REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Task Orders Not to Exceed $2,231,704 to Kastech Software Solutions Group for PeopleSoft Upgrade and Functional Improvements in Purchasing and Central Warehouse Operations and Approval of Related Budget Amendments
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Since 2002, the City of Santa Clara (City) has used PeopleSoft to manage essential functions across finance, human resources, benefits, accounting, payroll, and purchasing. The two primary PeopleSoft systems in use are:
* Financial and Supply Chain Management (FSCM): Managed by the Finance Department, this system supports financial operations such as general ledger, accounts payable, capital asset management, purchasing, inventory, accounts receivable, and billing.
* Human Capital Management (HCM): Managed by the Human Resources (HR) and Finance Departments, this system manages HR functions, including human resources, benefits, time & labor, and payroll.
Over the years, various modifications were made to PeopleSoft to address immediate operational needs, but some changes were inconsistent with the system's intended use. Specific issues within FSCM include:
* System Configuration Challenges: Certain configurations across core modules, including Purchasing, Accounts Payable, and Inventory Management, were implemented to bypass controls due to limited staffing. However, these changes resulted in foundational issues that have hindered system efficiency.
* Ceasing Use of Requisition Module: Use of the Requisition module is a standard best practice for all Enterprise Resource Planning (ERP) systems and not just PeopleSoft. It provides a clear delineation of procurement responsibilities between operating departments and Purchasing. When use of the Requisition module was stopped, departments began entering purchase orders directly, resulting in limited control over procurement processes.
* Lack ...
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