Item - 2021.GL21.24

The General Government and Licensing Committee:

1. In accordance with Section 195-8.4 of Toronto Municipal Code Chapter 195 (Purchasing), authorized the Chief Financial Officer and Treasurer to enter into, and execute an agreement with the successful proponent, Deloitte  Incorporated, being the top-ranked proponent meeting the requirements set out in the Negotiated Request for Proposal for the provision of system integrator services to enable the City's financial systems transformation, for a period of three (3) years in the amount of $44,035,968 net of all taxes and charges ($44,811,001 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the Chief Financial Officer and Treasurer and as set out in the Negotiated Request for Proposal and negotiated Master Services Agreement and initial Statement of Work, and in a form satisfactory to the City Solicitor.

This report is to advise on the results of the Negotiated Request for Proposal Number 3405-20-0131 (Ariba Doc2481086143) for the provision of system integrator services to enable the City's financial systems transformation, and to request authority for the Chief Financial Officer and Treasurer to enter into a contract with Deloitte, Inc.

The Financial Systems Transformation Program is required at this time as the current version of the City's financial software is approaching end of life in 2027. In the current state, there are numerous systems with financial information that exists outside of the core financial platform.  Extensive manual intervention and workarounds are required in most aspects of financial processes and reporting. The result has been a network of over 70 plus systems that do not meet the City's current needs.

The new version of the core financial platform provides the City with the opportunity to review and build more efficient and effective business processes and consolidate the number of systems and financial information which will support an integrated and seamless delivery environment that will be critical for all City operations.

The cost of the contract over three (3) years to the City of Toronto is $44,035,968 net of all taxes and charges ($44,811,001 net of Harmonized Sales Tax recoveries).  The award amount is inclusive of a contingency to address potential scope adjustments and additional services that may be required and confirmed once the supplier has completed Phase 1, the Business Transformation and Technology Solution Design Phase of the program, which shall assist in defining the required scope of work for the following Build to Deploy Phase.  Details are provided in the comments section.

If approved, the program is tentatively scheduled to begin in April/May 2021, with a target implementation date in Q2 2023.  Funding for this program is included in the Council approved 10-Year Capital Budget and Plan within the Office of the Controller's capital budget.