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Opportunity Alert: Utility Plans Hundreds of Millions in IT Spend

A Southern California provider of water and power is planning some massive hardware, software and consulting RFPs.

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The nation’s largest municipal electric utility has a couple of very large IT contract opportunities on the near horizon.

The Los Angeles Department of Water and Power (LADWP) has published notices of several upcoming solicitations for IT goods and services, as well as consulting.

The utility is planning to release a Request for Proposal (RFP) next month for an estimated $200 million project for a systems integrator “to plan, design, develop, configure, test, install and deploy” software as part of an enterprise resource planning (ERP) project. It will support human resources, payroll, finance, procurement, and inventory management functions. This comprehensive initiative includes integration of ERP into LADWP’s existing software applications and current computing environment.

In a related opportunity scheduled for an RFP in July 2021, the utility also has an estimated $4 million project seeking oversight and quality control over the ERP project, calling for “professional services to review, assess, verify, and validate all aspects of ERP software implementation.”

“Consultant will independently review ERP systems integration planning, design, development, configuration, testing, installation, deployment, project management, quality management, organizational change management, readiness to cut-over and go-live, and user training and support (pre- and post- go-live).”

The consultant will “identify and provide recommendations for mitigating program risks; provide program transparency by reporting independently to LADWP General Manager, executive management, and ERP Steering Committee; (and) advise the project management team of observations, risks, issues.”

The utility will choose the ERP software system(s) to be implemented based on an earlier ERP software solicitation.

LADWP is planning a solicitation for September with an estimated value of $60 million, for computer hardware, software and maintenance.

“This contract includes the purchase, installation, configuration, and maintenance of high-end enterprise class servers, data storage, network connectivity and mainframe equipment including related software to operate the equipment,” says the notice in the utility’s “Supply Line” publication. Hardware maintenance is included in the contract.

Another solicitation, scheduled for this month, is for an estimated $35 million for “technology project preparation and support services to assist LADWP project management team with business process management, operational and technical requirements definition, user acceptance test planning and development, and organizational readiness activities.”

The utility is also planning some smaller solicitations:

  • An estimated $13 million project covering “ongoing maintenance and support services of the hardware and software related to the current LADWP Internet Protocol Contact Center (IPCC) infrastructure.” The project includes upgrading the IPCC environment and implementing changes as needed “to maintain a robust, efficient, integrated, and supported system,” as well as technical services “to plan, prioritize, design, develop, implement, and document changes based on external assessments of the system, regulatory compliance, and/or business needs.” This RFP is scheduled for release next month.
  • An estimated $5 million contract, scheduled for an RFP this month, for “Independent Quality Assurance” services, specifically for project management of customer-facing IT projects.
  • An RFP for an estimated $2.275 million, to be released in July, for payment-processing software for customer payments received by mail.
LADWP serves as the provider of water and power for more than 4 million residents of Los Angeles and the Owens Valley. The utility’s IT operation is led by Chief Information Officer Louis Carr, who will be the subject of a Techwire Virtual Member Briefing at 11:30 a.m. today.

Carr is responsible for technology services and strategy that support the business needs of the department, a complex organization that uses a mix of traditional IT along with operational technology.

Dennis Noone is Executive Editor of Industry Insider. He is a career journalist, having worked at small-town newspapers and major metropolitan dailies including USA Today in Washington, D.C.