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HomeMy WebLinkAboutAmendment No 1 to Agreement - Provide Project Management for Utility Billing System - Arcadis U.S., Inc.1316 COUNTY -CITY BUILDING 227 W.JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 CITY OF SOUTH BEND JAMES MUELLER, MAYOR BOARD OF PUBLIC WORKS April 14, 2020 Amy Smitley PE Arcadis U.S., Inc. 150 W. Market Street, Suite 728 Indianapolis, IN 46204 r1 y.sinjfley rcadis,c rn RE: Amendment No. 1 to Agreement Dear Ms. Smitley: PHONE 574/235-9251 FAx 574/ 235-9171 The Board of Public Works, at its meeting held on April 14, 2020, approved the above referenced amendment to provide project management for the utility billing system in the amount of $407,950, with a new total amount of $818,160. Enclosed please find a copy of the amendment for your records. If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, s/Linda M. Martin, Clerk Enclosure GARY A. GILOT ELIZABETH A. MARADIK THERESE J. DORAU JORDAN V. GATHERS JOSEPH R. MOLNAR STANDARD AGREEMENT FOR PROFESSIONAL SERVICES Page 1 of 3 Between City of South Bend and ARCADIS U.S., Inc. Project Number: 30002334 AMENDMENT No. 1 An Agreement was executed on November 25, 2018 between the City of South Bend, Indiana [Client], having its principal place of business at 1316 County -City Building, South Bend, Indiana 46601, and Arcadis U.S., Inc. [Arcadis], having its principal place of business at 630 Plaza Drive, Highlands Ranch, Colorado 80129 and having an office at 150 West Market Street, Suite 728, Indianapolis, Indiana 46204. Under the Agreement, Arcadis provides certain professional engineering services related to the implementation of EnQuesta utility billing software system, including project management, quality control and testing, and technical support. Client and ARCADIS now desire to amend the Agreement to include the amended Services as described below. In consideration of the mutual promises in the Agreement, Client and Arcadis agree to amend the Agreement as the following: Schedule A-1, Scope of Amended Services. 2. Schedule B-1, Compensation for Amended Services. Other Provisions. Except as amended herein, all other provisions, terms and conditions in the Agreement shall remain in full force and effect. Execution Authority. This Amendment to the Agreement is a valid and authorized undertaking of Client and Arcadis. The representatives of Client and Arcadis who have signed below have been authorized to do so. IN WITNESS WHEREOF, the parties hereto have made and executed this Amendment to the Agreement as of this date: .2020. CITY OF SOUTH BEND BOARD OF PUBLIC N17ORKS Gary A. Gilot, P—id`ennt Llunboh A Mx dik, Member Th eve ..D u Membor to,danV� tt � Member h—ph R. M 7 -, 111-1- All ES I': �'nd cLraratn Ueda. M. M.Am. Clerk Arcadis U.S., Inc. By:p Title: Vice Presi lit)77 South Bend UB Implementation Support Amendment No. 1 v7 STANDARD AGREEMENT FOR PROFESSIONAL SERVICES Page 2 of 3 Between City of South Bend and ARCADIS U.S., Inc. Project Number: 30002334 AMENDMENT No. 1 Schedule A-1 Scope of Amended Services and Related Matters ENGINEERING SERVICES BY ARCADIS Project Management: Arcadis will continue to provide project management for the implementation effort as described in the Agreement Scope of Basic Engineering Services through the new planned October 2020 system deployment, which has extended approximately I I months from the original November 2019 deployment. Arcadis' original budget included 1220 hours for project management, which included a project manager at approximately 50% full time from January through December 2019 (assuming one month for post go -live support). The current level of effort had been about 60% full-time on average. 1350 additional project manager hours are being proposed for this Amendment, which will result in at least 24 project management hours per week (at least 60% full time allocation). This assumes two months of support at this level following the October planned deployment to support follow-on needs typical for these implementations. Quality Control and Testing: Arcadis will continue to support quality control (QC) and testing of the utility billing system as described in the Agreement and will provide an additional 250 hours of support via this Amendment. This is required due to the extended schedule and additional support known to be needed to fill City gaps. Technical Support: Arcadis will provide continued technical support for the data conversion efforts as described in the Agreement and will provide an additional 500 hours of technical analysis through the final cut -over of the new utility billing system. The data conversion technical support includes analysis and oversight of data cleansing activities, development of data auditing processes and reports, and coordination of data auditing between the City and S&S. The original effort budgeted under this task has been expended primarily supporting these activities after key transitions occurred within City staff. Report Development: Arcadis will provide report development services, which will free City resources to focus on integration testing activities for the new system. 