Information Technology
www.santa-ana.org/IT
Item # 16
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
August 5, 2025
TOPIC: Enterprise Resource Planning System Software and Implementation Services
AGENDA TITLE
Agreements with Graviton Consulting Services, Inc. and Oracle Corp. for Enterprise Resource Planning (ERP) System Software and Implementation Services (Specification No. 23-132) (Non-General Fund)
RECOMMENDED ACTION
1.Approve agreement with Graviton Consulting Services, Inc. for the purchase of Oracle Cloud ERP subscription licensing, for an initial three-year term beginning September 1, 2025, with seven optional one-year renewals, in an aggregate amount not to exceed $5,026,843; and authorize the City Manager, or their designee, to execute future ordering documents as necessary, provided the total cost does not exceed the approved aggregate amount (Agreement No. A-2025- XXX).
2.Approve an agreement with Graviton Consulting Services, Inc. for Oracle ERP implementation services, in an amount not to exceed $4,798,915, for a 35-month term beginning August 1, 2025, and expiring June 30, 2028 (Agreement No. A- 2025-XXX).
3.Approve agreement with Oracle America, Inc. for Public Sector Oracle Cloud Services, to govern the terms and conditions of the Oracle Cloud ERP services (Agreement No. A-2025-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
On July 6, 1998, the City Council approved the purchase of the High Line Corporation’s “Personality” payroll and human resources software to be used to comply with Y2K requirements. Since 1999, the City has utilized this system (which was upgraded in 2011 to a newer version called “ePersonality”) to process payroll and manage personnel
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information. The system features also included time and attendance tracking, benefits administration, salary and position management, training and development, and labor relations administration.
On March 3, 2008, the City Council approved the purchase of the Lawson financial system to replace a legacy mainframe system that was more than 20 years old at the time. This new system has been used since 2009 by all departments to process, track, and report on the City’s financial information and transactions. Key functions of this system include general ledger, grant management, projects and activities, accounts payable, cash management, billing, accounts receivable, asset management, requisitions, purchase orders, inventory, business intelligence, and reporting.
Together, the High Line and Lawson systems have been meeting the City’s ERP needs for 25 years and 16 years, respectively. During that time, High Line Corporation was acquired by NeoGov and Lawson was acquired by Infor. The new owners of these two software systems have continued to support and enhance the systems over the years; and as updates were made available, City staff applied these updates to keep the applications running on supported versions. Although the vendors continue to provide system support and ongoing minor updates, both vendors have declared their systems to be end-of-life and they do not plan to release any new major version upgrades.
Instead, they have encouraged customers to migrate to their new cloud-based, subscription versions.
On December 6, 2022, the City Council approved an agreement with SDI Presence, LLP (SDI) to assist the City in the evaluation, selection, and negotiation of a new ERP solution. Because of the importance of this solution to meet the City’s current and future operational requirements, it was prudent to choose a firm with extensive experience in helping public sector organizations select the appropriate ERP system.
With the assistance of SDI, the City conducted an extremely thorough selection process that lasted more than two years. This process included a comprehensive needs assessment conducted by SDI, development and issuance of Requests for Qualifications (RFQ) for software vendors and implementation partners, consultation with staff at other agencies using prospective systems, development of a Request for Proposal (RFP), vendor demonstrations, proof-of-capability presentations, additional requests for clarifications, and, finally, contract negotiations.
On December 13, 2023, the City issued RFP No. 23-132 for Enterprise Resource Planning (ERP) system, including Implementation Services on the City’s online bid management system to vendors who had been qualified based on the issued RFQs. A summary of vendor participation and results is as follows:
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7 Vendors notified
0 Santa Ana vendors notified
7 Vendors downloaded the RFP packet
5 Proposals received
Proposals were opened on February 14, 2024 and evaluated. The five proposals submitted by the RFP deadline were all determined to be responsive to the specifications and met the City’s requirements. A selection team consisting of staff from the IT Department (IT), the Finance and Management Services Agency (FM), and the Human Resources Department (HR) evaluated the proposals, participated in half-day demonstrations, and subsequently short-listed the top two candidates to continue in the process. The top two candidates then participated in scripted, week-long, proof-of- capability demonstrations and responded to a Request for Clarifications, which included requests for their best pricing as well as other desired contracting terms and conditions.
After careful consideration, the Graviton Consulting Services Inc. proposal to implement the Oracle Fusion Cloud ERP application was the top ranked proposal by the selection team. All five proposing firms’ rankings according to the criteria listed in the RFP are as follows:
Implementing Vendor Name/Product Location Rank
Graviton Consulting Services Inc./Oracle
Fusion Cloud
Sacramento, CA 1
Cognizant Solutions (Collaborative
Solutions)/Workday
Teaneck, NJ 2
Avaap USA LLC/Workday Columbus, OH 3
Tyler Technologies/Tyler EERP Yarmouth, ME 4
RPI Consultants/Infor Cloud Suite Baltimore, MD 5
The selected Oracle Fusion Cloud application is a true best of breed, cloud-based, Software as a Service (SaaS) product that will help the City to support business transformation, reduce risk from legacy systems, reduce manual processes, provide robust reporting capabilities, and meet the changing future demands of the City. Having a common foundation across applications provides the standardization that will allow the City to grow over time and see savings quicker by reducing redundant systems and streamlining processes. Oracle’s Cloud solution provides shared technology, a common modern user interface, a secure unified data model, and universal easy-to-use reporting and analysis. The City expects to replace multiple stand-alone systems with this single solution.
