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Marin County to replace SAP ERP system

Last week, officials in Marin County, California, announced plans to replace the county's underperforming SAP enterprise resource planning (ERP) system. The system is at the core of a heated lawsuit the county filed against Deloitte Consulting earlier this year.

Marin County claims the system has been far too pricey to maintain and only 50 percent functions properly. Deloitte is refuting these claims and has filed a complaint seeking overdue payments. In a court filing, Deloitte states the system "was working properly and could perform all the tasks consistently with the standards set forth in the written contract."

During a recent webcast county meeting, David Hill, director of the county's information services and technology department, said a complete rebuild and redesign is needed to get the current system up to par, which would be highly expensive.

Marin County reports it would cost $34.7 million to maintain its current SAP system, simply fixing current problems would cost $34.1 million, and fixing/supporting the system over time would cost $49.8 million. Instead, the county plans to implement a new system at an estimated cost of $26.2 million over a 10-year period.

In no rush to purchase a new product right away, Marin County is keeping its options open and hopes to learn more about what technology is available over the next several months.

GovWin is closely monitoring this project and will post new information as it is released. To view this opportunity, go here.

Comments (Comment Moderation is enabled. Your comment will not appear until approved.)
My questions are these: how does Marion County expect to implement a new ERP for $26.2 million? Are SAP ERP systems so completely inept? Was Deloitte so incompetent? Did the government fail to uphold their end of the implementation?
# Posted By Jeff | 8/31/10 10:34 AM