TITLE
Recommendation to adopt Specifications No. RFP FM-22-157 and award a contract to John Gross, dba Financial Management and Systems Consulting, of Scottsdale, AZ, for Enterprise Resource Planning (ERP) embedded quality assurance and other sponsor support, in an amount not to exceed $165,600, for a period of six months, with the option to renew for one additional six-month period, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary subsequent amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with John Gross, dba Financial Management and Systems Consulting, for Enterprise Resource Planning (ERP) embedded quality assurance and other sponsor support services, or other services as provided for in the contract and any associated scope definitions. The contract may be terminated at any time by either party. The current scope of services focuses on the City of Long Beach's (City) ERP systems. The City’s new financial system is operational. The remainder of the City’s ERP projects are in a state of transition as the City pivots, prioritizes, and prepares for the work needed to select the various systems, platforms, contractors, and City staff required to complete the City’s suite of enterprise-wide software.
ERP systems have major impacts on administrative operations and business processes throughout City departments. Project Sponsors from seven different City departments are guiding the City through this transition. Each Sponsor is either an Assistant City Manager or a department head. Given the operational demands on these executives, they need hour-to-hour and day-to-day support to execute their roles on the projects. On September 9, 2022, the City released a Request for Proposals (RFP) soliciting proposals from interested firms to provide embedded quality assurance and other sponsor support for the City. The awarded consultant will provide that support by fully embedding in the ERP projects throughout the transition and working hand-in-hand with the relevant City executives and other staff. The consultant will provide regular analysis and recommendations during the transition to help ensure that the projects optimally meet the City’s technical, operational, and business needs and are progressing on time and within budget, and to help ensure that project priorities, issues, and risks are identified, escalated, and resolved. Among other tasks, the consultant will provide ongoing communications that aid the Sponsors and project teams to identify and make adjustments to improve project outcomes, and will develop materials, recommended strategies, and approaches to assist with successful project transition.
The RFP was advertised in the Long Beach Press-Telegram on September 12, 2022 and 110 potential proposers specializing in consulting services were notified of the RFP opportunity. Of those proposers, 67 downloaded the RFP via the City’s electronic bid system. The RFP document was made available from the Purchasing Division, located on the sixth floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. An RFP announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which was sent to 43 local, minority-owned, and women-owned business groups. There were five proposals received on September 23, 2022. Of those five proposers, two were Minority-owned Business Enterprises (MBEs), one was a Women-owned Business Enterprise (WBE), none were certified Small Business Enterprises (SBEs), and none were Long Beach vendors (Local). The evaluation committee determined that John Gross, dba Financial Management and Systems Consulting, of Scottsdale, AZ, was the most qualified firm to provide the services.
The Purchasing Division of the Business Services Bureau in the Department of Financial Management evaluated, and deemed responsive, all five proposals. The proposals were further reviewed by a three-member evaluation committee comprised of two City department directors and one deputy director in accordance with the following weighted criteria, as stipulated in the RFP:
• Organizational Capacity and Experience (45 percent)
• Method of Approach (25 percent)
• Communications and Reporting (15 percent)
• Reasonableness of Cost (15 percent)
After extensive review, the evaluation committee selected John Gross, dba Financial Management and Systems Consulting, of Scottsdale, AZ, to recommend for award, based on the above listed criteria. The recommended proposal presented the method of approach deemed the best fit for the City’s situation and needs as described in the RFP. The recommended proposal was also the lowest estimated hourly cost of all proposals, and was materially less costly (35 percent lower) than that of the second-best scoring proposal. Additionally, Mr. Gross has substantial knowledge of the City, the City's financial and administrative operations, and most importantly, the City’s ERP projects. Final scores for all proposals are shown in the following table.
|
Vendor Name |
Score (out of a possible 100) |
|
Avero Advisors |
70 |
|
BerryDunn |
76 |
|
Financial Management and Systems Consulting |
78 |
|
Kreative Core Technologies Inc. |
53 |
|
Plante & Moran, PLLC |
65 |
Local Business Outreach
To align with the City’s outreach goal, Long Beach businesses are encouraged to submit proposals for City contracts. The Purchasing Division also assists businesses with registering on the Long Beach Buys database to download RFP specifications. Through outreach, 48 Long Beach vendors were notified to submit proposals, of which 2 downloaded and none submitted a proposal. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley and Purchasing Agent Michelle Wilson on October 4, 2022, and by Revenue Management Officer Geraldine Alejo on October 3, 2022.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. RFP FM-22-157 and award a contract concurrently is requested on October 18, 2022, to ensure a contract is in place retroactive to October 1, 2022, to expeditiously align with the work needed on the City’s ERP projects.
FISCAL IMPACT
The total contract amount will not exceed $165,600 for a period of six months, with the option to renew for one additional six-month period. The cost of the contract will be funded from applicable project budgets appropriated in the General Services Fund Group in the Technology and Innovation Department, as well as current appropriations available through vacancy savings realized in the General Fund Group in the Financial Management Department. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER