Subject:
Title
SAP Public Services, Inc. Cloud Order Form for waiver of the County’s Indemnification Policy detailed in Resolution No. 06-70.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the SAP Cloud Order Form between Pinellas County (“Customer”) and SAP Public Services, Inc. (“SAP”) for waiver of Pinellas County’s Indemnification Policy detailed in Resolution No. 06-70.
• Analytics Cloud and Datasphere Solution Services, for Pinellas County Utilities (PCU) facilitated by SAP Public Services, Inc., (SAP).
• Correspondence with SAP confirmed they are unwilling to accept modifications to their agreement. The agreement will not include Fiscal Non-Funding, or a total not-to-exceed (NTE) amount, however PCU has confirmed they have sufficient budget required for this purchase.
• Resolution 06-70 states that County indemnification may be waived based on the availability of goods or services from other sources and the County need/desire for the specific goods or services. This software is proprietary and must be supplied by SAP.
• The total projected cost for year one is $108,724.80. The contract will auto-renew for one, twelve (12) month period followed by an auto-renew of a three (3) month period for a maximum term of twenty-seven (27) months and a total contract amount of $229,467.60.
• This request is budgeted for in the FY25 Budget of PCU in the Water Revenue and Operating Fund and Sewer Revenue and Operating Fund. Future funding will be dependent on the adoption of the annual County Budget starting in FY26.
Contract No. 25-0526-N for a total projected cost of $229,467.60 over a term of 27-months.
Strategic Priorities:
Smart Service Delivery
4.3 Improve efficiency of service delivery through technology.
Summary:
The SAP Analytics Cloud and Datasphere solution allows PCU to administer SAP product queries and analyze the data with state-of-the-art technologies such as predictive analytics and Artificial Intelligence. The Datasphere product allows PCU to replicate data from the SAP Hanna database to the Datasphere Database. This provides access to third-party software such as PowerBI for the creation of dashboards.
Directly employing SAP services is a cost savings method that maintains an uninterrupted software environment. PCU currently utilizes SAP services and requires the sole-source purchase of SAP interface software to maintain continuity of that service. Procurement outside of SAP would cause significant interruptions to the current enterprise resource planning (ERP) environment due to the lengthy integration of new vendors and software.
Background Information:
The current PCU SAP/HANNA ERP System has a runtime database license that restricts which software products can be utilized to query SAP database products. This restriction removes PCU’s ability to access PowerBI, Tableau, and other software tools to properly query and analyze data. The restriction further disables the ability to replicate data onto additional databases. As a result, PCU is limited as to the queries, reports and data extractions that can be performed. To accomplish basic tasks, PCU must pay a vendor at a rate of $250 per hour resulting in annual expenses of more than $100k per year.
Resolution No. 06-70 disallows the County’s indemnification of other parties; the County’s Policy may only be waived based on the availability of the goods or services from other sources and the County’s need/desire for the goods or services. Based on the proprietary and sole source nature of SAP software and PCU’s need to properly administrate SAP/HANNA ERP System tasking, the criteria to waive the County’s Indemnity Policy has been met.
Fiscal Impact:
Contract expenditure: $229,467.60
This request is budgeted for in the FY25 Budget of PCU in the Water Revenue and Operating Fund and Sewer Revenue and Operating Fund.
Future funding will be dependent on the adoption of the annual County Budget starting in FY26.
Staff Member Responsible:
Jeremy Waugh, Director, Utilities
Merry Celeste, Purchasing Director, Administrative Services
Joe Lauro, Director, Administrative Services
Partners:
N/A
Attachments:
Agreement