TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Sierra-Cedar Hosting Contract Extension
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to execute a two (2) year single source amendment with Sierra-Cedar to continue the current hosting, managed, and professional services of the District's PeopleSoft enterprise system being provided under Contract No. 2022-1499. This amendment would extend services for the period of March 1, 2027, through February 28, 2029.
Staff Contact:
Ahsan Baig, Chief Information Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Infrastructure Modernization
The PeopleSoft enterprise system supports critical Finance, Human Resources, Payroll, and Procurement functions across the District. The platform integrates with multiple mission-critical operational systems and provides essential data to support daily business operations.
As one of the District's core enterprise systems, PeopleSoft must remain continuously available to support 24/7 operations. This contract extension ensures ongoing system reliability, security, and performance, while supporting the District's infrastructure modernization and financial resiliency goals.
BUDGETARY/FISCAL IMPACT:
The total cost for the two (2) year term is one million, two hundred ninety-three thousand, and thirty-five dollars ($1,293,035).
The total costs for February 2027-2028 are $638,522.00
The total costs for February 2028-2027 are $654,513.00
Funding for PeopleSoft hosting and professional services is included in the FY 2026-2027 Department of Innovation and Technology operating budget and will be requested in subsequent fiscal year budgets as part of ongoing operations.
This approach also avoids approximately $1.5 million in transition and implementation costs associated with migrating to a new hosting provider, base...
Click here for full text