City Council reviews $69M SAP upgrade including procurement and financial modules

May 13, 2025 | San Antonio, Bexar County, Texas


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City Council reviews $69M SAP upgrade including procurement and financial modules
The Audit and Accountability Committee of San Antonio convened on May 13, 2025, to discuss significant updates regarding the ongoing upgrade of the city’s SAP systems. The meeting focused on the modernization of the Enterprise Resource Planning (ERP) systems, which have been in place for over two decades. The upgrade aims to enhance efficiency across various departments, including Human Resources, Budget, IT, and Finance.

The discussion began with an overview of the project’s scope, which includes six major work streams such as budget reporting and procurement processes. The committee emphasized that the upgrade is not limited to individual departments but is a comprehensive enterprise-wide initiative. The planning phase has spanned 18 months, involving discovery sessions across all relevant departments.

A key highlight of the meeting was the announcement of a $69 million program for the SAP upgrade, with a specific focus on a $14 million Request for Proposal (RFP) for implementation services. This two-year project will include the deployment of new modules for financial management and procurement, specifically the Ariba and S/4HANA platforms. The committee outlined a timeline for the solicitation process, which includes vendor informational sessions and evaluations, aiming for contract negotiations by December 2025.

Councilman Courage raised concerns regarding the future of SAP within the city’s broader information management strategy, questioning the decision to continue with SAP despite its perceived decline in popularity among mid-sized organizations. The response clarified that while SAP may not be the best fit for smaller entities, it remains a leading choice for large organizations like San Antonio, particularly for its comprehensive ERP capabilities.

The meeting concluded with a commitment to keep the council informed as the project progresses, with the next steps set to include further discussions and evaluations in the coming months. The committee remains focused on ensuring a smooth transition to the upgraded systems, which are expected to significantly improve operational efficiencies across the city’s departments.

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