The City will be purchasing the Oracle Fusion Cloud subscriptions through Graviton as a reseller in order to align license purchases with the system implementation plan and to accommodate the City’s requested terms and conditions (see Exhibits 2, 3, and 4).
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The City is committing to a minimum three-year agreement with no annual subscription increases. After the third year, the agreement includes seven, optional, one-year renewal periods, that include a subscription uplift that is capped at three-percent (3%).
This locks in 10 years of pricing with the ability to cancel in any year after year three.
Since subscription pricing is based on both modules utilized and the number of City staff in a given year, the not-to-exceed amount of $5,026,843 has been calculated to allow for fluctuations.
During the selection process, the Teller Cashiering system was also selected; however, during planning, the team determined implementing that system was not feasible at this time. The team will re-evaluate replacing the existing cashiering system after the implementation of the ERP begins and may bring the item back to the City Council at a later time for approval of the additional cost.
The Oracle Fusion Cloud system will be implemented in two overlapping phases. Phase 1 will be the Human Capital Management (HCM), Learning Management, and Payroll modules. This phase will last 16 months, with a targeted go-live of January 1, 2027.
Phase 2 will be the ERP Financial Management modules. This phase will last 18 months, with a targeted go-live of July 1, 2027. The one-time implementation services cost is a not-to-exceed amount of $4,798,915 (see Exhibit 1).
The selected platform allows for modular expansion, enabling the City to add new features or functional areas such as procurement enhancements, budgeting tools, or workforce planning as future needs arise. This flexibility ensures the system can evolve alongside the City’s operational and strategic goals, supporting long-term efficiency and performance. Modules are licensed by either the number of total city employees or by the number of specific named users, which may be adjusted on an annual basis.
To support ongoing adaptability and periodic staffing updates, it is recommended to authorize the City Manager, or their designee, to execute future ordering documents as necessary, provided that the total costs do not exceed the approved aggregate amount.
This authorization allows the City to respond promptly to emerging needs to procure additional modules or services without delay, while maintaining strict fiscal control. Such flexibility is critical to maximizing the investment in the Oracle ERP system and ensuring it continues to meet the City’s evolving requirements.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Funding for this project has been planned for and has been accumulated in the fund balance of the Information Technology fund. Funding of $3,000,000 is currently available in the Information Technology Department under the IT Projects accounting unit (10920149) for FY 2025–26 and the fund is projected to have funds to cover the Enterprise Resource Planning System Software and Implementation Services July 15, 2025
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implementation and subscription costs for the first three years. Funding for subsequent fiscal years will be included in proposed budgets for City Council consideration. The table below provides an estimated account distribution by fiscal year; however, actual distribution amounts and fiscal years may vary depending on the timing of implementation.
Fiscal
Year
Accounting
Unit - Account
No.
Fund
Description
Accounting Unit –
Account No.
Description
Amount
2025-26 10920149-
66511
Information
Technology
IT Projects – Computer
Software Subscriptions
$461,503
2026-27 10920149-
66511
Information
Technology
IT Projects – Computer
Software Subscriptions
$461,503
2027-28 10920141-
66511
Information
Technology
Enterprise Systems –
Computer Software
Subscriptions
$461,503
2028-29 10920141-
66511
Information
Technology
Enterprise Systems –
Computer Software
Subscriptions
$475,348
2029-30 10920141-
66511
Information
Technology
Enterprise Systems –
Computer Software
Subscriptions
$489,608
2030-31 10920141-
66511
Information
Technology
Enterprise Systems –
Computer Software
Subscriptions
$504,297
2031-32 10920141-
66511
Information
Technology
Enterprise Systems –
Computer Software
Subscriptions
$519,425
2032-33 10920141-
66511
Information
Technology
Enterprise Systems –
Computer Software
Subscriptions
$535,008
2033-34 10920141-
66511
Information
Technology
Enterprise Systems –
Computer Software
Subscriptions
$551,058
2034-35 10920141-
66511
Information
Technology
Enterprise Systems –
Computer Software
Subscriptions
$567,590
Total
$5,026,843
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Fiscal
Year
Accounting
Unit - Account
No.
Fund
Description
Accounting Unit –
Account No.
Description
Amount
2025-26 10920149-
62300
Information
Technology
IT Projects – Contract
Professional Services
$1,756,235
2026-27 10920149-
62300
Information
Technology
IT Projects – Contract
Professional Services
$ 2,281,067
2027-28 10920149-
62300
Information
Technology
IT Projects – Contract
Professional Services
$ 761,613
Total
$ 4,798,915
EXHIBIT(S)
1. Graviton Consulting Agreement for Implementation Services
2. Graviton Cloud Services Ordering Document - SaaS
3. Graviton Cloud Services Ordering Document – PaaS-IaaS
4. Public Sector Agreement for Oracle Cloud Services
Submitted By: Jack Ciulla, Chief Technology Innovations Officer Approved By: Alvaro Nuñez, City Manager