Item 14 - Agreement With SDI Presence For Enterprise Resource Planning (ERP) System Selection Professional Services

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Agreement With SDI Presence For System Selection Professional Services December 6, 2022 Page 2 The City owns perpetual software licenses for these systems and has regularly performed upgrades as the vendors have issued new releases. We are currently on the latest release of each system that each vendor offers that is not a cloud -based, Software -as -a -Service (SaaS) version. The software industry is trending towards the SaaS subscription licensing model, and most vendors no longer offer perpetual (on - premise) licensing or will not provide future upgrades to the legacy versions. In fact, the City has been told that there will not be any additional upgrades to the versions of our systems and we would be required to transition to the vendors' SaaS versions in order to obtain any new enhancements. Since the City will have to expend a large effort to migrate to a new software version, this is an ideal time to evaluate vendor solutions to see which systems would best meet the City's current and future needs. As the City has not evaluated the marketplace for ERP systems for nearly 20 years, it is prudent to utilize a professional service consultant that has extensive, niche knowledge of current vendor offerings to assist us with our selection process. Staff researched the City's options to engage a firm for system selection professional services and subsequently received a proposal from SDI for ERP Consulting Services to assist with conducting a comprehensive needs assessment, developing an RFP, assisting with vendor evaluations, performing business process mapping, and assisting with vendor contract negotiations. SDI is uniquely qualified to perform this work, as they have more than 25 years of hands-on experience with ERP software procurement and implementations. They have worked with more than 200 West Coast clients and completed well over 50 ERP software selection projects for similarly -sized public sector agencies for both on -premise and SaaS (Cloud) ERP solutions. They have local Southern California staff that are able to be onsite as needed for the duration of the project and have hourly rates consistent with the industry marketplace. Contracting with SDI would reduce the administrative costs and time required to commence the project. The proposal is for $102,675 and includes an option for additional services. The City has identified several financial business processes that we would like them to analyze for potential improvement prior to the implementation of a new system. Because the proposal cost is based on an estimate of hours required to perform the work and because the City may wish to add additional process areas to be analyzed, we are including a 25-percent contingency of $25,669 for a total not -to -exceed amount of $128, 344. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action.