TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 6, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase order and enter into an agreement with SAP Public Services, Inc., to provide consulting services for future implementation of SAP's procurement module, known as Supplier Relationship Management 7.0 (SRM), with the industry-specific, public sector add-on, known as Procurement for Public Sector (PPS)., in an amount not to exceed $58,320.00, Account 101-27000-601170, Requisition 1353115
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with SAP Public Services, Inc., to provide consulting services for future implementation of SAP's procurement module, known as Supplier Relationship Management 7.0 (SRM), with the industry-specific, public sector add-on, known as Procurement for Public Sector (PPS). SRM/PPS is a complete suite of software from SAP that is fully integrated with the other SAP modules the District presently employs. It is an internet and intranet procurement application for users that supports and simplifies all operational procurement activities. It is designed to automate the high volume, low cost, low risk, procurement activities. PPS, specifically, provides functionality tailored for public entities, such as pre-encumbrance of funds, standardized processes for retainage, liquidated damages, and change orders, as well as the ability to electronically build, review, and approve contract documents.
SAP consultants, based on prior implementation experience, will analyze, evaluate, and provide written commentary on the District's SRM 7.0/PPS Gap Analysis document. In addition, SAP consultants will also provide structured on-site open session discussions, for solutions on open issues between the District's current business practice and SAP SRM 7.0/PPS anticipated business practices, leveraging SAP best practices.
SAP Public Services, Inc. has submitted prices for the consulting services required. Inasmuch as SAP Public Services, Inc. configured the original public sector procurement solution, SAP Public Services, Inc. is the only source to provide the highly skilled individuals required. Therefore, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act).
This purchase order will expire on December 31, 2013.
SAP Public Services, Inc., is registered and in good standing with the State of Illinois.
The Multi-Project Labor Agreement is not applicable due to the specialized nature of the services required.
In view of the foregoing it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and enter into an agreement with SAP Public Services, Inc., in an amount not to exceed $58,320.00.
Funds are being requested in 2013, in Account 101-27000-601170 and are contingent on the Board of Commissioners' approval of the District's budget for that year.
Requested, Dharani Villivalam, Acting Director of Information Technology Dept. DV:VA:JK
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 6, 2012