St. Pete ERP Sourcing Request for Proposal – Attachment 3 Submittal Response Form Page 1 of 70 Request for Proposal (RFP)

SUBMITTAL

RESPONSE FORM

ERP Software Selection

City of St. Petersburg

Table of Contents

St. Pete ERP Sourcing Request for Proposal Attachment 3 Submittal Response Form Page iii of 75

Introduction This document provides vendors with a template to fully detail how the proposed Solution will enable each respective business capability and service offering. The Vendor must provide their responses in this format. Failure to utilize this template could result in the Vendor’s submittal being deemed non-responsive and eliminated from further consideration.

This section provides the Vendor with the capability detail needed to determine the appropriate software component to propose and describe how the proposed software will be used to enable the capability. If no specific requirements are detailed in this section, the Vendor is expected to utilize their experience with similar Cities to propose and describe how the software will be utilized to meet standard municipality best practices. This section also provides a summary of the City’s current state for each capability and the major gaps and challenges the City faces in the current environment, providing the Vendor with background information that should be used in responding to the SOW.

This response is expected to be read in conjunction with A – Appendix A – Statement of Work of the Request for Proposal.

Instructions:

The Vendor must provide detailed responses describing how its proposed Solution will meet the Functional Capability Requirements as provided in this document. The Vendor is also expected to specifically describe how the Solution will close current technology gaps for each system capability. The Vendor’s response must directly pertain to the capability requirements requested without including extraneous content, such as marketing language related to broad or unrelated capabilities.

Please note that the City seeks a unified ERP suite to address the majority of the required capabilities outlined. If a vendor believes that a specific capability, such as Pension Capabilities or Loan Management Capabilities, can be effectively addressed with a third-party solution integrated into the core ERP suite, they are welcome to propose this as part of a comprehensive solution. At this point, the City will not consider vendors proposing solutions that address only specific capabilities without integrating others.

It is the Vendor’s responsibility to ensure that the information provided in the response sections is sufficient for the Evaluation Committee to score the Proposal. Unless otherwise indicated, the City reserves the right to evaluate the information provided in the response templates only without considering the attached documentation or links.

Do not change any of the existing text except within the “Vendor Response” area. Any changes to the existing language may result in the Vendor's disqualification.

Software Summary Describe the overall Solution being proposed, including all required software components and proposed integration within the proposed Solution. Detail how the proposed software components are selected, the partnership relationship with the other software vendor(s) involved, any contracting requirements related to the proposed software, and how the Vendor will collaborate with the other software vendors during and after Go-Live.

Vendor Response:

<Response is limited to three (3) pages>

Functional Requirements Manage Finance Perform General Accounting Current State The City utilizes Oracle EBS for its general accounting requirements, and while this functionality generally performs well, below are observations regarding the current state.

· The process for Subledger Accounting is currently manual and relies heavily on Excel for reconciliation and adjustments.

· Oracle EBS is used for lease accounting within the City for billing and collection purposes, but other processes (e.g., debt monitoring, benchmark, dashboards, lease, and SBITA accounting) are managed in a separate DebtBook system.

· Compliance with regulations is managed outside the ERP system using worksheets, reporting is manual.

· For project accounting, the Oracle EBS project functionality is used through a separate module. The City would prefer to have a separate tagging mechanism in the future to maintain projects but not the general ledger accounting string.

· The City uses TRS (The Reporting Solution, a part of Forvis Mazars), a third-party software, to handle fund accounting for external audited financial statements and regulatory reporting. Fund accounting is currently managed manually, with the budget and finance teams reviewing restricted areas at a high level to ensure correct expenditures.

0. System Capability Requirements The proposed Solution shall include but shall not be limited to the following functional capability requirements listed in the table below.

Table 1. Perform General Accounting Requirements

· Ability to generate project-level financial reports without manual intervention.

· Ability to tag projects in the system without the GL accounting string.

· Ability to automate reconciliation processes integrated directly with the GL.

· Alignment of CoA with State requirements.

Vendor Response to Capability Requirements Describe how the Solution will meet each of the capability requirements listed above.

Vendor Response:

<Response is limited to three (3) pages>

Key Gaps The City has identified the following gaps in the performance of General Accounting that need resolution in a future solution:

· Poor integration between subledger and general ledger systems with manual reconciliation of subledgers using Excel which is time-consuming and prone to errors.

