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HomeMy WebLinkAboutAgenda - 02-29-2000-9cORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 29, 2000 Action Agenda Item No. ~~G SUBJECT; Agreement with RSM McGladrey for Technical Assistance with County Business System Legacy Software Replacement DEPARTMENT: Manager/Finance/IS/Purchasing/Budget/ Personnel PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Proposed Agreement Rod Visser, ext 2300; Ken Chavious, ext 2453; Dick Taylor, ext 2276; Pam Jones, ext 2650; Donna Dean, ext 2151; Elaine Holmes, ext 2550 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968501 Durham 688-7331 Mebane 336-Z27-2031 PURPOSE: To consider approving an agreement with RSM McGladrey, Inc. to provide technical assistance in documenting performance requirements for software to replace the County's current business system software. BACKGROUND: Orange County's Information Technology (IT) Plan includes an initiative that, over a period of several years, will involve replacing most of the County's legacy software systems. These are applications through which County departments carry out many programs and support activities. The County's "business system" (which includes applications run by Finance, Budget, Purchasing, and Personnel such as payroll, the general ledger, purchase orders, accounts payable, personnel management and the like) is running on software acquired in the early 1980s. While numerous patches to the business system programs have been made over the years and basic functions can be carried out effectively, the system is outdated in that it is inefficient (often requiring manual intervention), inflexible, and lacks capabilities that are widely available in current software packages that take advantage of the tremendous advances in technology over the past 15-20 years. Funds are included in the County's 10 year CIP to conduct a needs assessment, software evaluation and selection, acquisition, and implementation of new business system software for Orange County. This will increase the efFciency of County financial processing and reporting, increase the flexibility to prepare reports for staff, Commissioners, and the public, and enhance our ability to make financial and- personnel management information more readily available through electronic means. It will also enhance the County's movement towards "paperless" operations in areas such as requisitioning and vendor payment. Staff and the Orange County IT Committee recommend that the Board approve an agreement with RSM McGladrey to conduct the first phase of this process, a needs assessment. This will involve interviews with staff of business system departments and other users to identify capabilities that must be provided in any software package selected. The product of this assessment will be a detailed statement of system requirements that will became the basis of a request for proposals (RFP) that will be sent to potential business system software vendors. The needs assessment is expected to be completed within the next 3-4 months, with an RFP to be circulated during the summer, and software evaluation and selection to take place next fall and winter. RSM McGladrey is a large national consulting firm with extensive background in financial software selection. They have worked with many other North Carolina local governments on software selection and come highly recommended. RSM McGladrey also served as the County's consultant in Y2K preparations in 1999 and provided highly satisfactory service. FINANCIAL IMPACT: The estimated cost of this technical assistance is in the range of $23,000 to $27,000, with reimbursables such as travel expenses to be added at cast. At a later date, there will be a need for additional technical assistance with evaluation, selection, and . implementation of the replacement business system software. Although the cast 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 the technical assistance contracts is available in the 1999- 2000 Capital Investment Plan. Funding for business system legacy software replacement has been programmed over a period of several years in the 1999-2009 CIP. RECOMMENDATION(S): The Manager recommends that the Board approve the technical assistance agreement in an amount not to exceed $27,000, subject to final review by staff and the County Attorney, and authorize the Chair to sign it. AGREEMENT BETWEEN County of Orange and RSM McGladrey, Inc. NORTH CAROLINA COUNTY OF ORANGE This agreement is made and entered into as of the 29`~ day of February, 2000 by and between Orange County, hereinafter referred to as the "County" and RSM McGladrey, hereinafter referred to as "Consultant", for assisting the County with a Needs Analysis/ Assessment Phase in preparation of specification development for an integrated information management system for its business system applications. WHEREAS, the County and the Consultant mutually agree to the following: 1. The agreement shall be effective upon execution by the Board of Commissioners. 2. Draft report shall be presented to County Business Systems Exploration Team no later than 60 days following the execution of agreement, subject to availability of County staff to work with Consultant on established project timetable. The report shall include: a. a thorough narrative providing an overview of fmdings and recommendations b. for all areas of the business system covered in the needs analysis, all functional checklist and/or diagrams identifying business systems requirements and County departmental priorities, resulting from the contractor interview and assessment process c. a discussion of current County IT Plan technical strategies. and issues and a comparison of County directions with available vendor software solutions 1. Wark shall include those items included in the proposal dated January 10, 2000, which shall be incorporated herein by reference. 2. Cost of work shall not exceed $27,000 unless prior written approval from County's authorized signatory is provided. