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HomeMy WebLinkAboutAmendments to Professional Services Agreement - Reductions and Expansions to Scope of ERP System – Crowe LLPH 1316 COUNTY -CITY BUILDINGCf u 227 W. JEFFERSON BOULEVARD PEACE SOI ITH BEND. INDIANA 46601-1 830 �• 0� CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR BOARDU LIC WORKS December 19, 2019 Ms. Jeanne M. Owings Crowe LLP 330 E. Jefferson Blvd. South Bend, IN 46601 RE: Amendments to Professional Services Agreement Dear Ms. Owings: PHONE 574/235-9251 FAx 574/235-9171 The Board of Public Works, at its meeting held on December 19, 2019, approved the above referenced agreement for reductions and expansions to the scope of the ERP system in the amount of ($103,700) for a new total of $2,870,300. Enclosed please find the original of the contract for your signature. Please sign and return the original agreement to our office and retain a copy for your records. If you have any further questions regarding this matter, please call this office at (574) 235-9251. Sincerely, ' Xl� l Linda M. Martin, Clerk Enclosure GARY A. GILOT GENEVIEVE E. MILLER ELIZABETH A. MARADIK LAURA L. O'SULLIVAN THERESE J. DORAU Exhibit A Statement of Work Number 001 Page 1 of 8 1. Client/Contract: Board of Public Works of the City of South Bend, IN. This Statement of Work outlines the Reductions and Additions to the Scope of the City of South Bend ("the City") ERP Replacement Project resulting from Prototyping activities during the Configure Phase. This Statement of Work is subject to the City of South Bend Services Agreement for Enterprise Resource Planning Services Agreement effective October 9, 2018. The terms of the Contract are hereby incorporated into this Statement of Work. 2. Description of Services and Tasks During Prototyping and other discussions, the City of South Bend and Crowe identified certain system customizations that, after both parties having learned more about the ERP system and the City's business needs, have been eliminated from the original project scope and that the City has requested to be added to the scope of the project as noted below. The breakdown of this Statement of Work includes the following: A. Credits for Requirements Removed from Scope • Removal of Data Conversions • Removal of Interfaces • Removal of the Inventory Module from scope B. Additional Requirements Added to Scope • 3Interfaces 1 Customization Crowe will perform design, development and testing services for the additional scope consistent with the original Statement of Work. A. Credits for Requirements Removed from Scope Reductions of Scope Throughout the project, the Crowe team and the City have identified an additional 7 specific requirements / areas that are no longer required and are no longer in scope. Since these items have been removed, Crowe will credit the City for not implementing the requirements/areas listed below. 1 INV-420 ' Data Conversion Item Master The City has decided not to implement inventory in Dynamics, and this conversion as no longer needed, 2 INV-430 Data Conversion Inventory Locations & The City has decided not to implement On Hand Balances inventory in Dynamics, and this conversion is no longer needed. , Iir Page 1 3 BUD-245 Data Conversion 4 INV-440 Interface 5 INV-450 Interface 6 BUD-245 Interface 7 N/A Implementation Activities • Data Conversion Credit • Interfaces Credit Inventory Implementation Credit Total Credit: ($89,100) Jobs & Positions The City has decided not to use personnel cost projections in Budget Planning, and an automated conversion for this is no longer needed. 3. Fleet Management The City has decided not to implement (Inventory Values) inventory in Dynamics, and this interface is no longer needed. 4. Gas Boy (Inventory) The City has decided not to implement inventory in Dynamics, and this conversion is no longer needed, 12. HR Positions and The City has decided not to use personnel Salary Costs cost projections in Budget Planning, and this interface is no longer needed. Implementation of the The City has decided not to implement Inventory module in inventory in Dynamics, and the following Dynamics ; activities will not be executed as a result of this decision: • Inventory conference room pilot preparation and execution Inventory training sessions ($12,000) ($38,100) ($39,000) Please note we ripd not rernove any support hours because of the scrape reduction. B. Additional Requirements Added to Scope Additions to Scope Throughout the project, Crowe and the City have identified 4 additional specific requirements / areas that are to be added into the scope of the implementation. Below are the types of Interfaces and customizations captured during this process: 3 Interfaces • 1 Customization Below we have provided details regarding each of the changes. Crowe and the City will review and mutually agree on the disposition of each item before it is finalized and deployed to the production environment. nlli vve Page 2 Additions to Scope I Enhancements The following are the requested changes. Interface Procurement Post Cutover 7 & Sourcing Dynamics I the Inventory module, the