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CONTRACT NO.
AMENDMENT NO. 1 TO
CITY SECRETARY CONTRACT NO. 35398
PROFESSIONAL SERVICES AGREEMENT
SALVAGGIO, TEAL & ASSOCIATES
WHEREAS, the City of Fort Worth(hereafter "City") and Salvaggio, Teal &Associates,
(hereafter "STA") entered into City of Fort Worth City Secretary Contract No. 35398,
("Contract")which was authorized by the City Council by M&C C-22133 on May 29, 2007; and
WHEREAS, the Contract involves consultation for Phase I of the transformation of the
City's legacy financial and administrative information systems to an Enterprise Resource
Planning ("ERP") System; and
WHEREAS, the Contract is on a fixed cost basis for completion of certain agreed upon
deliverables and milestones; and
WHEREAS, due to changes in the schedule and direction of the project, the parties wish
to amend the Contract to expand the scope of Phase 1 and amend the costs for completion of the
deliverables.
NOW, THEREFORE, City and STA, acting herein by and through their duly authorized
representatives, enter into this agreement which amends the Contract as follows:
1.
Section 1, Scope of Services, is hereby amended to expand the scope and include the
obligations specified in Exhibit A-1 "Scope of Work Adjustments for Phase 1," which is
attached hereto and incorporated into the Contract for all purposes.
2.
Section 3, Compensation, is hereby amended to replace the current "Exhibit B" with
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"Revised Exhibit B, Phase 1 Payment Schedule" which is attached hereto and incorporated into
the Contract for all purposes.
3.
All other provisions of the Contract that are not expressly amended herein shall remain in
full force and effect.
Executed on this the 61h day of June, 2008.
CITY OF FORT WORTH: SALVAGGIO,TEAL & ASSOCIATES
By: �� �Z cA�� By:
Karen L. Montgomery U Nathan L. Frey, Partney
Assistant City/Manaaagger/ CFO Salvaggio, Teal & Asstes
Date: 1� Date:
ATTEST:
By: '
City Secretary
APPROVED AS TO FORM AND LEGALITY:
By:
Assistant C y Attorney
Contract Authorization:
Date Approved:
CFW/STA
Amendment No. 1 to CSC No. 35398 �u�
Page 2 of 2 RUN
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EXHIBIT A-1
SCOPE OF WORK ADJUSTMENTS FOR PHASE 1
The scope adjustments are in response to certain project conditions and developments
that were unknown or unforeseen by the City and
Salvaggio, Teal & Associates (STA) during creation of the original contract. These
developments resulted in the need for additional work by STA beyond the contractual
deliverables but also eliminated the need for other planned deliverables. The conditions
leading to the scope adjustments are described below:
1. Overall Change in Approach for the Enterprise Resource Planning (ERP)
Project: The original contract and project plan had contemplated a series of project
start-up activities that would be followed by development of a business case supporting
the need for a new ERP system to replace the City's finance, procurement, and
HR/payroll applications.
Soon after STA's engagement began with the City in May 2006, City management
recognized the need to continue progress and dedicate the Finance Department
resources to the completion of the 2006 Comprehensive Annual Financial Report
(CAFR). The City Manager and Assistant City Management team requested
development options that would allow the City to meet its CAFR needs as well as
continue with progress on the ERP Project. The gathering of research and development
of options delayed initiation of core project tasks by approximately four weeks. During
this period, the planned start-up activities were either completed during development of
project options or became irrelevant due to the passing of time. Additionally, the
research performed in these early activities indicated that the need for replacement of
the finance, procurement, and HR/payroll systems was generally accepted throughout
City management and departments.
Further significance of this time extension impacted the project primarily by moving the
evaluation of the vendor responses to the post-December holiday time period. In
addition, the evaluations of vendor demonstrations were subsequently pushed into the
month of March that further required the project to accommodate spring break.
2. Re-launch of the Advisory Committee: One of the distinctive aspects of the ERP-
HR/Payroll project is the enterprise nature of the impacts. The software, once
implemented, will affect all departments and employees. Thus, it was critical for the
success of the overall ERP project to ensure that the decision-making structure
associated with the project was built appropriately. This included the creation of an
Advisory Committee that had appropriate representation from all stakeholders, the
definition and understanding of its scope of responsibilities, and the agreement of its role
and scope in relationship to the Executive Sponsor and the Executive Steering
Committee.
The re-launch and definition of the Advisory Committee in December 2007 and January
2008 was critical to ensure buy-in at the key decision points regarding vendors to select
for demonstrations and vendors to include in a Best and Final Offer process. This
additional level of review and approvals increased the complexity and duration of the "
overall selection process and increased the effort needed of the City project team and
STA to complete the selection process.