· Inability for finance department to easily manage and control user access to specific modules or fields without having to make formal requests.

· The current Chart of Accounts is not aligned with the State, which results in manual crosswalks for regulatory reporting.

· The existing system is siloed and does not support seamless project accounting, manual conversion of project numbers to appropriate GL accounts is inefficient.

· Compliance is not done within the Oracle EBS system, managed outside, manually.

· Reporting is done with manual crosswalks for regulatory compliance, prone to human error and increasing data quality risks that could impact compliance.

· The current system does not support multiple sets of books needed for different reporting requirements, leading to reliance on external systems for comprehensive financial reporting.

· Lack of a centralized database leads to collection of data from multiple sources and manual data reconciliation.

· The current parameters set in the system for routing invoices are not always accurate. .

Vendor Response to Key Gaps Taking into consideration the current state and functional capability requirements, describe how the Solution will close specific gaps described above.

Vendor Response:

<Response is limited to one (1) page>

Manage Billing and Accounts Receivables Current State The following are observations on the City’s current state for managing billing and accounts receivables.

· Invoices and bills are posted to the general ledger and integrated with treasury to manage transactions, aid cash forecasts, and reconcile.

· The City uses multiple bank accounts for receipts, some bypassing the central cashier's office.

· Collections require daily manual reconciliation to match receipts from a sub-ledger, tracking overpayments and unapplied credits.

· Multiple customer profiles are created across departments for revenue collection.

· Late fee application is inconsistent across departments, managed manually via invoice templates, requiring adjustments and new account creation.

· The reconciliation process is manual, with data underutilized; automation is needed for efficiency.

· The monthly write-off process for bad debt is manual, requiring individual invoice adjustments.

System Capability Requirements The proposed Solution shall include but shall not be limited to the following functional capability requirements listed in the table below Table 2. Manage billings and accounts receivables Requirements

· Ability to process write-offs in batches.

· Ability to automate late fee calculations.

· Ability to automate daily reconciliation of receipts and bank transactions.

· Centralized customer profile management.

· Ability to fully utilize banking data for automated reconciliation and cash management.

Describe how the Solution will meet each of the capability requirements listed above.

Vendor Response:

<Response is limited to three (3) pages>

The City has identified the following gaps that need resolution in a future solution:

· Daily manual reconciliation of incorrectly processed receipts is time-consuming, taking 10 minutes to several hours, hindering efficiency.

· Outdated reporting tools are not user-friendly, making it hard for users to quickly find information, leading to inefficiencies and increased support reliance.

· Multiple customer profiles for a single user across departments cause confusion and complicate customer management.

· Lack of AR and AP integration requires creating a new AR account for refunds, making the process cumbersome and time-consuming.

· Manual write-off of bad debt requires individual invoice adjustments, making it labor-intensive and error prone.

· The AR system's lack of intuitiveness leads to frequent user queries and a steep learning curve, affecting productivity.

· The system lacks automated late fee calculation and application, requiring manual additions on invoice templates, increasing inconsistency and error risk.

Vendor Response to Key Gaps Taking into consideration the current state and functional capability requirements, describe how the Solution will close specific gaps described above.

Vendor Response:

<Response is limited to one (1) page>

Manage Treasury/Cash

The following are observations on the current system’s management of managing treasury/cash.

· The City uses daily monitoring and Excel spreadsheets to reconcile cash balances, comparing bank account figures with the general ledger to ensure alignment. This manual process focuses on tracking high-value transactions and addressing posting delays.

· The City manages its investments by aligning cash receipts with different portfolios that match specific funds. The process requires careful monitoring to ensure that cash is placed in the correct portfolios for investment purposes.

· The City utilizes “Tracker” a third-party software, for managing investment portfolios and conducting basic reporting and analysis. An Excel-based laddered portfolio approach helps forecast cash needs and plan strategic investments, considering future obligations like debt payments.

System Capability Requirements The proposed Solution shall include but shall not be limited to the following functional capability requirements listed in the table below Table 3. Manage Treasury/Cash Requirements

· Features to track and manage restricted funds, ensuring they are used only for their designated purposes.

· Advanced portfolio management functionalities that allow for automatic allocation of cash receipts to the correct investment portfolios.