City Vendor File would like to send the Dynamics with Faster for Vendor File to Faster so that the $12,500 Inventory vendors can be used when 2 75720 Interface Accounts Post Cutover Payable 3 75283 Interface Accounts Post Cutover Payable inlerTao vvnn the aecision to not implement Purchases purchasing inventory from Faster. Interface With the decision to not implement Inventory the Inventory module, the City Invoice would like to bring in payments to Journals from be made to vendors for inventory Faster to purchased through the Faster Dynamics 365 system as Invoice Journals that will include actual Dynamics vendors as the Payee (see item # 1 above) that will result in payments being made to their inventory vendors.. Interface The City would like to bring in Invoice refunds of overpayments and Journals from deposits from enQuesta, the new enQuesta utility billing system, as Invoice (Utility Billing) Journals that will result in to Dynamics payments being made to their 365 customers. $14,000 $8,300 4 75799 Customization Fixed Assets : Add 'Division' The City would like to add the operating unit Division code to the Fixed Asset to the fixed table to enable further definition of asset table ownership and to better meet report sorting needs. $1,200 Please note, Crowe assumes that the Division Operating Unit will not be added to any reports Total Additions. $36,000 Total Additions: $36,000 Crowe Page 3 Interface Descriptions 1. Dynamics Vendors to Faster (for Inventory Purchases) Source: Dynamics 365 Target: Faster Frequency: As needed Direction of Integration: One-way Summary: The City needs the ability to integrate vendor information from Dynamics 365 to Faster. This is needed to support purchasing processes that will be performed in Faster. Below is a summary of the expected interface: • Crowe assumes that the vendor export file from Dynamics to Faster will be three flat files. • Crowe assumes that no mapping tables are required in Dynamics. Crowe assumes that Faster will accept all values in the flat file from Dynamics. • Crowe assumes that vendor information, vendor addresses, and vendor contact information will be included in the flat file interface. • Crowe assumes that the interface will flag inactivated vendors for Faster. • Crowe assumes that the interface will pass a complete list of all vendors, vendor addresses, and vendor contacts. • This interface will be implemented after cutover. Crowe and the City will mutually agree on the timing of implementing this interface — based on the timing of the City's Faster implementation. 2. Inventory Invoice Journals from Faster to Dynamics 365 (Fleet management) Source: Faster Target: Dynamics 365, Accounts Payable Frequency: As needed Direction of Integration: One-way Summary: The City needs the ability send Invoice Journals from their fleet management system (Faster) to Dynamics to be processed and paid. Below is a summary of the expected interface: • Crowe assumes that the City will provide a flat file that will conform to the Dynamics format. • Crowe assumes that no mapping tables are required in Dynamics. Crowe assumes all values in the flat file will match applicable values in Dynamics. • Crowe will develop an interface that passes invoice transactions from Faster to Dynamics 365 as an AP Invoice Journal within Dynamics. • Crowe assumes that Faster will send Dynamics 365 the following information: Valid vendor ID, Invoice ID, method of payment, transaction date, quantity, unit price, remittance information, and all applicable accounting information (valid account segment values). • This interface will be implemented after cutover. Crowe and the City will mutually agree on the timing of implementing this interface — based on the timing of the City's Faster implementation. Crowe Page 4 3. Invoice Journals from enQuesta (Utility Billing) Source: enQuesta Target: Dynamics 365, Accounts Payable Frequency: As needed Direction of Integration: One-way Summary: The City needs the ability to send Invoice Journals from their new utility billing system (enQuesta) to Dynamics to be processed and paid. Below is a summary of the expected interface: • Crowe assumes that the City will provide a flat file that will conform to the Dynamics format. • Crowe assumes that no mapping tables are required in Dynamics. Crowe assumes all values in the flat file will match applicable values in Dynamics. • Crowe will develop an interface that passes invoice transactions from enQuesta to Dynamics 365 as an AP Invoice Journal within Dynamics. • Crowe assumes that enQuesta will send Dynamics 365 the following information: Valid vendor ID, Invoice ID, method of payment, transaction date, quantity, unit price, remittance information, and all applicable accounting information (valid account segment values). • Crowe will write additional logic in the interface to systematically create a new vendor in Dynamics if a new vendor ID comes over from enQuesta that doesn't exist in Dynamics. Note: It is assumed that the enQuesta file will include the vendor remit -to addresses, method of payment, and payment terms. Please note, Crowe will treat this as one interface. • This interface will be implemented after cutover. Crowe and the City will mutually agree on the timing of implementing this interface — based on the timing of the City's enQuesta implementation. Please note, it is anticipated that this interface will leverage some of the code developed for interface #2 above (Inventory Invoice Journals from Faster to Dynamics 365. It is also assumed that the Faster interface will be developed and implemented before the one with enQuesta. Should the enQuesta interface be implemented first, we would flip the costs associated with Interfaces #2 and #3. 