SERVICES SAP ActiveEmbedded

Trade Agreement: WTO-AGP/NAFTA/AIT/Canada FTAs with Peru/Colombia/Panama
Tendering Procedures: Generally only one firm has been invited to bid
Non-Competitive Procurement Strategy: Exclusive Rights
Comprehensive Land Claim Agreement: No
Vendor Name and Address:
SAP Canada Inc.
4120 Yonge Street, Suite 600
Toronto Ontario
Canada
M2P2B8
Nature of Requirements:

ADVANCE CONTRACT AWARD NOTICE (ACAN)

FOR

EMPLOYMENT AND SOCIAL DEVELOPMNT CANADA (ESDC) ERP-SAP IMPLEMENTATION PROJECT- SAP ActiveEmbedded SERVICES

1. Advance Contract Award Notice (ACAN)

An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.

2. Requirements Definition

Employment and Social Development Canada (ESDC) has a requirement for enhanced support for the delivery of the SAP implementation project.

The requirement for the enhanced SAP Support is to assist ESDC as the lead system integrator in designing, developing, implementing, configuring, and maintaining the SAP Software components that comprise the ESDC SAP Architecture (As per Attachment A in ANNEX A: Statement of Work - Enhanced SAP Support document) in the SAP landscape.

These activitieswill include tasks and deliverables as detailed in Annex A - Requirements Definition and will be subject to deadlines and constraints as per a detailed project plan and pending internal project approvals.

The SAP Active Embedded support engagement services will consist of an embedded support team consisting of a SAP Engineering Architect and a SAP Technical Quality Manager, one remote coordinator and SAP engineering support services, which will include SAP Safeguarding, Solution Management Optimization, Empowering, Solution Architect and Rapid Prototyping services. These services will offer an enhanced engagement to optimize the current ESDC SAP software installations. These services will be required for the four ESDC SAP installations listed here:

• 20655527
• 20655528
• 20655529
• 20655530

3. Criteria for assessment of the Statement of Capabilities including Minimum Mandatory and Rated Requirements.

See ANNEX B- Evaluation Criteria for the proposed support.

Any interested supplier must demonstrate by way of a Statement of Capabilities that it meets the requirements found in ANNEX B - Assessment Criteria.

4. Applicability of the trade agreement(s) to the procurement

This procurement is subject to the followingtrade agreement(s):

• Agreement on Internal trade (AIT)
• World Trade Organization - Agreement on Government Procurement (WTO-AGP)
• North American Free Trade Agreement (NAFTA)

5. Set-aside under the Procurement Strategy for Aboriginal Business

There is no provision for an Aboriginal Set-Aside for this procurement.

6. Comprehensive Land Claims Agreement(s)

This procurement is not subject to a Comprehensive Land Claims Agreement.

7. Justification for the Pre-Identified Supplier

SAPCanada has been identified as the supplier of the SAP Active Embedded services due to Intellectual Property rights and access to the existing SAP installations at ESDC.

SAP is the core ERP software being utilized by ESDC ERP. This requirement is foradditional software support services to be provided uniquely by SAP personnel and experts who have the training, knowledge and understanding of the SAP source codes and functionality required to provide this level of support.

The ActiveEmbeded Service can only be provided by SAP because:

• SAP is the developer of the solution and is the sole organization having access to the software source code. It is the only organization having the engineering know-how and experience required to resolve theSAP technical integration issues.
• SAP is the only organization having the technical expertise and toolset to provide remote technical diagnostics and corrections. SAP Active Global Support is the only organization within the SAP ecosystem supporting all SAP installations from all over the world.

• The ERP-SAP project is on a very tight schedule and only SAP can resolve the technical integration issues within the prescribed timeframe.

• SAP Canada has been actively involved in all the GOC SAP implementationsand is the only organization who can proactively act on ERP-SAP technical integration risks and issues.

• Since ESDC is the Systems Integrator, it must the software developer as technical partner for the implementation of this comprehensive SAP solution.

• As part of its licensing agreement, ESDC has procured the ?standard? Enterprise Support. SAP is the only organization who can seamlessly complement Enterprise Support through the SAP Active Embedded services.

8. Government Contracts RegulationsException(s)

The following exception to the Government Contracts Regulations is invoked for this procurement under subsection 6(d): Only one person is capable of performing the contract.

9. Exclusions and/or Limited Tendering Reasons

Articles506.12(a) and 506.12(b) of AIT are applicable on the basis of limited tendering due to compatibility with existing products, to recognize exclusive rights, such as exclusive licenses, copyright and patent rights, or to maintain specializedproducts thatmustbe maintained by the manufacturer or its representative, and where there is an absence of competition for technical reasons and the goods or services can be supplied only by a particular supplier and no alternative or substitute exists,respectively.