600 hours have been budgeted for two report development resources assigned from our Global Excellence Center (GEC). Report Developer I will be provided at a billable labor rate of $35/hour and Report Developer 2 will be provided at a billable labor rate of $60/hour. South Bend UB Implementation Support Amendment No. 1 v7 STANDARD AGREEMENT FOR PROFESSIONAL SERVICES Between City of South Bend and ARCADIS U.S., Inc. Page 3 of 3 Number: 30002334 AMENDMENT No. 1 Schedule B-1 Amended Pricing Schedule The estimated budget for services under this Amendment No. 1 is indicated below. Task Description Budget Hours Labor Expenses Total 1 Project Management 1,350 $222,750 $25,400 $248,150 2 Quality Control and Testing 250 $37,500 $2,700 $40,200 3 Technical Support 500 $92,500 $3,600 $96,100 4 Report Development 600 $23,500 $0 $23,500 Total 2,700 $376,250 $31,700 $407,950 The overall limit of compensation under this Agreement for this option is as follows: Original Agreement Amendment No. 1 Overall Limit of Compensation $410,210 $407,950 $818,160 In addition to the hours listed above, Arcadis will provide the following additional hours at no cost to the City: Budget Task Description Hours Labor Value Expenses Total I Project Management — Additional 250 $47,950 $0 $47,950 Support 2 Quality Control and Testing— 80 $12,000 $0 $12,000 Additional Support 3 Technical Support— 80 $14,800 $0 $14,800 Additional Support Total Value 360 $74,750 $0 $74,750 Total Cost to City $0 $0 $0 South Bend UB Implementation Support Amendment No. 1 v7 ARICADIS rein�'Gta ultWuna,°°far natural and bu tt assets Al Greek Director of Utilities 3113 Riverside Drive City of South Bend, Indiana 46628 Subject: Utility Billing Implementation Support Extension Dear Mr. Greek: The purpose of this letter is to request a contract amendment to extend Arcadis' utility billing implementation support services and to provide background and justification for this request. The City selected the enQuesta Utility Billing software in late 2018 and engaged the software vendor Systems and Software (S&S) to implement the system starting in 2019. The project to -date has experienced a number of schedule delays that have resulted in a longer than planned project duration. A number of factors have contributed significantly to the delays that have been experienced to -date on the project, and these delays have caused Arcadis to require additional budget to be authorized to be able to continue to provide project management and related technical support services to the City. A summary of the items that have impacted Arcadis' effort is included below. Please note that this amendment does not consider any potential project impacts or delays caused by the coronavirus pandemic. During the design activities for the utility billing system, City staff identified a number of changes to the project scope as was defined in the vendor statement of work. While each of these changes will be beneficial to the City in the long run, they have collectively impacted the overall project schedule and utilized project management budget to process. Specific scope changes included: • Addition of Data Extraction Services to S&S Scope • Owner -Tenant Law Change • Routeware for Solid Waste Billing Change • DFO GL Interface Addition • Tokay Backflow Software Addition • CRM and GIS Interface Evaluations Arcadis U.S., Inc. 150 W. Market Street Suite 728 Indianapolis Indiana 46204 Tel 317 231 6500 Fax 317 231 6514 vwwv.arcadis.com Date: April 2, 2020 Contact: Michael Rotunno Phone: 330-515-5672 Email: Michael.Rotunno @arcadis.com Our ref: 30002334 Page: 1 /5 All Gireelk I[.)iiirecU:nir of If'u.ublliic u.Riilliitiies Alpiriill 2, 2020 Invoice Cloud as New Payment Provider Selection, requiring requirements definition and a new contract. Each of these scope change items required additional analysis, multiple rounds of discussion with S&S, administration of the change process, and ultimately extended the overall implementation schedule. Direct project management time spend on the development and processing of these changes easily accounted for 250 hours of the baseline project management budget. 0ui't. Staff a llhain es Many of the City staff who were instrumental in the initial project planning, requirements definition, and system selection left the City early in the implementation process. While staff turnover happens to all companies and is not entirely in the City's control, these specific departures have negatively impacted the project performance. More specifically, these changes include the following: Emily Leyes had served as the customer service manager during the planning and selection of the new utility billing application, and her departure removed a great deal of knowledge, both about current operations as well as the intended improvements for the new system. This knowledge drain has likely extended the time needed for the design effort. Other City resources have stepped up greatly to accomplish this as a shared effort and are working very hard to complete the design work, but in hindsight Emily's departure created additional coordination and a larger learning curve. • Rene Casiano had served as the main technical lead during the project planning and selection, and his departure has negatively impacted both the data conversion and integration design portions of the project. While the City did contract with S&S to provide for additional data conversion services as a means to compensate for Rene's loss, there have still been many data conversion activities