PimaCore

ERP and Project PimaCore:
The "What" and the "Why"

Around Pima County these days, one hears the buzz words "ERP" and "PimaCore." These words will lead to exciting changes within Pima County. As Christina Baldwin once said, "Change is the constant, the signal for rebirth, the egg of the phoenix." As Pima County continues to grow and revenue continues to decrease, we need to implement ways to increase efficiencies Countywide.

ERP (Enterprise Resource Planning) is an integrated information system that serves all departments within an organization; Pima County will be that organization. PimaCore is the project name for the selection and implementation of an ERP system for Pima County. Project PimaCore has numerous Pima County employees representing various departments within Pima County on this project. Some of these departments include Community Development, Facilities Management, Finance, Fleet Services, Health, Human Resources, Information Technology, Library, Pima Health Systems, Parks and Recreation, Procurement, Regional Wastewater Reclamation Department, Sheriff's Department, Superior Court, and Transportation. In addition, each department has a PimaCore representative to serve as a point of contact to receive information about and to provide input to the project teams.

Pima County currently operates with numerous computer systems based on the need or service required from the specific department. Once the ERP has been selected and fully implemented, Pima County will have one primary financial and human resource software package that will integrate most business functions for all departments within Pima County. The benefits to having one system are: a single data repository, improved access to information that will help employees make better decisions concerning their work area, real-time information access, secured information (especially for confidential information), improved business practices to prevent loss and fraud, and improved customer service to the Departments' customers. Although the PimaCore system won't be able to eliminate all of our shadow systems, the goal is to reduce as many as possible to improve the accuracy and quality of data and the efficiency of our processes.

A project of this size takes time to implement. Currently, the proposals for the ERP system are being evaluated and the goal is to have a contract awarded by January 2010. Once the contract has been awarded, we anticipate that the planning phase of the project will begin in March 2010 with the core financial "Go Live" date scheduled for July 2011. This will be followed by later "Go Live" dates for budget, human resources, and timekeeping functions. You may view additional information for this project at:
intranet.pima.gov/ProjectPimaCore/Index.html

Or e-mail Brenda Wilson, Communications Lead for Project PimaCore, at:
brenda.wilson@pima.gov
with questions concerning this project.

Pima County Procurement Department

Potential Cost Control/Reduction: Opportunity Knocks
by Terry Finefrock,
Chief Contracts & Procurement Manager

Current market conditions can provide an excellent opportunity to decrease historical unit prices when you have the need to establish a new contract or the option to do so at the expiration of a current term (renewal) of an existing contract. Use of the internet Reverse Auction solicitation process to increase competition can also enhance results. A Reverse Auction procurement process can usually establish a contract in less time than a formal bid process.

Reverse Auction Procurement Process

The Reverse Auction (RA) process, authorized by Pima County Procurement code 11.12.070 Electronic Procurement, enhances competition and time-to-contract for many of our contracted purchases.

Our RA process is similar to a typical “bid” process in that it uses predefined and comprehensive item specifications and bid schedule, but utilizes the internet for bidders to submit their bids, and allows them to submit multiple bids within a County defined time period, generally no longer than 30 minutes, dependent on the complexity of the solicitation. Although both general materials and services may be procured using this process, the RA process should be restricted to those bid items whose specifications can be clearly and comprehensively documented.

Bidders cannot see or access the bid amounts of other bidders. However, all bidders are provided information regarding their bids’ rank relative to the other bidders so that they may change an item unit price bid which would also change their extended total bid amount and rank relative to the other bids. If a bid revision is made within a couple of minutes of the end of the defined auction period, the system extends the auction period by two minutes to allow other bidders one last chance to revise their bids. The extensions continue until there are no more bids entered within the last two minutes of the extended bid period.

Prospective bidders are not given access to the internet RA site until they “pre-qualify,” submit documentation that satisfies the Supplier Minimum Qualifications defined by the solicitation. Our Reverse Auction system provider provides access to a training and learning website and guidance to all qualified bidders prior to the actual auction date and time. The pre-qualification process requires that each bidder execute a contract with the RA provider to pay a fee of 1 to 2%, dependent on the amount of the contract award that they may receive. Each bidder also agrees to provide an executed hard-copy Offer Agreement to the County reflecting their last bid within 24 hours of the RA completion.

Recent Example

At the request of the Facilities Department a RA was conducted in May 2009 that included eight different groups of electrical supplies to establish new contracts for those that were expiring after their five-year contract terms. Preliminary market research and pre-bid meeting discussions with suppliers were conducted to define the groups of items and assure that there were multiple suppliers that could bid on all items in each group. Notice of the solicitation was issued to 93 potential suppliers and 7 suppliers subsequently participated in the RA.

The US Department of Labor Producer Price Index for Electrical Industrial Apparatus indicated that we should expect a price increase of 8% since the expiring contracts were established in 2004.

Although not all groups resulted in price decreases from the 2004 pricing the sum result of all groups/contracts provided to primary suppliers indicate a 4% overall price/cost reduction. Combined with the PPI, that would reflect a 12% decrease in costs relative to the last 5-year contract period.

CJ Williams & Bill Clarke, the FMD Project managers for this solicitation made the following observations regarding the RA process:  Bill simply says, “The RA process works.” CJ stated, “Initially I viewed the process with great apprehension but the process has met my expectations.” 

As you deem appropriate, discuss the potential of using the RA process to establish your contracts with your assigned Commodity and Contracts Officer.

 

 

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