Articles 1016.2(b) and 1016.2(d) of NAFTA are applicable on the basis of limited tendering due to where, for works of art, or for reasons connected with the protection of patents, copyrights or other exclusive rights, or proprietary information orwherethere is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists, and for additional deliveries by the original supplier that are intended either as replacement parts or continuing services for existing supplies, services including software to the extent that the initial procurement of the software was covered by this Chapter, respectively.

Articles XV 1(b) and XV 1(d) ofWTO-AGP areapplicable on the basis of limited tendering due to when, for works of art or for reasons connected with protection of exclusive rights, such as patents or copyrights, or in the absence of competition for technical reasons, the products or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists, and for additional deliveries by the original supplier which are intended either as parts replacement for existing supplies, or installations, or as the extension of existing supplies, services, or installations where a change of supplier would compel the entity to procure equipment or services not meeting requirements of interchangeability with already existing equipment or services, respectively.

10. Ownership ofIntellectual Property

Ownership of any Foreground Intellectual Property arising out of the proposed contract will vest in the Contractor.

11. Period of contract

The period of delivery will be from contract award until May 31, 2017. with two option periods of one year

12. Cost estimate of the proposed contract

The estimated value of the contract is $ 684,846.00 plus all applicable taxes for FY2016-2017 for a total of 12 months coverage, with optional $ 691,694.00 plusallapplicable taxes in FY 2017-2018 and $698,610.00 plus all applicable taxes in FY 2018-2019

13. Name and address of the pre-identified supplier

SAP Canada Inc.
4120 Younge Street, Suite 600
Toronto, ON M2P 2B8

14. Suppliers' right to submit a statement of capabilities

Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the ACAN may submit a statement of capabilities in writing to the contact person identified in this notice on or before the closingdate of this notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

15. Closing date for a submission of a statement of capabilities

The closingdate and time for accepting statementsof capabilities is: May 18, 2016 at 2:00 PM (EDT).

16. Inquiries and submission of statements of capabilities

All inquiries and statement of capabilities are to be directed to:

Mejuine Chow
Supply Specialist
Public Works and GovernmentServices Canada
Special Procurement Initiatives Directorate
11 Laurier Street
PDP III, 12C1-37
Gatineau QC, K1A 0S5
819-420-2215
m••••••••@••••••••.••.ca

_______________________________________________

ANNEX A
REQUIREMENTS DEFINITION
ENHANCED SAP SUPPORT

1. BACKGROUND

The Enterprise Resource Planning-Systems, Applications, and Products in Data Processing (myEMS (SAP)) Project is one of a suite of major projects within the overall scope of the Enabling Services Renewal Program (ESRP). ESDC’S ESRP will modernize enabling services, capitalizing on new tools to support common processes that will simplify and automate processes; one action/process will replace multiple actions/processes to achieveoptimum workflow. The myEMS (SAP) project will utilize the successful Service Canada service model as a structural guide. Built on modern technology and processes, the end-state goal is the click-call-consult target service model which will deliver integrated solutions for human resources (capital) management; finance/materiel management; asset management; investment management; data integrity; personnel security; procurement functions; and information technology (IT) leveraging the capabilities of newEnterprise Resource Planning (ERP) systems.

Replacing the current legacy CMS with the GC-endorsed SAP solution supports the pathfinder role adopted by ESDC of utilizing the most effective and efficient COTS ERP systems, linked through interoperability, at the same time leveraging common GC financial and materiel management business processes to support client service and the integrity of external reporting requirements.

SAP will be the core ERP software being utilized by ESDC myEMS (SAP) forfinance and material management. There is a requirement is for additional software support services to be provided uniquely by experts who have the training, knowledge and understanding of the SAP source codes and functionality required to provide thislevel of support. Under the current standard GOC support agreement (SAP Enterprise Support); ESDC myEMS (SAP) may lack the support necessary to resolve problems which may arise with the ESDC myEMS-SAP financial system of record, provided by SAP. It is imperative that the ESDC myEMS (SAP) financial system maintain efficient development operations. Issues could lead to missed deadlines, reduced production system health, reduced response time, lack of user access. Down time will lead to loss of functionality, which results in loss of funds.

ESDChas requirements for enhanced SAP support for the implementation of the SAP solution as part of the myEMS (SAP) project next Stages i.e. Realization, Final Preparation, Go-Live Support, and Run.

2. REQUIREMENT

Employment and Social Development Canada (ESDC) has a requirement for enhanced support for the ongoing solution delivery of the myEMS (SAP) financial system.

The requirement for the enhanced SAP Support is to assist ESDC as the lead system integrator in designing, developing, implementing, configuring, and maintaining the SAP Software components that comprise the ESDC SAP Architecture (as per Attachment A) in the SAP landscape.