related to data cleansing, data auditing, and conversion validation that cannot be outsourced to S&S. Rene also provided significant input to the vision for the system integration, especially the integration with CRM, and not having his knowledge for the integration design has caused this effort to take longer than expected. Extended discussions about the GIS and CRM interfaces have added multiple weeks to the project. • Matt Coates was an important resource during the system planning and procurement processes but has been focused on the DFO implementation and has had very limited availability to help the utility billing project. In addition, DFO interfaces for GL and Credit Refund interface has been impacted by design uncertainty due to the timing for the DFO project. While the impact of all these staff changes can't fully be quantified, they did result in more effort from the project manager, business analyst, and technical analyst. The technical analyst effort to support data conversion increased significantly. While S&S received a change order for data extracting from Naviline, certain activities must be performed by someone independent of the software vendor. Specific activities that the technical analyst is performing as a result include: o Develop/maintain NaviLine data extraction conversion database, audit procedures and documentation (in progress). o Develop/test/maintain `Attached Documents' file and data extraction for enQuesta import. o Profile customer account/service characteristics to support data validation. o Develop Conversion Audit and Transactional counts for converted data. o Perform ad -hoc analysis to support data cleansing. Page: 2/5 All Oireelk I[.)iiireck:nir of If'u.ublliic uJtiilliitiies Alpiri1 2, 2020 Through March 2020, we have spent 705 hours supporting data conversion activities, of which 80% of this can be attributable to the increased workload caused by the staff changes, or approximately 560 hours. Sott aui°�e Veandoui. IIIiniIlpact S&S has struggled at times to meet project deliverables and statement of work commitments that have impacted the overall project schedule, including: • Abrupt project start with lack of detailed project plan caused inefficiency early in the project • Poorly planned and initiated BIRD processes added time to the schedule • Inability and unwillingness to produce an acceptable project schedule caused inefficiency and significant effort on the part of the City staff and project management team to rectify this • Unwillingness to start development until all BRDs were signed, which in our experience is atypical • Lack of availability of key team resources 136IIhedL e IIIiniIlpacts The preliminary project schedule included by S&S in the SOW consisted of an 11-month implementation project followed by 3-months of post go -live support, but subject to change based on the detailed project planning and establishment of a baseline project plan. The project was initiated in January 2019 and had a planned system cut -over date of November 2019 and ultimate completion in February 2020. After detailed project planning was performed, the baseline schedule projected a April 2020 cut -over, or a 15-month implementation. Then in consideration of the items discussed above the project schedule has been extended further to a planned system cut -over date of October 2020. Thus, the implementation has been extended to 22-months and still includes 3 months following for post -go live support. While this is a longer duration than initially estimated, it is not out of line with other similar utility billing implementation projects. The original schedule was an aggressive schedule that could not withstand these changes. The schedule extension is the biggest driver for the contract amendment and has the biggest impact on the additional project management hours required. k L llltliiing Aii'ca is IIIiniIpa t Project Management. Arcadis relied upon the preliminary schedule in the SOW as the basis for engaging a project manager for slightly over 50% utilization for approximately 12 months, which would have carried through the original 11-month system cut -over and provided 1 month of post go -live support. The detailed project plan extended this to a 15-month implementation and then the changes extended the project further to a 22-month implementation, or ultimately 11 additional months of project management. Many project management activities are recurring in nature and occur on a weekly and monthly basis, so the additional schedule requires more work to be performed by both the project manager and project team. Due to our understanding of the City's limited funds, from the beginning we have approached this project with an effort to keep our costs down for the City and provide just enough support. Typically for billing system implementation projects project management support can vary from 50% to 100% utilization. While we have worked hard to keep our project management efforts down, the changes and impacts above have resulted in our actual project management support to be closer to 60% utilization and now extended over a much longer period. We understand the City still needs this additional support. Page: 3/5 All Gireelk I[.)iiirecU:nir of If'u.ublliic uJtiilliitiies Alpiri1 2, 2020 Testing Analyst. The testing analyst was originally allocated at