Request for Proposals. SAP Capital Asset Module Project

Transcription

1 Request for Proposals SAP Capital Asset Module Project City of Nanaimo Request for Proposals Number: 1025 Issue date: March 19, 2010 Closing Time: Proposal must be received before 2:00 PM Pacific Time on: April 9, 2010 CITY OF NANAIMO CONTACT PERSON: All enquiries related to this Request for Proposals (RFP), including any requests for information and clarification, are to be directed, in writing, to the following person. Formal responses will be made via written addendum issued by the Purchasing Department. Information obtained from any other source is not official and should not be relied upon. Enquiries and any responses will be recorded and will be distributed to all Proponents whom complete and return the Receipt Confirmation Form in Appendix A and will be posted on the City s website and BC Bid. It is the Proponents sole responsibility to check the City s website, or, BC Bid for addenda if they do not submit the Receipt Confirmation Form. Debbie Scheibel, Supervisor Financial Systems & Reporting Telephone: Debbie.Scheibel@nanaimo.ca DELIVERY METHODS OF PROPOSALS: Proposals must not be sent by facsimile. Proposals are to be submitted to the closing location either by providing the City with: A. Six (6) complete hard-copies delivered by hand, mail or courier to: City of Nanaimo Purchasing Department 2020 Labieux Road Nanaimo, B.C. V9T 6J9 Attention: Kurtis Felker, C.P.P., Manager, Purchasing & Stores Proposal envelopes should be clearly marked with the name and address of the Proponent, the Request for Proposals number, and the project or program title. OR B. One complete electronic proposal must be received at the following only acceptable address: purchasinginfo@nanaimo.ca PROPONENTS MEETING: An optional Proponents meeting will be held either in person or via Telephone Conferencing (refer to Appendix E for Telephone Conferencing Instructions): March 25, 2:30 p.m. City Hall Boardroom 455 Wallace Street Nanaimo, B.C. Note: No minutes of the meeting will be issued. Attendance is optional. Oral questions will be allowed at the Proponents meeting. However, questions of a complex nature, or questions where the Proponent requires anonymity, should be forwarded in writing, prior to the meeting, to the City Contact person designated above.

2 Table of Contents A. REQUIREMENTS AND RESPONSE SUMMARY OF THE REQUIREMENT BACKGROUND /SITUATION/OVERVIEW CITY RESPONSIBILITY VENDOR RESPONSIBILITY EVALUATION MANDATORY CRITERIA DESIRABLE CRITERIA PROPOSAL FORMAT KEY BUSINESS AND TECHNICAL INFORMATION PROPOSED PROJECT PHASES AND MILESTONES PROPONENT RESPONSE CONTRACT DOCUMENTS...5 B. DEFINITIONS AND ADMINISTRATIVE REQUIREMENTS...6 APPENDIX A RECEIPT CONFIRMATION FORM...10 APPENDIX B SAMPLE COVERING LETTER...11 APPENDIX C NANAIMO BUSINESS BLUEPRINT APPENDIX D CITY CAPITAL ASSET CLASSES APPENDIX E TELEPHONE CONFERENCING INSTRUCTIONS

3 A. Requirements and Response 1. Summary of the Requirement To assist the City with developing and implementing SAP s Capital Asset Module in order for the City to be compliant with the Public Sector Accounting Board 3150 Tangible Capital Assets reporting requirements. The City uses SAP ISPS (Industry Solution Public Sector). The City is currently using version ECC 6.0. The SAP NW Portal is version Background and current City situation/overview The City of Nanaimo Asset Accounting Business Blueprint was put together several years ago. The overall concept of the project is the same; however, the City s current needs require more functionality. Nothing has been configured in the Asset Accounting Module in SAP at this time. The City has been waiting for the generally accepted practices from PSAB to be agreed upon. Funding for the project is now in place. 3. City Responsibility The City will dedicate 1 full time staff member to the project team. This person will have an accounting designation. Their role will be to participate in all aspects of the project including configuration, testing, implementation, training and documentation. Staff time will be charged at $47.50 per hour and will be considered as part of the overall budget for the project. The City will directly pay their staff member. 4. Vendor Responsibility It is the City s expectation that the successful vendor will be onsite for most phases of the project especially configuration, implementation and training. Citrix access can be provided if required. A non-disclosure agreement must be signed prior to the start of work. Travel and accommodation costs are to be included in the proposal for all on-site resources. The City will supply office space and a computer if needed. 5. Evaluation This section details all of the mandatory and desirable criteria against which proposals will be evaluated. Proponents should ensure that they fully respond to all criteria in order to receive full consideration during evaluation. 5.1 Mandatory Criteria Proposals not clearly demonstrating that they meet the following mandatory criteria will be excluded from further consideration during the evaluation process. Criteria a) The proposal must be received at the closing location before the specified closing time. b) The proposal must contain a signed covering letter similar to the example in Appendix B. c) Six (6) hard copies of the proposal must be submitted, OR

