HomeMy WebLinkAbout1996-06-04; City Council; 13669; APPROVAL OF CONTRACT BETWEEN THE CITY OF CARLSBAD AND XD CONSULTING FOR IMPLEMENTATION OF THE FINANCIAL INFORMATION SYSTEMU'
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Approval of Contract Between the City of MTG. 6/4/96
RECOMMENDED ACTION:
Approve Resolution No. 96- lg? authorizing the Mayor to execute a contract betwee
City of Carlsbad and XD Consulting for the provision of consulting services for the implemen
of the Financial Information System.
ITEM EXPLANATION:
On April 16, 1996, the City Council approved the contract with Bi-Tech Software for the pur
of Financial Information System (FIS) software and related services. The entire FIS F
consists of seven phases which are as follows:
Phase I ...................... FIS Needs Analysis
Phase II ..................... Request for Proposal for FIS Software
Phase Ill .................... Evaluation & Selection of Vendor for FIS Software
Phase IV ................... PC and Windows Software Upgrades
Phase V .................... Implementation of Basic FIS Modules
Phase VI ................... Implementation of Human Resource and Payroll Modules
Phase VI1 .................. Implementation of Utility Billing, Permits, Clerks Indexing Module
The first three phases are complete, with Phase IV to be completed by mid-July. As a result
Council's approval of the Bi-Tech contract, we are moving into Phase V. Phases V and VI ir
installation and implementation of the Bi-Tech software modules. These phases of the proje
expected to continue through September 1997. To ensure the success of the Fin
Information System, the City is requesting the services of a consultant to assist wit
specializes in the specification, selection and implementation of software systems for both F
and public sector organizations. This particular firm is very unique in that its staff has pre\
implemented Bi-Tech software and systems at the Scripps Research Institute. The spec
knowledge that XD Consulting gained as a result of this project will greatly benefit the City i
implementation of Bi-Tech. During the course of the Scripps project, XD Consulting establk
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The requirements for this project are very specific and specialized, and only one consultant
local area has the expertise to assist with this process successfully. Staff considered two
consultants, but selected XD Consulting because of its unique knowledge of Bi-Tech.
XD Consulting has experience with Business Process Review and has helped several
agencies, both public and private, with redesigning and re-engineering procedures. By hirir
Consulting to assist with both the implementation and the process review, there will n
duplication of effort by having to bring two consultants up to speed with the project and the
procedures. The first process review project will address the City’s current method of purct-
and paying for goods and services. Although there are other areas that staff is considerir
process review, this contract only covers purchasing and accounts payable. Based on the su
of this project, the City will contract for review of the remaining processes.
FISCAL IMPACT:
The proposal submitted by XD Consulting provides services for a not-to-exceed limit of $1 1:
However, if the project proceeds smoothly and with ideal conditions, the cost of XD Consu
services will be $88,000. A contingency fund of $25,500 is built into the proposal, knowing
wide range of potential issues may arise that will affect the amount of time that XD Consultin!
will have to dedicate.
A portion of the Financial Information System budget is allocated for Miscellaneous Profes
Services, and the funds are available for the not-to-exceed limit of $1 13,500 proposed I:
Consulting for their services.
EXHl BITS:
1. Resolution No. 9 (6 -1% 7 authorizing the Mayor to execute a contract for provisi
implementation consulting services for the Financial Information System.
2. Contract between the City of Carlsbad and XD Consulting for professional services.
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RESOLUTION NO. 96-187
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AUTHORIZING THE MAYOR
TO EXECUTE A CONTRACT FOR PROVISION OF
IMPLEMENTATION CONSULTING SERVICES FOR THE
FINANCIAL INFORMATION SYSTEM
WHEREAS, in April 1996 the City Council approved the contract with Bi--
Software for purchase of software and related services for the new Financial Inform;
System; and
WHEREAS, the Financial Information System project is proceeding into Phas
which is the installation and implementation of the basic Bi-Tech Financial Informl
System software modules; and
WHEREAS, staff recognizes a need for specific expertise in the implementatic
Bi-Tech software to ensure the success of the project; and
WHEREAS, there is a need to review the purchasing and payables proceduri
make process improvements; and
WHEREAS, staff considered three consulting firms with the potential of fulfillin!
qualifications needed by the City for this project; and
WHEREAS, only one of the three consultants is capable of providing the spi
services related to Bi-Tech software; and
WHEREAS, staff selected XD Consulting based upon an analysis of demonst
competence and professional qualifications necessary for the satisfactory performan
the service required as well as the cost of the service; and
WHEREAS, the Purchasing Officer has waived the requiremenets for solicitati
multiple proposals because only one firm can provide the professional service reqi
and
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WHEREAS, the total cost of the services provided to the City by XD Consc
shall not exceed $1 13,500, and such funds are available in the Financial Inform;
System project budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carts
California, as follows:
1.
2.
That the above recitations are true and correct.
That the Mayor of the City of Carlsbad is authorized to sign the con
between the City of Carlsbad and XD Consulting.
3. That the fees and compensation for said services shall not exceed $1 13
and shall be described in the contract between the City of Carlsbad and XD Consulting.
PASSED, APPROVED AND ADOPTED at a regular meeting of the city Counc
the 4th day of JUNE , 1996, by the following vote to wit:
AYES: Council Members Lewis, Nygaard, Kulchin, Hall
NOES: None
ABSENT: Council Member Finnila
ATTEST:
AL$%?%W$?E$kZh
(SEAL)
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AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT, made and entered into as of the 10th day 1
JUNE I 19 96, by and between the CITY OF CARLSBAD, a municip
corporation, hereinafter referred to as "City", and XDConsulting, hereinafter referred '
as To ntracto r. I'
RECITALS
City requires the services of a software implementation Contractor to provide tk
necessary consulting services for implementation of the Financial Information Syste
and the City's business process improvement project; and Contractor possesses tf
necessary skills and qualifications to provide the services required by the City;
NOW, THEREFORE, in consideration of these recitals and the mutual covenar
contained herein, City and Contractor agree as follows:
1. CONTRACTOR'S OBLIGATIONS
To assist with the implementation of the Bi-Tech software and HP hardware for
the Financial Information System and with the City's business process improvement
proejct, as described in the proposal (Attachment A).