approximately 740 hours, but some of this budget had to be used to support the extended design schedule. We are requesting additional time for the testing analyst so that they can be engaged at 50% utilization from now through system cut -over. Technical Analyst. With the departure of key City staff, our technical analyst has been required to perform many data analysis tasks that had not originally been anticipated. Additional time to continue to perform these activities will be required for the project to be successful, as we understand the City does not have another resource to perform these functions. Report Development. Arcadis is proposing to support report development for the project with the intent of freeing City resources to work on other project activities, most importantly integration testing. We are able to provide relatively low-cost resources to perform the report development and feel that this resource allocation will greatly help the overall success of the project. a f 111 While the project has to -date experienced challenges, it is currently positioned to ultimately be a successful project. While the scope changes and additions to the project have caused the overall duration to extend, each change will deliver benefits and new capabilities to the City. Additionally the extensive design process has solidified the project scope. Lastly and most importantly, the continued exposure of the City staff to the enQuesta software has confirmed that it is a capable and fully functioned utility billing system which will be a massive improvement over the Naviline system that it is replacing. Arcadis has continued to support the City in this project in an uninterrupted manner and is requesting authorization of the attached contract amendment for extended project management, business analysis, and technical support services. The attached amendment presents this extension proposal reflecting the feedback City staff have provided, and seeks to balance the City's desire to control the cost of this extension with the minimum staffing needs of the project. It is inclusive of the following services that we believe will help the City to perform the work required to complete the project work activities. In summary, it includes the following: • Continued Project Management: Arcadis will provide continued project management through the new October 2020 system cut -over and into post -go live support (for two months) with approximately 60% resource utilization or 1350 additional hours. • Additional Test Analyst Support: Provide additional testing support by adding 250 hours to the testing analyst role, which is required due to the extended schedule and availability of City staff. This will allow our testing analyst utilization, which is the minimum desired. • Additional Data Conversion Support: Provide additional data conversion support by adding 500 hours for our Technical Analyst, who will continue to perform data conversion and cleansing support. • Report Development: Arcadis will provide 600 hours of report development services, which will be performed by our Global Excellence Center and will free City resources to focus on the system integration testing. • As part of this package of services, Arcadis is also proposing to provide 160 hours of additional test analyst and technical analyst at no cost to the City. We are also offering an additional 250 hours of no - cost project management inclusive of the continued involvement of the project principal and project director. Page: 4/5 All Clreelk Il'.)iilreck:nlr of If'u.ublliic u.Riilliitiies Alplri1 2, 2020 We look forward to bringing this project to a successful completion with the City. Please contact us with any questions about this information or the attached Amendment. Sincerely, Arcadis U.S., Inc. J D. Michael Rotunno Project Director Copies: Kim Thompson Enclosures: r Amy I5mitley, PE Principal -in -Charge Utility Billing Implementation Support Amendment No. 1 Page: 5/5 BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 4-6-20 Department Utilities Name Al Greek Wastewater BPW Date 4-14-20 Phone Extension 4210 Required Prior to Submittal to Board BPW Attorney x❑ Attorney Name Dept. Attorney Purchasing ❑ Attorney Name Check the Appropriate Item Type — Required. for All Submissions x❑ Professional Services Agreement ❑ Contract ❑ Proposal ❑ Open Market Contract x❑ Amendment/Addendum ❑ Special Purchase, QPA ❑ Bid Opening ❑ Bid Award ❑ Req. to Advertise ❑ Title Sheet ❑ Quote Opening ❑ Quote Award ❑ Reject Bids/Quotes ❑ Proposal Opening ❑ C/O & PCA No. ❑ PCA ❑ Chg. Order, No. 1 ❑ Traffic Control ❑ Resolution n Other: n Ease./Encroach Company or Vendor Name New Vendor MBE/WBE Contractor Project Name Project Number Funding Source Account No. Amount Terms of Contract Purpose/Description Arcadis x❑ Yes xn No Information If Yes, Approved by Purchasing El MBE ❑ WBE Completed E-Verify Form Attached ❑❑ Neos South Bend Utility Billing Implementation Support Wastewater Engineering 641-0630-793-3102 $407,950 2700 additional hours thru Oct 2020 South Bend is updating its Customer Service and Billing software_, see attached letter memo For Change Orders Only Amount of ❑ Increase ❑ Decrease ($ ) Previous Amount Increase Current Percent of Change: Decrease New Amount Increase Total Percent of Change: Decrease Time Extension Amount: New Combletion Date: