Agenda 01/15/2008 Item #16E 3
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EXECUTIVE SUMMARY
Recommendation to waive the formal competitive process and approve Paymetric's
Xi Buy software as a sole source solution to integrate purchasing card transactions
into SAP.
OBJECTIVE: To continue to further the County's investment in its SAP solution,
CONSIDERATIONS: The County has more than 440 purchasing cards in use with an
annual expense of approximately $12M for small convenient purchases, The current
process used to reconcile and pay purchasing card transactions is very labor intensive
with duplicate data entry points into the SunTrust's (the Bank) software, SAP and a
spreadsheet. As a result the County has not taken full advantage of the card or rebate
schedules offered by the Bank.
In the past several months, the Purchasing Department has investigated a number of SAP
integrated software product solutions to reduce data entry redundancies and streamline
the entire process, In October 2007, the Board of County Commissioners approved
$150,000 to complete an implementation of the purchasing card integration project.
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The Board's Purchasing Department along with staff members from the Clerk's Finance
and MIS areas developed the County's specifications for this business application, After
fully considering the required functions and the cost to implement and support the
application, staff has narrowed the acceptable solution to a purchasing card software
program by Paymetrics; a solution which is SAP certified and integrated. Other integrated
solutions were dismissed as not meeting the County's pre-audit and report specifications
and/or were not SAP-certified vendors, Additional documentation is attached.
Paymetric's XiBuy software program meets the County's essential requirements, provides
an SAP certified integrated solution, and is well within the budget parameters established
for this project. This project is expected to be completed by the end of second quarter
2008.
GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated
with this Executive Summary.
FISCAL IMPACT: This project work is expected to cost $105,000 which includes $89,000
in software, implementation and first year maintenance costs, $8,200 in contingency and
$7,800 in travel. The Board has funded this project through past capital improvement
appropriation the SAP Financial Managements System Improvements (project 50017) in
the County Wide Capital Projects Fund (301). Annual maintenance fees ($9,000) will be
funded by the Clerk's MIS department.
RECOMMENDATION: That the Board of County Commissioners waives formal
competition and approves Paymetric's XiBuy software as the sole source solution to
integrate purchasing card transactions into SAP and authorizes the Chairman to sign the
XiBuy software agreement after County Attorney review and approval.
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PREPARED BY: Joanne Markiewicz, Operations Manager, Purchasing Department
Page] of 1
COLLIER COUNTY
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Approved By
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Purchasing Card Enhancements
Position Paper
Context
Select purchasing card solution for Integration with SAP.
Background
The County has more than 430 purchasing cards in use with an annual expense of approximately $1,2M for
small convenient purchases The current process used to reconcile and pay purchasing card transactions is
very labor intensive with duplicate data entry points into the Bank's software, SAP and a spreadsheet As a
result the County has not taken full advantage of the card or rebate schedules offered by the Bank,
In the past several months, the Purchasing Department has considered a number of SAP integrated
software product solutions to reduce data entry redundancies and streamline the entire process, In October
2007, the County engaged LSI Consulting to blueprint a fully Integrated SAP PCard solution and eliminate
all manual processes, Improve reporting, and automate the monthly reconciliation. The County projected
$150,000 to complete this implementation of the PCard integration project
Options
. Option1: Implement the Procurement Card Project as presented in the LSI Blueprint
. Option 2: Implement Paymetrlc's "XiBuy" SAP Purchasing Card Software Proposal
Considerations
Options Advantages Disadvantages
1, LSI Blueprint . Customlzable: can downscale and . Cost $191000 plus travel
reduce costs . MIS responsible for architecture and
. End to end processing of PCard programs: do we have all the resources
Illcluded in the deSign required given other projects
. One solution: no additional software . Implementation appmxlmately 6 months
needed to complete PCard activity
. MIS responsible for architecture,
programs, and documentation
. No annual license costs
. LSI Consulting has a good
understanding of how public agencies,
and Collier County transacts business
. SAP recognized tools used for
development
2. Paymetrics . Projected cost 89000 . Annual license fee: $9,000
"xiBllY" Software . Implementation approximately 12 . Additional reports or customizations would
weeks be extra fee
. Configurable parameters to meet best . Additional Bank software required for the
bUSiness practices card order. replacement and cancellation
. Standard reports, configurations and process
documentation already established . Collier County does not own and cannot
. Updates I enhancements managed by unilaterally change code
Paymetflcs
. SAP certified solution for 10 years i
Note: see attached list of specification comparison between solutions,
Recommendation