2. CITY OBLIGATIONS
The City shall provide the contractor with time and resources as needed
perform the implementation of the Financial Information System, outlined in t
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- contractor’s proposal, Attachment A, Appendices A and B.
3. PROGRESS AND COMPLETION
The work under this contract will begin within ten (IO) days after receipl
notification to proceed by the City. Extensions of time may be granted if requested
the Contractor and agreed to in writing by both parties.
4. FEES TO BE PAID TO CONTRACTOR
The total fee payable for the services to be performed shall not excc
$113,500. No other compensation for services will be allowed except those itel
covered by supplemental agreements per Paragraph 7, “Changes in Work‘
Incremental payments, if applicable, should be made as outlined in attached Exhibit sti
All travel expenses incurred by the Contractor will be reimbursed by the City, wit1
total not to exceed $5,000 through the duration of the contract.
5. DURATION OF CONTRACT
This agreement shall extend for a period of eighteen (18) months from dz
thereof. The contract may be extended by the City Manager for one (1) additional 01
(1) year period or part thereof, based upon a review of satisfactory performance and ti
City’s needs. The parties shall prepare extensions in writing indicating effective da
and length of the extended contract.
6. PAYMENT OF FEES
Payment of approved items on the invoice shall be mailed to the Contractor pri
to the 30th day of the month the invoice was submitted.
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w 7. CHANGES IN WORK
If, in the course of the contract, changes seem merited by the Contractor or
City, and informal consultations with the other party indicate that a change in
conditions of the contract is warranted, the Contractor or the City may request a char
in contract. Such changes shall be processed by the City in the following manner:
letter outlining the required changes shall be forwarded to the City by Contractor
inform them of the proposed changes along with a statement of estimated changes
charges or time schedule. A Standard Amendment to Agreement shall be prepared
the City and approved by the City according to the procedures described in Carlsb
Municipal Code Section 3.28.172. Such Amendment to Agreement shall not renc
ineffective or invalidate unaffected portions of the agreement.
8. COVENANTS AGAINST CONTINGENT FEES
The Contractor warrants that their firm has not employed or retained a
company or person, other than a bona fide employee working for the Contractor,
solicit or secure this agreement, and that Contractor has not paid or agreed to pay a
company or person, other than a bona fide employee, any fee, commissio
percentage, brokerage fee, gift, or any other consideration contingent upon, or resultir
from, the award or making of this agreement. For breach or violation of this warranl
the City shall have the right to annul this agreement without liability, or, in its discretio
to deduct from the agreement price or consideration, or otherwise recover, the f
amount of such fee, commission, percentage, brokerage fees, gift, or contingent fee.
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- 9. NONDISCRIMINATION CLAUSE
The Contractor shall comply with the state and federal laws regard
nondiscrimination.
IO. TERMINATION OF CONTRACT
This agreement may be terminated by either party upon tendering thirty (:
days written notice to the other party. In the event of such suspension or terminatit
upon request of the City, the Contractor shall assemble the work product and put sa
in order for proper filing and closing and deliver said product to City. In the event
termination, the Contractor shall be paid for work performed to the termination d2
however, the total shall not exceed the fee payable under paragraph 4. The C
Manager shall make the final determination as to the portions of tasks completed E
the compensation to be made.
1 I. CLAIMS AND LAWSUITS
The Contractor agrees that any contract claim submitted to the City must
asserted as part of the contract process as set forth in this agreement and not
anticipation of litigation or in conjunction with litigation. The Contractor acknowledc
that if a false claim is submitted to the City, it may be considered fraud and 1
Contractor may be subject to criminal prosecution. The Contractor acknowledges ti
California Government Code sections 12650 et seq., the False Claims Act, provides
civil penalties where a person knowingly submits a false claim to a public entity. The
provisions include false claims made with deliberate ignorance of the false informat
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L or in reckless disregard of the truth or falsity of information. If the City of Carlsbad see
to recover penalties pursuant to the False Claims Act, it is entitled to recover
litigation costs, including attorney's fees. The Contractor acknowledges that the filing
a false claim may subject the Contractor to an administrative debarment proceedir
wherein the Contractor may be prevented to act as a Contractor on any public servic
contract for a period of up to five years. The Contractor acknowledges debarment I
another jurisdiction is grounds for the City of Carlsbad to disqualify the contractor fro
the selection process. (Initial)
The provisions of Carlsbad Municipal Code sections 3.32.025, 3.32.021
3.32.027 and 3.32.028 pertaining to false claims are incorporated herein by reference
(Initial)
12. STATUS OF THE CONTRACTOR
The Contractor shall perform the services provided for herein in Contractor's ow
way as an independent contractor and in pursuit of Contractor's independent callin{
and not as an employee of the City. Contractor shall be under control of the City on1
as to the result to be accomplished, but shall consult with the City as provided for in th
request for proposal. The persons used by the Contractor to provide services under thi
agreement shall not be considered employees of the City for any purposes whatsoever
The Contractor is an independent contractor of the City. The payment made tc
the Contractor pursuant to the contract shall be the full and complete compensation tl
which the Contractor is entitled. The City shall not make any federal or state ta
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L withholdings on behalf of the Contractor or hidher employees or subcontractors. 1
City shall not be required to pay any workers' compensation insurance
unemployment contributions on behalf of the Contractor or hidher employees
subcontractors. The Contractor agrees to indemnify the City within 30 days for any t
retirement contribution, social security, overtime payment, unemployment payment
workers' compensation payment which the City may be required to make on behalf
the Contractor or any employee or subcontractor of the Contractor for work done unc
this agreement or such indemnification amount may be deducted by the City from 2
balance owing to the Contractor.
The Contractor shall be aware of the requirements of the Immigration Ref0
and Control Act of 1986 and shall comply with those requirements, including, but I
limited to, verifying the eligibility for employment of all agents, employec
subcontractors and Consultants that are included in this agreement.