3. Extensive Best and Final Offer Process: The use of a best and final offer (BAFO)
process was an option discussed during contract negotiations with STA. However, no
deliverable was established for the BAFO process. Given the closeness in the scores of
the top two vendors, the large disparity in price, and the distinctiveness in their
underlying approach to the solution (i.e., one chose to fit the requirements as much as
possible and the other chose to go with the software as-is, thus forgoing modification),
the BAFO process was determined to be the best method for the Evaluation Team to
determine the proposal representing the best overall value for the City. Because of
these disparate approaches, there was a need for a comprehensive and well-developed
Best and Final Offer request that would allow the City to bring the two vendors to a more
comparable basis. In addition to standard questions for both vendors, the BAFO request
was tailored to address numerous concerns unique to each vendor's proposal. This
extended the overall time anticipated for the BAFO process and the required effort to
arrive at a final recommendation.
4. Additional Reference Checking: Due to the closeness of the final two vendors, the
City decided to conduct additional reference conference calls to allow the evaluation
process to leverage as much information as possible in determining the final
recommendation of the selected vendor. These additional reference checks extended
the schedule and hours required for coordinating, conducting, and validating reference
checks.
5. Additional Support for Decision-making: The decision to select an ERP-HR/Payroll
system for implementation will result in a significant expenditure of funds for the City.
STA will expend substantial additional effort in gathering the appropriate research and
analysis to support executive management's final selection. Ultimately, the City's project
team and STA will also have a high level of involvement in preparing the City Council for
this decision. This contract amendment will allow the required flexibility by all involved to
respond and provide information and support as requested by the City.
6. Pre-negotiation Preparations: Following the extensive BAFO process and final
vendor selection, STA will expend effort consolidating and organizing materials from the
evaluation and BAFO processes to position the team to enter the negotiation phase. A
significant part of this work will be capturing all outstanding questions, issues, and points
of concern that have surfaced throughout the evaluation and BAFO process that will
need to be brought to resolution during negotiations. In addition, STA will assist in
identifying, organizing and preparing the negotiations team to enter the negotiations
phase.
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REVISED EXHIBIT B, PHASE I PAYMENT SCHEDULE
Payment Projected
Phase Del iverable/M i lestone Payment Event Amount Payment
Date
a A.c is ran
Work Related to Re-Scoping/Re-
Project Initiation Starting Project and Project
Management $64,218 9/28/2007
Draft Financial/Budget/
Procurement Initial requirements review
Requirements meetings completed. $33,852 9/28/2007
Draft HR/Payroll Initial requirements review
Requirements meetings completed. $35,285 10/8/2007
Develop Final HR/Payroll HR/Payroll requirements
Requirements Requirements approved. $35,285 11/8/2007
General/Technical General/Technical requirements
Requirements approved. $12,640 11/8/2007
Interface/Conversion Interface/Conversion requirements
Requirements approved. $28,087 11/8/2007
Requirements Document
Requirements Approved complete. Stakeholder approvals
by Stakeholders received. $15,275 11/8/2007
Procurement Strategy Procurement strategy approved. $23,170 9/5/2007
Develop Request Draft Request for
for Proposal Proposal Draft RFP distributed for review. $31,600 10/19/2007
Final Request for
Proposal Request for proposal approved. $31,600 11/8/2007
Evaluate and Evaluation Plan Evaluation plan approved. $21,065 10/12/2007
Select Vendor Draft evaluation guide distributed
Draft Evaluation Guide for review. $21,065 11/8/2007
Final Evaluation Guide/ Evaluation guide and supporting
Rating Matrix materials approved. $21,072 11/30/2007
Initial script meetings completed
Draft Demonstration and rough draft of scripts
Scripts distributed for review. $13,165 11/30/2007
Final Demonstration
Scripts Demonstration scripts approved. $13,165 12/14/2007
Initiate Proposal
Evaluation Process Vendor proposals received. $18,960 1/15/2008
Complete Initial Proposal Vendors selected for
Evaluations demonstrations. $63,200 2/15/2008
Complete Vendor Vendor demonstrations completed
Demonstrations and scored. $42,130 3/28/2008
Research and conduct reference
Extensive Reference checks for vendor(s)with possible
Checks site visits $48,450 5/22/2008
Extensive Best and Final Draft best and final offer request
Offer Process from vendors . $48,450 5/22/2008
Additional efforts to prepare City
Additional Support for Council and Executive
Decision Making Management for final decision. $21,065 6/6/2008
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Selection Process Vendor(s)selected for
Complete negotiations. $25,280 6/6/2008
Prenegotiation Preparations completed to enter
Preparation negotiation phase. $17,472 6/17/2008
Acquisition Phase Fixed-Price Total $685,551
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