Title
Proposed Amendment No. 1
Contract No. 2000274-2
Enterprise Resource Planning System Subscription Services
O&M
Body
Agenda of: December 14, 2022
Item No.: 2022-555
Amount: Original Contract $6,265,747.00
Proposed Amendment No. 1 524,773.30
Total Revised Contract $6,790,520.30
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: December 2, 2022
RE: Proposed Amendment No. 1
Contract No. 2000274-2
Enterprise Resource Planning System Subscription Services
Vendor: Workday, 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. 2000274-2, Proposed Amendment No. 1, “Enterprise Resource Planning System Subscription Services” with Workday at an increased cost of $524,773.30 for a total cost not to exceed $6,790,520.30 with no increase in duration for a total duration of eight (8) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The primary financial and human resources systems used to process, manage, and coordinate all financial and human resources activities, BS&A, and Ceridian Dayforce were implemented as part of the standup of GLWA in 2016. As GLWA has matured as an organization, additional add on systems have been procured to fill gaps in the functionality of BS&A and Ceridian, as well as intermediary systems that assist with workflows and consolidating information between the systems.
Based on improved functionality available commercially today, including cloud hosted Software as a Service (SaaS), it was determined that the best solution for GLWA would be to issue an RFP to solicit vendors who offered SaaS Enterprise Resource Planning (ERP) systems that could replace the five current systems and their intermediary workflows and consolidating reports into one single system.
After a robust evaluation process, GLWA selected an innovative, feature rich, and user-friendly consolidated ERP SaaS solution from Workday as the new software. The Workday implementation project kicked off on April 1, 2022 and is proceeding in a timely manner. The Initiation phase is complete, and the planning phase is coming to a conclusion, and most project team members have received initial training.
JUSTIFICATION
There are three components that make up this amendment request. They include:
1. Workday Extended Enterprise module - One of the add on systems that Workday will replace is Cornerstone Learning Management System (LMS). In order for GLWA to offer One Water Institute online training to our member partners, they need to be able to access our LMS, and currently member partners do access Cornerstone. During the planning phase, the project team discovered that the ability to extend Workday to non-GLWA participants requires the purchase of this module.
2. Workday online training needs have exceeded the initially scoped training credits that were purchased initially. To account for known training needs as well as to provide leeway for post-implementation training, additional training credits must be procured.
3. Very little contingency was initially included in this contract. To provide for the possibility of further needs being uncovered over the course of the contract, this amendment includes contingency in the amount of 5% of the original contract amount.
PROJECT ESTIMATE
Original Contract Time 8 years (06/01/2022-06/01/2030)
Proposed Amendment No. 1 0 years (06/01/2022-06/01/2030)
New Contract Time 8 years (06/01/2022-06/01/2030)
PROJECT MANAGEMENT STATUS
Original Contract Price $ 6,265,747.00
Proposed Amendment No. 1 524,773.30
New Contract Total $ 6,790,520.30
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this contract.
Funding Source: Improvement & Extension (I&E) budget and Operations & Maintenance (O&M) budget.
Cost Center(s): IT Business Productivity Systems (Centralized Services-883341)
Expense Type(s): Contractual Professional Services (I&E) (617903)
Repairs & Maintenance - Software (622302)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on December 14, 2022. 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.