13. CONFORMITY TO LEGAL REQUIREMENTS
The Contractor shall cause all final reports to conform to all applicat
requirements of law: federal, state and local. Contractor shall provide all necess;
supporting documents, to be filed with any agencies whose approval is necessary.
Contractor agrees to allow City or its designated representative to monitor, auc
review, and examine the methods, procedures, and results of Contractor.
14. OWNERSHIP OF DOCUMENTS
All plans, studies, sketches, drawings, reports, and specifications as here
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- required are the property of the City, whether the work for which they are made
executed or not. In the event this contract is terminated, all documents, pla
specifications, drawings, reports, and studies shall be delivered forthwith to the Cii
Contractor shall have the right to make one (1) copy of the plans for hidher records.
15. REPRODUCTION RIGHTS
The Contractor agrees that all copyrights which arise from creation of the w8
pursuant to this contract shall be vested in City and hereby agrees to relinquish
claims to such copyrights in favor of City.
16. HOLD HARMLESS AGREEMENT
Contractor agrees to indemnify and hold harmless the City of Carlsbad and
officers, officials, employees and volunteers from and against all claims, damag
losses and expenses including attorney fees arising out of the performance of the wl
described herein caused in whole or in part by any willful misconduct or negligent ad
omission of the contractor, any subcontractor, anyone directly or indirectly employed
any of them or anyone for whose acts any of them may be liable, except where caus
by the active negligence, sole negligence, or willful misconduct of the City of Carlsbac
Contractor shall at his own expense, upon written request by the City, defe
any such suit or action brought against the City, its officers, officials, employees a
volunteers. Contractor’s indemnification of City shall not be limited by any prior
subsequent declaration by the contractor,
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i 47. ASSIGNMENT OF CONTRACT
The Contractor shall not assign this contract or any part thereof or any mon
due thereunder without the prior written consent of the City.
48. SUBCONTRACTING
If the Contractor shall subcontract any of the work to be performed under t
contract by the Contractor, Contractor shall be fully responsible to the City for the a1
and omissions of Contractor's subcontractor and of the persons either directly
indirectly employed by the subcontractor, as Contractor is for the acts and omissions
persons directly employed by Contractor. Nothing contained in this contract st-
create any contractual relationship between any subcontractor of Contractor and t
City. The Contractor shall bind every subcontractor and every subcontractor of
subcontractor by the terms of this contract applicable to Contractor's work unle
specifically noted to the contrary in the subcontract in question approved in writing
the City.
19. PROHIBITED INTEREST
No official of the City who is authorized in such capacity on behalf of the City
negotiate, make, accept, or approve, or take part in negotiating, making, accepting,
approving of this agreement, shall become directly or indirectly interested personally
this contract or in any part thereof. No officer or employee of the City who is authorizc
in such capacity and on behalf of the City to exercise any executive, supervisory,
similar functions in connection with the performance of this contract shall becorr
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directly or indirectly interested personally in this contract or any part thereof.
20. VERBAL AGREEMENT OR CONVERSATION
No verbal agreement or conversation with any officer, agent, or employee of
City, either before, during or after the execution of this contract, shall affect or moc
any of the terms or obligations herein contained nor entitle the Contractor to E
additional payment whatsoever under the terms of this contract.
21. SUCCESSORS OR ASSIGNS
Subject to the provisions of Paragraph 18, "Hold Harmless Agreement,"
terms, conditions, and provisions hereof shall inure to and shall bind each of the part
hereto, and each of their respective heirs, executors, administrators, successors, a
assigns.
22. EFFECTIVE DATE
This agreement shall be effective on and from the day and year first writt
above.
23. CONFLICT OF INTEREST
The City has determined, using the guidelines of the Political Reform Act and tl
City's conflict of interest code, that the Contractor will not be required to file a conflict
interest statement as a requirement of this agreement. However, Contractor here'
acknowledges that Contractor has the legal responsibility for complying with tl
Political Reform Act and nothing in this agreement releases Contractor from tk
responsibility.
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24. INSURANCE
The Contractor shall obtain and maintain for the duration of the contract and :
and all amendments insurance against claims for injuries to persons or damage
property which may arise out of or in connection with performance of the w
hereunder by the contractor, his agents, representatives, employees or subcontracto
Said insurance shall be obtained from an insurance carrier admitted and authorized
do business in the State of California, with the exception of the consultar
Professional Liability Insurance. The insurance carrier is required to have a currc
Best's Key Rating of not less than "A-:VI and shall meet the City's policy for insuran
as stated in Resolution No. 91-403.
A. Coveraqes and Limits.
Contractor shall maintain the types of coverages and minimum lim
indicated herein, unless a lower amount is approved by the City Attorney or C
Manager:
1. Comprehensive General Liability Insurance. $1,000,000 combinc
single-limit per occurrence for bodily injury, personal injury and property damage. If tt
submitted policies contain aggregate limits, general aggregate limits shall apF
separately to the work under this contract or the general aggregate shall be twice tk
required per occurrence limit.
2. Automobile Liability (if the use of an automobile is involved f
contractor's work for the City). $1,000,000 combined single-limit per accident for bodi
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injury and property damage.
3. Workers' Compensation and Employer's Liability. Worke
Compensation limits as required by the Labor Code of the State of California ai
Employer's Liability limits of $1,000,000 per accident for bodily injury.
4. Professional Liability. Errors and omissions liability appropriate
the contractor's profession with limits of not less than $500,000 per claim. Covera
shall be maintained for a period of five years following the date of completion of t
work.
B. Additional Provisions.
Contractor shall ensure that the policies of insurance required under tl
agreement contain, or are endorsed to contain, the following provisions.
I. The City shall be named as an additional insured on all polici
excluding Workers' Compensation and Professional Liability.
2. The contractor shall furnish certificates of insurance to the C
before commencement of work.
3. The contractor shall obtain occurrence coverage, excludi
Professional Liability which shall be written as claims-made coverage.
4. This insurance shall be in force during the life of the agreement a
any extension thereof and shall not be canceled without 30 days prior written notice
the City sent by certified mail.
5.