4 d) One electronic copy of the proposal must be submitted in accordance with the above Delivery of Proposals Instructions on Page Desirable Criteria Proposals meeting all of the mandatory criteria will be further assessed against desirable criteria. Criterion Points Presentation 5 Schedule of Work 15 Work Plan 15 Resources 25 Deliverables 20 Fees 10 Interview (optional) 10 Total Points Proposal Format The following format, sequence, and instructions should be followed in order to provide consistency in Proponent response and ensure each proposal receives full consideration. All pages should be consecutively numbered. a) A signed cover letter similar to the sample in Appendix B. b) Table of contents including page numbers. c) A short (one or two page) summary of the key features of the proposal. d) The body of the proposal, including pricing, i.e. the Proponent Response. 7. Key Business and Technical Information Please refer to City of Nanaimo Asset Accounting Business Blueprint in Appendix C Please refer to the City of Nanaimo Capital Asset Classes in Appendix D The City of Nanaimo s fiscal year is January 1 st - December 31 st. Blueprint provided will serve as a guide to the City s processes. City of Nanaimo uses the SAP Project Systems module for capital transactions. The City also uses the Plant Maintenance module to a limited degree. Capital Asset configuration needs to be able to integrate with Plant Maintenance at a future date. Import the City of Nanaimo Capital Asset Classes spreadsheet information into SAP module. Some details such as serial numbers, etc. are missing in the City of Nanaimo Capital Asset Classes spreadsheet allow fields for these in the setup, these can be populated later. In line with linear assets use GIS segment ID = reportable field in the asset master data. [2]

5 Recommendations on the following business processes: o Asset acquisition constructed and/or purchased o Depreciation/Amortization o Disposals o Useful life changes o Write down of asset value o Other functions to be determined Recommendations for cut-over plan o Process for data loads and year to date depreciation o Compare results from existing manual system to SAP data Recommendation on reporting: o SAP reports o Custom reports Security setup creation of roles Technical & configuration documentation End-user documentation Training Nice to have: Reporting from portal 8. Proposed Project Phases and Milestones 1. Sandbox: Configuration including unit testing and integration testing Data load from existing spreadsheet Test functionality: depreciation, amortization, disposals, etc. Reporting Test security role based 2. Dev Configuration Technical documentation Pass off configuration knowledge to city SAP support staff Transport to QAS 3. QAS Data load from existing spreadsheet o Integrity test Testing to accounting period prior to go live. o Monthly depreciation o Asset additions and disposals o Run year-end processes End-user documentation to include all of the above tested processes End-User Training Transport to PRD 4. PRD Data load from existing spreadsheet Final testing o Depreciation for 2010 Go live support for initial monthly process close and year end close [3]

6 5. Post Project Support Establish Service Level Agreement for follow up issues Schedule of Events March 19 Issue Request for Proposals March 25 Optional pre bidder s meeting April 9 Closing date for proposals April Review proposals, check references, etc. April 30 Award contract May 5 Project Charter meeting identify project team May 5 Identify any additional hardware/software/equipment needs May 15 Project Plan due May 25 Set up workstation/network access for resources June 1 Development starts in Sandbox July 15 Phase one complete Sandbox configured, etc. August 1 Phase two complete Dev configured, etc. August 20 Phase three complete Dev transported to QAS for testing August 31 Phase four complete QAS transported to PRD for final testing and documentation Run depreciation for August 2010 September 15 Project completion. 9. Proponent Response In order to receive full consideration during evaluation, proposals should include a detailed response to the following: Proposal Presentation General format and overall content of the proposal. Schedule of Work Provide a clearly defined schedule of work on a bar graph based on the timelines provided in the Schedule of Events as outlined above or indicate changes to these dates as required and provide rationale for such changes. Provide a written statement committing your organization to meeting the timeline that you provide. Work Plan Describe a general approach to the overall delivery of the project, such that the City is able to determine the Proponent understands the project. Describe in terms of methods, approach and tools the Proponent intends to deploy in fulfilling the project scope. Provide examples of where the aforementioned management system capabilities have been used and the results achieved. Resources Describe the principal business of the firm complete with the firm s background, location, years in business, etc. [4]

