivered or completed by the Contractor as may be set forth in the Proposal;
compensation for any other work, services or goods performed or provided by the Contractor shall
be based solely on the City's assessment of the value of the work -in -progress in completing the
overall workscope.
The City reserves the right to delay any such payment until completion or confirmed abandonment
of the project, as may be determined in the City's sole discretion, so as to permit a full and
complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in
excess of the compensation quoted in its proposal.
24. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages
and amounts specified in these conditions as a precondition to contract execution. The Contractor
shall procure and maintain for the duration of the contract insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of the
work hereunder by the Contractor, its agents, representatives, employees or sub -consultants.
City of San Luis Obispo — General Terms and Conditions Exhibit A
25, Minimum Scope of Insurance. Coverage shall be at least as broad as:
A. Insurance Services Office Commercial General Liability coverage (occurrence form CG 20 10
Prior to 1993 or CG 20 10 07 04 with CG 20 37 10 01 or the exact equivalent as determined by the
City).
B. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1
(any auto).
C. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
A. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
B. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
C. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
Deductibles and Self -Insured Retentions. Any deductibles or self-insured retentions must be declared to
and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers;
or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
A. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Contractor; products
and completed operations of the Consultant; premises owned, occupied or used by the Contractor;
or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no
special limitations on the scope of protection afforded to the City, its officers, official, employees,
agents or volunteers.
B. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance
as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or
self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall
be excess of the Contractor's insurance and shall not contribute with it.
C. The Consultant's insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer's liability.
D. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty
(3 0) days' prior written notice by certified mail, return receipt requested, has been given to the City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no
less than A: VII.
4
City of San Luis Obispo — General Terms and Conditions Exhibit A
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing
maintenance of the required insurance coverage. Original endorsements effecting general liability and
automobile liability coverage required by this clause must also be provided. The endorsements are to be
signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City before work commences.
5
PROPOSAL TO:
City of San Luis Obispo,
Business Process Improvement and ERP
Advisory Services
September 14, 2016
Note: This proposal and description of GFOA methodologies is for the entity listed above. All
information herein is confidential and proprietary to GFOA.
Government Finance Officers Association
203 North LaSalle Street, Suite 2700
Chicago, IL 60601-1210
312.977.9700 fax: 312.977.4806
September 14, 2016
Derek Johnson
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401-3249
EMAIL: djohnson@sloci1y.org.
slocity.org
Dear Derek,
The Government Finance Officers Association (GFOA) is pleased to present this proposal to the
City of San Luis Obispo for ongoing services to assist with the City's ERP replacement project.
This proposal follows GFOA's recommendation during an earlier engagement where GFOA
recommended that the City replace its ERP system. With this project we are excited about
continuing GFOA's relationship with the City and look forward to assisting the City with helping
to establish the foundation for its financial, purchasing, human resource, and payroll processes.
More than 450 governments, including many in California, have found value in our high level of
expertise and our detailed approach to ERP projects. As one of the premier membership
associations for public -sector professionals, GFOA can offer independent, objective, and best
practice -focused consulting services consistent with our mission to improve government
management.
If you have any questions or would like to discuss the proposal, please let me know.
Sincerely,
Role
Mike Mucha
Director, Research and Consulting
Government Finance Officers Association
Washington, DC Office
1301 Pennsylvania Avenue, N.W., • Suite 309 Washington, DC 20004 0 202.393.8020 fax: 202.393.0780
www.gfoa.org
Business Process Improvement and ERP
Advisory Services
TABLE OF CONTENTS
Overviewof Proposal.................................................................................................................... 4
Task1: Project Planning............................................................................................................... 5
Task2: Process Design and Requirements................................................................................. 5
Task3: RFP Document................................................................................................................. 7
Task4: System Selection Services................................................................................................ 8
Task5: Discovery.......................................................................................................................... 9
Task6: Contract Negotiations...................................................................................................... 9
Task7: Ongoing Advisory Services........................................................................................... 10
ProjectSchedule.......................................................................................................................... 11
Price.............................................................................................................................................. 12
ProjectAssumptions.................................................................................................................... 13
Appendix: GFOA Profile............................................................................................................ 14
Page 3 of 14
Business Process Improvement and ERP
Advisory Services
Overview of Proposal
ERP system implementations offer a great deal of promise for improving business processes,
empowering employees with tools to become more effective, and ultimately transforming the
entire organization. However, implementing these systems is a complex effort, and many
organizations struggle to realize many of the promised benefits. Based on GFOA's experience,
one critical success factor is proper preparation and a structured approach to project readiness.