\
If the contractor fails to maintain any of the insurance coverac
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,. required herein, then the City will have the option to declare the contractor in breach
may purchase replacement insurance or pay the premiums that are due on exisi
policies in order that the required coverages may be maintained. The contract0
responsible for any payments made by the City to obtain or maintain such insurai
and the City may collect the same from the contractor or deduct the amount paid fr
any sums due the contractor under this agreement.
25. RESPONSIBLE PARTIES
The name of the persons who are authorized to give written notices or to rece
written notice on behalf of the City and on behalf of the Contractor in connection v
the foregoing are as follows:
For City: Title: Senior Management Analyst, Info Sys Project
Name: Jeanne Flack
Address. City of Carlsbad, 1200 Carlsbad Village Drive
Carlsbad, CA 92008
For Co n t ract o r : Title. ?%TU@/\Z YAi (A I- iu SGLn CV
Address: 37 bo ' ~(>~<b~~l <- a' &33
5,Aki n\6c3G , C.A 97m I
Name: (&zL/ \-!tgL L I Mc;,
26. BUSINESS LICENSE
Contractor shall obtain and maintain a City of Carlsbad Business License for 1
duration of the contract.
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27. ENTIRE AGREEMENT
This agreement, together with any other written document referred to
contemplated herein, embody the entire agreement and understanding between I
parties relating to the subject matter hereof. Neither this agreement nor any provisi
hereof may be amended, modified, waived or discharged except by an instrument
writing executed by the party against which enforcement of such amendment, waiver
discharge is sought.
f
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19% Executed by Contractor this 4 nr day of -, XUUg -.------'
CONTRACTOR: CITY OF CARLSBAD, a municipal
X~C~~US~?CI-/ LC>
(name of Contrac:tor)
By: &&&a ATTEST:
(sign here) ll-LitL a.$& -
I_ ----______. ____ _.__ GARY HELL~NG ALETEA L. R4.U NKRANZ Partner City Clerk
(Proper no!ariaf ac.k;nowic:dgnlent of exec=u!ion iiy Contractcr rnust be attached.)
(President or vice-presichnt and secretzry or assistant secretsry must sign for corpc
tions. If only one cfflcei' Zjiyns, the ccrpoiation rn~ist attach a resolution certified by
secretary or assistant secretary under corporate seal empowering that officer to b
the corporation.)
APPROVED AS TO FORM:
RONALD R. BALL
City Attorney
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CALIFORNIA ALL-PUR I@ SE ACKNOWLEDGMENT 0
personally appeared
Cl personally known to me - OR - ldoved to me on the basis of satisfactory evidence to be t@
whos-)&re subscribed to the within inst6
and acknowledged to me thaehelthey executed
same i-er/their authoriz@$-W$(ies), and thai
mher/thm3(s) on the i-ent thm
or the entity upon behalf of which tvr-s) act
executed the instrument
S my hand and official seal
Tjhough the information below is not required by law it may prove valuable to persons relying on the document and could preb
fraudulent removal and reattachment of this form to another document
Description of Attached Document
Title or Type of Document -tohi t??& u-.k&kBEfi&flF
DocumentDate Jdb'L? Yi 1 93& . Number of Pages N
Signer(s) Other Than Named Above hDk'c
L d Individual Individual
I 1 Corporate Officer
;J Partner - Limited /General Partner - Limited General ' Attorney-in-Fact Attorney-in-Fact
' Corporate Officer
Title( s) / Title(s)
, Guardian or Conservator Guardian or Conservator
__ . - .___- 1 1 Other ____- ~ __.__
__ __- . ____---
Signer Is Representing Signer Is Representing
XD &USOLT-L @G-
__ __ __ --.
0 1995 Ndtional Not i y A I'rod N) ',W/
ATTACBMENT P
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CITY OF CARLSBAD
PROPOSAL FOR
IMPLEMENTATION PROJECT MANAGEMENT
TABLE OF CONTENTS
1.
II. PROJECT SCOPE
111. BUSINESS COMPUTING SYSTEM IMPLEMENTATION: WORKPLAN
IV. STAFFING
V. PROFESSIONAL FEES AND TIMING
VI. REFERENCES
APPENDICES:
I NTRO D UCTIO N
i
Appendix A: Phase I Project Team
Appendix B: Projected Time Commitments
PLAN FOR PROCESS IMPROVEMENTS
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INTRODUCTION
XDconsulfing is pleased to present this proposal to provide the City of Carlsbad b
consulting services. XDconsulfing specializes in specifying, selecting and implement
software and hardware solutions for their clients. The purpose of this introduction is to g
you a brief overview of the key points in our proposal and describe why we feel our firm c
most effectively help the City succeed in this important project.
OUR UNDERSTANDING
Based on our discussions, we understand that the City of Carlsbad is in the process
defining its strategic plan and mission statement. A significant component of tl
strategic plan’s implementation is to have the required management tools to oper2
effectively. Your project team has just completed the process of evaluating busine
processing systems. Bi-Tech Software, lnc. has been selected to provide financ
information systems software and associated support, operating on an HP 901
platform.
The City of Carlsbad is now looking for an implementation consulting firm to assist
project team in managing the design, installation and conversion to Bi-Tech Softwar
Inc. The target installation date for the financial system is January 1997, with tk
human resources segment to be completed by September 1997.
WHY XDconsuiting?
XDconsulfing is comprised of seasoned consultants who specialize in systems consultin
We were very successful in the implementation of Bi-Tech software in another client’s si
in San Diego. We know the software, its capabilities and the challenges that arise in ii
implementation. We also understand your environment, having performed projects in th
past with the Cities of Encinitas, La Mesa, and San Diego as well as other loci
governmental agencies. We have the experfise fo successfully implement your project!
We are recommending that XDconsulfing be chosen to conduct both the implementatio
and the process improvement project (fo be decided by fbe Cify in separafe evaluations
The City of Carlsbad’s decision to utilize Bi-Tech Software, Inc. encourages the rc
evaluation of the City’s business processes. During the course of software implementatior
decisions about business processes will be made which require a firm grasp of the City’:
needs. These “needs” will be challenged during the process improvement phase.