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed on this, the 29th day of February 2000. Orange County Moses Carey, Jr., Chair RSM McGladrey, Inc. Scott Sabin, Senior Manager Attest: Beverly A. Blythe, Clerk Attest: This document has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. Finance Director McGladrey, Inc. Integrated Technology Solutions January 10, 2000 Pam Jones Purchasing Director Orange County 132 East King Street Fost Office Box 8181 Hillsborough, North Carolina 27278 Dear Ms. Jones: s We are pleased for this opportunity to present this proposal for assisting Orange County (hereafter referred to as County) with a Needs Analysis of the Assessment Phase for the specifications of an integrated information management system. We believe that our approach and methodology will result in an organized method to provide management with the necessary direction to satisfy both short-term and long-range information systems and technology objectives. The complete system selection process includes five phases. The assessment phase is the first of five phases in a complete system selection. Other phases would include; the System Evaluation Phase, Demonstration Management Phase, Final System Selection Phase and Contract Review and Negotiation Phase. This proposal addresses the Needs Analysis of the Assessment Phase. - Our Firm is the recognized leader in performing strategic technology planning and technology selections for local governments. We have been providing these services to government organizations on a continuous basis for over ten yeazs. As a result of our experience and methodology, we have developed an effective and efficient approach for conducting these projects. Please call David Stanley at (804) 644-4525) or Mr. Scott Sabin at (919) 781-1O5S if you have any questions regarding this proposal. We look forward to the continued partnership with Orange County. Sinter , i /~ / Scott Sabin Senior Manager Orange County Authorized Signature Date / / 2418 Blue Ridge Road (Zip 27607-6480) RSM McGladrey, Inc. is an P.O. Box 10366 (Zip 27605-0366) independent member firm of n-~-:ter w~~s~. i+___i:__ ....... .. .t.. .. TABLE OF CONTENTS ~O SECTION PAGE METHODOLOGY A. Background 1 _ B. Benefits of a Structured System Selection Process 2 C. The Systems Selection Process Diagrams 2 D. Objectives of System Selection and Technology Planning 5 E. Scope 5 F. Approach 6 H. Reporting 8 E. RSM McGladrey Benefits $ PROJECT STAFFING AND STRUCTURE FEES 9 10 © RSM McGladrey, Inc. Selection and Implementation Services for an Orange County Integrated Informatian Management System North Carolina METHODOLOGY A. Background Selecting the right information systems and technology is more critical today than it was 10 yeazs ago because future improvements in efficiency and effectiveness of local government organizations aze dependent on the use of technology and information systems. Government organizations in the evolving public sector, must provide a broader range of flexible customer (constituent) access and services. Organizations that take full advantage of automation and technology will ensure that they aze better positioned to meet the growing customer demand for services and new pressures for accountability. Equipment and softwaze obsolescence is a continuing concern. In 10 yeazs, data processing has progressed through five generations of computer hazdwaze and indications are that changes will accelerate as technology advances. Software advances have generally been much slower, but have included many new vendors and alternatives. Organizations typically fail in their efforts to select the right information technology because of one or more of the following factors: • Improper definition of systems objectives and requirements • Failure to involve both management and users at adequate levels • Underestimating the costs and effort required for implementation • Failure to adequately plan for expansion • Failure to evaluate software properly These factors can be minimized through the use of structured methodologies, such as the techniques presented in this document Selection and Implementation Services for an Integrated Information Management System Orange County North Carolina B. Benefts of a Structured System Selection Process A number of significant benefits result from a structured project approach, including: • Well defined objectives, requirements and design • An independent and objective analysis of potential alternatives • An orderly, well-planned analysis of systems alternatives • Time savings through a structured approach • Consistent information provided to each vendor • An education process for the organization • Abetter understanding of the capabilities, benefits and costs of each alternative • Selection of systems and technology that satisfy both the short-term and long- range objectives and requirements of the organization C. The Systems Selection Process Diagrams The systems selection process diagrams aze contained on the following pages. Selection and Implementation Services for an Orange County Integrated Information Management System North Carolina SYSTEMS SELECTION PROCESS ASSESSMENT SELECTION YMPLEMENTATIO PHASE PHASE PHASE Appoint a Research Selection Potential Negotiate Committee Vendors Contracts Develop an Perform a Develop Implementation Needs Analysis an RFP Plan Analyze Prepare a Available Evaluate Disaster Technology Proposals Recovery Plan q Selection and Implementation Services for art Orange County Integrated Information Management System North Carolina i0 SYSTEMS SELECTION PROCESS ASSESSMENT PHASE ASSESSMENT PHASE SELECTION PHASE IIVIPLEMENTATION PHASE Appoint a Selection Committee Members r Senior Management ~ Departmental Management r Users ~ Internal Audit r Information Systems ~ Operations r Other Committee Members Knowledge and Skills: r Information Technology r Knowledge of the Organization ~ Industry Knowledge . Project Management r Communications Methodology: Focus Areas: ~ Needs Assessment Questionnaire ~ Software Capabilities Perform a r Workshops r Existing Systems Improvements r Interviews r manual Systems Needs Analysis ~ Workflow Analysis ~ EDP Internal Contrpls r Business Process Re-Engineering Analyze Available Technology Hardware Platforms: