City of Georgetown, Texas
City Council Regular Meeting
September 10, 2019
Forwarded from the General Government and Finance Advisory Board (GGAF):
Consideration and possible action to approve change order #1 with Sierra Cedar for implementation of an Enterprise Resource Planning system in the amount of $121,995.00 -- Leigh Wallace, Finance Director
In October of 2018, the City awarded contracts to Workday and Sierra Cedar for the implementation of a cloud-based enterprise resource planning system. The system will replace manual processes, as well as several isolated and antiquated software systems that do not integrate. Phase I of the project includes Human Resources and Payroll functionality and is scheduled to go live the week of September 23, 2019. Phase II of the project includes core financial functionality, and Phase III includes budget planning functionality. Benefits of implementation include a full integration between HR and Finance functions, access to real time data via dashboards and reports, automated workflow, searchable and drillable screens, and updates to business processes.
The contract with Sierra Cedar for implementation services includes a scope of work and sub-contract to Premier for data conversion services. The City extracts data (such as employee name, or general ledger account balances) from the legacy system, Premier converts and translates the data into a format consistent with Workday, and Sierra Cedar uploads the data into Workday. This subcontract is essential to the success of the project because City staff do not have the skill set to perform conversion tasks, and do not have the bandwidth to hard key data.
The original scope includes an estimate of 2,500 hours of work by Premier at a cost of $500,000 to convert data for Phase I HR/Payroll and Phase II Financials. At this stage of the project, Premier projects consuming all the original hours and needing additional hours to complete data conversion for Phase II Financials.
Additional hours are needed due to the complexity and lack of structure in the data being migrated. Additional migration cycles were needed in Phase One to transform legacy data stored in COBOL flat files to the format needed by the modern Workday system. The migration was successful, but required more time than originally estimated.
The General Government and Finance Advisory Board recommended this change order to Council at the August 28, 2019 meeting. The attached presentation to GGAF includes a full project update, as well as data load statistics and testing statistics. The project is on schedule for Phase I Go Live the week of September 23rd. Data load statistics were in the 90th percentile in each iteration of load. Multiple phases of testing required some reconfigurations in order to pass all critical defects. The second payroll parallel test is complete, and staff are currently training all employees for system access at Go Live.
The incremental impact of this change order is $121,995. The original contracted amount for data conversion services was $500,000. The new total is $621,995. This change order has no net additional cost to the project. Funding is available in the FY2020 ERP project budget in the General Capital Projects Fund. Funding sources are: 1) reallocating $50,000 of existing project budget for contracted middleware services that are no longer needed; 2) reallocating $60,000 of existing project budget for contracted temporary personnel services; 3) reallocating approximately $12,000 of existing project budget for travel related to project implementation.
Leigh Wallace, Finance Director