HomeMy WebLinkAboutFIN 06-23
Report to Council
Report Number: FIN 06-23
Date: February 27, 2023
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Approval to Award the Contract to NTT Data Business Solutions Incorporated for
SAP Application Management Services
File: F-2000-001
Recommendation:
1. That Council approve the engagement of NTT Data Business Solutions Incorporated,
under section 10.03 (c) of the City’s Purchasing Policy, in the amount of $112,450.00 (net
HST), for a term of one year, with potential renewals for successive one year terms,
provided that terms and conditions, upon renewal, remaining in favor and alignment wi th
City objectives;
2. That the total project cost of $112,450.00 (net HST) and other associated costs be
funded over a one year period be approved;
3. That Council authorize the Director, Finance & Treasurer to approve any additional scope
changes that may be required to cover additional work to be completed, or which may be
required to there being sufficient funding available;
4. That Council authorize the Director, Finance & Treasurer to fund the net project cost of
$112,450.00 from the capital account (WBS C10600.1801.90); and
5. That the appropriate City of Pickering officials be authorized to take the necessary
actions to give effect hereto.
Executive Summary: In 2021, City staff contacted SAP Canada to develop a short-list of
firms that could undertake the level of work and support required by the City to maintain,
develop and enhance the current SAP (System Analysis Program) software system . City staff
relied on the expertise of SAP Canada to identify firms that were “best in class”, and platinum
level certified. A competitive process was undertaken by the Manager of Supply & Services
and NTT Data Business Solutions Incorporated was selected as the preferred vendor for an
initial one year term, as their AMS (Application Management Services) solution provides the
most flexible model for the City (as per Resolution #788/22).
Since that time, the SAP Support Team has worked closely with the vendor by onboarding
several consultants. This knowledge transfer is labour intensive; however, it is critical for NTT
FIN 06-23 February 27, 2023
Subject: Approval to Award the Contract to NTT Data Business Solutions Page 2
Incorporated for SAP Application Management Services
to have a thorough understanding of the City’s SAP environment (finance and human
resources) due to the fact that the SAP system interfaces with several other critical systems,
such CORE (front counter payment system), TXM (property tax) and ACTIVEnet (recreation).
These interfaces are complex and require a high-level of technical expertise.
To maintain optimum system functionality, the City continues to require the expertise and
services of NTT Data Business Solutions Incorporated. With the extended contract of this firm,
the City will be able to focus its attention to leveraging its investment in the SAP system,
enhance business functionality, further develop and enhance the system and provide a high-
level of technical support and expertise.
Financial Implications: The SAP project was originally budgeted for $5.0 million, via the
2018 Capital Budget. Through the last DC Study (2018), the City was successful in having DC
fees partially fund the new financial system. The December 31, 2021 proj ected uncommitted
balance (after implementing SAP) is estimated to be $1,244,000 . The project savings were
achieved through focusing on core functionality of Phase I of the ERP system implementation.
The uncommitted balance of these savings can now be used to further enhance Phase I
components.
Discussion: SAP is a powerful and complex Enterprise Resource Project (ERP) system,
with processes integrated across various other critical City enterprise software platforms. SAP
is a robust and scalable system, enabling it to accommodate the City’s growth over the next
thirty years. The strength of the SAP ERP, is the availability of other modules such as budget
and payroll that will in-turn increase the integration between all of the financial modules to
enhance decision making and management. The SAP ERP, is a strategic systems asset that
can be of benefit to the Corporation as the City grows.
In 2021, City staff contacted SAP Canada to develop a short-list of firms that could undertake
the level of work and support required by the City. Three vendors were solicited to provide
Proposals by the Manager of Supply & Service: Bell Createch; Deloitte Consulting; and, NTT
Data Business Solutions Incorporated. Bell Createch and NTT Data Business Solutions
Incorporated only submitted Proposals. Deloitte Consulting recused themselves from the
process, as they cited a conflict of interest, given that they are the City’s financial auditors.
Subject to Council’s approval of Report FIN 06-23, NTT Data Business Solutions Incorporated
will continue to provide technical support and system enhancements for the Finance,
Procurement and HR modules. The vendor has the expertise and experience to provide
strategic advice regarding future ERP development. The preliminary work plan for 2023
(excluding the technical support), is for the following projects:
FIN 06-23 February 27, 2023
Subject: Approval to Award the Contract to NTT Data Business Solutions Page 3
Incorporated for SAP Application Management Services
Development and implementation of an interface between Amanda /PRISM and SAP;
Further development of the HR system and the introduction of additional functionality, such
as “Employee Onboarding”; and
Possible additional interfaces and or enhancements as a result of the City undertaking the
implementation of its new Digital Strategy.
The initial project scope excluded the ‘electronic bridge” between Amanda (building
permits/planning fees) and SAP. Currently, Finance staff undertake a “data entry function”
whereby they enter financial data into SAP from reports produced in Amanda. City
Development will be shortly implementing a City portal whereby individuals and organizations
will be able to purchase their services electronically via a PRISM portal. Therefore, its critical
for the development of the electronic bridge due to the anticipated higher volume through the
portal.
With the anticipated growth of the City, there is a need to move to the next stage of HR
implementation with “onboarding” being identified by HR leadership team as a top priority. NTT
has the technical expertise to assist in this area .
Additionally, staff are preparing to present to Council its Digital Strategy report and
corresponding road map as it relates to implementation in the third quarter of this year. NTT
will have the technical expertise to assist, if required, with possible enhancements and or
electronic bridges between SAP and other City planned initiatives.
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Justin-Alexander MacDonald James Halsall
Procurement/Logistics SAP Business Analyst Division Head, Finance
Original Signed By:
Stan Karwowski
Director, Finance & Treasurer
FIN 06-23 February 27, 2023
Subject: Approval to Award the Contract to NTT Data Business Solutions Page 4
Incorporated for SAP Application Management Services
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer