1. ERP Proposal Evaluation Team Training
ORGANIZATION
ERP Proposal Evaluation Team Training

2. Overview of Selection Process

3. GFOA’s Proposal Elevation Methodology
System Selection Services
Contract Negotiations
Proposals
Demonstrations/
Initial Interview
Discovery
Negotiations
Approx.
6-10 proposals
1 proposal
3 proposals
2 proposals
Statement of
Work Template
GFOA uses market
experience to
identify risks and
outliers
Focus on software
and high level
implementation
approach
Focus on unique
considerations to
prepare for SOW
Software
License
Implementation
Services
Agreement
Proposal
Assessment
Demo Scripts
RFC Letters
Support
Agreement
Discovery
Scripts
Demo Staffing
Third Party
Documents
Reference
Checks
Discovery
Staffing

4. Expectations

5. Expectations of Management Team / Selection Team
Read each proposal
Identify strengths, weaknesses, questions
Score proposals
Attend meetings to discuss
Plan on 8-10 hours per proposal
Attend all demos
Demos are 3 days per vendor
Attend Discovery sessions
1 day
Review demo scripts, request for clarification (RFC) letters, participate in meetings, develop recommendation for steering committee, etc.

6. How to Evaluate a Proposal

7. Submittal Requirements
Executive Summary
Exceptions to RFP
Scope of Services
Company Information
Customer Reference Form
Functional Requirements
Technical Requirements & Information Requests
Business Process / Software Considerations
Chart of Accounts
Operational & Financial Reporting
Receiving & Invoice Processing
Data Conversion
Interfaces
Implementation Approach, Plan, and Deliverables
Staffing
Post Implementation Support Services
Maintenance & Support
Pricing

8. Section 1. Executive Summary
Title page
Table of contents
Executive summary
Contact info
RFP submittal checklist, signature page, proper statement, insurance certificate, W-9, and exceptions to RFP
Generally, this section is filled with marketing information (“market leading,” “best,” “innovative,” “unique,” etc.) and provides very little value to the selection process. However, it can be used to identify priorities of the firm involved and their understanding of the County’s situation.

9. Exceptions to the RFP Vendor exceptions
All vendors operate under different assumptions and have different preferences and procedures for selling their software and conducting implementations. It is very common for vendors to take exception to many of the proposed contract terms in the RFP.
Differences will be worked out during Discovery and contract negotiations. Anything that is of high importance will be flagged by GFOA and discussions will begin prior to elevation for software demonstrations to emphasize the importance of the high level issues.

10. Key Issues – Exceptions
Contract Terms
Warranty
SOW
System acceptance

11. Section 2. Scope of Services
Describes what is proposed
Software modules
Technical environment, e.g., on premise, SaaS, managed services, etc.
Implementation services
Describes how proposed solution will accomplish County’s goals
Describes who is involved
Multiple firms – identifies the role of each
This section is critical. Often firms describe what they “can” do, not what they have proposed in a proposal. This section will clearly identify what the County is getting and who is providing it.

12. Company Information Experience Current customers
Implementation partnership
Company size, resources, investment, litigation, and potential acquisition
Past public sector experience is a huge factor in the success of implementations. Also, the partnership with the software and implementation firms is important to show their working relationship. It is important to find out if the vendors have past experience with similar projects in other similar organizations. Don’t overlook the third party solution backgrounds as well.

13. Customer Reference Form
Past customer
Similar organizations (employee size, operating budget, etc.)
Project summary
Solution version
Project scope
Implementation information
Duration, vendor role, project challenges, and major accomplishments
References may also be from governments who didn’t use the proposed implementer but the original implementer was acquired by the proposed implementer. Or, the references may be for a proposed solution, but not the implementer. Additionally, vendors may skim over the implementation information section when addressing project challenges and accomplishments.

14. Section 3. Functional Requirements
Responses to the functional requirements
Modules required to meet each
Additional clarifying comments
THE MOST IMPORTANT SECTION. Requirements form the foundation for any implementation. They define the scope, provide a guide for implementation, and serve as the warranty. The vendors must understand the requirements, answer accurately, and communicate software capabilities and gaps to the County. The County also has to understand any potential gaps. This will be an evolving document as requirements are clarified.

