Summary Sheet- RFCA SUMMARY
Extracted text (via pymupdf)
9592 characters
CITY OF TEMPE Meeting Date: 3/5/2026 REQUEST FOR COUNCIL ACTION Agenda Item: 8A2 ACTION: Award five-year contracts with renewal options to Graviton Consulting Services and Oracle America, Inc., for the purchase, implementation, and ongoing support of an Enterprise Resource Planning software solution. FISCAL IMPACT: The total contract cost will not exceed $5,254,621. Sufficient funds have been appropriated in the Capital Improvement Program, Project 6711299 (Peoplesoft Replacement CIP), for anticipated expenditures during the current fiscal year and future fiscal years, contingent upon City Council approval of the City’s annual budget. RECOMMENDATION: Award the contracts. BACKGROUND INFORMATION: (RFP 25-092) The City issued a Request for Proposal (RFP) to establish a long-term contract with an experienced and qualified firm for the purchase of a modern, scalable, and integrated Enterprise Resource Planning (ERP) software solution that meets operational needs, enhances efficiency, improves data access, and streamlines reporting processes. This solution will replace the current ERP (PeopleSoft Financials) that has been in place since 1997. This is a critically important solution that will be utilized by every department throughout the City and manages a wide range of financial and budgetary functions including those listed in the table below: Evaluation Process The City issued notice of this opportunity to all registered firms for this commodity area. A total of 144 firms downloaded the solicitation from the City’s e-procurement portal, resulting in the submission of 14 proposals from the following firms: Avaap CentralSquare Technologies, LLC Cognizant Workday Practice Crowe LLP Graviton Consulting Services, Inc. Groove Public Services LLC Novamodus Inc. Oracle NetSuite for Local Government Savantis Solutions LLC Sierra-Cedar, LLC Sparkrock Ltd Accounts Payable Financial Reporting Accounts Receivable General Ledger Budget – Capital and Project Grants Management and Tracking Budget – Operating and Personnel Inventory Management Capital Asset Accounting Procurement Contract Management Treasury Management 2 Strada U.S. Professional Services, LLC Tata Consultancy Services, LTD Tyler Technologies The proposals were reviewed and scored by an evaluation committee comprised of staff from Financial Services, Information Technology, and the Municipal Budget Office. Given the magnitude of this solicitation, additional sub-committees were established to ensure that representatives from across the City were involved throughout the evaluation process. The subcommittees included the Advisory Sub- Committee, Technical Sub-Committee, and End-User Sub-Committee. Additionally, the City utilized the expertise of ESC Partners to help facilitate key portions of the evaluation process, as well as to provide research and analysis on the proposals. The evaluation criteria, along with weighting, are shown below: Evaluation Criteria Weight % 1 Experience, Expertise, and Qualifications 15 2 Methodology and Implementation Approach 15 3 Software Solution Proposed 30 4 Technical Requirements 15 5 Costs 20 6 Acceptance and Compliance of RFP Terms and Conditions 5 Total Weight 100% 7 Demonstrations and Interviews (if required and only for companies in the most competitive range) 400 points Each committee member reviewed and scored the offers independently based on the stated criteria. The individual scores were then averaged to determine the initial scoring. The following table displays the initial evaluation scores and 5-year pricing listed in rank order: Based on the initial scoring, the committee agreed that the top six firms would be moved forward in the evaluation process and invited to present software demonstrations. Around this time, Sparkrock asked to have its proposal removed from consideration, which was granted. As a result of the above actions, only the top five firms moved forward. The shortlisted firms were invited to conduct in-depth, multi-day software demonstrations. The demonstrations were scored as noted below: Software Solution Software Implementer Demonstration Score* Oracle Novamodus 78.5 Responding Firms Proposed Solution Initial Total Score Total 5-Year Pricing Crowe MS Dynamics 365 773.3 $4,097,250 Sparkrock MS Dynamics 365 766.5 $1,897,869 Novamodus Oracle 735.9 $4,543,874 Tyler Technologies Munis 712.0 $5,663,068 Avaap Workday 703.6 $6,586,418 Collaborative Consulting Workday 700.2 $6,013,094 CentralSquare Finance Enterprise 690.9 $2,121,913 Graviton Consulting Services Oracle 685.3 $6,697,705 Savantis SAP S/HANA 681.2 $7,692,784 Oracle America NetSuite 670.7 $1,386,870 Sierra-Cedar