Government Exhibit P4080-R
Financial, HR, SCM, Tax Systems Overhaul
Software Selection Update
![Image of cellular phones and Nextel's logo](/atr/cases/f204000/204079/a.gif)
Steering Committee - December 9, 2002
Proprietary and Confidential
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Agenda
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Approach
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Software Selection Strategy
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Software Selection Options
[D]
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Software Evaluation Methodology
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Software Evaluation Methodology
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Three primary methods were used to evaluate each of the vendors
[D]
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Determining Weighted Vendor Criteria
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Weighted Vendor Criteria
[D]
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Summary Results
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FSO Oversight Committee Recommendation
- The FSO Oversight Committee recommends that Nextel implement an all PeopleSoft Solution for its HR, Accounting & Finance, Tax, and Supply Chain Enterprise Systems
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Overall Summary
All options were scored by applying weighted points; the option with the most points is preferred. The weights were applied according to a tiered system that grouped attributes by their priority. Tier 1 represents the highest priority attributes receiving scores from 0-3 points, tier 2 attributes ranged from 0-2 points and tier 3, the lowest priority attributes, ranged from 0-1 points.
[D]
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Tier 1 Criteria
All options were scored by applying weighted points; the option with the most points is preferred. The weights were applied according to a tiered system that grouped attributes by their priority. Tier 1 represents the highest priority attributes receiving scores from 0-3 points.
[D]
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Tier 2 Criteria
All options were scored by applying weighted points; the option with the most points is preferred. The weights were applied according to a tiered system that grouped attributes by their priority. Tier 2 represents medium priority attributes receiving scores from 0-2 points.
[D]
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Tier 3 Criteria
All options were scored by applying weighted points; the option with the most points is preferred. The weights were applied according to a tiered system that grouped attributes by their priority. Tier 3 represents low priority attributes receiving scores from 0-1 point.
[D]
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Detailed Results
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Software Selection Options
[D]
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Option 1 - All PeopleSoft (Summary)
- Modules/Gaps
- Accounting & Finance
- For all items in Phase I & II, everything was accepted, except some areas of Reporting (Cognos) - FSO will use Hyperian and Business Objects to solve gap
- and Property Management (rent db) - FSO will either develop a custom solution for Rent DB or procure a small package
- Human Resources/Payroll
- For all items in Phase I & II, everything was accepted, except Commissions - FSO will continue to use Oracle Solar interfacing through current NDW architecture - also includes NIST EN 0005
- Supply Chain Management
- For all items in Phase I & II, everything was accepted, except Contract tracking, - Open FSO item - NIST EN 0285, NS 0193 and OTH 0284
- Tax
- For all items in Phase I & II, everything was accepted, except Lease Co - Open FSO NIST NS 0241
- Cost
- Total Cost of Ownership (assume 5 years): $ REDACTED
- IT Issues
- Integrating PeopleSoft Finance and Supply Chain to Atlas is more complex and expensive (REDACTED) than Oracle integrating to Atlas
- Hardware, software, implementation, and support costs are lower (REDACTED) than a hybrid system approach
- Functional Evaluation (Results out of 10)
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Option 1 - All PeopleSoft (Products to be Implemented)
Human Resources & Payroll
PeopleSoft Product |
Function |
Benefits Administration |
Benefits |
Commissions |
Commissions |
Directory Interface |
Profile Maintenance |
eBenefits |
Benefits |
eCompensation |
Compensation |
eCompensation Manager Desktop |
Compensation |
eDevelopment |
Employee Development |
eEquity |
Stock Option/Stock Purchase Administration |
Enterprise Incentive Management |
Incentive Administration |