· Automated reconciliation tools that can match cash receipts with the appropriate invoices and portfolios without manual intervention.

Describe how the Solution will manage treasury/cash and meet the requirements listed above.

Vendor Response:

<Response is limited to three (3) pages>

· The absence of integrated systems results in significant inefficiencies in tracking and managing cash. This complicates the ability to get real-time visibility into cash positions, impacting timely decision-making.

· The process of reconciling cash balances between the bank and the general ledger is labor-intensive, taking about an hour each morning.

· Delays in posting transactions and identifying the correct invoices lead to difficulties in aligning cash receipts with the general ledger. These delays can result in discrepancies between recorded and actual cash positions, complicating cash flow forecasting and financial planning.

· Cash receipts are not automatically matched with the appropriate investment portfolios, necessitating manual adjustments and increasing the risk of errors.

Vendor Response to Key Gaps Taking into consideration the current state and functional capability requirements, describe how the Solution will close specific gaps described above.

Vendor Response:

<Response is limited to one (1) page>

Manage Accounts Payable

The following are observations on the current system’s management of accounts payable.

· The overall process for managing invoicing and payments in place is functional, with established paths and approvals for digital invoices, check requests, recurring payments, and payment orders.

· The City has an Accounts Payable automated process in place; however, it involves multiple tools outside of Oracle EBS.

· The City issues a significant number of procurement cards (P cards), with transactions approved and coded within a separate system (JP Morgan Payment Net) before being imported into the general ledger monthly.

· An internally developed system manages travel and expense reimbursements, which are processed manually and applied to paychecks. Due to the low volume of travel and expenses, this system is not fully automated.

System Capability Requirements The proposed Solution shall include but shall not be limited to the following functional capability requirements listed in the table below Table 4. Manage Accounts Payable Requirements

· Robust audit trail that tracks every step of the invoice process, including who made changes and why.

· Real-time data transfer for payment processing, including ACH and wire transfers, to ensure timely and accurate financial records.

Describe how the Solution will manage accounts payable and meet the requirements listed above.

Vendor Response:

<Response is limited to three (3) pages>

· Manual changes to invoices or credits are difficult. If an error is found, the current process requires canceling the invoice and starting over, which is time-consuming and inefficient.

· Lack of real-time data transfer between modules, delays the reflection of transactions in the general ledger. This affects the efficiency of the accounts payable process.

· Challenges with the flow of invoices and payments due to multiple platforms, the process is cumbersome and not as streamlined as it could be.

· Limited audit trail capabilities without visibility into what or who made invoice changes.

· The process for managing 1099s is not well integrated. It involves pulling data out of the system and using Excel, which is inefficient and prone to human error.

Vendor Response to Key Gaps Taking into consideration the current state and functional capability requirements, describe how the Solution will close specific gaps described above.

Vendor Response:

<Response is limited to one (1) page>

Manage Service Delivery & Support Finance Relations Request

The following are observations on the current system’s management of service delivery and support finance relations requests.

· Finance has a robust intranet site with policies, procedures, and FAQs.

· Departments are responsible for keeping up with the site's policies and procedures. However, this is not enforced across departments. Updating and maintaining the site takes a lot of work.

· Email is how users communicate with Finance to resolve their questions and get help.

· The HR department is currently working on implementing a city-wide outreach communication tool that will have various communication channels (e.g., email, mobile device, text messages, etc.)

System Capability Requirements The proposed Solution shall include but shall not be limited to the following functional capability requirements listed in the table below Table 5. Service Delivery & Support Finance Relations Request Requirements

· Ability to integrate announcements within the Solution itself.

· Access to the Solution vendor(s) features training and new functionality to stay updated with system innovations.

· Ability to attach, store, and retrieve documentation associated with financial transactions.

· Chatbot capabilities to support adoption and system navigation.

· Ability for users to see customized reports and dashboards with role-related data (e.g., their budget vs actuals, their employees, etc.)

· Data visualizations and dashboard capabilities.

· Robust audit trail capability to gather information and drill down into it.

Describe how the Solution will manage service delivery, support finance relations and requests, and meet the requirements listed above.

Vendor Response:

<Response is limited to three (3) pages>

· Oracle's current document management system is cumbersome, requiring multiple steps to retrieve information, which affects efficiency, particularly for audit requests.