7 Provide a project organization chart of the core project team including the roles and responsibilities of each team member. Confirm the identity and role of any subconsultants that will be retained, if any. Identify the project leader responsible for major decisions and coaching throughout the project. Describe the amount of time and capacity to which the project leader may be involved with the project. List the current obligations of the project leader, their expected duration and percentage of time so obligated. Provide a resume or curriculum vitae, 3 or fewer pages, of the project leader. Describe the composition of the core project team. Provide details regarding applicable skill sets, credentials and demonstrated experience with similar projects. Provide resumes or curriculum vitae, 3 or fewer pages, for each member of the core project team. List the current obligations of the core team members, their expected duration and percentage of time so obligated. Provide a spreadsheet that breaks out the tasks of each person and the number of hours assigned to that task per person including the City of Nanaimo resource assigned to the project. Describe the project leader s and the core team s experience with Municipal SAP implementations, specifically for the Asset Accounting module. Provide references from the team s three most recent Municipal SAP implementations. Describe your firm s strengths in a project of this nature. Deliverables Clearly demonstrate how your firm is planning to approach this project for each of the four (4) phases with the resources available and to accomplish the project within the established timeframe. Describe the challenges you expect to encounter with a project of this nature. Describe initiatives, methods and approaches your team will employ to address these challenges. Fees Provide a fixed fee including all labour, travel, accommodations, etc. and anything else required to complete the work in a turnkey manner. Provide a fixed hourly rate sheet and expense sheet to be used to calculate any additions or deletions. Interviews (Optional) The evaluation team may select the top two three ranked proponents for interviews and score them per the evaluation criteria. Alternatively, at the City s sole discretion, the City may by-pass the interview process if the top ranked firm clearly demonstrates its proposal is superior and offers the best value to the City. 10. Contract Documents The contract documents will consist of: RFP #1025 SAP Capital Asset Project issued by the City of Nanaimo RFP #1025 SAP Capital Asset Project as submitted by the successful Proponent Formal Project Agreement as negotiated with the highest ranked Proponent City of Nanaimo Purchase Order [5]

8 B. Definitions and Administrative Requirements 1. Definitions Throughout this Request for Proposals, the following definitions apply: a) City or Owner means City of Nanaimo; b) Contract means the written agreement resulting from this Request for Proposals executed by the City and the Contractor; c) Contractor means the successful Proponent to this Request for Proposals who enters into a written Contract with the City; d) must, or mandatory means a requirement that must be met in order for a proposal to receive consideration; e) Proponent means an individual or a company that submits, or intends to submit, a proposal in response to this Request for Proposals; f) Request for Proposals or RFP means the process described in this document; g) should or desirable means a requirement having a significant degree of importance to the objectives of the Request for Proposals. 2. Terms and Conditions The following terms and conditions will apply to this Request for Proposals. Submission of a proposal in response to this Request for Proposals indicates acceptance of all the terms that follow and that are included in any addenda issued by the City. Provisions in proposals that contradict any of the terms of this Request for Proposals will be as if not written and do not exist. 3. Additional Information Regarding the RFP Proponents are advised to fill out and return the attached Receipt Confirmation Form to ensure any additional information regarding this proposal call is sent to them directly. Additionally, subsequent information regarding this Request for Proposals, will be posted on the City s website at and BC Bid website at It is the sole responsibility of the Proponent to check for amendments on the City website and BC Bid website. 4. Late Proposals Proposals will be marked with their receipt time at the closing location. Only complete proposals received and marked before closing time will be considered to have been received on time. The wall clock in the City s Purchasing Department is the official time piece. Hard-copies of late proposals will not be accepted and will be returned to the Proponent unopened. Electronic proposals that are received late will be marked late and will not be considered or evaluated. In the event of a dispute, the proposal receipt time as recorded at the closing location shall prevail whether accurate or not. 5. Eligibility a) Proposals will not be evaluated if the Proponent s current or past corporate or other interests may, in the City s opinion, give rise to a conflict of interest in connection with the project described in this Request for Proposals. This includes, but is not limited to, involvement by a Proponent in the preparation of this Request for Proposals. If a Proponent is in doubt as to whether there might be a conflict of interest, the Proponent should consult with the City Contact Person listed on page 1 prior to submitting a proposal. 6. Evaluation Evaluation of proposals will be by a committee formed by the City at its sole discretion. The Request for Proposal process is utilized to select a contractor that will provide best value to the City. The City intends to negotiate a final operating agreement with the highest overall ranking proponent. 7. Negotiation Delay If a written Contract cannot be negotiated within thirty business days of notification of the successful Proponent, the City may, at its sole discretion at any time thereafter, terminate negotiations with that Proponent and either negotiate a Contract with the next qualified Proponent or choose to terminate the Request for Proposals process and not enter into a Contract with any of the Proponents. 8. Debriefing At the conclusion of the Request for Proposals process, all Proponents will be notified. Unsuccessful Proponents may request a debriefing meeting with the City Contact Person. 9. Alternative Solutions If alternative solutions are offered, please submit the information in the same format, as a separate proposal. 10. Changes to Proposals By submission of a clear and detailed written notice, the Proponent may amend or withdraw its proposal prior to the closing date and time. Upon closing time, all proposals become irrevocable. The Proponent will not change the wording of its proposal after closing and no words or comments will be added to the proposal unless requested by the City for purposes of clarification. [6]

