Title
Proposed Amendment No. 1
Contract No. 1904219-1
Enterprise Asset Management System Implementation Services
O&M
Body
Agenda of: September 25, 2024
Item No.: 2024-289
Amount: Original Contract $4,602,960.00
Proposed Amendment No. 1 811,900.00
Total Contract Amount $5,414,860.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: August 30, 2024
RE: Proposed Amendment No. 1
Contract No. 1904219-1
Enterprise Asset Management System Implementation Services
Vendor: NEXGEN Utility Management, Inc
MOTION
Upon recommendation of Jeffrey E. Small, Chief Information Officer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 1904219-1, Proposed Amendment No. 1, “Enterprise Asset Management System Implementation Services” with NEXGEN Utility Management, Inc, at an increased cost of $811,900.00 for a total cost not to exceed $5,414,860.00 and an increased duration of 1,461 days for a total duration of 2,556 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
To reduce the magnitude and breadth of overall change in GLWA processes introduced with the newly launched Workday HCM and FINS implementations in December 2023 and July 2024, respectively the go-live date for NEXGEN was moved back eight months from March 2024 to November 2024. The original contract end date of November 30, 2024 does not allow for an adequate post-go live stabilization period given the new go-live date of November 4, 2024. Additionally, there will be an ongoing need for NEXGEN implementation services related to both Workday and the upcoming Project Management Information System (PMIS).
JUSTIFICATION
The amended date allows for a thorough post-go live stabilization period for successful user adoption and change management. In addition, the contract duration extension updates the contract end date to correspond with the NEXGEN Software-as-a-Service contract (No. 1904219-2) and will allow GLWA to implement newly identified scope items such as additional data migration and clean-up, configuration of added software functionality, additional reports & dashboards, and new and expanded integrations with Workday and PMIS. This will leverage more software functionality and further automate manual processes resulting in enhanced asset management and warehouse inventory outcomes. This amendment in both cost and duration allows for the continuous improvement and increased effectiveness of GLWA’s investment in the NEXGEN software and services for the benefit of operations & maintenance across the organization.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,095 Days (12/01/2021 - 11/30/2024)
Proposed Amendment No. 1 1,461 Days (12/01/2024 - 11/30/2028)
New Contract Time 2,556 Days (12/01/2021 - 11/30/2028)
PROJECT ESTIMATE
Original Contract Amount $4,602,960.00
Proposed Amendment No. 1 811,900.00
New Contract Amount $5,414,860.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this contract.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): IT Enterprise Asset Management Systems (883351)
Expense Type(s): Contractual Professional Services (O&M)
(5910-883351.000-617903-WS7900)
Estimated Cost by Year and Related Estimating Variance: See table below
Fiscal Year Amount
FY 2022 Budget $1,150,740.00
FY 2023 Budget 1,534,320.00
FY 2024 Budget 1,534,320.00
FY 2025 Financial Plan 478,192.00
FY 2026 Financial Plan 358,664.00
FY 2027 Financial Plan 239,096.00
FY 2028 Financial Plan 119,528.00
Financial Plan Forecast $5,414,860.00
Proposed Contract Amount $5,414,860.00
Variance (positive/ (negative)) -
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on September 11, 2024. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.