ATTACHMENT 2: UPDATE ON ARIBA PROJECT IMPLEMENTATION
Ariba Project Implementation – Goods and Related Services
Procure to Pay (P2P) Module Implementation Phase 11
Scope
Phase 1 for P2P will focus on goods and related services contracts that are
centrally established by the Procurement Department and used by different
County departments. There are 3,865 suppliers2 currently in scope for Supplier
Enablement for goods and related services contracts, standard purchase orders
(POs) and Field Purchase Orders (FPOs). The Procurement Department has 694
term contracts for goods and related services with 560 of those suppliers, and the
rest of the suppliers are on POs and FPOs, which are mostly one time purchases
and small dollar purchases. Therefore, in Phase 1 the goal is to enable the 3,865
suppliers so that the County can transact with them using Ariba.
Pre-Implementation Work
Suppliers will need to be enabled on the Ariba Network in order to transact
business with the County. The following describes the steps that need to occur
before Departments can start using the technology.
1. Set up Goods and Related Services contracts:
a. Establish contracts by creating a contract workspace in Ariba.
b. Setup pricing terms to ensure contract compliance based on
categories such as item, catalog, commodity and supplier level.
c. Identify the type of product being procured under an agreement, and
determine the appropriate type of catalog for that product, such as
Catalog Interchange Format (CIF) or punch-out catalogs.
d. Collaborate with suppliers to build catalog files based on the list of
contracted goods and related services.
e. Import and enable the catalogs.
f. Conduct contract legacy load into Ariba.
1
The descriptions for the different modules are provided in Attachment 1 to the Legislative File.
The 3,865 suppliers represent the number of suppliers currently transacting in SAP. Some of
these suppliers may also have Board Contracts and Service Agreements with the County outside
of contracts established by the Procurement Department.
2
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2. Enable the Procurement Department to issue POs and FPOs for noncontract purchases that will be made by departments.
3. Enable requisition approval process based on pre-established workflows.
4. Enable processing of goods receipts.
5. Enable invoice processing and invoice exceptions.
Implementation Strategy
Phase 1 will be rolled out to the County in four waves. Each wave will focus on
certain departments and, to the extent possible, the waves are grouped based on
Board Committees. Ariba and the County determined that the wave-planning
criteria should be department-focused as opposed to other criteria, such as
commodity type, because the County will be better able to facilitate end-user
training and support and manage introducing a new system to staff from similar
departments at the same time. Also, based on their operations, these like-forlike departments typically have similar purchasing needs and concerns and similar
approaches to doing business.
Technology Go-Live vs. Business Go-Live
There are two different Go-Live dates associated with implementation:
 Technology Go-Live refers to when the Ariba technology has been
configured to the County’s specifications and is ready to be used by the
County. This occurs after the County has tested and validated that the
configuration meets the County’s specifications.
 Business Go-Live refers to when the County will actually start using the
technology. The County will start conducting transactions using the
technology after County end-users complete training and the necessary
change management has been implemented. Ariba will also continue to
provide additional support for a period of time.
The following chart outlines the different waves:
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Waves Board Committee
Agency/Department
Wave
1
Wave
2
Wave
3
Wave
44
 ISD and VMC (Non-Patient
Care Supply Contracts3)
 189 Contracts +
Standard/Field POs
 161 Suppliers + Suppliers
for Standard/Field POs
 CSFC and FGOC
Departments (Excluding
ISD)
 135 Contracts +
Standard/Field POs
 120 Suppliers + Suppliers
for Standard/Field POs
 HLUET, PSJC & SCVHHS
Departments (Non VMC
Departments – Behavioral
Health, Public Health, etc.)
 93 Contracts +
Standard/Field POs
 74 Suppliers + Suppliers for
Standard/Field POs
 VMC Patient Care
 277 Patient Care Supply
Contracts + Standard/Field
Change
Management
(inc. Training)
June 2015
Business Go-Live
Dates
September 2015
October 2015
February 2016
March 2016
June 2016
July 2016
3
July 2015
Non-Patient Care contracts refer to goods and related services that are consumables that are
not used for patient care and are inventoried by VMC. The non-patient care contracts for Wave
1 are generally IT and Facilities-related contracts.
