DATE: August 18, 2020
SUBJECT:
Title
RESOLUTION AUTHORIZING AMENDMENT NO. 2 TO AGREEMENTS WITH PHOENIX BUSINESS, INC. DBA PHOENIX BUSINESS CONSULTING, SAGE GROUP CONSULTING, INC., NH BRANDT, INC., V3IT CONSULTING, INC., LABYRINTH SOLUTIONS, INC. DBA LSI CONSULTING AND QSI, INC. TO PROVIDE AS NEEDED SAP LEVEL 3 SUPPORT SERVICES, INCREASING THE AGGREGATE MAXIMUM EXPENDITURE UNDER SUCH AGREEMENTS BY A TOTAL AMOUNT OF $350,000 TO A NEW AGGREGATE NOT-TO-EXCEED AMOUNT OF $1,850,000 AND EXTENDING THE TERM OF EACH OF THE AGREEMENTS THROUGH 10/31/2021. FUNDS FOR FY2021 ARE BUDGETED IN THE TECHNOLOGY MANAGEMENT PROGRAM EXPENSE. FUNDS REQUIRED FOR FUTURE FISCAL YEARS WILL BE BUDGETED IN THE APPROPRIATE FISCAL YEAR, SUBJECT TO BOARD APPROVAL UPON THE ADOPTION OF EACH FISCAL YEAR’S BUDGET.
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EXECUTIVE SUMMARY:
On November 17, 2015, following a competitive bidding process, the Board of Port Commissioners (Board) authorized agreements between the District and eight information technology consulting firms: Phoenix Business, Inc., dba Phoenix Business Consulting; Sage Group Consulting, Inc.; RJT CompuQuest, Inc.; NH Brandt, Inc.; V3iT Consulting, Inc.; PAS Software Services, Inc.; Labyrinth Solutions, Inc., dba LSI Consulting; and QSI, Inc. for “As-Needed SAP Level 3 Support Services”. The District selected these firms based upon interviews of responsive bidders to Request for Qualifications number 15-31 (RFQ 15-31). The agreements originally had a combined maximum expenditure limit of $1,250,000. All eight agreements were first amended in 2019 to increase the aggregate maximum expenditure under such agreements by $250,000 to $1,500,000.
Under the agreements, the firms provided a wide range of professional consulting services to support the District’s enterprise resource planning (ERP) system, SAP. The agreements enabled the District to upgrade, enhance, or otherwise refresh its Business Warehouse, Financials, Cost Accounting, Funds Management for Public Sector, Procurement, Project System, Plant Maintenance, Sales and Distribution and Human Capital Management systems. Additionally, new modules such as Concur, Fiori, SuccessFactors and BenefitFocus were implemented leveraging these agreements.
Staff had prepared the elements of a competitive process to replace the existing agreements. However, due to the impact of the COVID-19 pandemic on the District’s fiscal year 2021 budget and staff resource constraints, this process was placed on hold.
Staff recommends authorizing Amendment No. 2 to the agreements with Phoenix Business, Inc., dba Phoenix Business Consulting; Sage Group Consulting, Inc.; NH Brandt, Inc.; V3iT Consulting, Inc.; Labyrinth Solutions, Inc., dba LSI Consulting; and QSI, Inc. which will sustain the District portfolio of technology initiatives until a new competition is completed. The agreement with PAS Software Services, Inc. will not be amended due to lack of responsiveness. The agreement with RJT CompuQuest, Inc. will not be amended because the company was recently acquired and staff decided not to move forward in light of the ownership change.
RECOMMENDATION:
Recommendation
Adopt a Resolution authorizing Amendment No. 2 to each of the agreements with Phoenix Business, Inc., dba Phoenix Business Consulting; Sage Group Consulting, Inc.; NH Brandt, Inc.; V3it Consulting, Inc.; Labyrinth Solutions, Inc., dba LSI Consulting; and QSI, Inc., increasing the aggregate maximum expenditure under such agreements by $350,000 for a new aggregate not-to-exceed amount of $1,850,000 and extend the term of each of the agreements through October 31, 2021.
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FISCAL IMPACT:
The approved FY 2021 Technology Management Program expense budget includes $130,000 for recurring services being provided under these agreements. While no other expenditures beyond this amount are planned, the amendment allows for additional support coverage in the event that consulting services are needed from these service providers.
Funds required for future fiscal years will be budgeted in the appropriate year 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 that is a safe place to visit, work and play.
• A Port with an innovative and motivated workforce.
• A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
On November 17, 2015, following a competitive bidding process, the Board of Port Commissioners (Board) authorized agreements between the District and eight information technology consulting firms: Phoenix Business, Inc., dba Phoenix Business Consulting; Sage Group Consulting, Inc.; RJT CompuQuest, Inc.; NH Brandt, Inc.; V3iT Consulting, Inc.; PAS Software Services, Inc.; Labyrinth Solutions, Inc., dba LSI Consulting; and QSI, Inc. for “As-Needed SAP Level 3 Support Services”. The District selected these firms based upon interviews of responsive bidders to Request for Qualifications number 15-31 (RFQ 15-31).