A final demonstration was scheduled With X/Buy on 12/13/07: staff members from Finance, MIS and
Purchasing unanimously agreed to recommend: Option 2 - secure and implement the Paymetric's ,X,Buy"
solution
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Collier County Procurement Card
Solution Strategy Review
Item Requirement LSI Paymetric Comments
Xi Buy: $9,000 annual maintenance
1 Cost $ 191,000 $ 89,000 cost
XiBuy: "User Exits" - SAP term
used to define decision points
"Off the shelf;" where system can be customized
wntten with from standard program; 30
2 Solution context Fully customized ABAP available - most companies only
3 Integrate P Card processing into SAP X X
Eliminate need to create MIGO for P Card
4 Purchases X X
Reserve budget funds through use of
5 framework pas X X
Ability to utilize direct pay processes for P
6 Cards X X
7 Ability to scan invoices into SAP X X Effective 12/07 release
Ability to allow multiple levels of review
8 (FT, Purch, AP) X X
9 Ability to assign cards to departments X X
Ability to use SAP workflows for approval
10 of expense X X
^""uy: requestoTnew caros
through Works; new card profile
11 Ability to request new cards X NO populated by file from bank
XiBuy: request of replacement
12 Ability to request replacement cards X NO cards thru Works
Both solutions flag disputes, but
disputes are filed by form w/bank &
13 Ability to dispu ' incorrect charges X X require signatures
LSI - suspensed & allocated; XIBuy
14 Ability to isolate 3ales tax X X can set up rules
Ability to tie P Card to HR employment LSI accesses HR records/ Xi Buy
15 records X X does a table match of employees
16 Ability to assign default charge codes X X
17 Ability to validate charge codes X X
Ability to split expenses among multiple
18 charge codes for one transaction X X
Ability to split expenses among multiple
charge codes for one transaction by dollar
19 allocation X X
Ability to split expenses among multiple
charge codes for one transaction by XiBuy can also allocate by quantity
20 percentage allocation X X for L3 data
Xi Buy real-time status
reporting/can utilize SAP email tool
21 Ability to identify invoices not allocated X X to notify
Ability for Purchasing to approve bulk Xi Buy-bulk approvals at all levels &
22 transactions X X an indicator for bulk approval
Ability for PurchaSing to isolate subset of
23 transactions for compliance audit X X
Ability for PurchaSing or AP to disapprove
24 transactions X X
Collier County Procurement Card
Solution Strategy Review
Item Requirement LSI Paymetric Comments
Ability to define workflow for disapproved XiBuy default automatically goes
25 transactions X X back to lowest level (FT)
XiBuy uses attribute table within
SAP that allows you to "talk" to
users & record responses for
26 Ability to indicate reason for disapproval Not sure X history
Ability for FT to correct allocations prior to
27 payment X X
Notification to the FT when transactions Same email tool to identify
28 enter the system X X unallocated invoices above,
Until last approval is made,
documents are technically not In
XiBuy so there is no need to "park"
them XiBuy has its own version of
parking, and real-time status
- reporting "Can tell what is
29 Documents parked until paid X NO outstanding
Both systems can handle an
electronic invoice, but LSI has no
"Plan B" if an electronic invoice is
Reconciliation of daily transactions to not available, Xi Buy allows you to
monthly bank statement (electronically recreate an invoice from daily
30 received) X X feeds
Ability to track items on a given statement
31 not paid X ,X
XiBuy-internal resources could
probably handle the set up:
Ability to use other P card brands (MC, however, external help would be
32 Amex) Extra cost X sent at minimal cost If required
33 Ability to pay standard POs with P cards NO X
Can al58 support Fleet cards, even
34 Ability to support multiple card programs NO X with a different bank
35 Utilize SAP secunty X X
36 Utilize SAP Chart of Accounts X X
37 Ability to load dally transaction files X X
38 Ability to pre-approve transaclions NO X XIBuy-based on rules
XiBuy allows rules to be set at line
Ability to handle line-Item detail for Level item detail level for default
39 3 transactions X X allocations
Multiple strategies to provide a default for
every transaction (card account #, MCC,
40 merchant id, other) NO X
Ability to cross reference of merchant IDs XiBuy can allow County to
to SAP Vendor Master to enable 1099 aggregate certain vendors: Ignore
41 reporting & spend reporting NO X 1 timers
42 Time req'd to develop & rollout 6 months 3 months
43 SAP certified solution X X
LSI will replicate all Works reports;
XiBuy's standard reports are not as
numerous but cover all
44 Management Reports X X requirements
Collier County Procurement Card
Solution Strategy Review
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Item Requirement LSI Paymetric Comments
Ability to identify transactions for which
45 the cardholder is liable? Not sure X
Ability to designate alternates when
46 approver on leave Not sure X
Created by county
47 Availability of user documentation via test scripts X
48 Availability of technical documentation Created by county X
XiBuy: 24/7 live support, self-help
Internal MIS portal, documentation, knowledge
49 Availability of Customer Support resources X base
Internal Resource Hours (not including Xi Buy: estimate of 4 to 1 of
50 training documentation and delivery) 560 600 External help
51 External Resource Hours 1128 150 hrs
- -- City of Tacoma;
Manchester City XiBuy continued: Lockheed Martin;
Council NIBCO - North Indiana Brass Co;
52 References MIT; Kentucky (England) CoAgra; Computer Services Corp