Title
Proposed Amendment No. 2
Contract No. GLWA-CS-300
Financial Automation Solution Services
O&M
Body
Agenda of: March 23, 2022
Item No.: 2022-099
Amount: Original Contract $573,601.12
Amendment No. 1 218,403.10
Proposed Amendment No. 2 388,367.55
Total Revised Contract $1,180,371.77
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: March 2, 2022
RE: Proposed Amendment No. 2
Contract No. GLWA-CS-300
Financial Automation Solution Services
Vendor: Tagetik North America, LLC
MOTION
Upon recommendation of Jeffrey E. Small, Chief Information Officer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Interim Chief Executive Officer (ICEO) to enter into Contract No. GLWA-CS-300, Proposed Amendment No. 2, “Financial Automation Solution Services” with Tagetik North America, LLC, at an increased cost of $388,367.55 for a total cost not to exceed $1,180,371.77 and for an increased duration of three years for a total duration of six years; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The primary financial system, BS&A, was implemented at the start of GLWA’s operations in 2016. BS&A has a limited capacity for financial and budget reporting and does not meet GLWA’s ongoing business needs. Tagetik’s Financial Automation Solution was selected through an open competitive solicitation process with contract execution completed in March 2019 to improve our budgeting process and expand reporting capability. A contract amendment added enhanced reporting for accounts payable, purchase order, fixed asset, cash receipting, utility billing, cost of services, and administrative cost allocations. This system will be replaced with the new Workday Enterprise Resource Planning (ERP) system.
JUSTIFICATION
This amendment will enable GLWA to continue to use Tagetik as a reporting system until GLWA implements the new Workday (ERP) system. The go-live date for the financial and budgeting modules of Workday is currently estimated to take place in July 2024. Because the new system is not expected to be live until at least July 2024, this amendment is for additional licensing for a three (3) year term to provide GLWA with time to transition from Tagetik to its new ERP system.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,096 days (03/22/2019 - 03/21/2022)
Amendment 1 N/A
Proposed Amendment No. 2 1,096 days (03/22/2022 - 03/21/2025)
New Contract Time 2,192 days (03/22/2019 - 03/21/2025)
PROJECT ESTIMATE
Original Contract Price $573,601.12
Amendment No. 1 218,403.10
Proposed Amendment No. 2 388,367.55
New Contract Total $1,180,371.77
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 Business Productivity Systems (883341)
Expense Type(s): Repairs & Maintenance - Software (5910-883341.000-622302-WS7900)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2019 Budget (Prorated) $66,000.35
FY 2020 Budget 264,001.41
FY 2021 Budget 264,001.41
FY 2022 Budget 230,365.02
FY 2023 Financial Plan 129,455.85
FY 2024 Financial Plan 129,455.85
FY 2025 Financial Plan (Prorated) 97,091.88
Financial Plan Forecast $1,180,371.77
Proposed Contract Amount $1,180,371.77
Variance (positive/ (negative)) -
COMMITTEE REVIEW
This item is being presented directly to the full Board of Directors.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.