These activities will include tasks and deliverables as detailed below and will be subject to deadlines and constraints as per a detailed project plan and pending internal project approvals.

3. DELIVERABLES

SAP Enhanced Support services will include:

1) SAP Enhanced Support service desk integration with SAPSolution Manager for Ticket creation, escalation and reporting:

• The vendor’s incident management will integrate with the myEMS (SAP) project Solution Manager component. Supporting resources must be able to draw on a knowlegde base of problem resolutions that has been built on intraction with other SAP customers.
• The support will provide vendor certified source code as fixes to application defects.
• The support will provide 24/7 incident availability and escalation capability.
• The supportwill be documentedin a centralized controlled web location and knowledge management tool to aid in future troubleshooting.

2) Onsite SAP Issue/Quality Manager:

• The Issue/Quality Manager must understand the ESDC Solution, Security, business processes and landscape to be able to address top issues proactively;
• Central point of contact from SAP support at ESDC and interfaces into the SAP Back office; Coordinates integration and testing with ESDC myEMS (SAP);
• Ensuresaccess to the right On-Demand resources;
• Escalation path to ensure fast issue resolution; Coordinates On-Demand resources during service delivery;
• Manages top issues to ensure resolution and if necessary appropriate escalation paths;
• Monitors and reports engagement to ESDC and the vendor’s management.

3) Onsite Engineering Architect:

• The Engineering Architect (EA) is embedded within ESDC and is responsible for the planning, strategy, direction, and reportingin collaboration with the ESDCleadership team.
• The EA actively supports the SAP Issue/Quality Manager in the execution of the plan.

4) On-Demand Resources:

• On-Demand Resources must be avalible onsite and remotely to resolve issues.

5) Technical checks and detailed reports:

• Assess the built solution in QA with a focus on consistency, performance and stability across systems, interfaces integration, data volume and business process management.

6) Business Process Performance Optimization and Report:

• Analyzes the core business processes and give technical and application advice how to optimize them to get most out of the SAP solution and documented in a Report.

7) SAP Business ProcessOperations - Business Process Monitoring Strategy and Approach

• Setup and deployment of a Business Process Monitoring concept through setup, development, configuration, test and cutover to production with all documentation captured in a strategy and approach document to be stored in SAP Solution Manager.

8) Integrating SAP interfaces using SAP Process Orchestration toolset

• The SAP Enhanced Support vendor will provide expertise in SAP Process Orchestration in support of the myEMS (SAP) Project internal and external interfaces.

9) Volume Test Management Report:

• Validate the results of volume testing for the implementation projects.
• Determine whether the hardware resources are sufficient and the system configuration issuitable for a go-live.

10) Business Process Integration & Automation:

• The Enhanced SAP support vendor will supply on-site training in the strategy and tools for creating a comprehensive BPM strategy leveraging SAP Solution Manager.

11) Application Operations SystemMonitoring

• Mass setup and configuration of System, DBMS and Host Monitoring for up managed systems with related DBMS and Hosts whichare covered by SAP standard templates
• Knowledge transfer regarding configuration, trouble shooting and usage of System Monitoring Application, Alert Inbox, Interactive and Management Reporting.

12) Application Operations -Root Cause Analysis

• This service assists with the knowledge transfer, setup, and review of Root Cause Analysis as described below:

• Mass setup and configuration of E2E Root Cause Analysis, Configuration Validation,Exception Management or Guided Procedures for up to 15 managed systems covered by SAP standard functionality
• Knowledge transfer regarding configuration, trouble shooting and usage of E2E Root Cause Analysis, Configuration Validation, Exception Management applications or Guided Procedure Framework.

13) Data Volume Management

• Setup and monitor a data volume management strategy definying how to manage and reduce future data growth and reduce existing DB size.
• Provide setup, implement, and review of a data volume management strategy that will support data avoidance, data summarization, data deletion &data archiving.

14) SAP Solution Manager system configuration

• Enhanced SAP Support vendor must, asrequired, provide direct assistance with the basic configuration and usage of the SAP Solution Manager. Provide skilled resources to work with key members of your staff for configuring myEMS (SAP) Project SAP Solution Manager system.

15) Go-Live Support:

• Dedicated technical experts must provide support for critical areas of the solution during Go-Live. This team of resources will be leadby the Issue/Quality Manager and will work with the project team to triage critical technical Go-Live issues.

16) Technical Performance Optimization:

• Focusing on eliminating overall system performance problems such as bottlenecks on CPU, memory, database or storage subsystem or the RPO tackles bottlenecks having a large impact on system performance.

