Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8i
ACTION ITEM
Date of Meeting
May 14, 2024
DATE: March 27, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Matt Breed, Chief Information Officer
Lisa Lam, Director Accounting and Financial Reporting
SUBJECT: PeopleSoft Financials Upgrade (C801382)
Amount of this request:
$3,400,000
Total estimated project cost:
$3,400,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) proceed with the
PeopleSoft Financials Upgrade project; (2) procure hardware, software, and consulting services;
and (3) use Port staff for implementation, for a total project cost not to exceed $3,400,000.
EXECUTIVE SUMMARY
The Port currently uses Oracle’s PeopleSoft Financial system (PSFS), version 9.2 to support the
following business functions: General Ledger, Purchasing, Accounts Payable, Project Costing,
Accounts Receivable, Billing and Asset Management. PSFS has 64 interfaces to other internal
and external systems, providing core financial information to many systems critical to Port
operations. Data from PSFS is used across all Port Divisions in financial and performance
reporting.
The Port of Seattle’s previous Financials upgrade was completed in June of 2019, and we are
now many years behind Oracle’s current version. With the last major upgrade, the intent was to
complete smaller more frequent upgrades, however, limited resources have not been able to
support both operations and continual feature upgrades. This project will upgrade the Port
from PSFS Image 26 to Image 50 enabling improvements to critical business functions. The
project will also include the normal bi-annual upgrade to PSFS PeopleTools, the underlying
software infrastructure that contains maintenance and security patches.
Information & Communications Technology (ICT), Accounting & Financial Reporting (AFR),
Central Procurement Office (CPO), and PeopleSoft users from most other Port departments will
be involved in this project. Resources from an existing indefinite delivery, indefinite quantity
(IDIQ) contract, competitively procured in 2022, will be engaged to assist with the upgrade.
Funding for the upgrade project is part of the 2024-2028 Plan of Finance as a $3,400,000
project.
COMMISSION AGENDA – Action Item No. 8i Page 2 of 4
Meeting Date: May 14, 2024
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
This project includes the following important benefits.
(1) The upgrade will ensure continued support of our PeopleSoft Financials system used
Port-wide to conduct operations. Updates are essential to deliver application patching
and ongoing maintenance that protect and extend the value of the critical software
application.
(2) The upgrade provides improvements and automation to critical business functions and
provides the ability to leverage real time analytics rather than relying on other tools to
satisfy the organization’s reporting needs.
Diversity in Contracting
The IDIQ that will be used for implementation support includes a 20% participation
commitment for women-and-minority-owned business enterprises (WMBE).
DETAILS
Scope of Work
(1) Upgrade of Port’s PeopleSoft Financial System version 9.2 to Image 50 from Image 26
and the PeopleTools software infrastructure to the current version. Approximately 100
resources across the Port are expected to contribute to the upgrade and testing of the
new Image.
(2) Deliver new features for automation, business process efficiency, and technical
improvement.
Schedule
Activity
Commission authorization
2024 Quarter 2
Planning and Analysis Complete
2024 Quarter 3
Upgrade and Testing Complete
2025 Quarter 2
In-use
2025 Quarter 3
Project Close
2025 Quarter 4
This Request
Total Project
Port Labor
$1,430,000
$1,430,000
Vendor Services
$1,970,000
$1,970,000
Total
$3,400,000
$3,400,000
COMMISSION AGENDA – Action Item No. 8i Page 3 of 4
Meeting Date: May 14, 2024
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Postpone the PSFS upgrade.
Cost Implications: $0
Pros:
(1) Capital dollars and Port resources are available for other efforts.
Cons:
(1) Delays critical technical and feature improvements to the Port’s financials system.
(2) Conflicts with planned upgrade schedule for underlying PeopleSoft PeopleTools
applications for the financials and human capital management applications.
This is not the recommended alternative.
Alternative 2 – Upgrade the PSFS version 9.2 to Image 50.
Cost Implications: $3,400,000
Pros:
(1) The upgraded system provides improvements to critical business functions and will be
fully supported with security and application patches.
(2) Provides ability to leverage automation functionality and real time analytics.
Cons:
(1) Staff resources will have limited availability to work on other technology projects
through 2025.
(2) Capital funding resources aren’t available for other projects.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$3,400,000
$0
$3,400,000
AUTHORIZATION
Previous authorizations
$0
$0
$0
Current request for authorization
$3,400,000
$0
$3,400,000
Total authorizations, including this request
$3,400,000
0
$3,400,000
Remaining amount to be authorized
$0
$0
$0
COMMISSION AGENDA – Action Item No. 8i Page 4 of 4
Meeting Date: May 14, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
This project was included in the 2024-2028 capital budget and plan of finance under committed
CIP #C801382 in the amount of $3,400,000. The project will be funded by 81.3% Airport
Development Fund and 18.7% General Fund.
Financial Analysis and Summary
Project cost for analysis
$3,400,000
Business Unit (BU)
Central Service allocates 81.3% to Aviation
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase due to the inclusion
of capital (and operating) costs in the airline rate base.
IRR/NPV (if relevant)
N/A
CPE Impact
$0.01 in 2026
Future Revenues and Expenses (Total cost of ownership)
Annual maintenance costs, budgeted in the ICT Operating Budget, are not estimated to change
with this project.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None