title
Oracle Cloud ERP
end
end
|
DESCRIPTION: Authorization to procure Oracle Cloud ERP |
AGENDA NO: 22-079 |
|
ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Authorize the Chief Executive Officer to negotiate and approve a contract with Mythics, Inc., utilizing an existing contract and procurement with the State of Louisiana. The amount of this contract will not exceed $4,188,076.00 and the project duration is anticipated to be eighteen (18) months. As the technical evaluation is conducted, deductive change orders will be included as needed.
end
ISSUE/BACKGROUND:
body
Purchased in 1996, JD Edwards (JDE) was implemented as the financial and business software for RTA. The financial software used by all departments is version 7.3 which requires a server to house the database. In 2018, Oracle informed the RTA it would no longer support the software or the server of version 7.3. An evaluation of upgrading the software was conducted in 2018, and it was decided to acquire a contractor, Connectria, to host and support JDE for RTA.
Due to the software version, Oracle capabilities are limited to 1990’s era computing which translates to RTA departments seeking other software to fill business process needs. Furthermore, RTA acquired multiple software across departments providing the same function. This project will allow departments to evaluate their tools and either eliminate or integrate into the Oracle Enterprise Resource Planning Software (ERP). This software will be accessible via Cloud and no longer tethered to a server access, business processes can be accessed remotely.
RTA seeks to advance current functionality to take advantage of the Oracle ERP toolset. This software conversion project will impact the entire agency. Functionality in each area includes user customizable reporting, workflow for management review and approval. Specific advancements by area are:
Enterprise Resource Planning (ERP)
• Fusion Enterprise Resource Planning
• Fusion Procurement
• Fusion WebCenter Forms Recognition
• Fusion Supply Chain Execution
Human Capital Management (HCM)
• Human Capital Management Base
• Recruiting
• Time and Labor
• Talent Management
• Fusion Learning
Enterprise Performance Management (EPM)
• Enterprise Performance Management
• Additional Application for EPM (Hosted Environment)
Additional Subscription As A Service Subscriptions
• Test Environment
• Digital Assistant Platform
• Priority Support for SaaS - Base Support
• Priority Support for SaaS
end
DISCUSSION:
Determining Solution Requirements
Movement to Oracle Cloud ERP is to replace the existing JD Edwards. The migration and implementation involve a needs assessment of current policies/procedures and software which will inform best practice, procedures, and training. RTA uses multiple software across departments. Moving to the Cloud ERP assists RTA to consolidate into one platform used by all departments.
One software means:
(1) reduced duplicate software fee payments,
(2) streamlined business policies and procedures,
(3) increased user knowledge base.
The first migration to Oracle Cloud involves the Financial, procurement, and human capital capabilities. The implementation team needs assessment will target Oracle module optimization.
Selecting a Solution
RTA staff analyzed the entire spectrum of options for JD Edwards replacement. The universe of potential vendors and options is substantial. A Scope of Work was developed with the intent to submit for IFB; however, an existing Louisiana State Contract between Mythics, Inc and LSU Health Sciences Center Shreveport (4400022095, Oracle Products and Services) was identified which matches the RTA defined scope of work.
After analyzing potential options, RTA staff identified a preferred solution: seek State Contract with the existing State of Louisiana contractor
Contracts using State contract 4400022095, Oracle Products and Services, is in accordance with the OMNIA Partners, Public Sector Master Agreement Number 180233-002 by and between Maricopa County, AZ and Mythics, Inc. The contract is available for use by all State agencies and local government entities, public institutions of higher education, school districts and other governmental entities which are authorized by the State of Louisiana to utilize State contracts.
This option delivers the following benefits to RTA:
§ Data Migration: RTA retains a license for the application that is delivered. Historical data moved to internal storage.
§ Software Updating: RTA movement from 20th century computing into 21st century capabilities. Oracle supported software with Cloud capabilities. Evacuation or local power outages do not impact the ability to work in the application.
§ Software Consolidation: Migration of one-off software functions into Oracle ERP Cloud modules reduces task duplication in ancillary software, reduces licensing fees, and improves ease-of-use for RTA staff.
§ Training: Training to be conducted in training cloud environment using the train-the-trainer methodology to ensure department champions and trainers. Each department will have a specialist and trainer to instill self-sufficiency.
Given these benefits, RTA staff recommend the delivery of Oracle ERP Cloud and Implementation utilizing existing vendor on State Procurement Contracts.
FINANCIAL IMPACT:
RTA currently pays two costs associated with JD Edwards which result in a total annual cost of approximately $84,891.00:
§ Licensing Fee: Annual cost of $61,855.12. Four quarterly installments to Oracle of $15,463.78
§ Software Support Fee: Annual cost of $23,036.04. Twelve monthly installments to Connectria of $1,916.67.
Software used to supplement JDE capabilities include, but are not limited to:
Ron Turley - 2021 cost of $29.981.00. Maintenance Fleet Management application used to track vehicle maintenance and purchase requests
ADP - 2021 cost of $154.151.80. Human Capital Management - H/R, benefits, and payroll/timekeeping system
TKD - Timekeeping and dispatch system - Fixed and Para work management, reporting and payroll
NeoGov - HR, hiring, personnel tracking
Zywave (HR Connection) - benefits
RTA staff analyzed the cost of the replacement solution which would result in total annual costs of approximately $392,508.00 for the software upgrade and approximately $3,750,000.00 for implementation:
§ Oracle ERP Cloud is an annual fixed fee of $392,508.
§ Projected Implementation costs per year are:
o 2022 - 6 months of implementation at $210,864.89 per month costing $1,265,189.33
2023 - 12 months of implementation at $210,864.89 per month costing $2,560,378.67
§ This project will be funded with from Self-Gen Acct 1.1117. The breakdown per year will be:
o 2022: $1,657,397.33
o 2023: $2,952,886.67
o 2024: $392,508.00
NEXT STEPS:
Upon RTA Board Approval, staff will assign purchase orders.
ATTACHMENTS:
1. Resolution
2. State Contract
3. SoLA Oracle Products & Services
Prepared By: Doris O’Sullivan
Title: Project Manager of Information Technology III
Reviewed By: Gizelle Johnson Banks
Title: Chief Financial Officer
Reviewed By: Mark Major
Title: Deputy Chief Financial Officer
5/4/2022
Alex Wiggins Date
Chief Executive Officer