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May 9, 2000
SUBJECT: Award of Contract for Financial System Software Support (#F9904-74)(RTC#00-152)
REPORT IN BRIEF
Approval is requested for the award of a contract to KPMG Consulting, LLC, of McLean, Virginia, to provide software maintenance and support for the City’s Integrated Financial Management System for the Information Technology Department.
BACKGROUND
In October 1995, Council awarded a contract to KPMG Peat Marwick for the purchase of an Integrated Financial Management System (Performance Series), including Accounting, Cost Allocation, Purchasing and Asset Maintenance. Final implementation of Accounting and Cost Allocation was completed in June 1997.
Subsequently, Council has awarded annual contracts to KPMG Peat Marwick for software maintenance and support following the end of the original warranty period. Included in the software support package is access to system enhancements and new releases of the Performance Series products. The current agreement will expire on June 30, 2000.
Earlier this year, KPMG reorganized; and the City agreed to the assignment of the maintenance and support agreement to KPMG Consulting, LLC.
DISCUSSION
The City is in the process of upgrading the installed versions of Accounting and Cost Allocation for two reasons: 1) Implementation of the Purchasing and Asset Management modules is scheduled within the next few months, and the new modules require the most current versions of the installed modules to operate properly; and 2) KPMG will cease to support the older versions by the end of this calendar year.
Section 2.08.070(b) of the Sunnyvale Municipal Code exempts sole source goods and services from competitive bidding. The Performance Series software is proprietary to KPMG, and they are the only organization that can provide upgrades and software support for their products.
FISCAL IMPACT
Total cost to the City for a one-year support agreement for the City’s KPMG applications will be $70,270.
| 1. Performance Accounting (24 concurrent users) | $25,900 |
| 2. Asset Management (24 concurrent users) | $ 9,180 |
| 3. Performance Purchasing (24 concurrent users) | $22,440 |
| 4. Cost Allocations (Flat rate) | $12,750 |
| $70,270 |
Funds are available in Information Technology Account No 766090-5085.
RECOMMENDATION
It is recommended that Council award a contract in the amount of $70,270 to KPMG Consulting, LLC, of McLean, Virginia, for software maintenance and support of the Integrated Financial Management System.
Prepared by:
Elaine Wesely,
Purchasing Officer
Reviewed by:
Mary Bradley,
Director of Finance
Reviewed by:
Shawn Hernandez,
Director of Information Technology
Approved by:
Robert S. LaSala,
City Manager
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