Agenda 10/13/2020 Item #16E 2 (SAP System Upgrade)10/13/2020
EXECUTIVE SUMMARY
Recommendation to approve continuation with SAP as the County’s Financial System and
authorize staff to release a Request for Proposals for a required upgrade.
OBJECTIVE: To provide an update regarding the County’s SAP system and the timeline for a major
upgrade project.
CONSIDERATIONS: Collier County, in partnership with the Clerk of Courts, began using SAP as its
Enterprise Resource Planning (ERP) software in 2003. When SAP announced the end of support for the
current version of their ERP software (ECC 6), the County and the Clerk of Courts began a due diligence
study to ascertain the best course of action for the future of the systems used for accounting, procurement,
personnel, and other processes. The last time the County and Clerk’s Office fully explored the ERP
marketplace was approximately 20 years ago. Since that time, several new vendors entered the field,
many with public sector divisions. The new version of SAP (S/4HANA) is a hybrid solution with core
financials on premise and some new features being cloud based, subscription (SaaS) services. The end of
support date was originally anticipated for 2023, but has since been moved out to 2027, providing the
County with sufficient time to make an informed decision and implement the solution that best fits its
needs.
The following steps and approximate timeline's were established for the project:
• Step One: Solicit and hire consulting services to assist in collecting data regarding the ERP
system market (December 2018 - May 2019)
• Step Two: Prepare requirements documents to release a Request For Information (June 2019 -
February 2020)
• Step Three: Review and analyze information received to determine the future path (SAP upgrade
or implement replacement system) (February 2020 - October 2020)
• Step Four: Release RFP to hire services to implement upgrade or replacement software (October
2020 - December 2021)
• Step Five: Implementation (January 2022 - January 2024)
The project is currently on schedule. Consulting services obtained in Step One through Berry Dunn
Consulting yielded comprehensive requirements documentation and the Request for Information (RFI)
was released in February 2020.
Nineteen responses were received with one proposal for HR solutions only. The eighteen full respondents
represented seven different software solutions. Four of them proposed SAP S/4HANA.
Solution Low Estimate High
Estimate
Low
Annual
Fees
High
annual Fees
Duration Deploy/License
Central Square Public
Admin Suite (1
vendor responded)
$ 3,200,000 TBD $447,000 N/A 18-27 months Subscription
based/Cloud hosted
Infor Cloud Suite-
Public Sector (3
vendors responded)
$ 2,900,000 $ 9,000,000 $2,000,000 $2,200,000 12-30 months Subscription based,
Cloud hosted/Names
user licensing
Microsoft Dynamics $ 1,900,000 $ 5,500,000 $620,000 $2,000,000 15-128 months Subscription based,
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365 (3 vendors
responded)
Cloud hosted/Names
user licensing
Tyler Munis (1
vendor responded)
$ 6,200,000 $3,100,000 24-30 months Software as a Service
(SaaS)
Oracle Cloud
Software as a Service
(2 vendors responded)
$ 2,500,000 $ 6,900,000 $500,000 $900,000 13-29 months Subscription based,
Cloud hosted/Names
user licensing
SAP (4 vendors
responded)
$ 3,200,000 $ 11,700,000 $ 60,000 $2,800,000 6-18 months Hybrid on-prem/Cloud
hosted; concurrent or
named user licensing
Workday (3 vendors
responded)
$ 5,100,000 $ 16,500,000 $1,200,000 N/A 18-28 months Software as a Service
(SaaS)
The SAP Project Team and Executive Committee carefully reviewed the proposed solutions and
recommends retaining SAP as its ERP provider and beginning development of an RFP for
implementation services in advance of an SAP upgrade to S/4HANA in a hybrid environment. The
advantages of doing so are summarized below:
• Only SAP offered a hybrid vs full cloud-based solution
• Only SAP offered both concurrent user and named user licensing depending on the solutions
implemented
• Shorter timeframe for implementation due to data conversion, configuration, developing
integration with various third-party solutions with new product
• Implementation cost is less with upgrade vs full implementation
• Training and learning curve are shorter with upgrade vs new implementation
• Ability to implement enhancements now vs waiting until the full implementation in
approximately 2022 (Time and Attendance, Employee Self-Service, integration with warehousing
and asset management systems)
• Other software solutions presented no dramatic improvements over SAP
As part of the project and the County’s continued due diligence, staff requests authorization to expend up
to $50,000 in consulting fees with Berry Dunn Consulting, if necessary, for additional services such as
(but not limited to):
• Review of proposals
• Negotiation with SAP
• Development of RFP for implementation services
• Development of RFP for a replacement of the current system
• Serving as the County’s independent project advocate
FISCAL IMPACT: An RFP for implementation services will be required to determine the total funding
for the upgrade and enhancements to the ERP system. Based on the RFI budgetary estimates, licensing
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and implementation services for the multi-year project are estimated not to exceed $7,500,000 depending
on enhancements and configurations. Since FY 2017, $3,600,000 has been set aside to fund this project.
Current available budget totals $3,395,000 with no new money budgeted in FY 2021. The amount and
source of remaining funding support for this project will be reserved until scheduled implementation
when a decision on final enhancements and configurations are made.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal
issues, and requires majority vote for approval. -JAK
RECOMMENDATION: To approve continuation of SAP as the County’s ERP Financial System,
authorize staff to issue an RFP for licensing and implementation services for an upgrade to SAP version
S4/HANA and authorize additional consulting services, if necessary, from Berry Dunn Consulting.
Prepared by: Len Golden Price, Administrative Services Department Head
Crystal Kinzel, Clerk of the Circuit Court and Comptroller
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.2
Doc ID: 13784
Item Summary: Recommendation to approve continuation with SAP as the County’s Financial
System and authorize staff to release a Request for Proposals for a required upgrade.
Meeting Date: 10/13/2020
Prepared by:
Title: Department Head - Administrative Svc – Administrative Services Department
Name: Len Price
10/02/2020 3:38 PM
Submitted by:
Title: Department Head - Administrative Svc – Administrative Services Department
Name: Len Price
10/02/2020 3:38 PM
Approved By:
Review:
Administrative Services Department Paula Brethauer Level 1 Department Reviewer Completed 10/05/2020 9:11 AM
Administrative Services Department Len Price Level 2 Department Head Review Completed 10/05/2020 9:17 AM
Clerk of the Circuit Court Len Price Additional Reviewer Skipped 10/05/2020 9:17 AM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 10/05/2020 9:30 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 10/05/2020 11:55 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 10/05/2020 1:35 PM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 10/07/2020 11:34 AM
Board of County Commissioners MaryJo Brock Meeting Pending 10/13/2020 9:00 AM
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