Subject:
Title
Approval, re: Approval of Order Form for SAP S/4HANA Cloud Services, Private Edition and Order Form for SAP S/4HANA Migration Project.
End
Fiscal Impact:
SAP S/4HANA Cloud Services, private edition licenses (Order Form 3062672147)
FY24: $999,672.45 ($1,123,997.28 - April Signing Credit $124,325.83): funding is available.
FY25: $976,062.90 ($1,100,387.83 - April Signing Credit $124,325.83): funding is available.
FY26: $1,100,387.83
FY27: $1,100,387.83
FY28: $1,100,387.83
SAP S/4HANA Migration Project (Order Form 305182982)
FY24 and FY25: $2,748,791.01 ($2,668,791.01 plus ~$80,000 travel): funding is available.
Dept/Office:
Information Technology
Requested Action:
Recommendation
It is requested the Board of County Commissioners: (1) Approve SAP Order Form No. 3062672147 for the SAP S/4HANA Cloud Services, private edition; and (2) Approve SAP Order Form No. 305182982 for ECC to S/4 Conversion and Employee Central Cloud Implementation; and (3) Authorize the County Manager to execute the Order Forms, any subsequent related Order Forms, Agreements, Task Orders, Change Orders, Modifications, and Amendments. (4) Authorize the County Manager to establish the necessary budget to implement this required SAP upgrade and implementation.
End
Summary Explanation and Background:
The County has used SAP as their Enterprise Resource Planning (ERP) software since 1999. It is, without question, the County’s most important and critical application as most County financial transactions are processed through SAP, including payroll. Also, many County and Department specific applications tie into SAP to either retrieve or deposit data.
A significant upgrade to SAP was required in 2006 and completed. Another upgrade was recommended in 2013 and as a result of the pending expenses, alternatives to SAP were researched in 2012, in which all stakeholders including County staff and several constitutional offices were actively involved. Potential alternatives that were reviewed included Oracle, Workday, Lawson, Infor, SunGuard, and New World Systems. New World Systems was seriously considered but as details and negotiations continued, the option to change to a new application was abandoned and the 2013 SAP upgrade was implemented.
Another SAP upgrade is underway as the current version will become obsolete and unsupported in 2027. In 2019, the Board approved the initial backend database upgrade, which has been completed successfully and had little, if no, impact on the end user. The next step in this upgrade is much more significant and will change the end user experience considerably and is expected to be much more user friendly. The upgrade adds seamless connectivity to Human Resources’ Success Factors application and adds Employee Central, which is a new HR module. The upgrade also moves the application from County hardware to the SAP cloud. This cloud move allows the elimination of extremely high-performance enterprise hardware owned by the County, which is due for replacement, and also adds built-in, and more reliable, Disaster Preparedness for our most critical application, which was identified as a recommendation in a current security audit.
The SAP Order Form 3062672147 for the Cloud Services is the final step of the multi-year process of migrating the legacy SAP ECC 6.0 version to the new SAP S/4 HANA version. The SAP Order Form 305182982 will allow SAP to perform the migration and implementation services.
The attached SAP Order Form No. 3062672147 and 305182982 have been reviewed by the County Attorney’s Office, Risk Management, and Purchasing Services. Also attached is a copy of the existing SAP Professional Services Agreement.
Clerk to the Board Instructions:
If approved by the Board, please send Board Memo and executed SAP Order Forms to the Information Technology Department.