DATE: November 14, 2023
SUBJECT:
Title
RESOLUTION AUTHORIZING AMENDMENT NO. 3 TO AGREEMENT WITH V3IT CONSULTING, INC. FOR REMOTE MANAGED SUPPORT SERVICES OF ALL DATABASES, OPERATING SYSTEMS, AND SAP SECURITY ROLE BUILDS TO INCREASE MAXIMUM EXPENDITURE FROM $840,000 TO $1,182,000 AND EXTEND THE TERM OF THE AGREEMENT TO 6/30/2025.
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EXECUTIVE SUMMARY:
In 2003. the District implemented SAP as its Enterprise Resource Planning (ERP) system. This core system provides the District with a comprehensive and integrated tool for managing its financials, procurement, inventory, real estate, budget preparation, human resources, benefits, payroll, and projects. Subsequently, additional modules were implemented to manage the District's scheduling of maintenance and maritime operations.
In April, 2016, the District issued Request for Proposals No. 16-12AC (Kl-P 16-12AU) to provide continued Remote Managed Support Services for SAP. The selection panel determined that V3iT Consulting. Inc. proposed the best approach and demonstrated capability to meet the RFP scope of services and the Board of Port Commissioners awarded an agreement at the August 9, 2016 Board meeting.
Today, District staff is looking to amend the current term of the agreement to June 30, 2025, increase funds for the new term, and amend the scope to include support services for the District’s newest SAP S/4 Hana environment.
RECOMMENDATION:
Recommendation
Adopt a Resolution authorizing Amendment No. 3 to Agreement with V3iT Consulting, Inc. for remote managed support services of all databases, operating systems, and SAP security role builds to increase maximum expenditure from $840,000 to $1,182,000 and extend the term of agreement to 6/30/2025.
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FISCAL IMPACT:
Funds for the first year of this expenditure are budgeted in the FY 2024 Technology Management Program Professional Services account or otherwise included in the applicable project budgets of the District’s capital Technology Management Program. Funds required for future fiscal year(s) will be budgeted in the appropriate fiscal year and cost account subject to Board approval upon adoption of each fiscal year’s budget.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A thriving and modern maritime seaport.
• A Port with an innovative and motivated workforce.
• A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
On April 1, 2016, the District issued RFP 16-12AC. The proposals were evaluated by a panel comprised of District staff from various departments and the evaluation panel analyzed the firms’ proposals, presentations, and responses to the interview. V3iT was selected as the top candidate.
In the proposal and interview. V3iT Consulting. Inc. demonstrated a thorough understanding of the District's needs identified in the scope of services. They also proposed delivering, at no additional costs, solutions they develop for streamlining Basis administration.
The current contract expires on January 31, 2024, when we will be amid an SAP upgrade from ECC 6.0 to S/4 HANA on the SAP Rise private cloud. This project, going live in late spring 2024, modernizes the District’s business applications, and includes implementing a customer payment portal.
District staff is looking to:
• Amend the expiration date of the Agreement from January 31, 2024 to June 30, 2025;
• Increase funds from $840,000 to $1,182,000;
• Amend the scope of the remote services agreement to include V3iT Remote Managed Support services for our newest SAP S/4 Hana environment.
This approach gives the District a seamless transition and knowledge transfer from the project vendor’s basis team to V3iT’s basis team for operational support when the S/4 HANA project goes live.
More importantly, the extension allows the District to assess the requirements for what future remote services look like in our new environment when the current SAP ECC 6.0 environment is retired. It gives the District the opportunity to consider if District IT staff can take on this role internally with SAP services, or if third party support to interact on our behalf is required, in turn enacting a new RFP process for the new scope of remote services for FY 25/26.
General Counsel’s Comments:
The General Counsel’s Office has reviewed this agenda and attachments, as presented to it, and approves the same as to form and legality.
Environmental Review:
The proposed Board action, including without limitation, authorizing Amendment No. 3 to agreement with V3iT Consulting, Inc. for remote managed support services of all databases, operating systems, and SAP security role builds to increase the maximum expenditure from $840,000 to $1,182,000 and extend the term of the agreement to June 30, 2025, does not constitute a project under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because there is not a potential to result in a direct or indirect physical change in the environment. Therefore, the proposed Board action is not subject to CEQA and no further action under CEQA is required.
The proposed Board action complies with Sections 21 and 35 of the Port Act, which allows for the Board to pass resolutions; and to do all acts necessary and convenient for the exercise of its powers. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
The proposed Board action does not allow for development, as defined in Section 30106 of the California Coastal Act, or new development, pursuant to Section 1.a. of the District’s Coastal Development Permit Regulations. Therefore, issuance of a Coastal Development Permit or an exclusion finding is not required.
Diversity, Equity, and Inclusion Program:
V3IT is certified as an SBE.
PREPARED BY:
Joy Hutton
Business Systems Supervisor, Information Technology
Attachment(s):
Attachment A: Amendment No 3 to Agreement 125-2016AC with V3IT Consulting