BOARD MEETING DATE: October 8, 1999 AGENDA NO. 7
PROPOSAL:
On April 10, 1998, the Board awarded a contract for new financial/human resources software (PeopleSoft), hardware, and implementation services to Mikon Computer Systems, Inc. Implementation services were subcontracted to a consulting firm that departed the project before completion. Additional funds are needed to complete the implementation. This action is requesting approval of an additional $82,300 for Mikon’s contract to complete implementation of the remaining module (Projects), correct known problems with the financial modules, and implement identified enhancements that will increase staff productivity. This action is also requesting approval to add PeopleSoft Support Group and DataStudy Inc. to AQMD's approved Vendor List of companies that provide temporary employees for post-implementation PeopleSoft support.
COMMITTEE:
Administrative, September 17, 1999. Less than a quorum was present during the discussion of this item. Those Committee Members who were present communicated their concurrence.
RECOMMENDED ACTION:
- Authorize the Executive Officer to amend the agreement with Mikon Computer Systems to increase funding by $82,300.
- Add PeopleSoft Support Group and DataStudy Inc. to AQMD’s approved Vendor List of companies that provide temporary employees for post-implementation PeopleSoft support.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
On June 25, 1999, the subcontractor responsible for implementing PeopleSoft’s integrated Financial and Human Resources software at AQMD departed before completing all the required tasks. AQMD has subsequently filed suit against the subcontractor to recover all damages caused by their failure to implement the project.
The PeopleSoft modules to be fully implemented and integrated included the Human Resources/Payroll, General Ledger, Accounts Payable, Projects, Purchasing, and Asset Management. At the time of their departure, many of the Financial modules (General Ledger, Asset Management, Purchasing, and Accounts Payable) had been implemented and are currently in use; however, some problems remain in those modules. The Human Resources, Payroll and Projects modules had not been implemented.
Following the departure of the implementation subcontractor, staff obtained independent assessments of the implementation status and the work required to complete the project from two companies: the software vendor (PeopleSoft Inc.) and an independent certified PeopleSoft Global Alliance Partner (DataStudy Inc.). PeopleSoft maintains a separate group of experts to assist software customers with implementation. DataStudy has performed many successful and referenced PeopleSoft implementations for local public sector entities.
The following table summarizes each company’s estimate of the resources needed to complete the implementation since the departure of the original subcontractor:
*Travel, Lodging, and Per Diem not included in estimate; approximate cost estimated at $15,000.
Based on the assessment results and discussion with the Prime contractor (Mikon Computer Systems, Inc.) and the assessment companies, it was decided that PeopleSoft, as the software manufacturer, should be best able to complete this implementation. PeopleSoft has offered senior consultants with public sector implementation experience (in addition to electronic access to all of their consultants nationwide for fast problem resolution), use of primarily local consultants, access to PeopleSoft development staff if needed, and access to solutions developed for other public sector customers. The HR/Payroll modules are being completed using remaining funds ($124,540) in the Prime’s contractor’s agreement, including $47,700 added under the Executive Officer’s signing authority.
Proposal
An additional $82,300 is needed to complete the Projects module, fix the remaining problems with the Financial modules, and implement recommended enhancements to improve staff productivity. This would make the total contract value $1,314,572.
In order to have a functioning, fully tested integrated HR/Financial system in place by January 1, 2000, AQMD must aggressively act to complete the implementation effort left by the departure of Mikon’s original subcontractor. Staff recommends amending the contract with Mikon to add $82,300 to complete the implementation.
It is anticipated that some short-term software maintenance activities will be required after going live with the PeopleSoft implementation. Therefore, staff also recommends adding PeopleSoft Support Group and DataStudy Inc. to the list of prequalified vendors that provide temporary employees for post-implementation PeopleSoft support. These companies will provide short-term functional and technical assistance for maintenance activities at reasonable rates.
Resource Impacts
Funds are available in FY 1999-00 Budget for anticipated PeopleSoft post-implementation problem resolution and enhancements.
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