Enterprise Learning Solutions |
Learning Management |
Enterprise Portal |
Application Gateway |
Enterprise Warehouse |
Reporting and Analysis |
ePay |
Employee Payroll Self-Service |
ePerformance |
Performance Management |
eProfile |
Employee Profile Self-Service |
eProfile Management Desktop |
Maintenance of Employee Profiles |
eRecruit |
Recruiting |
eRecruit Management Desktop |
Recruiting |
Global Payroll |
Payroll |
Help Desk HR |
Workforce Support Center |
HRMS Portal Pack |
HR Gateway |
HRMS Warehouse |
Reporting and Data Repository |
Human Resources |
Recruiting Compensation Workforce Development |
Mobile Time Management |
Time and Labor |
Payroll Interface |
Employee Data Transfer |
Payroll for North America |
Payroll |
Global
PeopleSoft Product |
Function |
App Connect |
Application Integration |
Enterprise Portal |
Application Gateway |
Enterprise Warehouse |
Enterprise Data Warehouse |
Integration Broker |
Application Integration |
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|
|
Supply Chain Management
PeopleSoft Product |
Function |
Catalog Management |
Item Master Management |
Demand Planning |
Distribution Requirement and Forecasting |
Enterprise Planning |
Planning & Scheduling |
eProcurement |
eProcurement (Ariba Replacement) |
eStore |
Employee ? Fulfillment |
Inventory |
Inventory Management |
Inventory Planning |
? Master Management & Receiving |
Purchasing |
Procurement |
Services Procurement |
Legal and Services Contract Management |
Strategic Sourcing |
RFP Auctioning |
Supply Chain Warehouse |
Analysis & Reporting |
Supply Rating System |
Vendor Evaluation/Supplier Analysis |
Accounting, Finance & Tax
PeopleSoft Product |
Function |
Activity Based Management |
Cost Accounting |
Analytical Forecast |
Forecasting |
Asset Management |
Fixed Asset and Property Management |
Balanced Score Card |
Performance Management |
? |
? |
Budgeting |
Budgeting |
Business Planning |
Financial Planning and Forecasting |
Cash Management |
Treasury |
Deal Management |
Treasury |
Expenses |
Expense Reimbursement Submission & Reporting |
Financials Warehouse |
Reporting and Analysis |
General Ledger |
? |
Global Consolidations |
? |
Payables |
AP and ? for Payment |
Projects |
Project Accounting |
Receivables |
AR Function ? Ensemble |
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Option 1 - All PeopleSoft (Cost)
License Cost |
Support & Maintenance |
Training |
Total Cost of Ownership |
$ REDACTED |
$ REDACTED |
$ REDACTED |
$ REDACTED |
Assumptions:
- Numbers are based on prices provided by RFQ
- Training costs are not comprehensive.
- Support and Maintenance numbers are based on 5 year contract
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Option 1 - All PeopleSoft (IT)
Integration Risks |
- PeopleSoft / Atlas integration will cost approximately $ REDACTED more than Oracle / Atlas integration.
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Delivery Risks |
- Relative to other options, none.
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Technical Considerations |
- Lower software and hardware costs than hybrid options (3,4, and 5).
- Approximately REDACTED % lower implementation and on-going support costs than hybrid options.
- Higher IT training costs to get team up to speed.
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Option 1 - All PeopleSoft (Func. Eval.)
Attendees rated each application on how well it met the business-defined functional requirements during the demonstration sessions. These requirements were graded on a scale of 0-10 (0=Does Not Meet, 10=Exceeds.)
![Unreadable line chart for rating PeopleSoft functional evaluation](/atr/cases/f204000/204079/k.gif)
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Finance & Accounting |
Human Resources |
Supply Chain Management |
Total |
Attendees: |
20 |
22 |
28 |
70 |
Attendees included members of the Oversight Committee and designated primary and secondary SMEs.
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Functionality Demonstrated
Human Resources |
Compensation (including MBSO) |
Benefits |
Surveys & Training |
Recruiting |
Payroll |
Commissions for In-Directs |
Supply Chain Management |
Script covering Request to Check |
Accounts Payable (including VAD) |
Time & Expense Reporting |
Item Master Management |
Forecasting |
Distribution Management |
Inventory Management |
Reporting |
Fixed Assets |
Business Objects Capability |
Accounting & Finance |
Tax-LeaseCo |
Consolidations |
Budgeting/Forecasting |
Revenue Management/Reporting |
Property Mangement |
General Ledger |
Treasury |
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Option 1 - All PeopleSoft (Func. Eval.)
[D]
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