At the time of award, the District’s Information Technology (IT) Department was in its third year of implementing a 5-year technology strategic plan (Strategic Plan) which laid out a roadmap of strategic technology initiatives that had four primary goals: 1) create more transparency with the public; 2) modernize the District’s physical and virtual infrastructure; 3) augment District security systems; and 4) create operational efficiencies. More than 40 projects were identified in the Strategic Plan, which concluded in 2017. The District leveraged these agreements to help District Staff implement the SAP systems identified in the Strategic Plan:
• SAP Business Objects for Financial Reporting solution
• Maritime Information System Replacement
Additionally, the agreements allowed the District to upgrade, enhance, or otherwise refresh these systems as well as implement new ones:
• Concur Travel
• Fiori Mobil Solutions for Maintenance and Procurement
• SuccessFactors for Training and Development
• BenefitFocus
• Enterprise Analytics and Dashboard Reporting
Each of the agreements has an original expiration date of October 31, 2020; however, the District may terminate any of the agreements without cause upon giving thirty (30) days’ written notice and paying unpaid fees earned through the termination date.
All eight agreements were first amended in 2019 to increase the aggregate maximum expenditure under such agreements by $250,000 to $1,500,000. Staff now recommends authorizing Amendment No. 2 to each of the agreements with Phoenix Business, Inc., dba Phoenix Business Consulting, Sage Group Consulting, Inc., NH Brandt, Inc., V3iT Consulting, Inc., Labyrinth Solutions, Inc., dba LSI Consulting, and QSI, Inc., which will sustain the District portfolio of technology initiatives until a new competition is completed. The current amendments will increase the aggregate maximum expenditures under these six agreements by $350,000 to $1,850,000 and extend each agreement’s term from October 31, 2020 through October 31, 2021. The District’s right to terminate any of the agreements early as noted above will be unaffected by Amendment No. 2.
The agreement with PAS Software Services, Inc. will not be amended due to lack of responsiveness. The agreement with RJT CompuQuest, Inc. will not be amended because the company was recently acquired, and staff decided not to move forward in light of the ownership change.
Staff had prepared the elements of a competitive process to replace the existing agreements. However, due to the impact of the COVID-19 pandemic on the District’s fiscal year 2021 budget and staff resource constraints, this process was placed on hold. The proposed amendment will ensure the District’s critical ERP systems will have support coverage until a new solicitation process is completed.
General Counsel’s Comments:
The Office of the General Counsel has reviewed and approved this agenda and the proposed resolution, as presented, as to form and legality.
Environmental Review:
The proposed Board action including without limitation, a resolution authorizing an amendment to an agreement for consulting and support services, does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it would not have the potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
The proposed Board action complies with Sections 21 and 81 of the Port Act, which allow for the Board to pass ordinances and resolutions and to use District funds for expenses of conducting the District. 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 exclusion is not required.
Equal Opportunity Program:
Not Applicable.
PREPARED BY:
Romero San Agustin
Solution Architect, Information Technology
Attachment(s):
Attachment A: Agreement with Phoenix Business, Inc. dba Phoenix Business Consulting for SAP Level 3 Support Services thru 10-31-20.pdf
Attachment B: Signed Amendment No. 2 to Agreement No. 232-2015 with Phoenix Business, Inc. dba Phoenix Business Consulting.doc
Attachment C: Agreement with Sage Group Consulting, Inc. for SAP Level 3 Support Services thru 10-31-20.pdf
Attachment D: Signed Amendment No. 2 to Agreement No. 233-2015 with Sage Group Consulting, Inc.doc
Attachment E: Agreement with NH Brandt, Inc. for SAP Level 3 Support Services thru 10-31-20.pdf
Attachment F: Signed Amendment No. 2 to Agreement No. 235-2015 with NH Brandt, Inc.doc
Attachment G: Agreement with V3IT Consulting, Inc. for SAP Level 3 Support Services thru 10-31-20-1.pdf
Attachment H: Signed Amendment No. 2 to Agreement No. 231-2015 with V3IT Consulting, Inc.doc
Attachment I: Agreement with Labyrinth Solutions, Inc. dba LSI Consulting for SAP Level 3 Support Services thru 10-31-20.pdf
Attachment J: Signed Amendment No 2 to Agreement No. 237-2015 with Labyrinth Solutions, Inc. dba LSI Consulting.doc
Attachment K: Agreement with QSI, Inc. for SAP Level 3 Support Services thru 10-31-20.pdf
Attachment L: Signed Amendment No. 2 to Agreement No. 238-2015 with QSI, Inc.doc