GFOA has assisted numerous governments in planning for ERP projects and has developed an
approach that embeds these important steps within other activities such as the procurement
process. In addition, GFOA's approach includes a number of sequential steps that build on each
other, ultimately resulting in a detailed contract and statement of work that is centered on public -
sector best practices for ERP contract management and detailed functional requirements.
This proposal for ERP advisory services will focus on an important initial first step in ERP
preparation, process design, project governance, definition of functional requirements, and
support during the selection process..
GFOA has divided this proposal into the following tasks:
• Task 1: Project Planning
• Task 2: Process Design and Requirements
+ Task 3: RFP Draft
+ Task 4: System Selection Services
+ Task 5: Discovery
+ Task 6: Contract Negotiations
• Task 7: Implementation Transition
GFOA consultants assigned to this project include:
• Barry McMeekin, Consulting Practice Manager (Project Manager/Project Lead)
• Eva Olsaker, Senior Manager (Consultant)
• Mike Mucha, Director, Research and Consulting (Engagement Manager)
GFOA has selected these resources because of their knowledge of the City, knowledge of
comparable organizations and experience with business process improvement and change
management projects. GFOA staffs all projects with experienced and capable consultants who
have a proven track record of managing projects independently as well as working effectively
within a project team. As a result, the City can feel confident in turning to any consultant
assigned to the project to provide quality guidance on issues related to any of the tasks included
in this proposal.
Page 4 of 14
Business Process Improvement and ERP
Advisory Services
N■ Task 1: Project Planning
�� a J g
No project can succeed without proper planning and tools to manage the effort. Working together,
GFOA and the City project manager will prepare the following tools, which will be essential to
project coordination. We anticipate using the City's long term schedule for its Motion project and
adding in detail related specifically to the ERP procurement and ERP readiness portion of the
project.
■ Proiect Plan —This document (typically created in Microsoft Project, although it can be
developed in Excel if the City is not familiar with Microsoft Project) identifies all the
detailed tasks for the project, the people who responsible for executing those tasks, the
estimated time required to complete them, and any ways in which a given task may be
dependent on other tasks.
■ Prniect Documentation Procedures — At the beginning of the project, GFOA and the
City will identify procedures for communication and posting/sharing of documents. If the
City uses a website for project and document management, GFOA consultants can post to
that site. If desired, GFOA can also host a website with collaboration tools specifically
for this project.
Phase Duration: ■ 2 weeks
Cost ■ Included
Deliverables ■ D0: Project Plan
ME ■E Task 2: Process Design and Requirements
GFOA will work to document standard business processes and develop functional requirements
representing the City's needs for a new system. At each step in the business process, we will
determine both the system requirements and implementation requirements, and document them
using a Microsoft Excel template that will be included in the eventual request for proposals (RFP.
Requirement development focuses on functional requirements that define what needs to be
completed (such as tasks, outputs, interfaces, calculations, processing, etc.) rather than how the
system or the organization handles tasks currently. This allows for future improvement and full
utilization of the system tools and built-in processes to make the City more efficient. The
expected scope of the project and scope of business process requirements is listed below.
Included in this phase is assistance to help with the City's chart of account re -design. GFOA
strongly recommends that all organizations evaluate their chart of accounts prior to embarking on
an ERP replacement project. Based on GFOA's review of the City's chart of accounts, GFOA
feels that this will be an essential component of project success.
Page 5 of 14
Business Process Improvement and ERP
Advisory ces
Page 6 of 14
Phase Duration:
Process
Task /
.