· The process of managing audit requests is time-consuming, as it involves pulling data from different sources (e.g., invoices from Oracle, checks from the bank, etc.).

· Auditors have access to the system but frequently have questions and difficulties finding the information needed as the system is not intuitive.

Vendor Response to Key Gaps Taking into consideration the current state and functional capability requirements, describe how the Solution will close specific gaps described above.

Vendor Response:

<Response is limited to one (1) page>

Manage Fixed Assets

The following are observations on the current system’s management of fixed assets.

· The City uses Oracle for asset acquisition, depreciation, retirement disposal, and transfers.

· Asset requests are processed through the procurement system, and there seems to be a standard asset acquisition and depreciation process.

· Departments use other systems, e.g., engineering uses a project management information system (PMIS) with a construction focus, and other departmental systems like M5 for fleet management.

· CAMP (Capital Asset Management Program) is an ongoing citywide project that aims to improve asset lifecycle management, budgeting, and maintenance.

· The GIS system is used to create and manage certain assets, including legacy assets that may not be fully represented financially.

· The City handles about 400-500 capital projects every year that are assets under construction.

System Capability Requirements The proposed Solution shall include but shall not be limited to the following functional capability requirements listed in the table below Table 6. Managed Fixed Assets Requirements

· Ability for simple asset creation process for complex projects.

· Ability to track all assets, including historical ones, ensuring they are accurately represented in financial records.

Describe how the Solution will manage fixed assets and meet the requirements listed above.

Vendor Response:

<Response is limited to three (3) pages>

· To manage invoices for assets under construction, users must create an asset in the system, but, due to the lack of user-friendliness, users struggle with the process and opt to not complete it.

· There is a significant amount of manual review involved in the process, particularly for determining depreciation life, which requires a lot of support from the finance department to other departments.

· The existence of multiple systems across departments leads to asset duplication and lack of reconciliation between them.

· There is a need for a system that can more easily break down complex projects into individual assets with their useful lives.

· Some assets, particularly older ones, may not be accurately represented in the financial system due to their age and the systems used to track them.

Vendor Response to Key Gaps Taking into consideration the current state and functional capability requirements, describe how the Solution will close specific gaps described above.

Vendor Response:

<Response is limited to one (1) page>

3.1.7 Manage Facilities

0.

1. Current State The following are observations on the current system’s management of facilities.

· Oracle Property Manager module is used for handling leases and tenant billing. It serves as a repository for contracts and financial documents.

· Oracle acts as a contract repository with some manual alerts for lease expirations. Manual processes are common for tracking non-financial deliverables and renewals.

· WACS aims to centralize work order management, though its implementation is ongoing. Departments not on WACs are using point solutions or manual paper-based methods.

· No systems currently exist for sustainability or energy tracking.

· Oracle is used for capital project financial tracking, while project management tasks are manual. PMIS interfaces with Oracle for financial data, with essential coordination from the Engineering Department for execution.

· Oracle manages internal purchase orders for central warehouse inventory, while departmental storerooms are often managed manually. Industry-specific systems are used for retail inventory management.

System Capability Requirements The proposed Solution shall include but shall not be limited to the following functional capability requirements listed in the table below Table 26. Manage Facilities Requirements

Describe how the Solution will perform capital planning and meet the requirements listed above.

Vendor Response:

<Response is limited to three (3) pages>

· Lack of comprehensive tracking for facilities and lifecycle management. Limited integration with separate systems like Dockmaster and Activenet for financial and operational data.

· Oracle lacks dynamic contract and lease management features like proactive notifications and deliverable tracking. Manual processes are needed for alerting and tracking non-financial deliverables.

· Manual and paper-based work order processes are prevalent, with limited but growing use of WACS.

· No existing systems for tracking sustainability metrics or energy usage. Lack of focus on sustainability goals and reporting.

· Manual handling of project management tasks like scheduling and resource allocation. Limited integration between project management and financial tracking, with reliance on the Engineering Department.

· Warehouse and Inventory Management: User-friendliness of Oracle is a concern, with complex navigation and limited reporting capabilities. Lack of integration between different inventory systems and real-time data exchange.

· Late fees are calculated differently for different types of invoices. The trigger lies in the customer profile but should lie within the invoice.