_______________________________________________________________________

Attachment Ato Annex A

The myEMS-SAP Project includes the following components:

System OS Base version SP level

SAP Adaptive Computing Controller (ACC) AIX NW 7.31 5
SAP Business Warehouse (BW) AIX NW 7.31 5
SAP Business Warehouse Portal (BWJava) AIX NW 7.31 5
SAP ERP Central Component (ECC) 6.0 AIX NW 7.31 5
SAP Governance, Risk, and Compliance (GRC) AIX NW 7.31 5
SAP Identity Management (IdM) AIX NW 7.31 5
SAP NetWeaver Development Infrastructure(NWDI) AIX NW 7.31 5
SAP Process Orchestration (PO) AIX NW 7.31 5
SAP Portal AIX NW 7.31 5
SAP Solution Manager AIX 7.1 12
SAP Central Process Scheduling by Redwood (SAP CPS) AIXNW 7.31 5
SAP Archive Server by OpenText AIX 10.5
SAP uPerform Windows 5.2.9
SAP Quality Center by HP (HPQC) Windows 11.0
SAP Invoice Capture Center (ICC) by OpenText Windows 7.0
SAP BusinessObjects (BOBJ) Reporting Windows 4.1 5
SAP BusinessObjects DataIntegrator (BODI) Windows 4.1 5
SAP Search and Classification (TREX) Windows 7.1 Rev 64
_________________________________________________________________________________

ANNEX B
ASSESSMENT CRITERIA

1. Evaluation Criteria for enhanced SAP Support

(a) Mandatory Requirements

Mandatory (M) Requirements for enhanced SAP Support:

M-1 The bidder’s proposed support must demonstrate a minimum of 10 years providing SAP Support where the company has provided certified SAP source code fixes and enhancements.

M-2 The bidder’s must demonstrate the ability to provide 24/7 365 days a year support for all SAP software components as per attachment A.

M-3 The bidder’s proposed support must integrate seamlessly with SAP Solution Manager for Ticket creation, escalation and reporting.

Note: Resources thatdo not meet all mandatory requirements, will receive no further consideration.
Note: Certified source code is defined as vendor supported code that will be eventually rolled in to the SAP Product for public release

(b) Rated Requirements

Rated (R) Requirements and scoring scheme for enhanced SAP Support:

R-1 The bidder’s proposed support shouldinclude a SAP certified resource with experience on SAP solutions in a new implementation using the latest version (ECC6.0 and SAP Solution Manager 7.1) working as an onsite SAP Issue and Quality Manager

1 project= 1point
2 projects = 2 points
3 or more projects = 4 points

R-2The bidder’s proposed support should include a SAP certified resource with experience on SAP solutions in a new implementation usingthe latest version (ECC6.0 and SAP Solution Manager 7.1) working as an onsite SAP Engineering Architect

1 = 1 point
2 projects = 2 points
3 or more projects = 4 points

R-3 The bidder’s proposed support should include experience performing SAP Technical checks and detailed reports on the system and database consistency, performance and stability against SAP best practices.

1 to 2 projects = 1 points
3 or more projects = 2 points

R-4 The bidder’s proposed support should demonstrate experience in analyzing SAP business processes and SAP ESS and MSS processes and advise on optimization.

1 project = 1 points
2 or more projects= 2 points

R-5 The bidder’s proposed support should include projects demonstrating experience in integrating SAP interfaces using SAP Process Orchestration toolset.

1 project = 2 points
2 projects = 4 points
3 or more projects = 6 points

R-6 The bidder’s proposed support should provide a centralized web accessible knowledge base for allSAP software components listed in attachmentA.

SAP Knowledge Base with 100,000 articles or less = 1 point
SAP Knowledge Base with 100,001-1,000,000 articles = 2 points
SAP Knowledge Base with 1,000,000 articles or more = 4 points

R-7 The bidder’s proposed support should include the capability for providing dedicated SAP certified technical resources who have participated on other SAP go-lives for a similar sized or greater (1000-2000 concurrent users or 25,000 named users) client as HRSDC.

1 to20 projects = 1 points
21 or more projects = 2 points

R-8 The bidder’s proposed support should demonstrate experience in eliminating overall performance problems such as bottlenecks on IBM AIX and Wintel CPU, IBM AIX and Wintel memory and Oracle and SQL databases using SAN storage subsystems.

1 to 20 projects = 1points
21 or more projects = 2 points

R-9 The bidders proposed support should include capability for direct assistance on configuration of SAP Solution Manager and attached software list in attachment A.

1 to 10 projects = 2 points
20 or more projects = 4 points

Total Points assigned: 50
Note: To be deemed responsive, the resource must obtain a minimum of 21 points (70%).

Delivery Date: Above-mentioned

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.