Topics
Chart of Accounts
Accounting
• D2: Process Design
• D3: Requirements
General Ledger Transactions
■
Grant / Project Tracking
Financial Reporting
Budget
•
Operating Budget
■
Capital Budget
•
Budget Adjustments / Amendments
Procure — Pay
•
Vendors
•
Purchase Requisitions
•
Purchase Orders
■
Contract Management
•
Change Order
■
Receiving
•
Accounts Payable
Customer Billing
•
Customer File
•
Billing
•
Accounts Receivable
Treasury
•
Cash Receipts / POS
•
Disbursements
•
Bank Reconciliation
•
Investments
Asset Management
•
Asset Acquisition
•
Asset Lifecycle (Facilities, Fleet, Equipment)
•
Depreciation
•
Transfer / Disposal / Retirement
Human Resources
•
Positions
•
Employee File
•
Benefit Enrollment
Personnel Evaluations
•
Disciplinary Actions / Grievance
a
Risk Management (Injury / Workers Comp)
•
Training / Certifications
Personnel Actions
•
Recruitment
•
New Hire
•
Personnel Actions (Salary Adjustment / Position Change)
Time Entry — Payroll
•
Time Entry
•
Time Approval
■
Payroll Calculations
•
Payroll Processing
•
Leave Management (FMLA)
Page 6 of 14
Phase Duration:
. 1-2 months
Cost
• $ 20,250
Deliverables
• D2: Process Design
• D3: Requirements
Page 6 of 14
Business Process Improvement and ERP
Advisory Services
■o
00 Task 3: RFP Document
In parallel with Task 2, GFOA will work with the City to prepare an overall procurement strategy
designed to accomplish the organization's requirements and business goals, and mitigate risks
during the project.
The procurement strategy will define the scope of the RFP and the strategic choices for how the
RFP is written, and identify a specific plan for moving forward into the procurement process.
In this phase, GFOA will also develop a detailed RFP document. GFOA's RFP format is
designed to remove disparity between proposals and to provide as much of an apples -to -apples
comparison as possible. In addition, GFOA develops all RFPs with the end goal in mind — a
contract that mitigates risk and leads to a successful project.
GFOA has a template RFP that was specifically designed for ERP procurements and has been
continually updated, as required by changes in the ERP market. However, we are flexible and can
either use this template or a City RFP template, and we can work with City staff to accommodate
essential information, questions, and terms.
When complete, the RFP document will include information to help communicate the following
to potential ERP vendors:
1) Procurement terms and conditions.
2) Detailed vendor response templates.
3) Functional requirements.
4) To -be process definition.
5) Interface definition.
6) Technical documentation.
7) Key objectives / goals / critical success factors for the project.
8) Service -level expectations.
9) Other information necessary for vendors to prepare detailed responses that meet the
City's needs.
Page 7 of 14
Business Process Improvement and ERP
Advisory Services
Task 4: System Selection Services
GFOA will provide ongoing project advisory services to help the County coordinate and manage
its ERP selection project. GFOA consultants assigned to this project have managed many similar
projects with other local governments and will bring that experience to the County's project.
Similarly, GFOA will pull examples from training seminars, other governments, and ongoing
research, along with consulting templates that are regularly used in "more involved" GFOA
projects.
GFOA's system selection and procurement methodology relies on principles of fairness, attention
to detail, and competition, yet remains flexible enough to adapt to local procurement laws or
other unique situations. In addition, the approach is continually enhanced by feedback from the
hundreds of public -sector clients we work with, our own staff experience, and the vendor
community.
For this part of the project, GFOA will provide coaching, overall guidance, and planning
assistance. The County will be responsible for facilitating the proposal assessment portion of the
project. GFOA expects that the County use an approach similar to the one below.
GFOA Approach
GFOA's methodology is based on a series of elevations that "promote" proposals to the next level
of evaluation. Through defined steps, vendors will be evaluated and scored according to pre-
defined criteria, with the top vendors moving on to compete at the next step. GFOA's standard
evaluation process includes four steps, shown in the table below.
Step
Vendors
Written Proposals
Unlimited
Software Demonstrations
3
Discovery
2
Final Contract Negotiations
1
Written Proposals:
The County will review all written proposals and identify three (3) proposals to elevate to
software demonstrations. Vendors will be notified and scheduled for demos after the County's
elevation meeting.