Vendor Response to Key Gaps Taking into consideration the current state and functional capability requirements, describe how the Solution will close specific gaps described above.

Vendor Response:

<Response is limited to one (1) page>

Manage and Process Payroll

The following are observations on the City’s current management and processing of payroll.

· The system consolidates payroll and pension functions, enabling management of payroll and pension deductions, taxes, garnishments, third-party filings, and payments.

· There is a division of responsibilities between the finance and human resources departments. The HR department handles the setup of salaries and pension structures, while the finance department manages payroll accounting records and ensures accuracy.

· The payroll system is complex due to the presence of multiple unions (6) with different negotiated pays.

· The current Oracle payroll system uses complex formulas that are technical and require IT assistance to update.

· There is an evaluation of potentially outsourcing some payroll functions, like check processing, to third-party vendors.

· There is an ongoing project to transition pension payments to a custodial bank, which will not be a requirement in the new ERP system.

System Capability Requirements The proposed Solution shall include but shall not be limited to the following functional capability requirements listed in the table below Table 7. Manage and Process Payroll Requirements

· Visibility into payroll formulas to understand what goes into calculations such as pensionable pay, gross pay, and taxable amounts.

· Ability to automatically notify (notifications features) payroll management of any changes that can impact employee pay such as title changes, eligibility for stipends, etc.

Describe how the Solution will manage payroll and meet the requirements listed above.

Vendor Response:

<Response is limited to three (3) pages>

· Lack of proactive notifications for changes in an employee's status that might affect their pay, such as job title changes. This results in manual tracking and potential errors in managing deductions and extra pay.

· The current process is custom and involves manual notifications.

· Lack of visibility into employee profiles, making it difficult to see all payments and deductions at a glance. This process currently requires contacting the technology department, which adds time and complexity.

· Lack of visibility into payroll calculations, including what goes into different calculations like future pensionable pay, gross pay, and taxable amounts. This lack of transparency makes it challenging to manage and update payroll records effectively.

· The current system involves manual processes for setting up new voluntary deductions and ensuring they flow through correctly, particularly for IRS filings. This adds complexity and potential for errors.

Vendor Response to Key Gaps Taking into consideration the current state and functional capability requirements, describe how the Solution will close specific gaps described above.

Vendor Response:

<Response is limited to one (1) page>

Perform Period Close

The following are observations on the current system’s management of performing period close.

· The month-end close takes about 10 business days, while a soft year-end close takes six weeks. A full audited year-end close spans five months due to departmental deadlines, year-end accruals, and external actuary reports.

· Financial reconciliation is part of the cycle close process, using a checklist of activities and control points. The City aims for government-wide financial consolidation, especially at year-end, integrating external data annually for a comprehensive financial view.

· The Oracle Grants accounting system allocates direct rates, while indirect cost rates apply only to specific projects.

· Cost allocation involves entering indirect rates for overheads like salary, fringe, leave, and other charges, including setting up multiple cost pools.

· Managing commitments involves establishing budget controls, spending and revenue amounts, and understanding pre-encumbrance and encumbrance.

System Capability Requirements The proposed Solution shall include but shall not be limited to the following functional capability requirements listed in the table below Table 8. Perform Period Close Requirements

· Ability to enhance the accuracy and efficiency of invoice coding.

· Ability to consolidate financials on a government-wide basis at year-end with real-time view reports capabilities.

· Ability to provide built-in communication tools to update users on the status of the closing process and send reminders for task completion to prevent delays.

· Ability for users (departments) to easily review pre-encumbrance and encumbrance.

Describe how the Solution will perform period close and meet the requirements listed above.

Vendor Response:

<Response is limited to three (3) pages>

· Managing labor distribution is functional but time-consuming and awkward.

· The current system's usability issues contribute to procrastination and delays in reviewing and adjusting data, particularly in labor distribution and financial reconciliation.

· There is a lack of effective communication within the ERP system to update users on the status of the closing process and to remind them of their tasks, which could lead to delays.

· There is a need for better tools to help departments review and manage commitments, such as pre-encumbrance and encumbrance, more effectively and frequently.

· The payables module not originally coding invoices correctly causes delays in the period close process.