3. Assumptions: 1. The City will make resources available to assist in the development and testing of any changes that were added to scope. 2. The City will make resources available to review and approve the functional designs associated with the new changes being added to scope. 3. It is assumed that the new interfaces included in this SOW will be delivered post cutover. Crowe and the City will work together to determine the timing. It is assumed that the fixed asset customization will be delivered by the end of conference room pilot so it can be tested prior to cutover. The City will communicate the timing of the changes to all functional area owners impacted. 4. City functional area owners will be responsible for signing off on their respective changes at the end of conference room pilot testing (or after cutover, if the item will be delivered post- cutover). Crowe Page 5 5. The City will deploy resources as needed to assist with the testing of the changes to Dynamics outlined in this change order, once the Crowe development team makes them available for testing during Conference Room Pilot or post-cutover. 6. No additional post -implementation support hours have been factored into this change request. 7. The Crowe Project Manager will integrate the work of this SOW into the Master Project Plan, including any of the standard project management artifacts and communication tools disseminated on a regular basis (status report, etc.). 8. This statement of work does not alter the overall project schedule or timeline for cutover in April, and all milestone dates remain as originally scheduled. 4. Fees and Billing: Based on discussions with the City, Crowe will provide the services described in this Statement of Work for a reduction of our original firm fixed fee of $53,100, the amount of the net credit as calculated below. The following fees, credits and revisions to DEDs detail the revised costs to deliver the stated functionality described in the Description of Services and Tasks section. Total Credit Amount: ($89,100) 1 1 Additions to Scope — Interfaces / Enhancements $36,000 Total Additions to Scope: $36,000 Total Net Credit Amount ($53,100) . Crowe Page 6 Milestones The following is a summary of the milestones outlined in the original SOW and SOW#1 that are affected by the changes in scope. We have outlined the original milestones from the original SOW and SOW#1, along with the revised milestones that take into account the changes in scope a net credit of $53,100. Crowe and the City will work together to determine how to apply the credit. Milestones Before the Changes in Scope 12: Integration Development & Testing (part 2) $106,850 19: Data Conversion Development & Testing (part 2) $84,000 24: Conference Room Pilot Preparation (part 3) $77,900 25: Conference Room Pilot (first month) $103,000 26: Conference Room Pilot (second month) $103,000 27: Conference Room Pilot (final signoff) $103,000 28: End User Training (first set of classes) $92,000 29: End User Training (second set of classes) $92,000 TOTAL $761,750 Revised Milestones - After the Changes in Scope 12: Integration Development & Testing (part 2) $68,750 19: Data Conversion Development & Testing (part 2) $72,000 24: Conference Room Pilot Preparation (part 3) $68,900 25: Conference Room Pilot (first month) $97,000 26: Conference Room Pilot (second month) $97,000 27: Conference Room Pilot (final signoff) will include the Division customization $98,200 28: End User Training (first set of classes) $86,000 29: End User Training (second set of classes) $86,000 Post Cutover: 2 Faster Interfaces *'New Milestone " $26,500 Post Cutover: Utility Billing Interface "New Milestone $8,300 TOTAL $708,650 COST REDUCTION ($53,100) Crowe, Page 7 5. Authorization: If the services to be performed by Crowe and the terms of this Statement of Work as described above are acceptable, please provide authorization to proceed by returning one copy of this document, signed by the appropriate official of the City of South Bend. SOUTH BEND CROWE LLP (Client) (Crowe) Signed w._.._..... .........._,.,....e.... Signed _...,...,. Printed Printed ........ Title _._ ..........