SUBJECT: RESOLUTION AUTHORIZING A PROFESSIONAL SERVICES AGREEMENT WITH MAXIMUS ASSET SOLUTIONS FOR PURCHASE, INSTALLATION, CONFIGURATION, TRAINING, LICENSING, AND SUPPORT OF SOFTWARE FOR A FLEET MANAGEMENT SYSTEM FOR AN AMOUNT NOT TO EXCEED $500,000

PURPOSE AND SCOPE

In accordance with the Measure H Charter Amendment, which was passed by the voters at the General election of November 5, 1996, we have made an impartial financial analysis of the accompanying Council Agenda Report, and Proposed Resolution. In making our analysis we also obtained and reviewed a copy of the Request for Proposals (RFP) that the City issued on July 1, 2003.

Since the Measure H Charter Amendment specifies that our impartial financial analysis is for informational purposes only, we did not apply Generally Accepted Government Auditing Standards as issued by the Comptroller General of the United States. Moreover, the scope of our analysis was impaired by Administrative Instruction Number 137, effective May 21, 1997, which provides only one (1) week for us to plan, perform and report on our analysis.

SUMMARY

The Public Works Agency, Equipment Division (ED), has been without a fleet management system since 1999, when the prior system was designated for replacement. As a result, it has been difficult for the ED to obtain timely or accurate information to guide fleet management decisions and to adequately serve its customers. The MAXIMUS System will include the ability to maintain a perpetual inventory of automotive equipment.

CONTRACTOR SELECTION PROCESS

On July 1, 2003 the City issued a Request for Proposals (RFP), and received five responses. A review team (consisting of staff from the ED, PWA Information Technology, PWA Fiscal Services, the City Manager's Budget Office, Finance and Management Agency's Office of Information Technology, and fleet staff from the City of San Francisco) selected two finalists, who were invited to demonstrate their products. Based on the demonstrations, the review team selected Fleet Focus, the software product demonstrated by MAXIMUS.

FISCAL IMPACT

The agreement will be for an amount not to exceed $500,000 and includes the purchase, installation, configuration, training, licensing, and support for the software. The $500,000 also includes:

Contract Compliance	$15,000
Maintenance and licensing costs for FY 2004-05	$28,000
Related hardware costs	$50,000
Total	$93,000

Funding to support the acquisition and implementation of a new fleet management information system is included in the ED 2003-04 FY budget in Fund 4100, Project C68300 (Fleet Management System Implementation).

After the ED has had an opportunity to use the fleet management information system, staff anticipates that some program enhancements may be desirable, and that they can be funded from the ED annual budget.

CONCLUSION

The proposed resolution appears to be reasonable.

Prepared by:

Jack McGinity, CPA

Issued by:

Roland E. Smith, CPA, CFS
City Auditor

Report completion date:
November 20, 2003

Report Number:04-063