Title:
Title
Supplemental Agreement: Automated Bids Contracts Digital Signatures (ABCDs)
End
FileID
File ID: 2019-00205
Location
Location: Citywide
Recommendation:
Recommendation
Pass a Motion authorizing the City Manager or City Manager’s designee to execute Supplement Agreement No. 4 to Agreement 2018-0566 with Eirutech, LLC, to continue providing essential services for the ABCDs and Oracle Enterprise Resource Planning (ERP) system increasing the not-to-exceed amount by $57,600, for a new total not-to-exceed amount of $225,700.
Contact: Lydia Brambila, Project Manager, (916) 808-1229; Robert Adams, Procurement Services Manager, (916) 808-5524, Department of Finance.
Body
Presenter: None.
Attachments:
1-Description/Analysis
2-Supplemental Agreement
Description/Analysis
Issue Detail: The City previously selected GNC Consulting, Inc. through a competitive bidding process to support the ABCDs project by providing essential implementation support services for the new modules being added to the City’s ERP software. These services include configuring solutions based upon the City’s design and business requirements to our new supplier portal, strategic sourcing, contracts, and enhanced requisition modules. As the project neared completion, it was necessary to retain one of the subcontractors. Therefore, the City awarded a new single-sourced contract to the highest performing subcontractor with the most training and implementation experience. This contract was awarded to Eirutech, LLC (Rossana Caceres) on April 30, 2018.
After contract execution it was determined that a large software upgrade to the City’s Oracle ERP software (referred to as Fluid), several (10+) image updates to the newly added modules and the ERP system as a whole, resource constraints, and additional unplanned project related tasks were necessary to help support the successful rollout of the ABCDs project. As such, the project timeline and tasks were not able to be completed within the project budget and schedule. Given the consultant’s knowledge of the project and remaining items to be completed prior to launching this new program, it is necessary to increase the total not-to-exceed amount from $168,100 to $225,700. The current expiration date of June 30, 2019 has not been changed.
Policy Considerations: This recommendation is consistent with City Code section 3.64 and in accordance with Procurement Policy No. AP-4102.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities and governmental fiscal activities that do not constitute a “project” as defined by CEQA Guidelines sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA. (CEQA Guidelines, section 15060(c)(3).)
Sustainability: None.
Commission/Committee Action: None.
Rationale for Recommendation: The successful completion and implementation of the project is reliant on completion of the work that Eirutech LLC will be providing. The existing project has adequate funding to support this extension and any change in contractor or transfer of work to City staff at this time would result in additional project delays.
Financial Considerations: Continuing to contract with Eirutech LLC will result in total savings of $42,880. The savings was determined based on a side by side comparison of a 16-week snapshot of the same remote consulting services that GNC Consulting, Inc. provided.
Agreement Supplement No. 2 was approved by council on August 21, 2018. The agreement including all approved supplements had a not-to-exceed amount of $168,100. This supplemental agreement for $57,600 will bring the new total not-to-exceed amount to $225,700. Sufficient funding is available in the ABCDs project (A07000700) for this change.
Local Business Enterprise (LBE): LBE requirements were waived for this project.