Even though we understand that the selection is to be made in two selections, wc
recommend that the architect of the City’s business processes and the Bi-Tech system bf
the same. This synergy is invaluable. Utilizing a single firm eliminates duplicate learnin!
curves and the possible miscommunication of the City’s needs between multiple parties
XDconsulfing is unique in having the expertise to successfully complete both pieces.
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In this proposal, which is for the Bi-Tech Implementation only, we have provided referen
that reflect the depth of our experience with projects similar to that proposed for the Cit
Carlsbad. All members of our proposed project staff have relevant project experience
our references consist entirely of projects staffed, in whole or in part, by XDconsultii
project team.
Additionally, XDconsulting has the training and experience of the large internatic
consulting firms at the lower price of a small, focused firm. The consultants proposed
this project have over 30 years of combined experience. Finally, XDconsuRing is wt-
independent of any other business entity and has no association, financial
organizational, with any hardware or software company. This makes us comple
objective to assist the City during the course of this project.
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PROJECT SCOPE
SYSTEM IMPLEMENTATION
We understand the project’s scope includes the implementation of Bi-Tech’s Interad
Fund Accounting System (IFAS) as well as the Human Resource and Payroll modull
The specific application modules to be implemented include:
General Ledger, NUCLEUS, Accounts Payable / Encumbrance, Account:
Receivable I Cash Receipts, Check Management, Person / Entity Database, AD
HOC Reporting / Budget Models, Click Drag & Drill, Job / Project Ledger, Budge
Item Detail, Purchasing, Payroll, Human Resources, Position Control and Fixec
Assets.
The City of Carlsbad’s goal is to structure the project in two phases: the IFAS systc
installed by January 1997 followed by Human Resources and Payroll by Septemt:
1997.
provide detailed technical project assistance for the firsf phase (IFAS implementatic
of the project and high-level technical assistance for the second phase (HRIS/F
implementation). In the past, involvement in second phases of implementation projec
is not as extensive due to the transfer of knowledge and procedures to client personn
XDconsuffing’s role will include assisting your project manager and team in the analy:
of your business processes in light of the capabilities of the Bi-Tech software. Th
analysis will result in specific team recommendations and the resulting tasks requirc
to complete the implementation of each phase. We will also assist the Project Manag!
in development of a detailed, Bi-Tech-specific workplan to accomplish implementatic
within the required timeframe. A projection of team assignments is contained
Appendix A and an estimate of the hour requirements for each resource group
included in Appendix B.
Our involvement with the implementation of Bi-Tech software would be
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PROJECT WORKPLAN
Based on our understanding, we have developed an initial project workplan wh
breaks your implementation into four task groups:
0 Project Coordination: Includes the initial development of a detai
implementation plan, on-going project management activities, participation
meetings, problem resolution and management of vendor activities.
0 Infrastructure Development: Includes all aspects relating to the Informal
Systems platform including; hardware, connectivity, client workstations, databz
management, application code and other systems operations requirements.
0 IFAS Implementation (Phase I): Implementation of all the core account
applications. Includes designing the high level accounting structure, configuring 1
software, identifying BPI candidate processes, modifying control, intetfacl
conversion of data, training, testing, and final cut-over.
0 HRIS/Payroll Implementation (Phase 11): Implementation of all Human Resoui
and Payroll applications. Includes designing the high level approach, configuring 1
software, identifying any related BPI candidate processes, modifying contr
interfaces, conversion of data, training, testing, and final cut-over. Data convers
in this phase tends to be more complex and demanding.
A summary of the key sub-tasks under each task group is presented below.
projection of hours by each task group required for completion of the implementation
both phases in included in Appendix B at the end of this document.
PHASE I: PROJECT COORDINATION
0 Develop Detailed Implementation Plan
0 Perform Project Management Activities
0 Attend Project Team Meetings
0 Resolve Key Project Issues
0 Manage Vendor Activities
PHASE II: INFRASTRUCTURE
0 Identify & Design Modifications
0 Develop Customer Modifications
0 Install Hardware
0 Install Software: O/S and RDB
0 Install Software: Applications
0 Complete Connectivity and Emulation
0 Test System
0 Perform Stress Tests (With Bi-Tech)
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PHASE 111: IFAS IMPLEMENTATION
Attend Initial Training (Hell Week)
Perform High Level Design
Identify BPI Candidate Processes
Implement Nucleus Module
Implement Accounts Payable
Implement Purchasing
0 Implement Accounts Receivable
0 Implement Fixed Assets
Implement Budgeting
Develop and Test Interfaces
Design Forms
0 Perform Period Testing
0 Cutover to New System
PHASE IV: HRlS AND PAYROLL IMPLEMENTATION
0 Review, Update and Test HRIS/Payroll System
Implement HRlS
Implement Payroll
Design and Acquire Forms
*
O Develop and Test Interfaces
0 Design Forms
Test Final Integration
Perform Period Testing
0 Cutover to New System
0 Perform Post-Implementation Review
Implement G/L and Financial Reporting
Develop and Test Conversion Tools
Develop and Test Conversion Tools
1
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STAFF I N G
We are proposing the use of four consultants who bring their expertise to the unic
aspects of the project and provide diversity in experience. We have identified ’
different sets of skills required to make the City’s project successful:
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0
Financial system experience, specifically in non-profit and municipal environment
Knowledge of the full scope of City business functions, including Public Safety, C
Clerk, Planning and Public Works and how they relate to the financial systems.
Recent experience with modern technology alternatives, such as complex clk
server network strategies and the software available in the marketplace.
Project management and vendor negotiation skills, that will guide the City to
successful completion of the project, as well as a good working relationship with t
selected hardware and software vendors.
Business process improvement experience ranging in scope from workflow analy’
to reengineering.
e
To meet these diverse needs, we can offer the City a perfect combination of experien
and skills.
Mr. Gary Helling, a founding partner of XDconsulfing, will be the project manager ai
the City’s primary contact. He will provide detailed project management assistance ar
oversee all aspects of the project through its completion. Mr. Helling has over ’
years’ experience in finance management and financial application systems. He h:
selected and/or implemented a wide variety of financial packages over the last tc
years, including work with the City of La Mesa, the San Diego Unified Porf Disfricf, tl
San Diego MTDB and The Scripps Research Institute. Mr. Helling will be responsib
for working with the City to define specific requirements for financial and accountir
areas.