9 11. Proponents Expenses Proponents are solely responsible for their own expenses in preparing a proposal and for subsequent negotiations with the City, if any. If the City elects to reject all proposals, the City will not be liable to any Proponent for any claims, whether for costs or damages incurred by the Proponent in preparing the proposal, loss of anticipated profit in connection with any final Contract, or any other matter whatsoever. 12. Limitation of Damages Further to the preceding paragraph, the Proponent, by submitting a proposal, agrees that it will not claim damages, for whatever reason, relating to the Contract or in respect of the competitive process, in excess of an amount equivalent to the reasonable costs incurred by the Proponent in preparing its proposal and the Proponent, by submitting a proposal, waives any claim for loss of profits if no Contract is made with the Proponent. 13. Proposal Validity Proposals will be open for acceptance for 90 calendar days after the closing date. 14. Firm Pricing Prices will be firm for the entire Contract period unless this Request for Proposals specifically states otherwise. 15. Currency and Taxes Prices quoted are to be: a) in Canadian dollars; b) inclusive of duty, where applicable; FOB destination, delivery charges included where applicable; and c) not to include Goods and Services Tax, Provincial Sales Tax and Harmonized Sales Tax. 16. Completeness of Proposal By submission of a proposal the Proponent warrants that, if this Request for Proposals is to design, create or provide a system or manage a program, all components required to run the system or manage the program have been identified in the proposal or will be provided by the Contractor at no charge. 17. Sub-Contracting a) Using a sub-contractor (who should be clearly identified in the proposal) is acceptable. This includes a joint submission by two Proponents having no formal corporate links. However, in this case, one of these Proponents must be prepared to take overall responsibility for successful performance of the Contract and this should be clearly defined in the proposal. b) Sub-contracting to any firm or individual who s current or past corporate or other interests may, in the City s opinion, give rise to a conflict of interest in connection with the project or program described in this Request for Proposals will not be permitted. This includes, but is not limited to, any firm or individual involved in the preparation of this Request for Proposals. If a Proponent is in doubt as to whether a proposed subcontractor gives rise to a conflict of interest, the Proponent should consult with the City Contact Person listed on page 1 prior to submitting a proposal. c) Where applicable, the names of approved subcontractors listed in the proposal will be included in the Contract. No additional subcontractors will be added, nor, other changes made, to this list in the Contract without the prior written consent of the City. 18. Acceptance of Proposals a) This Request for Proposals should not be construed as an agreement to purchase goods or services. The City is not bound to enter into a Contract with the Proponent who submits the lowest priced proposal or with any Proponent. Proposals will be assessed in light of the evaluation criteria. The City will be under no obligation to receive further information, whether written or oral, from any Proponent. b) Neither acceptance of a proposal nor execution of a Contract will constitute approval of any activity or development contemplated in any proposal that requires any approval, permit or license pursuant to any federal, provincial, regional district or municipal statute, regulation or by-law. 19. Definition of Contract Notice in writing to a Proponent that it has been identified as the successful Proponent and the subsequent full execution of a written Contract will constitute a Contract for the goods or services, and no Proponent will acquire any legal or equitable rights or privileges relative to the goods or services until the occurrence of both such events. 20. Contract By submission of a proposal, the Proponent agrees that should its proposal be successful the Proponent will enter into a Contract with the City on the terms set out in Appendix E. 21. Liability for Errors While the City has used considerable efforts to ensure information in this Request for Proposals is accurate, the information contained in this Request for Proposals is supplied solely as a guideline for Proponents. The information is not guaranteed or warranted to be accurate by the City, nor, is it necessarily comprehensive or exhaustive. Nothing in this Request for Proposals is intended to relieve Proponents from forming their own opinions and conclusions with respect to the matters addressed in this Request for Proposals. 22. Modification of Terms The City reserves the right to modify the terms of this Request for Proposals at anytime in its sole discretion. This includes [7]

