Title:

*REPLACEMENT* -  SAP ENHANCEMENT

Requested Action:

APPROVE EXTENSION OF THE CONTRACT WITH SAP AMERICA FOR THE PURPOSE OF PROVIDING LICENSES AND CONSULTATIVE ASSISTANCE IN THE ENHANCEMENT OF ENTERPRISE RESOURCE PLANNING SOFTWARE AND AUTHORIZE THE SUPERINTENDENT AND BOARD CHAIRMAN TO EXECUTE THE CONTRACT, AFTER APPROVAL AS TO FORM.

Summary Explanation and Background:

The corporate support for the current version of SAP software, used by the district as its enterprise resource plan (ERP), will expire December 30, 2003.  However, we will extend the support by six months, at a premium, to match the planned “Go Live” date of the new enhancement on July 1, 2004. The use of a sophisticated ERP for most of the district’s business functions has given the district a product with wide flexibility and as such must be maintained.  This action will extend the partnership that Duval Schools has built with SAP and will allow for the enhancement of the current release to the most technologically advanced software offered by SAP. This procurement is being made in accordance with Florida Administrative Rule 6A-1.012 which allows for direct negotiations when purchasing Information Technology resources and School Board Policy 2-207(3).

This phase of the enhancement will significantly increase the utilization of the robust SAP software  by using Business Practice Reengineering (BPR),  which will streamline many of the business procedures currently being used.  The opportunity to review and map all current business practices was recommended numerous times in the draft report of the Council of  the Great City Schools (CGCS).  SAP recognizes the value of a partner like Duval County Public Schools as evidenced by the relationship that has developed in the research for K-12 solutions.  SAP is the world leader in ERP’s and has made a corporate decision to build a broad base with K-12 school systems in the nation.

District staff is planning an extensive BPR that will include all facets of the business processes we are currently using and will be re-engineering our procedures to closely match the “best financial practice” engrained SAP and in compliance with OPAGGA guidelines.  The efficiencies of this enhancement is expected to create a return on investment due to a reduction in duplication of effort, reduction of paperwork through a re-engineering of workflow tasks, and better utilization of the solutions offered by SAP and those developed by internal staff. 

Once this phase is complete, we will immediately begin another phase  which will include advanced archiving of data and the use of SAP’s  unification portals to allow users access to all data, including that data housed in legacy systems.  This includes interfacing with the new student information system (EdIN). This interface will place the School District in a unique position among other K-12 systems in the nation, allowing it to evaluate program expense within a data warehouse framework.  This will provide empirical data in making program decisions. 

The cost of the enhancement software and implementation  process is to be budgeted as a capital expense and will not impact the Operating Fund.  Even though the enhancement will cost about $2 million more than the original installation in 1998, the thrust of this implementation will be to secure functionality well beyond the first implementation when the major thrust was (1) solving of the Y2K issue and (2) assuring the district that its employees and vendors were paid when required.

New Century Commission Recommendation/OPPAGA Recommendation/Council of Great City Schools Recommendation:
N/A

Financial Impact:

Since we are still in the contract phase with SAP, the Superintendent is requesting a cap of $9.5 million dollars for the staff to use in finalizing the initial phase.  These funds will be used to provide maximum functionality during the contract negotiations.

For Additional Information, contact:

George Latimer

390-2096