15. Responses

16. Key Issues - Requirements
Watch out for vendors that claim to provide 100% of requirements
GFOA experience is that most vendors will provide only 85-95%
Don’t penalize vendors who seek clarification on requirements that appear to be conservative.
It is OK if some requirements (highest % not always the best) are not provided. The key is to determine if those requirements are essential.

17. Third Party Solutions
May be considered a key module in the entire ERP suite.
Interfacing with main ERP software will be critical.
Deployment will need to integrate with ERP Statement of Work to avoid conflicting demands on staff time.

18. Section 4. Technical Environment & Information Requests
Database
Operating systems
Hardware
Network
Security
Integration
Software releases
Support, warranty, and maintenance
Data access
Reporting and analytics
Hosted / SaaS options
Most vendors support multiple platforms and most common technology. However, others have aligned their products with specific products that are required to run the application.
Note: County standards were listed in the RFP

19. Section 5. Business Process / Software Considerations
Chart of Accounts
Data Conversion
Operational & Financial Reporting
Receiving & Invoice Processing
Interfaces
Open-ended questions provide an opportunity to get feedback from the vendors on different issues, including business process redesign. Generally, they are difficult to evaluate as vendors are responding base on what they know about the County. For conversions and interfaces, vendors often leave out them our, or make different assumptions on scope.

20. Section 6. Implementation Approach, Plan and Deliverables
Implementation methodology
Vendor and County staffing
Project management
Quality assurance / testing
Training
Change management
Deliverables
THE MOST IMPORTANT SECTION (PART 2). No software will work “out of the box.” Success for the project is dependent on an implementation approach that mitigates risk, and accomplishes the County’s goals in a way to leverage both consulting resources and County staff to incorporate best practices and facilitate knowledge transfer.

21. Key Issues - Implementation
Everyone has an implementation methodology. For the most part, they all work.
Look at staffing assumptions.
Are they realistic? (Beware of very low #s)
Can you provide the effort?
How much work are you required to do vs. the vendor?

22. Training Plan Training strategy Training content development
Training delivery
Training tools
A completely new system, new processes, and new organizational roles requires that each employee be trained in how to use the new system. Inadequate training will lead to change management issues, the proliferation of shadow systems, and ultimately an underused system. It is critical that training be “County-specific” so that employees can see how the system will be used to complete County tasks. Don’t overlook training described by third party solutions as well because this may be as much as half of the training required for your staff.

23. Key Issues - Training
Vendors often make very different assumptions about training
Who will perform training?
Where will training be conducted?
Who will develop training materials?

24. Knowledge Transfer and Change Management
Business process change
Overcoming resistance
Communication
Change is not easy for most organizations. ERP projects are all about massive change. No system will deliver ROI without re-thinking business processes, changing roles, and requiring employees to take on new tasks. Being able to successfully manage the people side of the project can’t be overlooked.

25. Key Issues – Change Management
Not all vendors have the same understanding of what change management is.
Does the vendor understand the complexity of the project?
Does it appear they have worked on similar projects in the past?

26. Section 7. Post Implementation Support Services
Post go-live support
Service desk / telephone support services
User groups
Application support services, e.g., interface development and customization
Setup / configuration services
Training
All vendors provide approximately the same levels of support. It is important to verify that support meets minimum requirements, but other areas of the proposal are more important. Verify the maintenance and support provided by third party vendors as well.

27. Section 8. Pricing License (Is what they proposed enough?)
Implementation (services)
Implementation, data conversion, interfaces, customizations / reports
Training
Maintenance and support
Travel
Other
Costs will change as scope is refined and savings negotiated. It is important to remember that it is very difficult to do vendor to vendor cost comparisons. Proposed services are different – so the lowest price may not be the best price.

28. Considerations on Cost
All vendors have slightly different pricing methodologies.
On Premises
Hosted
SaaS

29. Supplemental Information
Anything the vendor wanted to add
Often vendors will include reference letters, screen shots, report examples, or other marketing material. This information should be reviewed, but it is often difficult to score.