10 the right to cancel this Request for Proposals at any time prior to entering into a Contract with the successful Proponent. 23. Ownership of Proposals All proposals submitted to the City become the property of the City. They will be received and held in confidence by the City, subject to the provisions of the Freedom of Information and Protection of Privacy Act and this Request for Proposals. 24. Use of Request for Proposals Any portion of this document, or any information supplied by the City in relation to this Request for Proposals may not be used or disclosed, for any purpose other than for the submission of proposals. Without limiting the generality of the foregoing, by submission of a proposal, the Proponent agrees to hold in confidence all information supplied by the City in relation to this Request for Proposals. 25. Indemnity Any Contract resulting from this Request for Proposals will require that the Contractor indemnify and save harmless the City, its elected officials, employees and agents from and against all claims, demands, losses, damages, costs and expenses made against or incurred, suffered or sustained by the City at any time or times (either before or after the expiration or sooner termination of this Contract) where the same or any of them are based upon or arise out of or from anything done or omitted to be done by the Contractor or by any servant, employee, officer, director or sub-contractor of the Contractor pursuant to the Contract excepting always liability arising out of the independent acts of the City. 26. No Lobbying Proponents must not attempt to communicate directly or indirectly with any employee, contractor or representative of the City, including the evaluation committee and any elected officials of the City, or with members of the public or the media, about the project described in this Request for Proposals or otherwise in respect of the Request for Proposals, other than as expressly directed or permitted by the City in writing. 27. Collection and Use of Personal Information Proponents are solely responsible for familiarizing themselves, and ensuring that they comply, with the laws applicable to the collection and dissemination of information, including resumes and other personal information concerning employees and employees of any subcontractors. If this RFP requires Proponents to provide the City with personal information of employees who have been included as resources in response to this RFP, Proponents will ensure that they have obtained written consent from each of those employees before forwarding such personal information to the City. Such written consents are to specify that the personal information may be forwarded to the City for the purposes of responding to [8] this RFP and use by the City for the purposes set out in the RFP. The City may, at any time, request the original consents or copies of the original consents from Proponents, and upon such request being made, Proponents will immediately supply such originals or copies to the City. 28. Conflict of Interest If a member of Council, or a person who was a member of Council in the previous six months has a direct or indirect interest in the contract, then the Proponent shall report this to the City in accordance with Section 107 of the Community Charter prior to the award of the contract. The Proponent warrants and represents that it has not received any information or a record from any council member or former Council member (s) contrary to Section 108 of the Community Charter. 29. Laws of British Columbia Any Contract resulting from this Request for Proposals will be governed by and will be construed and interpreted in accordance with the laws of the Province of British Columbia. 30. Compliance With Laws The Contractor will give all the notices and obtain all the licenses and permits required to perform the work. The Contractor will comply with all laws applicable to the work or performance of the Contract. 31. Insurance Any Contract resulting from this Request for Proposals may require that the Contractor, without limiting its obligations or liabilities and at its own expense, provide and maintain throughout the Contract term, the following insurances with insurers licensed in British Columbia in forms acceptable to the City. All required insurance will be endorsed to provide the City with 30 days advance written notice of cancellation or material change. The Contractor will provide the City with evidence of the required insurance, in the form of a completed Province of British Columbia Certificate of Insurance, immediately following execution and delivery of the Contract. Comprehensive Commercial General Liability in an amount not less than $2,000, inclusive per occurrence insuring against bodily injury and property damage and including liability assumed under the Contract. The City is to be added as an additional insured and the policy shall contain a cross liability clause. Professional Liability in an amount not less than $500, insuring the Contractor s liability resulting from errors and omissions in the performance of professional services under the Contract. Automobile Liability on all vehicles owned, operated or licensed in the name of the Contractor in an amount not less than $2,000, WorkSafe BC The Contractor and any approved sub-contractors must be registered with WorkSafe BC, in which case WorkSafe

11 coverage must be maintained for the duration of the Contract. The successful Proponent will be required to submit a WorkSafe BC Clearance Letter indicating that all assessments have been paid up to the latest remittance date. 32. Payment Holdback The Contract will contain a provision whereby the City will hold back ten percent (10%) of the total Contract price until the requirements of the Contract have been met in the sole opinion of the City 33. Software It is the Contractor s responsibility to ensure that the City has all licenses required to use any software that may be supplied by the Contractor pursuant to the Contract. 34. Intellectual Property Rights The City will be the owner of the intellectual property rights, including patent, copyright, trademark, industrial design and trade secrets in any product developed through a Contract 35. Force Majeure Neither party shall be liable for any loss or damage suffered by the other party, directly or indirectly, as a result of the first party s failure to perform, or, delay in performing, and of its obligation contained in this agreement where such failure or delay is caused by circumstances beyond the first party s control or which make performance commercially impractical including, but, not limited to labour disruptions, arbitrator s awards, fire, flood, storm, or other natural disaster, accident or governmental regulations or restrictions of any kind. 36. Termination The City may terminate this agreement at anytime and for any reason whatsoever upon 30 calendar day s written notice. 37. Changes to the Agreement In all cases, any changes to this Agreement must be in writing and fully executed by both parties prior to coming into effect. 38. Business License The successful consultant and all sub-consultants shall hold a valid City of Nanaimo business license for the duration of the project. The consultants shall provide their business license number prior to award of the project. 39. Dispute Resolution Any disputes will first be attempted to be resolved via frank and open negotiations. If negotiations are unsuccessful, the dispute will be referred to a mutually agreeable third party mediator/arbitrator whose decision will be final and binding. 40. Relationship of the Parties The Vendor and the City expressly acknowledge that they are independent entities and neither an agency, partnership nor employer-employee relationship is intended or created by this Agreement. 41. Right to Negotiate The City reserves the right to services and contract terms with the highest ranked proponent. 42. Minimum Rate of Pay The minimum rate of pay for work performed under this contract or sub-contract shall be as classified in the current agreement between the City of Nanaimo and Canadian Union of Public Employees, Local 401. Should the City determine that any contractor is not complying with this requirement, it will immediately exercise any and all rights it has under the contract and take such measures as may be appropriate under its contract with the contractor. The measures include but are not limited to termination of said contract. [9]