As Project Manager for the Scripps Research lnsfitufe Bi-Tech implementation, M
Helling oversaw all aspects of the project including, initial designs, team selection an
assignment, management of task completion and resolving issues between Bi-Tect
the project team, IS and other vendors. TSRl continues to be one of Bi-Tech’s mo:
successful clients. His other experience includes recent projects for Physio-Confrc
Corporafion, Channel! Commercial Corporation, I VAC Corporation, Del Mi
Thoroughbred Club and Dura Pharmaceuficals. Prior to co-founding XDconsulfing, M
Helling was a manager with Deloiffe & Touche and was responsible for Financiz
Information Management consulting in their San Diego office. He is a Washingtoi
State CPA and holds an MBA from the University of Washington,
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Geri Johnson, who will serve as a staff consultant, has over 13 years of experience
information technology and management consulting, with an emphasis on public sec
clients. She has significant expertise in the design and implementation of businc
systems, specializing in large, complex enterprise-wide systems. She has also work
on several business process improvement projects. Before joining XDconsulting, F
Johnson was a manager with Deloiffe & Touche, Los Angeles, working on large mL
year system development projects.
For Community Care Nefwork, lnc., Ms. Johnson participated in a company-wi
Business Process Improvement project. The project included ten targeted improvemc
areas. Each business area was analyzed and a ‘before’ and ‘after’ design highlighl
changes in workflows and reduced costs. One of the new designs utilized an E-N
system to eliminate most paper forms which were sent throughout the organization
the customer service process. In addition, Ms. Johnson researched the off
automation tools which would work best with the existing hardware and networks.
Ms. Johnson has assisted the San Diego Unified Porf District’s Department in
detailed review of the current systems supporting work scheduling, cost tracking a
management information. The review included Requirements Gathering and a G
Analysis comparison of the requirements against the current systems. During t
review, Ms. Johnson documented the current workflows and identified many areas
improvement for management. Currently, Ms. Johnson is assisting the Maintenan
Department with development of automated purchase requisitions and integration w
the Pod’s centralized Purchasing department. Ms. Johnson will be responsible
designing the new workflow and managing the change to the new system.
Ms. Johnson holds a B.S., Economics from the University of California, lrvine anc
Graduate Degree, Business Systems Analysis, from the University of California, lrvinc
Ms. Jessica Toth, a consultant with XDconsulting, will act as a project consultant. S
has over nine years of varied consulting experience, including business proce
reengineering, system strategies and software development. Prior to her work w
XDconsulfing, Ms. Toth held positions with Hewleft-Packard and Texas lnsfrumer
and, as an independent consultant, supported process improvement initiatives in hor
mortgage, utilities and high technology companies.
Ms. Toth was involved in the work of three internal organizations for Texas lnstrumen
all in the area of business process redesign. These included: process innovatic
where she participated on a select reengineering team in Tl’s semiconductor busine:
working to reduce cycle time through the order fulfillment process; methodology ai
training development, where she contributed to the development of 77’s reengineerii
methodology and training material; and software tool development, which involved tl
identification of user requirements for a reengineering software tool.
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For American Residential Morfgage, Ms. Toth facilitated a cross-functional, multi-le
team in defining new rules of engagement for financing mortgages. The team desigr
the loan origination process of the future and planned the implementation with p
projects and information system changes. For San Diego Gas & €/ecfric, Ms. Tc
developed an approach and led the high-level process analysis for the IT departme
She also facilitated the redesign of the IT order fulfillment process and contributed
company direction-setting discussions at the officer level.
Ms. Toth received her B.S., Operations Research and Industrial Engineering, frc
Cornell University and a Master of Science Degree, Management, from MIT’s Slo
School of Management. She also participated in the International Business Progra
University of Copenhagen.
Mr. Michael Carlson, a recent addition to the XDconsulfing organization, will al:
serve as a project consultant for the City. He brings more than 10 years of experienc
to XDconsulfing, with a strong background in finance, strategic planning ar
opera t io na I eff i cie n cy.
Mr. Carlson’s recent experience includes conducting financial analyses for a nation
health care provider network to expand into additional markets, using net present valu
methodology. Prior to this engagement, he was Vice President of Operations fc
Credco, /nc./US Bancorp, where he managed the reengineering of one of the nation
largest credit reporting production centers. Mr. Carlson administered a $28 millio
operating budget and improved time service by 45%.
Prior to his role as Vice President of Operations, Mr. Carlson was Vice President (
Gredco’s Instant Merge operation, where his responsibilities included strategi
planning, sales and operating budget forecasts for four product lines, produc
enhancements and new business opportunity analyses, with profit and 10s
responsibility. Additionally, he developed and managed accounting, administrative an1
customer service areas. As Corporate Project Analyst at Credco, Mr. Carlson wa
responsible for financial forecasting, pricing strategies and market research, as well a
budget projections and cash management for eight regional production offices.
Mr. Carlson holds an MBA in Finance from San Diego State University and a B.A. (Cun
Laude) from Luther College in Iowa.
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PROFESSIONAL FEES AND TIMING
PROFESSIONAL FEES
The following table summarizes the hours assigned to each task from our propos
workplan. Detail of these hours is provided in the Workplan section of this propos
Based on this workplan, our fee estimates are:
We will perform work under this agreement on a time and materials basis. Professioi
services will be billed at a rate of $150 per hour for partners, $125 for consultants a
$40 for paraprofessional assistance. We will also bill for actual out-of-pocket expens
for travel, subsistence, copying, fax, telephone, etc. that are directly incurred throu
our performance of this project.
We are willing to present a not-to-exceed price of $85,000 as detailed aboi
Implementation projects vary widely in levels of complexity based on the requir
project scope. During implementation the scope tends to vary from the initial plan
new system functionality is discovered or the need for modifications is raised. Based
these circumstances it is very important to manage project scope and measi
changes in terms of the effect on the overall project.