4
The County and Ariba still need to complete their analysis to determine how many of these
277 patient care contracts will go through P2P and how many will need to go through the Ariba
Procurement Content (APC) module. This analysis will involve evaluating VMC’s inventory
management processes, Group Purchasing Organization (GPO) contract management process
and the technical integration requirements between Ariba and SCVHHS’s PMM system and
potentially other SCVHHS systems.
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Waves Board Committee
Agency/Department
Change
Management
(inc. Training)
Business Go-Live
Dates
POs
 205 Suppliers + Suppliers
for Standard/Field POs
Implementation Status of Other Phase 1 Modules
The Ariba Project launched in September 2014 with very aggressive timelines for
getting the technology up and running, as shown in the table below.
Unfortunately, these timelines did not incorporate adequate time for making
modifications if problems arose during testing or buffers if unforeseen situations
arose. Within a couple months of launching the implementation, it was apparent
to Administration that the original timelines were not realistic and needed to be
modified.
Accordingly, working with the County, Ariba proposed revised dates and added
substantial additional resources to the project (at no additional cost to the
County) to ensure that the modules will be implemented correctly and with
realistic timelines.
Original vs. Revised Technology Go-Live Dates
Module
Original Planned
Revised
Technology Go-Live
Technology GoDate
Live Date
Supplier Information
12/19/2014
1/16/15
Management (SIM)
DiscountPro Module (D-Pro)
12/19/2014
1/12/15
Contracts Module
2/13/2015
Moved to Phase 2
Procure-to-Pay (P2P)
3/27/2015
5/1/2015
Sourcing Module Part 1 (Request
12/19/2014
4/13/2015
for Proposals (RFP) and Request
for Statement of Qualifications
(RFSQ))
Sourcing Module Part 2
12/19/2014
5/11/2015
(Invitation to Bid (ITB) and
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Module
Request for Quotation (RFQ))
Sourcing Module Part 3
(Minor and Major Construction
Bids and Construction Services)
Ariba Procurement Content
(APC) for VMC Patient Care
PO and Invoice Automation
Invoice Professional and ICS
Original Planned
Technology Go-Live
Date
Revised
Technology GoLive Date
12/19/2014
3/27/2015
TBD based on
County readiness.
Tentative date
proposed by Ariba
is 6/15/2015
Moved to Phase 2
3/27/2015
3/27/2015
Moved to Phase 2
Moved to Phase 2
Project Implementation Phase 2
The modules that have been identified to be implemented in Phase 2, beginning
in mid-2015, are Services Procurement/Field Glass, Contracts, Spend
Visibility/Supplier Information Performance Management, Ariba Procurement
Content, PO and Invoice Automation and Invoice Professional. Because the
timelines for Phase 1 had to be adjusted, the County and Ariba are working on
identifying a realistic and manageable timeline for Phase 2, which will include the
Technology Go-Live and Business Go-Live dates for these modules.
Ariba Project Implementation – Professional Services
Phase 2 of the Ariba Project implementation will include Service Agreements and
Board Contracts that are primarily done in decentralized contracting. This
includes professional service agreements, such as agreements with Community
Based Organizations (CBOs), architects and engineers, and other professional
consultants. Decentralized contracting is part of Phase 2 because Administration
determined it would be most beneficial to the County to focus on goods and
related services in Phase 1. This allows the County to use the new technology in a
centralized environment with a small group of County users and be able to take
lessons learned from the Phase 1 implementation and apply them to the future
phases.
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Additionally, there are enormous challenges in addressing decentralized
contracting for professional services that must be addressed prior to
implementation. For example, there are currently 450-500 employees doing
contracting in the County for the decentralized process.
Administration is currently in the process of evaluating the decentralized
contracting environment as part of the newly-created County Executive’s Office of
Countywide Contracting Management, approved on February 24, 2015 as part of
the FY 15 Mid-Year Budget. One significant step in that effort is to hire a
management consultant to examine the current contracting structure and provide
recommendations to streamline the process. It is important to incorporate these
changes as part of the design phase for the decentralized contracting efforts with
Ariba.
As the goods and related services contracts are brought forward into the Ariba
system, detailed planning for implementation of the professional services
contracts will be in place, and a multi-wave process will be used to bring these
contracts into the system as well.
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