Accenture, LLP has been selected as the system integrator for the Financial Information System for California project following a lengthy procurement process in which the state negotiated with three top technology businesses, California Technology Agency Secretary Carlos Ramos confirmed today.
FI$Cal, a project that will create an integrated financial management system for the state, selected Accenture after completing the two-step procurement process that the state has estimated at driving the cost of the project down from $1.6 billion to an estimated $617 million.
Accenture suggested use of Oracle’s PeopleSoft ERP software to implement the new system in five steps, reaching full functionality in 5 years. The proposed cost of the contract is $213 million, according to Ramos.
"I’m very pleased that the project has gotten to this stage," Ramos said today. "It’s a major milestone in the life of the project. There were a lot of times when folks were wondering if the project would ever get this far. We’re happy today it is here."
The Intent to Award issued for Accenture, a global management, consulting, technology services and outsourcing company, will now be followed by a required 90-day legislative pause, placing the contract in the middle of budget negotiations. Project leaders in November suggested that the timing could help FI$Cal officials make a strong case for the project, which leaders argue could significantly benefit the state during a time of financial challenges.
The decision came after a unique procurement process in which project directors shared information about how the state conducts business and more specific information about the type of system the winning contractor must provide, according to former FI$Cal director Michael Reyna. The state usually issues an RFP, vendors compete for a contract and then, once a contract is signed, learn the details of what the state needs, a process that can make financial estimates faulty and usually drives up the project’s estimated cost.
IBM, CGI and Accenture worked with FI$Cal during the procurement process, with final negotiations completed in November. FI$Cal directors evaluated the three companies based on their experience and capabilities, the cost of the proposals, the technology solutions proposed as well as the planned implementation and methodology for the solutions, according to Ramos. Receiving bids from all three companies also helped project leaders validate the price proposals. Although Accenture was awarded the contract, the bidders were close, he said.
"I think the innovative approach that we took to the procurement really paid off," Ramos said. "I think we’re seeing the benefits of a robust competition."
The FI$Cal project has spent more than $55 million in five years on project inception, preparing for procurement, and clarifying project needs, according to figures offered during a legislative hearing held in August. In late 2011, the project lost director Michael Reyna, appointed former Office of Systems Integration employee Barney Gomez as CIO, and awarded an $800,000 contract to Delegata for project management assistance.
[Accenture is a sponsor of Techwire.net.]