The scope of our involvement is specifically defined ‘in this proposal and is significar
dependent on the full-time Project Manager hired for this project. Significant changes
project scope or level of involvement could require additional work and will have to
evaluated at that time. XDconsulting will present scope change issues to the City
consideration and resolution before commencement of related work.
At the end of each month, we will bill you for the actual time spent on the project duri
the month. Our invoices will itemize the time spent by task and by staff member. C
invoices will also include actual expenses, as discussed above, and will not exce
$5,000 for the project (including two trips to the Bi-Tech offices in Chico, Californi
The terms of our invoices are Net 30 days.
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XDconsulfing is prepared to perform work outside of the agreed workplan if specific
requested and approved in advance by the City of Carlsbad. As customary, thl
additional services, authorized by the City, will be billed on a time and materials b:
at the quoted hourly rates.
TIMING
We are prepared to start work within one week of your acceptance of this proposal
the start date is changed, the schedule will be adjusted accordingly.
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REFERENCES
THE SCRlPPS RESEARCH INSTITUTE
CONTACT: DONNA WESTON (619-554-3400)
XDconsulfing assisted this medical research institute in the selection of
comprehensive business system, accessible by several hundred users. We were tt-1
selected to manage the implementation of the application system, including migration
a client server environment. The project was completed within time and under budge
We oversaw all aspects of TSRl’s Bi-Tech implementation, including initial desigr
team selection and assignment, management of task completion and resolving issu
between Bi-Tech, the project team, IS and other vendors. TSRl continues to be one
Bi-Tech’s most successful clients.
COMMUNITY CARE NETWORK, INC.
CONTACT: BLAINE FAULKNER (61 9-654-21 45)
XDconsulting recently assisted this organization with a critical Business Proce
Improvement project. The company targeted $1 million in cost savings and the r
engineering project concentrated on policy and procedure changes that WOL
streamline the organization and realize financial results within one year.
Other projects XDconsulfing has performed for this large Preferred Provider healthca
organization have included: detailed requirement definition; system design; alternatil
analysis and system selection for a claims processing system; organization
reengineering of the Information Systems Department; Business Process lmprovemer
data modeling of existing systems and requirements gathering for other specializ(
systems.
DEL MAR THOROUGHBRED CLUB
CONTACT: MIKE ERNST (619-792-4225)
XDconsulting recently completed an Information Systems Strategic Plan for the Del M:
Race Track. The Strategic Plan encompassed systems and automation needs for i
business areas in the company. The final plan outlined the strategic projects thi
needed to be completed, prioritized the projects and documented a long-ten
technology strategy.
XDconsulfing also assisted the Thoroughbred Club with project management oversigl
of selected strategic projects. This included selection and implementation of a GI
Shop point of sale system, selection and implementation of a Purchasing system
selection of a network contractor, design and implementation of a track-wide networ
and creation of a new internal MIS department.
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SAN DIEGO UNIFIED PORT DISTRICT
CONTACT: ROBERT BACLAGAN (61 9-291-3900)
XDconsulfing was retained to manage the implementation of a custom-develol
Oracle-based integrated finance and payroll system. The implementation include1
migration from proprietary systems to a client server environment. The project v
completed within time and budget.
IVAC MEDICAL SYSTEMS
CONTACT: LYNN CONGEMI, DIRECTOR OF 1NFORMATlON SYSTEMS (619-458-7760)
XDconsulting is assisting this manufacturer of intravenous pumps (a former Eli L
subsidiary) in the definition of system requirements and the selection of
compreh’ensive, integrated finance, manufacturing and field service system. T
project also includes the re-engineering of underlying business processes. IVAC i:
multi-national manufacturing company and XDconsulting was responsible for gatheri
requirements across all manufacturing locations, including Europe.
XDconsulting’s partners and staff members have also had substantial syster
implementation and process improvement consulting with several public sector clier
including the Cities of San Diego, La Mesa and Encinitas.
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THE CITY OF CARLSBAD
BUSINESS COMPUTING SYSTEM IMPLEMENTATION
Appendix A: Phase I Project Team
Lisa Hildabrand
Gordon Peterson
Project Manager
IS Application Support
Budgeting and Appropriations
Financial Reporting
Project/Program Cost Accounting
Accounts Payable
Fixed Assets
Human Resources: Personnel
Human Resources: Application Tracking
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THE CITY OF CARLSBAD
BUSINESS COMPUTING SYSTEM IMPLEMENTATION
Appendix B: Projected Time Commitments
Perform Project Management Activities
Attend Project Team Meetings
Install Hardware
Install Software: O/S and RDB
Install Software: Applications
Complete Connectivity & Emulation
ttend Initial Training (Hell Week)
Perform High Level Application Design
Identify BPI Candidate Processes
Implement Nucleus Module
Implement G/L & Financial Reporting
Implement Accounts Pa ya b I e
Implement Purchasing
Implement Fixed Assets
implement Budgeting
Develop & Test Conversion Tools
Develop & Test Interfaces
Perform Period Testing
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THE CITY OF CARLSBAD
BUSINESS COMPUTING SYSTEM IMPLEMENTATION
Appendix B: Projected Time Commitments (cont.)
Review, Update and Test HRiS /
Implement Payroll
Design and Acquire Forms
Develop and Test Conversion Tools
Develop and Test Interfaces
Perform Period Testing
Cutover to New System
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CITY OF CARLSBAD
PLAN FOR PROCESS IMPROVEMENTS
lNTRODUCTlON
The City of Carlsbad will begin its process improvement efforts with the Purchasini
Accounts Payable area. This is a well-bounded, manageable area. The followii
estimates are based on our perception of the limited breadth of this area. Be awa
that it is not uncommon to begin analyzing a specific area and then migrate to adjace
areas that impact the target area. Inefficiencies in the adjacent areas typically come
light in this way and it is often not advisable to ignore them.
