Title
[Supplemental Contract] Smart Enterprise Resource Planning (ERP) Technical Service Support
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FileID
File ID: 2026-00470
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to: 1) execute Supplemental Contract No. 6 to City Agreement 2021-0218 with Smart Enterprise Resource Planning (ERP) Solutions, Inc. to support the PeopleSoft applications; 2) increase the budget for an amount not-to-exceed $175,000, increasing the total not-to-exceed amount to $2,219,850; and 3) exercise administrative authority to extend the contract and issue the supplemental contract in accordance with City Code Chapter 3.04.20.
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Contact
Contact: Mrudul Sadanandan, Assistant Director, (916) 808-7894, msadanandan@cityofsacramento.org.org; Darin Arcolino, Chief Information Officer, (916) 808-0403, darcolino@cityofsacramento.org; Ignacio Estevez, IT Manager, (916) 808-7349, iestevez@cityofsacramento.org; Department of Information Technology
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Supplemental Contract
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Description/Analysis
IssueDetail
Issue Detail: An Invitation for Bid (RFB) (P20071011007) was utilized to solicit technical services for the City’s Finance, Payroll, Procurement, Revenue and Human Resource’s Enterprise Planning (ERP) Applications supporting PeopleSoft applications. Over 1,338 vendors were notified, and the City received 29 proposals. Following a comprehensive evaluation process, SmartERP Solutions, Inc. was selected as the top-ranked vendor, which resulted in a contract (City Agreement 2021-0218) being awarded to Smart ERP Solutions, Inc.
The City currently lacks internal staffing capacity with the specialized senior-level PeopleSoft skills needed to deliver these high risks, time sensitive enhancements and system updates. Without specialized assistance, the City faces the following issues:
• Delayed implementation of critical payroll and labor regulatory updates, increasing the risk of payroll inaccuracies, employee impact, and compliance violations.
• Backlogs in technical enhancements and defect resolution, which affect the reliability and efficiency of HR, payroll, procurement, and financial processes.
• Limited capacity to streamline or automate manual processes, leaving departments dependent on outdated workflows that increase operational burden and risk of error.
• Inability to complete PeopleSoft Image upgrades in a timely manner, resulting in outdated functionality, missed security patches, and loss of vendor-supported features.
• Growing reliance on manual workarounds that are neither sustainable nor aligned with best practices for enterprise system governance.
• Increased operational risk during payroll cycles, fiscal year-end activities, recruitment/leave processing, procurement operations, and system maintenance events.
SmartERP Solutions, Inc. has provided specialized PeopleSoft expertise since 2021 and already possesses extensive institutional knowledge of the City’s environment. Bringing in a new vendor at this stage would require months of onboarding and ramp-up time which further delays high priority work and increasing operational risk.
The City requires continued access to a senior-level PeopleSoft technical expert to ensure uninterrupted operations, implement necessary enhancements, maintain system security, and continue modernizing business workflows. Supplemental Agreement No. 06 is therefore needed to address these urgent issues, prevent service disruptions, and preserve system stability.
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PolicyConsiderations
Policy Considerations: City Council approval is required for extending Professional Services beyond five years and executing a contract amendment that increases the contract amount to $250,000 or more per City Professional Services Policy and City Code 3.04.20.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns administrative activities and government fiscal activities that do not constitute a “project” as defined by the CEQA Guideline sections 15378 (b)(2) and 15378 (b)(4) and are not subject to the provisions of CEQA
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: SmartERP has developed deep institutional knowledge of the City’s PeopleSoft environment and business processes. Replacing the vendor or onboarding a new consultant would increase risk, cause delays, and result in significant re-training and transition costs. The requested supplemental agreement ensures continuity of service and provides the advanced technical expertise required for:
• Maintain uninterrupted payroll operations
• Meet compliance requirements for local, state, and federal regulations
• Implement critical system enhancements and complex configurations
• Address high-priority defects, performance issues, and security needs
• Advance business process automation and reduce manual workflows
These services exceed the current capabilities of internal staff and are essential for the reliability and modernization of the City’s PeopleSoft system.
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FinancialConsiderations
Financial Considerations: No additional funding is required for this procurement. Funding is available within the eCAPS Enhancement Program (A07001100) budget.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): SmartERP is not an LBE.
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