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September - University of Nebraska

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to meet estimated first year costs <strong>of</strong> a common SIS system and<br />

for migration <strong>of</strong> NSCS to the <strong>University</strong>’s SAP system. In the<br />

Legislative Session just ended, the One Hundredth <strong>Nebraska</strong><br />

Legislature in LB 959 provided a deficit appropriation <strong>of</strong><br />

$20,000,000 with $14,444,000 to the <strong>University</strong> toward the SIS<br />

system. The remaining $5,556,000 was appropriated to the<br />

NSCS for SIS and the migration to SAP. Of the amount<br />

appropriated to NSCS, $1,900,000 was earmarked for the SAP<br />

migration.<br />

Proposals were evaluated by teams from both the <strong>University</strong> and<br />

NSCS judging responses from a number <strong>of</strong> aspects including<br />

implementation, flexibility, functionality, decision support, and<br />

cost effectiveness. Negotiations were held with two s<strong>of</strong>tware<br />

finalists, SunGard Banner and Oracle PeopleS<strong>of</strong>t. In addition to<br />

pricing discussions, the negotiations gained important<br />

information from both finalists clarifying and enhancing<br />

representations and <strong>of</strong>ferings in the responses to the RFP. An<br />

important part <strong>of</strong> those negotiations included each finalist<br />

responding that their firm had all the information needed and had<br />

their questions answered such that they were in position to make<br />

a final and best <strong>of</strong>fer to the <strong>University</strong> and NSCS.<br />

SunGard does its own implementation <strong>of</strong> the Banner product,<br />

and the Banner implementation costs were negotiated as part <strong>of</strong> a<br />

possible contract with SunGard. Oracle PeopleS<strong>of</strong>t did not<br />

propose to implement the s<strong>of</strong>tware for this project. As a result, a<br />

parallel negotiation was held with a third entity, CedarCrestone,<br />

Inc., for the implementation. Responses were received from<br />

CedarCrestone on the same schedule as those <strong>of</strong> SunGard and<br />

Oracle.<br />

The results <strong>of</strong> the evaluations and the information gained in the<br />

negotiations were forwarded to President Milliken and NSCS<br />

Chancellor Carpenter for their consideration. A detailed briefing<br />

was then presented to the <strong>University</strong> <strong>of</strong> <strong>Nebraska</strong> Chancellors.<br />

The Business Affairs Committee <strong>of</strong> the Board <strong>of</strong> Regents was<br />

also provided with a similar briefing.<br />

Based on the information as presented by the two finalists, it is<br />

the recommendation <strong>of</strong> the <strong>University</strong> and NSCS that contracts<br />

for purchase and implementation <strong>of</strong> an SIS system be entered<br />

into with Oracle USA, Inc. and CedarCrestone, Inc. in the form<br />

as attached.<br />

The total cost for s<strong>of</strong>tware and implementation, which is<br />

scheduled to be complete in August 2010, is estimated at<br />

$29,800,000.<br />

On-going maintenance and support, including s<strong>of</strong>tware and<br />

hardware maintenance fees and support personnel are estimated<br />

at $2,500,000. With approval <strong>of</strong> this item, <strong>University</strong> <strong>of</strong>ficials

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