Scope
We understand that the City would like to increase efficiency and customer service
Purchasing / Accounts Payable. Our assessment of the effort it will take to make the:
improvements are based on the following observations. While the process impac
many people, it is not unwieldy in size. The area is not in need of comple
reengineering: it is not about to grind to a halt with process inefficiencies. Also, to tl-
extent that City management is open to relaxing some external constraints, this w
help the team come up with a clean redesign. (Or experience is that when the mo
obvious areas for change can not be touched because of external factors, it MUSE
the team to spend extra time and effort figuring out how to work within the bounds.)
1
XDconsulting 16 5/29/96
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SETTING THE STAGE
Project Structure
Process owner: Lisa Hildabrand
0 Facilitator: Jessica Toth
This team will be composed of customer(s) of the process, representative(s) from
process’s staff and a facilitator. Two to three days a week, the team will work a h<
day together. In addition, team members may be required to work up to half a day e:
week outside of team hours. We will look for four to six team members, including 4
facilitator.
Approach
With the Bi-Tech system implementation on the horizon, we are racing the clo
Ideally, we will have the new processes documented before the system goes ir
Purchasing. Along the way, the process improvement and systems teams will
keeping each other informed of their findings. In some cases, the City of Carlsb
representative on the systems team will also be a process improvement team membei
The facilitators will provide bi-weekly updates to the Steering Committee. Whe
Jeanie Flack’s schedule permits, she can also participate as a process improveme
team member.
Steering Committee: Jeanie Flack, Lisa Hildabrand, Lee Rautenkranz
Team: team members chosen from inside and outside the process area
(
XDcon sulf ing 17 5/29/96
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WORKPLAN
A description of the tasks involved in each of the four phases is given below.
lnifiafe fhe Project
Interview the process owner and Steering Committee.
Pick the team. In choosing team members, often personality and a combination
analytic skills and “big picture“ perspective are more important than the specific ar
in which they work. For this reason, this document does not identify t
organizational groups, but rather the characteristics required (see last section).
Understand the Process
Document the current process and its requirements. This will be achieved throu!
team meetings and one-on-one interviews.
e Outline customer needs. Identify which activities are required, value-adding, ei
Look for redundancies and excessive hand-off s.
Define key business objectives and identify supporting measurements (“metrics”) th
monitor how well those objectives are met. Establish ultimate goals for each of tk
metrics (e.g., two days from time purchase requisition is created until it is approved i
rejected).
Put procedures in place to measure the process on an on-going basis. Tear
members will lead this effort.
Design New Process
Design and document the new process. We will do creative thinking exercises an
learn about how the process is done elsewhere. We may benchmark too -- i.e
compare metrics with others in city management. An integral part of this step will bl
outlining how roles, skills, measurements and incentives must change.
Cross-check the redesign against system characteristics, looking for an
inconsistencies. The XDconsulfing time includes time from the systen
implementation team.
XDconsulting 18 5/29/96
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4
Transition the Business
e Build the case for action. For example, determine the cost of customers' comn
work-arounds which will be eliminated with the redesign.
Develop the improvement plan. We may take a phased approach or simply pres
the new procedures to the people who will be impacted. Either way, communica!
is important -- if people don't buy-in, they won't allow the redesign to succeed. At 1
point, we will also set the mechanism in place for continuous improvement.
q Implement changes. This may involve pilot projects depending on the scale of 1
changes.
Measure the results. This will be done by Purchasing staff and team members ove
time.
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XDconsulting 19 5/29/96
DESIGN THE MEW PROCESS
o Design and document new process
+ Cross-check redesign against system
TRANSITION THE BUSINESS
v Build case for action
+ Develop improvement plan
+ Implement changes
+ Measure results
TOTAL
45 IO
18 2
c
20 5
30 10 L
15 5 €
1
187 38 15
L 1 a a
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4+
0. P%ROFESSIONAL FEES AND TIMING
Professional Fees
The following table summarizes the hours assigned to each task from our propo
workplan. Detail of these hours is provided in the Workplan section of this proposal.
We will perform work under this agreement on a time and materials basis. Professio
services will be billed at a rate of $1 50 per hour for partners, $1 25 for consultants a
$40 for paraprofessional assistance. We will also bill for actual out-of-pocket expens
for travel, subsistence, copying, fax, telephone, etc. that are directly incurred throu
our performance of this project.
We are willing to present a not-to-exceed price of $28,125 as detailed abo\
Implementation projects vary widely in levels of complexity based on the requir
project scope. During implementation, the scope tends to vary from the initial plan
new system functionality is discovered or the need for modifications is raised. Bas
on these circumstances it is very important to manage project scope and meax
changes in terms of the effect on the overall project.
The scope of our involvement is specifically defined in this proposal. Significa
changes to project scope or level of involvement could require additional work and M
have to be evaluated at that time. XDconsulfing will present scope change issues
the City for consideration and resolution before commencement of related work.
At the end of each month, we will bill you for the actual time spent on the project durir
the month. Our invoices will itemize the time spent by task and by staff member 0
invoices will also include actual expenses, as discussed above, and will not excec
$2,000 for the project. The terms of our invoices are Net 30 days
XDconsulfing 21 5/29/96
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d
L XDconsulfing is prepared to perform work outside of the agreed workplan if specific;
requested and approved in advance by the City of Carlsbad. As customary, th(
additional services, authorized by the City, will be billed on a time and materials bc
at the quoted hourly rates.
Timing
We are prepared to start work within one week of your acceptance of this proposal
the start date is changed, the schedule will be adjusted accordingly.
i
XD c o n s u If in g 22 512 9/9 6
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ROLE DESCRIPTIONS
e Team member characteristics:
- Respected as business expert
- Process stakeholder
- Understands culture
- Business change champion
- Able to affect change
- Analytical skills
- “Big picture” perspective
- Interpersonal skills
- Technology awareness
e Process owner responsibilities:
- Lead the change effort
-
-
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Communicate developments to upper management and the board
Make hard choices if necessary
Manage the process after it has been implemented
e Steering Committee responsibilities:
-
-
-
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Provide vision and direction to the team
Able to provide resources needed by the team
Willing to challenge fundamental assumptions
Has credibility with the rest of the business especially when implementing
change
Able to accept risk and make decisions on “big picture” issues -
t
XD c o n s ul f in g 23 5/29/91