Vendor Response to Key Gaps Taking into consideration the current state and functional capability requirements, describe how the Solution will close specific gaps described above.

Vendor Response:

<Response is limited to one (1) page>

Manage Grants and Loans Manage Grants Current State The following are observations on the current system’s management of Grants.

· The City uses Oracle primarily for financial management aspects of grants, such as setting up awards and tracking expenditures.

· Most other aspects of grant management, such as pursuing grant opportunities, managing applications, and overseeing compliance, are handled manually outside of Oracle through paper, shared drives, spreadsheets, and email.

· The City uses Neighborly to manage grants as a Grantor, while Grantee capabilities are mostly managed manually.

· The City is in the process of sourcing a Grants Management system with Grantee capabilities, if the ERP system does not meet the future state need capabilities, it should be able to integrate seamlessly with the new Grants system.

System Capability Requirements The proposed Solution shall include but shall not be limited to the following functional capability requirements listed in the table below Table 9. Manage Grants

· Ability to track and differentiate grant projects from other projects in the system (e.g., interlocal agreements, donations, etc.).

· Ability to create budgets, review, modify, and track.

· Ability to identify grant opportunities based on the City’s needs and pursue grant opportunities, manage award approval, application reminders, capture of application (incl. budget narrative), management and integration of attachments, submissions to other systems as appropriate.

· Ability to manage and store grant-related documents, allowing for collaboration, submission coordination, and tracking of document status, including submitted reports and reimbursements.

· Ability to assign different award types, grant designation, and interlocal agreement.

· Ability to manage sub-awards and sub-recipients, including reporting and performance tracking.

· Ability to track awarded grants, including disbursement schedules and reporting requirements.

· Ability to manage award acceptance. Link award acceptance to the awarded grant. Setup awarded grant (budget, receipt, and control). Notification (e.g., email) from Grantor on application status/award.

· Maintain a closed grant management site for the City to use but with the ability to allow outside sources to input data in it.

· Ability to track compliance requirements and perform risk assessments. The system should flag compliance requirements when processing payables against grants and when procuring goods and services.

· Ability to manage amendments to personnel, timeframe, and budget, budget management, project management, deliverables, dashboards on KPI, justify and request Grant disbursements, validate payments, and payment profiling.

· Ability to track and notify when performance and other required reports are due.

· Ability to integrate with payroll system for effort reporting and managing staff time charged to grants, addressing current challenges with split positions and allowable costs.

· Ability to provide read-only system access to auditors.

· Initiation of final payment/refund, final reconciliation of funds, closure of grant agreements.

Describe how the Solution will manage Grants and meet the requirements listed above.

Vendor Response:

<Response is limited to three (3) pages>

· Pursuing grant opportunities is entirely managed manually outside the ERP system. A labor-intensive process that has led to the City missing out on some grant opportunities.

· There is no seamless integration between Oracle and other systems for managing the entire lifecycle of grants.

· The current system lacks robust document management capabilities and tools for managing compliance requirements.

· There are challenges in managing sub-recipients and their reporting. The current process involves receiving reports in various formats (Excel, PDF, hard copies), making it difficult to consolidate and analyze data effectively.

· The interface between Oracle and Kronos only updates once a day, which can cause problems when trying to run payroll and get accurate information. This lag affects the ability to manage grants effectively in real time.

· The current system's user interface and navigation are not intuitive, making it difficult for users to efficiently manage grants.

· The process for managing audits and closing grants is not formalized within the current system, leading to reliance on external documents and tracking sheets.

Vendor Response to Key Gaps Taking into consideration the current state and functional capability requirements, describe how the Solution will close specific gaps described above.

Vendor Response:

<Response is limited to two (2) pages>

Manage Loans

The following are observations on the current system’s management of Loans.

· Loan application intake and processing is handled through Neighborly, as a system not integrated with Oracle.

· After approval in Neighborly, the information is manually entered into Oracle for disbursement.

· Loan servicing and payment management are primarily managed in Oracle, where loans are set up as customer accounts. The system handles different types of loans, such as amortized, deferred, or forgiven loans.

System Capability Requirements The proposed Solution shall include but shall not be limited to the following functional capability requirements listed in the table below Table 9. Manage Loans

· Ability to manage different types of loans, such as amortized, deferred, or forgiven loans, and set up appropriate billing schedules.