Software Demonstrations and Implementation Presentations
Approximately two (2) weeks prior to each vendor's scheduled software demonstration, the
County will send the demo scripts to the vendor. Demos will be heavily scripted and require the
vendor to go through system business processes. The focus of the software demos should be to
evaluate system features and capabilities rather than to look at the "bells and whistles." It is
expected that demonstrations will last approximately three (3) days per vendor. At the conclusion
of software demonstrations, the County will evaluate the demonstrations and elevate two (2)
proposals for the Discovery phase. Software demonstrations will be a combination of vendor
presentations on software features and a discussion of implementation issues.
Page 8 of 14
Business Process Improvement and ERP
Phase Duration: • Duration of Engagement
Cost* • $16,000
Deliverables • D5: High -Level Proposal Assessment
• D6: Templates, Example Documents
• D7: Demo Scripts
■ D8: Ongoing Project Management and Regular Check -In
Meetines
* Note: GFOA will invoice for this task upon completion of Task 6.
GFOA can provide additional services such as performing a detailed proposal analysis of an
proposals received by the City ($2,500 per proposal) or facilitate vendor demos and interviews
($4,500 per vendor).
Nosk 5: Discover
Ta y
During Discovery, the City will begin working with any remaining vendors to prepare a statement
of work for the implementation. For many organizations, the Request for Clarification (RFC) and
Discovery process acts as the final opportunity to clarify unresolved issues before making a final
elevation decision. Before the Discovery phase, each vendor is asked to provide a written
response to an RFC letter outlining any remaining issues (typically focused on implementation
issues). Then, during Discovery, each remaining vendor is invited back onsite for one more day
of presentation. During this presentation, any remaining issues with software functionality,
implementation approach, data conversion, contract terms, or scope are clarified, and vendors are
asked to make any necessary revisions to their proposals. At the conclusion of Discovery, the
City will enter contract into negotiations with one vendor.
* GFOA assumes that the City will go through a Discovery process with two (2) vendors. If
additional vendors are included, additional costs will apply. If the City goes through Discovery
with just one vendor, GFOA will reduce its Discovery fees by 40%.
No g
No Task 6: Contract Negotiations
One of the most valuable services that GFOA provides its clients is the negotiation of software
contract and implementation service agreements. Too often, governments are pitted against
software vendors that have negotiated contracts many times before. Understandably, software
vendors and their implementation partners want to maximize profit and minimize risk. GFOA has
developed a unique contracting methodology, using our membership network, to benchmark
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Phase Duration:
• 1-2 months
Cost*
7• $ 9,300
Deliverables
•D6: Clarification Documents
• D7: Discovery Staffing
* GFOA assumes that the City will go through a Discovery process with two (2) vendors. If
additional vendors are included, additional costs will apply. If the City goes through Discovery
with just one vendor, GFOA will reduce its Discovery fees by 40%.
No g
No Task 6: Contract Negotiations
One of the most valuable services that GFOA provides its clients is the negotiation of software
contract and implementation service agreements. Too often, governments are pitted against
software vendors that have negotiated contracts many times before. Understandably, software
vendors and their implementation partners want to maximize profit and minimize risk. GFOA has
developed a unique contracting methodology, using our membership network, to benchmark
Page 9 of 14
Business Process Improvement and ERP
Advisory Services
prices and terms. We propose to use this methodology — which also ensures that GFOA's best
practices are included in the contract — for this engagement.
GFOA will be involved with developing a software license contract, software maintenance
agreement, and implementation services agreement. In addition, GFOA will take the lead in
developing the statement of work, a critical document. The statement of work outlines
responsibility for the implementation, and it is the primary reason GFOA consultants provide
such a high level of detailed analysis throughout the procurement. GFOA will ensure that the
City's statement of work is defined to a fine level of detail in order to prevent any unnecessary
issues or misunderstandings during implementation.
Phase Duration: a 1 -2 months
Cost • $15,720
Deliverables • D8: Contract Negotiations
• D9: Statement of Work Development
no
ME Task 7: Ongoing Advisory Services
GFOA will provide ongoing project advisory services to help the City coordinate and manage its
ERP selection project. GFOA consultants assigned to this project have managed many similar
projects with other local governments and will bring that experience to the City's project.
For this part of the project, GFOA will provide coaching, overall guidance, and planning
assistance.
