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←Toronto Parking Authority · 2019-06-26 · 2019.PA7.6

The filed record

Procurement of SAP S/4HANA Proprietary Software from SAP Canada to Support the Toronto Parking Authority's Financial and Operational Modernization

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The decision

2019-06-26 · Toronto Parking Authority · adopted

As filed

The Board of Directors of the Toronto Parking Authority: 1. Authorized the President, Toronto Parking Authority, to negotiate and enter into a non-competitive agreement with SAP Canada for the provision of SAP S/4HANA Enterprise Resource Planning and Reporting Solution software licensing and related professional services for a five-year term in the amount of $4,645,223 plus Harmonized Sales Tax, on terms and conditions satisfactory to the President, Toronto Parking Authority, and in a form satisfactory to the City Solicitor.

On the agenda

As the city filed it

The Toronto Parking Authority's (TPA) current accounting system is a custom-built application initially developed and implemented in the mid-1980s. The system has significant limitations and is approaching a state of obsolescence. Accordingly, the TPA initiated a comprehensive market scan, through a formal open Request for Information process, with the goal of ultimately procuring and implementing a modernized Enterprise Resource Planning and Reporting (ERP) Solution.

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Based on the results of the evaluation process, this report recommends that the TPA Board of Directors approve entering into a non-competitive contract with SAP Canada to provide software licensing and professional services, by leveraging the terms and conditions of the City of Toronto's Master Services Agreement with SAP Canada, for the delivery of a non-customized, single tenant cloud-based software-as-a-service ERP to support the TPA's financial and operational growth and transformation with a fully-hosted, robust, standardized, and scalable platform. SAP S/4HANA Cloud, single tenant edition, is an ERP software package which operates on a fully-integrated cloud platform providing SAP S/4HANA Finance, SAP Analytics Cloud, SAP Asset Manager (Mobility), Customer Relationship Management (CRM), and SAP Success Factors applications. Implementation of SAP's "model company" will provide effective, efficient administration to support finance and daily operations, including procurement, contract management, work orders, and asset management. A cost-benefit analysis for the ERP was undertaken in support of the recommended approach. By using the City of Toronto's Master Services Agreement, the TPA estimates annual license fee savings of approximately $120,000 and a projected investment break-even at 6.5 years based upon the current project plan.

Staff recommended

The Acting President, Toronto Parking Authority recommends that: 1. The Board of Directors of the Toronto Parking Authority authorize the Acting President, Toronto Parking Authority, to negotiate and enter into a non-competitive agreement with SAP Canada for the provision of SAP S/4HANA Enterprise Resource Planning and Reporting Solution software licensing and related professional services for a five-year term in the

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amount of $4,645,223 plus Harmonized Sales Tax, on terms and conditions satisfactory to the Acting President and in a form satisfactory to the City Solicitor.

    On the record

    The item as the City filed it

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