� Title Date Date Crowe' �< Page 8 Exhibit A Statement of Work Number 001 Page 1 of 8 1. Client/Contract: Board of Public Works of the City of South Bend, IN. This Statement of Work outlines the Reductions and Additions to the Scope of the City of South Bend ("the City") ERP Replacement Project resulting from Prototyping activities during the Configure Phase. This Statement of Work is subject to the City of South Bend Services Agreement for Enterprise Resource Planning Services Agreement effective October 9, 2018. The terms of the Contract are hereby incorporated into this Statement of Work. 2. Description of Services and Tasks During Prototyping, the City of South Bend and Crowe identified certain system customizations that, after both parties having learned more about the ERP system and the City's business needs, have been eliminated from the original project scope and that the City has requested to be added to the scope of the project as noted below. The breakdown of this Statement of Work includes the following: A. Credits for Requirements Removed from Scope • Removal of Interfaces • Removal of Preformatted Forms • Removal of System Modifications B. Additional Requirements Added to Scope • New or Changed Labels / Fields • System Modifications • Reports/Inquiries • Interfaces Crowe will perform design, development and testing services for the additional scope consistent with the original Statement of Work. Crowe P.ge A. Credits for Requirements Removed from Scope Reductions of Scope Throughout prototyping, the Crowe team and the City have identified 11 specific requirements / areas that are no longer required and are no longer in scope. Since these items have been removed, Crowe will credit South Bend for not implementing the requirements/areas listed below. 1 iNV-450 Interface 2 FA-190 Interface 3 FA-200 Interface 4 FA-205 interface 5 PG-900 Interface 6 PG-905 Interface 7 AR-320 Form 8 PG-480 Form 9 AR-340 Form 10 N/A System Modification 11 N/A System Modification Cash Receipt (Gas This is included in another interface for Boy) _ _- Cash Receipts from Multiple City systems. 9. Fixed Assets The City has decided that this interface is (Collective no longer needed. There are not enough Quartermaster) assets created to warrant this interface. 10. Fixed Assets/Cash , The City has decided that this interface is Receipt (City Works) no longer needed. There are not enough assets created to warrant this interface. 11 Fixed Assets The City has decided that this interface is (Maximo) no longer needed. There are not enough assets created to warrant this interface. 13. Project ID's The City is unable to capture this information at this time so no interface is required. 14. Labor Cost by The City is unable to capture this Project information at this time so no interface is required. Customer Statement The City will generate Customer statements on an ad -hoc basis rather than recurring basis. Project Invoice (for The City determined that the project reimbursement or invoice proposal form was unnecessary for drawdown of funds) a mostly internal use document. Collection Letter The City uses a collection agency for its collection process and does not issue collection letters itself. Recurring General The City has decided that this requirement Ledger Schedule can be satisfied by Out of the Box (Requirement 186-187) functionality. Therefore this enhancement is cancelled. Contract Payment The City has decided this enhancement Schedule would not be needed, and would be in (Requirement 466) violation of statute if the enhancement was implemented. • Interfaces Credit ($67,200) • Forms Credit ($21,600) • System Modifications Credit ($32,700) Total Credit: ($121,500) Tease note we did not remove any support hours because of the scope reduction. 1'. O CC Page 2 B. Additional Requirements Added to Scope Additions to Scope Throughout prototyping, the Crowe team and the City have identified 11 specific requirements / areas that are to be added into the scope of the implementation. Below are the types of enhancements captured during this process: • 1 nterfaces • New Fields • Label Changes • Reports/Inquiries • System Modifications Below we have provided details regarding each of the enhancements. Crowe and the City will review and mutually agree on the disposition of each enhancement before they are finalized and deployed to the production environment. Additions to Scope I Enhancements The following are system modifications to Dynamics 365 for Finance & Operations. 1 59653 Interface Accounts Receivable N 3 4 51514 Customization Projects & (Label Change) Grants 50918 Customization ; Procurement (New Field) & Sourcing 49342 Customization Accounts (Report/Inquiry) Payable Billings from The City would like to bring in the $10,800 other systems billings from the Utility Billing Software into DFO (TBD), Accela, RecTrac, TriTech, ADSI, Elemos, TicketForce, and Parking Ticket application (TBD) systems to which Cash Receipt Journals can be matched. Rename Project Dynamics out of the box has three $8, 00 Controller to fields on the project form for tracking Project individuals who can leverage the "My Engineer Projects" list page. Those are Project Manager, project controller, and sales manager. The City has asked to change the label on Project Controller to Project Engineer. This way the engineer assigned to the project can leverage the "My Projects" filtered list page. New LGBTE The City would like to add the LGBTE $4,500 field on Vendor