T 70jaKoing Adv isory Svrviees
Phase Duration: ■ 1-2 Months
Cost • $225 per hour other
Deliverables • As necessary
GFOA also has provided additional implementation advisory services — focused on business
process design (best practice implementation), quality assurance, and contract compliance
through the duration of the implementation — for other clients. These services can be contracted at
a rate of $225/hour or the approximate equivalent in fixed -fee deliverables.
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Eft
■■
Project Schedule
Business Process Improvement and ERP
Advisory Services
GFOA has proposed the following high-level schedule for completing all the work described in
this proposal. Based on conversations with the City, GFOA believes that this schedule is
consistent with the City's plans, but we would modify our schedule to better sync with the City's
overall project schedule if necessary. GFOA would be prepared to begin work approximately one
(1) month after contract signing.
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Business Process Improvement and ERP
Advisory Services
■■
ME Price
Unless noted, all pricing is provided as a fixed fee, inclusive of all travel costs incurred by
GFOA staff. GFOA will invoice for project deliverables upon completion of project deliverables.
Summary of Fees by Task
'
1
Project Planning
Included
D1
Project Plan
2
Process Design and Requirements
$20,250
D2
Process Design
D3
Requirements
3
RFP
$4,700
D4
RFP Document
4
System Selection Advisory Services
$16,000
D8
Ongoing Project Management and Regular Check -In Meetings
5
Discovery
$9,300
D9
Clarification Questions (RFC Letters)
D10
Discovery Staffing
6
Contract Negotiation
$15,720
D11
Contract Negotiations
D12
Statement of Work Development
7
Implementation Transition
Ongoing Advisory Services ($225/hour)
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Business Process Improvement and ERP
Advisory Services
■■
No Project Assumptions
• GFOA assumes that City staff will be available to participate in meetings and provide
information necessary to the project.
• GFOA will complete tasks in this proposal with a combination of onsite and off-site
work. Work performed off site will include review of project deliverables and the
development of GFOA reports.
• Each site visit will include one or two GFOA consultants and last approximately two to
three days (depending on planned activities). GFOA site visits will be scheduled in
advance with the City's project manager. The City will be responsible for inviting
appropriate stakeholders to meetings, based on agenda topics.
• GFOA has proposed all services listed for a fixed fee, based on completion of
deliverables (unless noted). The fixed fee amount and hourly rate includes all expenses
including travel. GFOA will invoice monthly for the amount listed in this proposal for
tasks/milestones completed within the previous month.
+ When performing work onsite, GFOA staff will be provided with appropriate office
workspace.
• If it becomes necessary for the City to request additional resources or expand scope
beyond what is listed in this proposal, such additional work product will be secured as an
amendment to the contract between the City and the GFOA, and the work will be
performed at rates of $200 / hour.
• As an educational, nonprofit, professional membership association, GFOA reserves the
right to publish non -confidential documents describing the results of, or created during,
the services described in this scope of work. GFOA will not publish any item that
identifies the City without obtaining prior written consent of the government.
■ GFOA is a nonprofit membership association made up of members representing
organizations like the City. GFOA's liability and indemnification under any agreement
reached with your organization will be limited to the extent of fees paid by insurance
coverage currently in force. This limitation applies to all exposures under this
engagement.
• The City recognizes that GFOA's role is to provide information, analysis, and advisory
services. As such, GFOA bears no responsibility for the performance of the software,
hardware, or implementation service suppliers.
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Business Process Improvement and ERP
Advisory Services
■ `
Appendix: GFOA Profile
Companv Information
Government Finance Officers Association of the United
Official Company Name:
States and Canada
GFOA is a 501(c)3 nonprofit association governed by an
Company Ownership:
18 -person executive board made up of public -sector
professionals.
203 North LaSalle Street
Suite 2700
Chicago, IL 60601
Location of Company Offices
1301 Pennsylvania Avenue, N.W.
Suite 309
Washington D.C. 20004
Location of Office Servicing CAGFOA's
primary office is in Chicago. All research and
Accounts:
consulting staff are located in the Chicago office.
Number of Employees::
GFOA has approximately 60 employees.
Location from which employees will be
Chicago, IL
assigned:
Mike Mucha
Director, Research and Consulting
203 North LaSalle Street
Suite 2700
Contact Information
Chicago, IL 60601
Office: 312-977-9700
Direct: 312-578-2282
Email: mmucha foa.or
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