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Report regarding a resolution approving a Professional Services Agreement with Plante Moran, PLLC for Project and Change Management services for the City’s Enterprise Resources Planning (ERP) project in the amount not to exceed $298,620, plus a 10% contingency of $29,862, for a total cost of $328,482, and authorize the City Manager to execute the agreement. (Tony Barrera, Director of Information Technology)
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RECOMMENDATION
Recommendation
Staff recommend that the City Council adopt a resolution approving a Professional Services agreement with Plante Moran for Project and Change Management services for the City’s Enterprise Resources Management (ERP) project for an amount not to exceed $298,620, plus a 10% contingency of $29,862 for a total cost of $328,482 and authorize the City Manager to execute the agreement.
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BACKGROUND/DISCUSSION
The City of South San Francisco is entering the implementation phase of its ERP upgrade-a transformative project that will modernize and streamline the City’s financial, human resources, and operational systems.
The ERP project began in January 2024 when the City engaged Plante Moran to assist in developing a Request for Proposal (RFP). Through department-level workshops, Plante Moran worked closely with staff to define the City’s system requirements and supported the City throughout the competitive vendor selection and contract negotiation process. Their knowledge of City operations, goals, and challenges has played a key role in getting the City to this point.
As we move into implementation, the City must dedicate considerable internal resources to ensure the project remains on schedule and within budget. Delays at this stage could result in significant financial impacts. To help mitigate this risk, staff are recommending continued support from Plante Moran to provide project management and change management services. These services will complement the ERP vendor’s role while supporting the City’s capacity to oversee this complex project.
Plante Moran will continue with the same team that supported the City during the selection phase-bringing continuity, proven public sector expertise, and knowledge of our business processes.
Their proposal includes:
• Subject matter experts to validate business processes within the vendor’s system
• Change management support to help City staff adapt to new workflows
• Training, communication planning, and user engagement tools to drive adoption
• A scalable support model that can adjust to the City’s evolving needs
Plante Moran has successfully completed over 30 ERP implementations in the last four years and has worked with more than 500 public sector clients. Their experience, particularly with California municipalities and platforms like Workday, Teller, and other ERP systems, ensures they can deliver targeted, effective support.
FISCAL IMPACT
The total cost for the project and change management services is $298,620, plus a 10% contingency in the amount of $29,862 for a total cost of $328,482. This agreement will be funded by the allocated $6 million ERP project fund from account 100-27495. The cost of this agreement will not impact the General Fund.
RELATIONSHIP TO STRATEGIC PLAN
The project is an initiative under Modern and Sustainable Organization, ensuring financial sustainability.
CONCLUSION
The ERP project is a complex high resource project that will need additional resources to manage the project. This agreement will enable a continued partnership with Plante Moran, who will provide strategic value by reducing project risk, enhancing internal capacity, and ensuring a smooth transition to a modern ERP system. Staff recommend proceeding with the proposed services to maintain project momentum.