12 Appendix A Receipt Confirmation Form SAP CAPITAL ASSET MODULE PROJECT REQUEST FOR PROPOSALS NO CITY OF NANAIMO CLOSING DATE AND TIME: PRIOR TO 2:00 P.M. PACIFIC TIME ON APRIL 9, 2010 For any further distributed information about this Request for Proposals, please return this form by , or, fax as soon as possible to: Kurtis Felker, C.P.P., Manager, Purchasing & Stores purchasinginfo@nanaimo.ca or Facsimile: COMPANY: STREET ADDRESS: CITY: POSTAL/ZIP CODE: PROVINCE/STATE: COUNTRY: FAX NUMBER: ( ) PHONE NUMBER: ( ) CONTACT PERSON: TITLE: ADDRESS: Please send us any subsequent information about this Request for Proposals by: (default if no box checked) Facsimile Proponents Meeting Response: We will be sending (number) representatives to the Proponents meeting. We will not be attending but will participate in the conference call. We will not be attending but will probably be submitting a proposal. [10]

13 Appendix B Response Covering Letter (Example of format to be used in Submission) Letterhead or Respondent s name and address Date: City of Nanaimo 2020 Labieux Road Nanaimo, B.C., V9T 6J9 Attention: Subject: Kurtis Felker, Manager, Purchasing & Stores Request for Proposal No SAP Capital Asset Module Project, including any amendments or additions (the Request For Proposal ) The enclosed proposal is submitted in response to the above-referenced Request for Proposals, including any addenda. Through submission of this proposal we agree to all of the terms and conditions of the Request for Proposals and agree that any inconsistent provisions in our proposal will be as if not written and do not exist. We have carefully read and examined the Request for Proposals, including the Administrative Section, and have conducted such other investigations as were prudent and reasonable in preparing the proposal. We agree to be bound by statements and representations made in our proposal and have legal authority to do so. Yours truly, Signature Name: Title: Telephone Number: address: Legal name of Respondent: Date: [11]

14 Appendix C City of Nanaimo Asset Accounting Business Blueprint Created by: Date of creation: Changed by: Date of the last changes: Version: Report select options: ] Sign Off Date Signature Customer Signature Consulting

15 Table of Contents A. Organization Asset Accounting Depreciation area Chart of depreciation Asset class... 4 B. Master data Asset Accounting... 5 C. Business processes Asset Accounting Handling Fixed Assets Asset Maintenance Creation of Master Record for Tangible Assets Creation of Group Asset Asset Master Record Change Mass Changes Receipts Capitalization of Internal Activity Processing of Asset Acquisition Depreciation Manual Depreciation Depreciation Posting Unit-of-Production Depreciation Business Transactions Settlement of Asset under Construction Post-capitalization Write-up Reposting Specific Valuations Closing of Insurance Contract Investment Support Application for Investment Support Retirements Retirement Mass Retirement Closing Operations [Asset Accounting] Preparations for Year-End Closing in Asset Management Recalculation of Depreciation Carry Out Year-End Closing in Asset Management Periodic Reports Handling of Leased Assets G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 2

16 A. Organization 1. Asset Accounting Q: 1) Is there more than one legal entity that will be FI-AA? A: There is one legal entity for the city of Nanaimo. Company code Depreciation area Q: 1) Is there a distinction necessary between book depreciation for external reporting and tax for a tax balance sheet? A: [ ]Yes [X]No Q: 2) Do you require additional valuations for your assets, e.g. for cost accounting purposes or for statutory reasons? If so, please specify A: No Q: 3) Do you need to record depreciation for purposes other than book depreciation? cost accounting? tax purposes? A: No 1.2. Chart of depreciation Q: 1) In which countries do you manage fixed assets? A: All assets are managed in Canada. G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 3

17 Q: 2) Are there any statutory asset valuation requirements which would involve parallel valuation in your financial accounting? A: No Asset class Q: 1) Describe how your fixed assets are structured in the balance sheet? How do you classify your fixed assets at the moment? A: Work in Progress assets under construction Land Land Improvements Buildings Buildings - Other Buildings - Portable Vehicles Machinery and Equipment Furniture and Equipment IT Infrastructure Roads (includes curb/gutter) Sidewalks Water System - Supply System Water System - Distribution Sewer System Storm System Non Depreciable Assets Leasehold Improvements Small Value Assets Work in progress costs to be allocated Q: 2) Do you manage low value assets (LVA) as fixed assets or do you post them directly to an expense account? A: For a new facility, there will be low value assets Q: 3) Please list, or provide a list of the asset types that you intend to manage in the Asset Accounting system (e.g. Land, Buildings, Intangibles, etc). A: Land Land Improvements Leasehold Improvements Marine Buildings Vehicles and Equipment Computer Storm G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 4

18 Transportation Sewer Water Q: 4) For each asset category or asset class list the default depreciation method and the period of depreciation you would like to use. A: Straight line depreciation for all asset classes. Depreciation begins the start of the month following the in service date. Depreciation will end the month the asset is taken out of service. Monthly depreciation will be used. B. Master data 1. Asset Accounting Q: 1) How many fixed assets and how many assets under construction do you currently have? A: Land 600 Land Improvements 500 Leasehold Improvements 100 Marine 15 Buildings 110 Vehicles and Equipment 800 Computer 100 Linear Assets 1,000 (includes networks) Low value assets 200 Miscellaneous 475 Total estimated at 3,900 assets in asset accounting Q: 2) Do you want asset master record numbering to be internally or externally assigned? Do you see a business need to use both internal and external number assignment, depending on the asset class? If you use external number assignment, do you want to allow the assignment of alphanumeric numbers? A: could be a combination of both with the use of alphanumeric Q: 3) Do you want to represent asset components using asset sub-numbers? If so, for what purposes do you plan to use asset sub-numbers? A: Yes may be used for subsequent asset acquisition such as building additions and for betterments to existing assets G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 5