r Mainframe Systems r Midrange Systems ~ Client/Server . LANs wANs r PCs r Imaging r Other Hardware Platforms Software: r Database Management Systems r Open Systems • Proprietary Operating Systems other systems Software r CASE Tools r EIS ~ EDI Selection and Implementation Services for an Orange County Integrated Information Management System North Carolina 11 D. Objectives of System Selection and Technology Planning The need for comprehensive strategic information systems selection and technology planning is more evident today than ever before in government organizations and public utilities. Improved management information has become more vital in effectively and efficiently managing operations, setting tax rates, and competing for business development. Increased internal and external reporting requirements have expanded the need for more comprehensive management information. Many of these information needs can be satisfied through cost effective use of information systems and technology. The computer environment has been subject to rapid change due to the technological advances associated with the industry. The information systems planning and selection process is especially important in view of the variety of responsibilities performed in the organization and the many diverse automated and manual systems in place. The initial technology and needs assessment provides the foundation of the selection and planning effort. The primary objective of systems selection projects is to analyze- the various information systems and technology alternatives, and recommend the best strategy to meet the short term and long-range requirements of the organization. E. Scope The scope of project includes the services to assist in the Needs Analysis of an integrated information management system that is estimated to include the following: Financial Management • Budgetary Accounting (General Ledger) • Cost Accounting (Government Enterprise) • Budget Prepazation Purchasing/InventoryMamgement • Purchasing/Encumbrance Accounting • Accounts Payable • Inventory Revenue Management • Accounts Receivable • Cash Receipts • Grant Management (optional) Selection and Implementation Services for an .Integrated Information Management System Orange County North Carolina Infrastructure Management • Complaint Tracking • Job Costing • Work Order Management • Project Management (optional) ~' • Fleet Management ~' • Fixed Assets Human Resources • Payroll + Personnel F. Approach The general approach of the Needs Assessment for system selection is described below. This approach will facilitate the selection of an integrated information management system. Needs Assessment We will perform a needs assessment that will define the basic system design, business requirements and detailed system requirements as follows: 1. Meet with the Project Coordinator from the organization to finalize the project work plan, introduce the project team members, and arrange communications, logistics and support. 2. Meet with executive management to confirm our understanding of the project and to understand the strategic plans of the organization. In addition, we need to obtain their input an: • The overall satisfaction with existing computer hazdwaze, software, training, support and product development • Observations regazding future informational needs 3. Distribute the following questionnaires related to existing and future information systems and technology needs: • Executive Management Questionnaire - ~='= ~'` • Departmental/End-User Questionnaire • Volume Questionnaire 1~ r Selection and Implementation Services for an Orange Caunty Integrated Injormation Management System North Carolina 1 '~ 4. Conduct a "kick=ofF' meeting with appropriate personnel from the organization. The purpose of the meeting will be to explain: • Purpose of the project • Systems selection methodology and process • Responsibilities of all parties involved in the project • Project organization • Timetables • Questionnaires • Other related considerations 5. Obtain and analyze the following background information: • Organization charts • Computer facilities • Hardware configuration • Systems software • Application software • User equipment • Documentation • Communication network • Costs related to the existing system 6. Schedule various meetings with personnel from each department and operating azea to review and discuss existing and future information systems and technology needs. We will use a combination of group workshops and individual interviews for these meetings. 7. Meet with the personnel identified in the above step to review existing manual and automated systems and operations. We will evaluate the quality, effectiveness and flexibility of existing systems in terms of satisfying the existing and future operating needs and information requirements of the organization. During the interview process, the following information will be gathered and confirmed: • Workflow within each department + Copies of appropriate records, forms and reports being used in each depaztment • Write-ups and other documentation on present policies and procedures for each functional azea • lnformation regazding future automation needs 8. Review the information gathered during the interview process and complete the information needs analysis. This information will form the basis for the rn near ~.r..~~..a-.... r__ Selection and Implementation Services far an Orange County Integrated Information Management System North Carolina l~ development of the request for proposal that will outline the information systems required to satisfy present and future needs. 9. Prioritize the needs analysis and determine the application priorities. This organization-wide prioritization is critical to ensure that the systems, which will provide the greatest benefits, are addressed as the highest priority. 