HomeMy WebLinkAboutAgenda - 06-05-2001-9f~` ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 5, 2001
Action Agenda
Item No. _ ~-~
SUBJECT: Authorization to Pursue RFP for Acquisition of Business System Software and
Extend Technical Services Contract with Summit Business Solutions, Inc.
DEPARTMENT: Budget, Finance, IS, PUBLIC HEARING: (Y/N) No
Personnel and Purchasing
ATTACHMENT(S):
Needs Assessment (Attachment #1)
(Under separate cover)
Detail of General Ledger screen
(Attachment #2)
ITC Memo (Attachment #3)
INFORMATION CONTACT:
Donna Dean, Ken Chavious, Dick
Taylor, Elaine Holmes, Rod Visser,
Pam Jones
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 9fi8-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To consider authorizing staff to solicit Requests for Proposals for the acquisition of
a business system software package; and authorize an extension of the existing contract with
Summit Business Systems to assist in the solicitation and selection process.
BACKGROUND: In February 2000, the Board approved a contract with a division of RSM
McGladdrey (now Summit Business Systems) to conduct a needs assessment that would
support the acquisition of a new business system software package. The current software
package has been used by the County for over 20 years and is severely limited in its ability to
manage data. The County's need for practical management information has far surpassed the
capability of the software.
The consultant worked extensively with Department Heads and staff who use the system on a
day to day basis to identify system shortfalls and prioritize necessary components within a new
system. The attached needs assessment identifies five specific areas in which deficiencies are
noted:
1. Lack of system integration
2. Antiquated technology
3. Missing functionality
4. Insufficient reporting capabilities
5. Batch processing
A synopsis of the associated issues is provided below, however, a detailed analysis is included
in the attached Needs Assessment (Attachment #1, under separate cover).
Lack of System_Integration
The business system covers these functions of General Ledger:
• Accounts Payable
• Payroll
• Purchasing
• Budgeting
• Personnel
• Fixed Assets
These functions intersect at several points throughout the various business processes. Far
example, information to make purchases for departments must be keyed at the department
level, re-keyed in the Purchasing Department and then keyed again at time of payment by the
department. Continually keying identical information into different applications of the current
software wastes valuable worker time as well as provides multiple opportunities for error.
Similar examples of duplication of effort occur in the Budgeting system and the Personnel
function as well.
A new business system software would support a common database that allows different
applications access to the same information, within certain security parameters. This would
eliminate 'the need to maintain identical information in separate systems and would eliminate
duplication of effort in a number of applications.
Antiquated Software
The current business system software has received numerous patches since its development in
late 1970's in order to keep it somewhat effective in the basic operations. However, the system
is outdated, inflexible, inefficient and is extremely limited in the capabilities that are widely
available'in current software packages that take advantage of the tremendous advances in
technology over the past 15-20 years.
Missin Functionali
Limitations in the legacy system have prompted the development of alternative applications
outside of the legacy system. For example, the creation and maintenance of the County's
budget is performed through a complex application using Excel spreadsheets, pivot tables and
Microsoft Word. This method was necessitated over a decade ago due to, but not limited to,
the system's inability to track multiple years' expenditures and present the information in an
understandable format.
Further, a new standard of the Government Accounting Standards Board (GASB 34), requires;
among other things, the County to depreciate all fixed assets beginning in FY 2002-2003. The
fixed asset program within the legacy system was abandoned several years ago in favor of a
system of Excel spreadsheets that would allow easier manipulation of data and report
formulation. While this allows more flexibility and accuracy of the reporting, it does require
substantially more labor since items must be manually keyed into the system rather than the
data automatically integrated when the item is purchased.
Other areas of missing functionality are being offset by manual processes. For example, the
lack of employee history requires manual file research to gather necessary data or manual
adjustments to automated reports to provide complete data.
.Insufficient Re ortin Ca abilities
The legacy system software reporting of revenues and expenditures is inflexible and inefficient.
There are no opportunities to create specialized reports since the report formulation requires
manual intervention from a programmer. The data presented is not user friendly (An example
of the detailed expenditure screen on the current software is included as Attachment 2.)
Further, the software is limited to regurgitation of data. Any analysis of data must be
accomplished by another means.
Capabilities in newer technology applications would allow departments to create their own
reports based on their specific information need. This would significantly reduce the amount of
time spent by some internal services departments (Budget, Finance, Personnel, Purchasing)
who constantly provide information to departments on a variety of issues (E.G. payments made
to vendors, status of purchase orders, status of budget amendments, status of personnel
actions, etc.).
Batch Processin4
Work is posted to the General Ledger at this time using a batch processing method. For
example, at the end of the day purchase orders that have been encumbered or bills that have
been paid will be "posted". It is only after a batch has been posted that they are reflected in an
account. As a result of batch processing, the balances reflected on the General Ledger screen
are likely to be inaccurate most of the time. This becomes parkicularly problematic toward the
end of a fiscal year when funds may become limited.