designation as a new field on the Master and Vendor Master and add the ability to LGTBE select the new field on the Vendor designation on Profile. No other inquiry screens will be Vendor Profile modified Payment Report The City would like to enhance the $6,300 Modification SSRS Payment Journal Report to show the Invoice Description and reference the Purchase Order (if applicable) to facilitate Controller payment approval. Page 3 5 59651 Customization Inventory Add Warehouse The City would like to add the $700 (System to Master Warehouse code to the Master Modification) Planning Form Planning Form so that the form can be filtered by warehouse. No other inquiry screens will be modified 6 59650 Customization Inventory Check QTY on The City would like the Firm button on $4,100 (System Master Planning the Master Planning Form to infer the Modification) before Firming Max reorder quantity for an item, compare it to the Quantity on the Planned Order generated by the replenishment process, and if the Planned Order Quantity is greater, have the Planned Order put into Draft status and submitted by the user to Workflow for review and approval. 7 43895 Customization General General The City would like to modify the $1,100 (System Ledger Journals „ General Journal Form to make the Modification) Description Description field required when Required processing journal transactions. 46271 Customization Procurement Reason to flow The City would like the Reason from $8,600 (System & Sourcing from PR to PO the Purchase Requisition to flow onto Modification) the Purchase Order so that Purchase Orders can be routed through workflow based on the reason. 9 59652 Customization Fixed Assets Allow Non The City would like to enhance Fixed $1,100 (System Financial Book Asset transactions to allow the Non - Modification) for FA to post to Financial Book Option to select operating layer different posting layers so that the City can use the Operating Layer for posting Fixed Asset_ transactions. 10 59218 Customization Projects & PO Fund The City would like to override the $21,200 (System Grants Default with default of the Fund code from the Modification) Multiple Funding Vendor so that the system can infer Sources on the Fund code from the Project Project Contract Funding Source Details when a Purchase Requisition is being created. 11 51493 Customization Projects & Show all project A check box will be added to the $3,900 (System Grants expenses that Pasted Project Transactions List Modification) have A have not page that will be updated when a been capitalized project expense is capitalized through the Dynamics WIP T' l V lc ess _ Total Additions: $70,900 Total Additions: $70,900 Crowe Page 4 3. Assumptions: 1. Unless specifically agreed upon or stated otherwise, new fields will not be added to reports. 2. The City will make resources available to assist in the development and testing of any interfaces that were added to scope. 3. The City will make resources available to review and approve the functional designs associated with the new customizations being added to scope. 4. The enhancements included in this SOW will be delivered so they can be tested during Conference Room Pilot. The City will communicate the timing of the enhancements to all functional area owners impacted by the modifications. 5. City functional area owners will be responsible for signing off on their respective enhancements at the end of conference room pilot testing. 6. The City will deploy resources as needed to assist with the testing of the enhancements to Dynamics outlined in this change order, once the Crowe development team makes them available for testing during Conference Room Pilot. 7. No additional post -implementation support hours have been factored into this change request. 8. Any additional enhancements coming out of Conference Room Pilot will not be included in this change order. 9. The Crowe Project Manager will integrate the work of this SOW into the Master Project Plan, including any of the standard project management artifacts and communication tools disseminated on a regular basis (status report, etc.). 10. This statement of work does not alter the overall project schedule or timeline and all milestone dates remain as originally scheduled. 4. Fees and Billing: Based on the information gathered during prototyping sessions and subsequent discussions with The City of South Bend, Crowe will provide the services described in this Statement of Work for a reduction of our original firm fixed fee of $50,600, the amount of the net credit as calculated below. The following fees, credits and revisions to DEDs detail the revised costs to deliver the stated functionality described in the Description of Services and Tasks section. Total Credit Amount: ($121,500) ..._.. Additions to Scope — Enhancementent s L $70,900 Total Additions to Scope: $70,900 Total Net Credit Amount ($50,600) Milestones Crowe Page 5 The following is a summary of the milestones outlined in the original SOW that are affected by the changes in scope. We have outlined the original milestones from the original SOW, along with the revised