10.Obtain present and projected volumes for each application azea to be considered, including both average and peak requirements. G. Reporting We will keep you informed concerning our progress throughout the engagement. By the conclusion of the project, you will have received: • Report on the prioritized business requirements including the systems requirements and specifications. This report will form the basis for an RFP. H. RSM McGladrey Benefits A number of important factors contribute to good, productive working relationships between clients and their consultants. These factors include the skills and personalities of the persons assigned to an engagement, the quality of the services delivered, experience, costs, and mare. We believe we have some special qualities that distinguish us from other public accounting and consulting firms, as described below. 1. This project will be staffed by consultants who have extensive experience in local government, system selections, and strategic information technology planning. 2. Our staff continually performs needs assessments, systems planning and selection studies. As a result, we have experience with a wide variety of government organizations in a broad range of processing environments. In addition, we have regular contact with all leading data processing providers and aze well informed with respect to vendor and government industry developments. 3. McGladrey's government technology consultants do not sell software; therefore, we will be completely independent and objective in regazd to all aspects of this project. We will provide an objective and independent assessment of needs, and aze influenced only by the vendor's capabilities to satisfy the requirements identified during the project. 4. We have developed a comprehensive local government Feature/Function database and a database of relevant vendor information. These databases aze continually updated from project to project and provide and excellent source of information for our consultants and our clients Selection and Implementation Services far an Orange County Integrated Information Management System North Carolina ~s 5. Providing services of the highest quality is a basic tenet of our Firm. We believe this fundamental strength is enhanced by our orientation to help clients anticipate future needs. This approach is part of our basic service to clients. 6. McGladrey provides professional services in acost-efficient manner. We are competitive because we aze not a "headquarters" organization. We locate our best professionals in our operating offices to better and more ef#iciently serve you. We have local offices with information technology consulting staff in Raleigh and we compliment local consultants with national specialized talent. 7. Our strategic plan is to continue to be the leaders in servicing the local government sector. 8. Our Firm's mission and client service philosophy are to help our clients succeed. PROJECT STAFFING AND STRUCTURE Project Staff and Responsibilities The most critical element in the successful completion of any engagement of this nature is the personnel assigned to carry out the responsibilities. This work will be directed and supervised by one of managing directors with daily tasks performed by other members of our Integrated Technology Solutions group based nationally and located locally in Raleigh. The following paragraphs briefly discuss the responsibilities of each project participant. 1. Project Director -Each McGladrey engagement is the personal responsibility of one of our managing directors. It is the responsibility of this individual to ensure that the project is managed efficiently; that each aspect of the project receives proper emphasis as the project evolves; and that the conclusions reached aze valid. 2. Project Manager -This individual is entrusted with the day-to-day coordination and responsibility for the project. It is their responsibility to see that the detailed project approach steps are completed, and that the efforts of the other project team members are coordinated to provide for the efficient and timely completion of the project. This person is also directly involved with performing the project tasks. 3. Technical Advisors -These individuals aze responsible for providing advice and direction relating to specific technical aspects of the 4. Senior Staff -The number of McGladrey professional staff involved with the project will vary over time depending on the project's needs. Senior staff members aze highly qualified managing and senior consultants with a broad knowledge of technology and municipal operations. Selection and Implementation Services jor an Orange County Integrated Information Management System North Carolina I~ S. Orange County Project Coordinator -This individual is responsible for coordinating the efforts and involvement of internal personnel at the County with the McGladrey project team members. This person will help to ideritify the internal personnel who aze best qualified to assist McGladrey on specific matters, and will aid all project participants in communicating with personnel at the County. Orange County will be responsible far performing the following activities: • Providing adequate work space for all project participants • Structuring a Selection Team to work with us throughout the project • A Project Coordinator participating as the Chair of the Selection Team • Gathering the following information: ^ Organization charts ^ Position descriptions ^ Procedure manuals ^ Hazdwaze configurations ^ Network schematics and diagrams ^ Software lists and documentation ^ User equipment connected to the computer systems ^ Various application volumes ^ Other information as required • Completing the needs assessment questionnaires • Scheduling and participating in various interviews in a timely manner + Carefully reviewing in a timely manner our preliminary reports and recommendations • Attending all status meetings as required FEES Our fees. when the scope is fully determined will be based upon actual time spent on a project at our standard rates; plus out-of=pocket and travel related expenses Our normal policy is to bill monthly as the project proceeds. We estimate the fees for the Needs Analysis Froject to be $23,000- $27,000. Should the actual time worked be lower than the estimate, you will be billed the actual amount. Travel time is bill at half the normal billing rate. in