19 Q: 4) Are cost centers to be defined in the asset master record on a time-dependent basis? A: If that means, can a new cost centre be assigned if the asset is used in a new department, then the answer is yes. Q: 5) Is there a requirement to discontinue depreciation for a period of time? A: If an asset is out of service, depreciation could stop and then resume. C. Business processes 1. Asset Accounting Q: 1) Are any of your asset values managed in a foreign currency? If so, specify the relevant countries and currencies. A: No. Q: 2) Does the fiscal year for asset accounting correspond to the calendar year? If not, specify the start and end dates of your fiscal year. A: Yes 1.1. Handling Fixed Assets Asset Maintenance Creation of Master Record for Tangible Assets Q: 1) Who is responsible for the initial creation of an asset master record? Who provides which information? A: Accounting Services will be responsible for creation and maintenance. Information comes from departments making purchase or constructing asset. Q: 2) How does information flow back and forth between the person responsible for the capital investment project and the accountant in Asset Accounting, with respect to the creation of a master record for an asset under construction? G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 6

20 A: Currently no process in place will need to develop a monthly process to determine in service dates. Q: 3) Which organizational units and/or which functional areas have authorization for creating or displaying asset master records? A: Probably only Accounting Services for creating - any department can display asset master record Creation of Group Asset Q: 1) Do you need to manage and depreciate certain parts of your asset portfolio in the form of group assets? A: Possibly sewer or water pipes, etc Asset Master Record Change Q: 1) In your enterprise, who has authorization to change asset master records? For which areas? Are these authorized individuals different from those who create the master records? A: Accounting Services same staff who create master records Q: 2) How often is it necessary to change your asset master records? Which parts of the asset master record are most often affected? A: TBD Q: 3) Are there certain asset master record fields that need to be protected against changes? If so, which fields? A: TBD Mass Changes Q: 1) In your enterprise, who has authorization to change a large number of assets simultaneously? A: Accounting Services Q: 2) Do you need to make changes to a large number of assets simultaneously? A: [ X ]Yes not sure [ ]No G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 7

21 Q: 3) If so, under what circumstances? Please describe. A: Possibly if legislative changes occur. Changes to useful life Receipts Q: 1) Does your organization have a specific amount, above which purchases are to be capitalized as fixed assets? If so, what is this amount? A: see policy attached as appendix to this document Capitalization of Internal Activity Q: 1) Are some services or internal activities capitalized such as legal costs or consultancy charges? A: Yes capitalized in conjunction with capital projects Q: 2) Do you activate costs for internal activity using: - Production order - Investment measure - Asset under construction - Direct capitalization - Other? A: Don t know -Current capital projects are Investment measure internal charges posted directly to project. No allocation of overhead. Q: 3) For reporting, would you like separate capitalized internal activities using different transaction types? A: Don t know Processing of Asset Acquisition Q: 1) Describe the information flow for asset acquisitions in your enterprise A: Business process to be determined Q: 2) Describe your capital procurement requirements. A: TBD Q: 3) What types of acquisition occur in your enterprise? A: Built, bought or donated Q: 4) If using asset sub-numbering, do you want to permit asset acquisitions only to the main number in the year of capitalization and post all later acquisitions to sub-numbers? G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 8

22 A: yes Q: 5) Do you keep a record of costs using acquisitions to the asset under construction? A: Currently only have G/L detail showing settlement to assets Q: 6) Do you plan and budget for capital investments in your enterprise? Should assets that are capitalized directly also be included in the planning and budgeting processes? A: Yes. Yes Depreciation Q: 1) What are the methods of depreciation that you are currently using? A: Currently no depreciation Q: 2) Do you calculate depreciation values to the day? A: See above Q: 3) In certain cases do you change over from a declining-balance depreciation to straightline depreciation? If so, when? A: no will only have straight line Q: 4) Do you want to allow negative depreciation for certain assets or categories of assets? If so, please specify. A: could happen Q: 5) Do you distinguish between a fixed and a variable depreciation portion? A: no Manual Depreciation Q: 1) In which cases do you need to calculate depreciation manually? A: Don t know Q: 2) How often do you use the manual depreciation function? A: Currently no depreciation G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 9