milestones that take into account the changes in scope a net credit of $50,600. Crowe and the City will work together to determine how to apply the credit. Milestones from SOW #1 - Before the Changes in Scope 11: Integration Development & Testing (part 1) $128,000 12: Integration Development & Testing (part 2) $128,000 13: Customization Requirements & Design $26,000 14: Customization Development & Testing $56,000 15: Pre -formatted Forms Design and Development $98,000 24: Conference Room Pilot Preparation (part 3) $92,000 TOTAL $528,000 Revised Milestones - After the Changes in Scope 11: Integration Development & Testing (part 1) $106,850 12: Integration Development & Testing (part 2) $106,850 13: Customization Requirements & Design $32,850 14: Customization Development & Testing $76,550 15: Pre -formatted Forms Design and Development $76,400 24: Conference Room Pilot Preparation (part 3) $77,900 TOTAL $477,400 COST REDUCTION ($50,600) Crowe Page 6 5. Authorization: If the services to be performed by Crowe and the terms of this Statement of Work as described above are acceptable, please provide authorization to proceed by returning one copy of this document, signed by the appropriate official of the City of South Bend. SOUTH BEND CROWE LLP (Client) (Crowe) Signed Signed APPJQ VJW + rIcs Printed Printed 2`9 Title _ ..... Title Date«�...,..,,�....P.�. ,_.�u� .�, ».�...a� date Crowe Page 7 BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 12/9/2019 Name Matthew Coats Department Admin Finance BPW Date 12/17/2919 Phone Extension 5817 ��tmmu vyvvu�w mmmrtar ��r��u rsi�rsi�vrm�mM�mPa�nnnmr�� ... .....w._....... ........................... Re wired Prior to Submittal to Board _ BPW Attorney EJ Attorney Name Elliot Anderson Sandra KennedITITITITITITITITITITITITITITITITIT� ITIT Dept. Attorney Attorney Name Elliot Andersen Sandra Kennedy —......................... .. �...�w� Purchasing Michael Schmidt Check the Appropriate Item Twe — ❑ Professional Services Agreement ❑ Contract E] Open Market Contract ® Amendment/Addendum Bid Opening ❑ Bid Award ❑ Quote Opening E] Quote Award 0 Proposal Opening 0 C/O & PCA No. ❑ Chg. Order, No. F� Traffic Control E] Other: q ir Red Information All Submissions L j Proposal Special Purchase, QPA Req. to Advertise ❑ Reject Bids/Quotes PCA Resolution Ease./Encroach ❑ Title Sheei Company or Vendor Name Crowe LLP New Vendor E] Yes ppg No If Yes, Approved by Purchasing MBE/WBE Contractor ❑ MBE Completed E-Verify Form Attached No Project Name ERP lr�.ilementatioii� ........ rr_.....,,,, ........ Project Number Funding Source Other Professional Services . . Account No. 40406724153106 Amount......�. � `. _ . .. ............ .... ....: Terms of Contract N/A Purpose/Description This addendum reflects a net reduction of project costs after reductions and expansions to this project's scope of work. At this time, we do not wish to reduce the amount we expect to pay throughout the project and wish to kee the original project amount available to use in the project.See memo for ful context. For Change Orders Only Amount of Increase $ ❑ Decrease J$ ) Previous Amount $ Increase _ % Current Percent of Change: Decrease New Amount $ �................................................%.... Increase,�.m, �._w.... Total Percent of Change: Decrease ( % Time Extension Amount: New Completion Date: INNER -OFFICE MEMORANDUM �Department of Innovation & Technology City of South Bend 227 W Jefferson Blvd TO: Board of Public Works, Linda Martin CC: Daniel Parker, Benjamin Dougherty, Dan O'Connor FROM: Matt Coats SUBJECT: Addendum for ERP Implementation Project DATE: 12/13/2019 Linda and Members of the Board, We are submitting for approval an addendum to the Scope of Work with Crowe LLP for implementation of the Dynamics 365 Finance and Operations (DFO) ERP system. Over the course of the project, we have identified areas of the Scope of Work the DFO implementation team felt were no longer necessary while also discovering the need to expand the Scope of Work in other areas. The two documents attached to this request are the change - order documents provided by Crowe, and detail these reductions and expansions to scope. As reductions to scope have been greater than the expansions to scope, we have accumulated a credit of $103,700 against the original budget of $2,974,000. To account for this reduction of cost, Crowe wishes to reduce the amount they intend to invoice us for future deliverables, as described in the change order documents provided by Crowe. As amounts owed for deliverables was detailed in the Scope of Work, we bring this addendum to the Board given those amounts have now changed. Please note that while we do have a credit available for the project, we do not yet wish to reduce the total amount we have budgeted for the project. With more than six months remaining in our project timeline with Crowe, we are holding any credits accumulated within the project budget should we identify the need to expand Crowe's Scope of Work, such as but not limited to further software training, enhancements to the software, or support after go -live. Thank you, Matt Coats