Pro osed Action
The Needs Assessment is clear in its recommendation that the legacy software should be
replaced. The IT Committee has also endorsed the replacement of the business system
software. The course of action recommended by Summit Business Solutions (SBS) is as
follows:
• Solicit a Request for Proposal pursuant to the Needs Assessment;
• Analyze the options, cost, benefits and risks for each of the systems proposed;
• Utilize life-cycle costing methodology to determine the best long term option for the
County;
• Select a recommended vendor for County Commissioner consideration;
• Negotiate a contract with the recommended vendor;
• Develop an implementation plan.
Because of the complexity of issues associated with acquisition of large package software, it is
recommended that the County extend the existing contract with Summit Business Solutions to
include the steps mentioned above. SBS has a demonstrated working knowledge of a number
of governmental software packages being used by North Carolina counties. This is a critical
component in determining a final package and implementation cost and in successful contract
negotiation. SBS also has detailed knowledge of the County's software needs and
requirements developed in the course of the needs assessment.
Should the Board endorse the plan of action, Requests for Proposals would likely be solicited in
fall 2001, with recommendation for acquisition presented for Board consideration in early 2002.
Financial package components will be brought on line first within an anticipated 12-18 month
time period after award of a contract. Other components such as Human Resources may
extend full implementation by an additional six months, thereby making total system
implementation complete within approximately 24 months.
4
FINANCIAL IMPACT: The estimated cost of Summit Business Solutions technical assistance
contract is 'in the range of $25,000 to $30,000. Funding for this phase of technical assistance is
available in the 2000-2001 Capital Investment Plan.
Although the cost to purchase and install business system software cannot be determined until
the entire evaluation and selection process is carried out, it is reasonable to expect that it will be
measured in hundreds of thousands of dollars. Funding for business system legacy software
replacement has been programmed over a period of several years beginning in the 1999-2009
CIP.
RECOMMENDATION: The Manager recommends that the Board:
1. Authorize the Purchasing Director to carry out the solicitation of Requests for Proposal to
acquire business system software for the County; and
2. Extend the contract with Summit Business Solutions through the selection process at a cost
not to exceed $30,000; and
3. Authorize the Purchasing Director to execute the associated paperwork.
2000-2001 104852201 PROF CONTRACT SERVICES
1..
llATE DEBIT CREDIT REFERENCE
07/01/00 -225000.00 CB
07/01/00 4900.00 BAL.FWD
07/01/00 -4900.00 ENC.BUD
08/15/00 56500.00 39555
07/01/00 9000.00 255126
08/08/00 15000.00 255127
08/04/00 960.00 98776
07/31/00 2500.00 98$07
08/31/00 17500.00 255342
09/20/00 1629.00 39839
09/30/00 1408$.57 J-169
09/08/00 450.00 98849
07/31/00 -2500.00 38989
08/08/00 -15000.00 39555
08/31/00 -17500.00 39555
09/29/00 -17000.00 39555
09/29/00 17000.00 255675
10/26/00 620.00 40145
Attachment 2
CUR BAL= 59427.83 g
DESCRIPTION
TO POST CURRENT BUDGET
ENCUMBRANCE CARRY OVER
ENCUMBRANCE CARRY OVER
ENC DELOITTE & TOUCHE LLP
DMG MAXIMUS
DELOITTE & TOUCHE LLP
BROUGH,MICHAEL B
CTL ENGINEERING INC
DELOITTE & TOUCHE LLP
ENC QUANTUM ENVIROMNENTAL INC
JULY LEGAL BILLS
BROUGH,MICHAEL B
LIQ CTL ENGINEERING INC
LIQ DELOITTE & TOUCHE LLP
LIQ DELQITTE & TOUCHE LLP
LIQ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
ENC QUANTUM ENVIROMNENTAL INC
HIT RETURN TO CONTINUE...=
s
From: Joel Dunn ~joel_dunn@unc.edu~
To: Dick Taylor ~DTAYLOR@co.orange.nc.us~
Date: 5/2g/01 9:50PM
Subject: Bizsys
Since its formation, the ITC has felt that the County should evaluate
its core business systems and look to replace current systems with new
solutions that would provide better operational flexibility and improved
integration with other core information technology systems. The ITC has
been closely involved with the recently completed business systems
assessment and we support moving forward to create a request far
proposal (RFP). It is important to keep focused on the information
technology goals and business goals of the county; the committee has
worked with county I7 staff to develop an Information Technology
Architecture that helps to keep potential solutions within the the set
of County-supported technologies. Add to'this the overarching direction
provided by the County's IT Strategic Plan and the ITC believes that we
have the technological framework to complement the business information
provided by the assessment. The ITC wishes the Commissioners to know
that it is supportive of the proposed RFP and will remain actively
involved in review of this proposed RFP.
+ Joel Dunn
+ joel_dunn@unc.edu
CC: Rad Visser ~RVISSER@ca.orange.nc.us~