23 Q: 3) When do you use unplanned depreciation? A: Currently no depreciation Depreciation Posting Q: 1) Is there a business need to post depreciation directly to cost accounting? If so, what receivers are to be charged when you do so For example, cost centers, internal orders etc? A: Depreciation to be posted to cost centres at a program level. Q: 2) How often do you intend to post depreciation to the general ledger and to cost accounting? A: Possibly monthly - TBD Q: 3) Do you post depreciation to assets under construction? A: No Q: 4) To which account(s) is depreciation posted? A: Will post to depreciation g/l account and accumulated depreciation accounts Unit-of-Production Depreciation Q: 1) Do you use the unit of production method for certain assets? If so, please specify. A: No Business Transactions Settlement of Asset under Construction Q: 1) What steps are involved in your capitalization process? Do you show assets under construction in asset accounting? A: Capital costs are currently settled to assets (g/l accounts) weekly and at month-end and year-end. There will be assets under construction Q: 2) What is the timing for the capitalization process? G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 10

24 A: See above for current process. Future process TBD. Assets Under Construction will be capitalized on the last day of the month in which the in service date falls. The asset will be depreciated the following month. Q: 3) With respect to capitalization, are you bound by specific laws? A: [ X ]Yes accounting standards [ ]No Q: 4) Is it possible that an asset under construction is capitalized as a low value asset? A: yes Q: 5) Do you intend to use summary settlement or line item settlement for assets under construction? A: possibly both Q: 6) To which receiver(s) do you settle assets under construction? A: settle to GL account WIP - AUC until in service, then reverse that posting and settle to correct asset account Q: 7) Do you use partial capitalization? A: [ ]Yes [ X ]No - Don t know what that is Q: 8) What kind of information flow do you have for when an investment measure is completed and the asset under construction is ready for settlement to the final asset? A: Business process to be determined Post-capitalization Q: 1) What circumstances make post-capitalization necessary in your enterprise? One amount on the asset should have a different depreciation start date than the original asset. A: Possible on developer contributed/city joint projects Possible on additional costs in a subsequent year G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 11

25 Q: 2) How do you intend to post post-capitalization: - Gross, with historical values (APC and depreciation) or Net, depreciation begins on the posting date using the net book value. A: Don t know - TBD Q: 3) Do you want to post to a separate sub-number for post-capitalization? A: TBD Write-up Q: 1) Does the value of your assets appreciate and if so do your ledgers need to be adjusted? A: write up not allowed Q: 2) Describe the reasons for a fixed asset revaluation, the process used, and give examples of the assets which are to be revaluated. A: write down could happen on any asset loss of value (example, building that is not earthquake proof) or loss of service potential (water plant that was to last for 5 more years but shuts down early as other servicing comes on side) Reposting Q: 1) How and when do you transfer assets to other assets? What are the reasons? Example: You take the engine from one vehicle and install it in another. A: vehicles or heavy equipment Q: 2) Do you sometimes split an asset into one or more new assets? If so, please specify. A: TBD Q: 3) Do you transfer between different asset classes? Give examples. A: TBD Q: 4) Is the changing of an assigned cost center or a business area, for example, a reason for a transfer posting? A: TBD Q: 5) How do you find out about necessary transfer postings in asset accounting? A: Business process to be determined G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 12

26 Specific Valuations Closing of Insurance Contract Q: 1) Do you want to display insurance values for your fixed or leased assets? A: [ ]Yes [ X ]No Q: 2) With which insurance companies do you have insurance agreements? A: N/A Insurance valuation maintained outside of SAP Q: 3) Are your low value assets part of an insurance contract? A: [ X ]Yes N/A [ ]No Q: 4) What is the basis for the calculation of an asset's insurable value? A: N/A Q: 5) Do you index your insurance values? A: N/A Q: 6) Do you intend to use a separate asset valuation area for your insurance values? A: N/A Q: 7) Is there any interaction between insurance of assets and your leasing agreements? A: N/A Q: 8) How do you wish to make your insurance payments? A: N/A Investment Support Application for Investment Support Q: 1) Is investment support available for certain fixed assets and do you apply for this investment support e.g. from the federal government? G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 13

27 A: [ X ]Yes Federal & Provincial Grants, Private Donations [ ]No 2) How do you proceed when a new kind of investment support becomes available and you want to apply for it? A: Apply for funding and wait to get confirmation prior to construction/purchase or inclusion of amount in budget. Q: 3) Do you want to show investment support in asset master records? A: [X ]Yes [ ]No Q: 4) If you choose to show investment support in the asset master record, do you want it shown on the liabilities side, on the assets side (reducing APC) or only as information? A: Liabilities Q: 5) Is it possible that you could have more than one investment support measure per asset? How many? A: Yes, could be several Q: 6) Does investment support apply to low value assets as well? A: [X ]Yes maybe [ ]No Retirements Retirement Q: 1) How and when is asset accounting informed of the retirement of an asset? A: Business process to be determined. Possible delay in receiving information Q: 3) How do you process retirement of a low value asset (e.g. retirement with zero value; retirement with revenue; account assignment for retirement with revenue)? A: retirement with zero value remove asset cost and remove accumulated depreciation, no gain or loss recorded G:\Contracts\Tenders\Tenders 2010\1025 SAP Capital Assets Module RFP\1025 NanaimoBusiness Blueprint.doc 14