Oracle 655.6 $7,538,705 Strada Workday 648.4 $6,699,653 Groove Public Workday 644.2 $6,432,945 Tata Consultancy Oracle 629.9 $10,081,660 3 Microsoft Dynamics 365 Crowe 72.4 Avaap Workday Collaborative Consulting 70.5 Enterprise ERP/Munis Tyler Technologies 66.0 *Maximum points possible for this phase is 100 points The committee reached consensus to move the three highest-ranked software solutions to the Implementer Interview phase (Tyler Technologies was removed from consideration). As a result of the interviews, the committee determined that the Oracle, Microsoft Dynamics 365, and Workday solutions were viable; however, the committee determined that an additional Oracle implementer should be brought forward for evaluation. Graviton Consulting Services was the next highest rated Oracle implementer. As part of this action, the committee determined that CentralSquare’s proposal would be removed from consideration due to its current lack of AI functionality. The ability to leverage modern AI capabilities is a critical functional element of the selected solution. The following table displays the adjusted scoring including the demonstration and interview scores: Responding Firms Cumulative Scoring Total Total 5-year Cost Crowe 1047.1 $4,097,250 Graviton Consulting Services 980.3 $6,697,705 Novamodus 966.6 $4,543,874 Avaap 961.1 $6,586,418 Collaborative Consulting 930.4 $6,013,094 The committee determined that the top two firms – Crowe and Graviton Consulting Services would be moved forward in the evaluation process. The remaining firms were deemed non-susceptible and removed from consideration. The committee now invited the top two firms to participate in additional “deep dive” software demonstrations, which allowed the committee to fully assess the functional capabilities of the offered solutions. Another round of scoring took place, resulting in the scoring shown below: Responding Firms Deep Dive Cumulative Scoring Total Total 5-year Cost Crowe 1157.9 $4,097,250 Graviton Consulting Services 1102.5 $6,697,705 The top two firms were invited to submit best and final offers. The best and final offers were extensive and responded to a long list of clarifications and deal points. The committee met to score the best and final offers, resulting in the scoring and pricing shown below: Responding Firms Best and Final #1 Cumulative Scoring Total Total 5-year Cost (Final) Graviton Consulting Services 1161.3 $5,664,482 Crowe 1107.7 $4,089,837 Although the final two firms were highly regarded, the committee decided to move forward with the Graviton Consulting Services proposal. Additional negotiations resulted in the submission of two additional best and final rounds as shown below: 4 Responding Firms Best and Final #2 & #3 Cumulative Scoring* Total Total 5-year Cost (Final) Graviton Consulting Services 1191.3 $5,254,621 *Based on a total possible points of 1,400 Based on a thorough review of the proposals that took the better part of 10 months, the evaluation committee recommends that Graviton Consulting Services and Oracle America Inc., be awarded contracts for the purchase, implementation, and ongoing support of an Enterprise Resource Planning software solution. Graviton Consulting Services will perform all implementation services and will take the primary lead role; Oracle will provide the hosted ERP software (Oracle Fusion). The Graviton/Oracle proposal scored the highest in the evaluation, submitted competitive pricing, and has the necessary experience, expertise, and qualifications to deliver a successful project for the City. Oracle Fusion offers robust features and functionality that will enable the City to dramatically improve and modernize its internal financial and budgetary operations. If approved as recommended, the awarded companies will immediately begin the implementation phase, culminating in a planned cut-over date of July 1, 2027. Although not the lowest-priced offer, the recommended companies have extensive ERP implementation experience and support a robust, well-designed software platform that will dramatically improve business process efficiency for the City. The software solution has been successfully installed in numerous public entity environments. In accordance with Council policy, when staff is not recommending the lowest priced offer, Internal Audit has reviewed the evaluation process and supports the recommendation. ATTACHMENTS: Graviton Professional Services Agreement; Oracle Cloud Service Agreement STAFF CONTACT(S): Laura Calder, Financial Services Director, (480) 350-8504 Department Director: Laura Calder, Financial Services Director Legal review by: Dave Park, Senior Assistant City Attorney Prepared by: Alicia Ruiz, Procurement Officer