The Village is seeking to update its Village-wide Enterprise Resource Planning (ERP) software. This software will include base internal service activities such as accounting, budgeting, payroll, purchasing, and cash receipts. It will also provide centralized capabilities for Human Resources, more automated interaction between Departments, and coordination with the Village’s website. The Village’s current ERP system was installed in 1996. Although it has been updated over the years, newer software providers offer many more proven capabilities that will improve system efficiencies which will allow more seamless online services now expected by our residents. It is anticipated that assessing our current systems, developing a Request for Proposal (RFP) for new ERP software, and implementing the new software will take at least two to three years to complete. The total cost of the entire ERP project, including software, consultant and training fees is estimated at $1.5 to $2 million. Funding for the ERP project will come from Technology Fund reserves which have been retained over the years to cover the cost of replacing the ERP software.
To help the Village through this comprehensive change process, the Village plans on utilizing the services of an experienced independent ERP Consultant to plan and manage the project. Phase 1 of the project will involve assessing the Village’s current software system as well as documenting our current processes. Phase 2 will entail the development of a RFP for new ERP software based on the outcomes the Village wants from its ERP software. One of the Village’s key goals is to purchase a system that provides for desired outcomes, but requires minimal, if any customization. By going down this path, it will be easier for the Village to keep its software system as up to date as possible. It is also acknowledged that some of the Village’s current processes and procedures will likely need to change in order to work more efficiently with the new software. Once the scope of the project is determined and a software vendor is chosen, Phase 3 implementation can be undertaken.
In June of 2019, the Village sent out a RFP for ERP Consultant Services and received six responses. An internal review committee comprised of members from the IS and Finance Departments reviewed the proposals based on the ability of the proposer to provide the required services, qualifications of the firm, experience with government agencies, proposal responsiveness, and cost. A compilation scoresheet for the six responses is attached. After the internal committee’s review of the proposals, two proposers: Plante Moran and Berry Dunn were asked to make a presentation to the committee. Both of these firms scored high on each of the categories, and came highly recommended from communities that have used them in their transitions from Central Square (HTE) to another software provider.
Based on their proposal, references, and their on-site presentation, it is recommended that Plante Moran be approved as the Village’s ERP Consultant for Phase 1 and 2 of the ERP software project. While both consultants have experience transitioning from Central Square to another ERP software, Plante Moran has much more experience with local Illinois communities (i.e. St. Charles, Elk Grove, Glencoe, Park Forest and Woodridge) making this transition from Central Square. In addition, Plante Moran placed a higher emphasis on actively working through the change management process. Working with staff to understand and buy-in to a new software package and new procedures is vitally important to the ultimate success of implementing a new software system. Once a preferred software vendor is chosen, the scope of the project is known, and the implementation role of the ERP Consultant is determined, the Village and Plante Moran will negotiate a proposed fee for Phase 3 of the project, which will require subsequent approval by the Village Board. Since the implementation phase will likely be the longest part of the project, it is anticipated that the Phase 3 fee will be at least as much as the fee for the first two phases. The 2019 Budget included $200,000 for consulting fees for this project.
Recommendation
It is recommended that the Village Board approve the ERP Consultant Services Agreement with Plante Moran for Phase 1 and 2 of the ERP software project in an amount not to exceed $137,600, subject to a due diligence review of the agreement by the Village’s In-House Counsel. This fee is inclusive of all travel, lodging, meals, and incidental expenses.