REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
December 16, 2025
FROM
ENSEN MASON, Auditor-Controller/Treasurer/Tax Collector
SUBJECT
Title
Amendments to Agreements with SAP Public Services, Inc. to Extend Annual Software Maintenance and Support and Update Terms
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RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 7 to Agreement No. 16-166 with SAP Public Services, Inc., for maintenance and support of the SAP software suite and all SQL servers, extending the maintenance and support for the SAP Enterprise Resource Planning Central Component software by one month, for a total contract period of May 1, 2016 through January 31, 2026, and increasing the total contract amount by $59,192, from $11,171,457 to $11,230,649.
2. Approve Amendment No. 8 to Agreement No. 16-166 with SAP Public Services, Inc., for maintenance and support of the SAP software suite and all SQL servers, extending the annual software maintenance and support for the Supplier Relationship Management software, the Master Data Management software, and the SAP portal by two years, for a total contract period of May 1, 2016 through December 31, 2027, and increasing the total contract amount by $270,142, from $11,230,649 to $11,500,791.
3. Approve Amendment No. 4 to Agreement No. 24-674 with SAP Public Services, Inc., replacing the Termination of Software Clause 6.1, with no changes to the contract total amount of $20,701,203 or the contract term of July 31, 2024 through September 8, 2029.
(Presenter: Ensen Mason, Auditor-Controller/Treasurer/Tax Collector, 382-7000)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost) as it is covered by existing funds in ATC’s 2025-26 Budget.
Software licensed from SAP Public Services, Inc. (SAP) is subject to the SAP Enterprise Support Fee, which is an annual maintenance cost charged on the total maintenance base. This fee is subject to change once during a calendar year, and SAP may increase the prior year rate by the percentage increase in the Consumer Price Index, applied on a cumulative year-over-year basis. The annual cost by calendar year based on the current maintenance base of $3,748,345, which reflects the total cost of software licensed from SAP, is $187,068 for 2026 and $142,266 for 2027, for a total cost of $329,334.
BACKGROUND INFORMATION
The County and select non-county entities use the SAP Enterprise Resource Planning (ERP) system countywide for financial operations and reporting. On April 19, 2016 (Item No. 13), the Board of Supervisors (Board) approved Agreement No. 16-166 with SAP, for the implementation of the County’s [then] new enterprise financial management system and purchase of SAP software licenses, maintenance, and support, effective May 1, 2016 through April 30, 2021, for a total amount of $4,090,737.
On October 1, 2017, the County implemented the ERP, which replaced the old Financial Accounting System, the TZ Treasury System, and several functions of the existing ePro system. Agreement No. 16-166 was subsequently amended on May 2, 2017 (Item No. 11), September 26, 2017 (Item No. 9), December 18, 2018 (Item No. 17), and December 15, 2020 (Item No. 20), increasing the total contract amount to $11,171,457 to include the purchase of additional licenses and support fees and extending the annual software maintenance and support through December 31, 2025.
Recommendation No. 1 will extend the maintenance and support for the SAP ERP Central Component software in Agreement No. 16-166 by one month, and increase the total contract amount by $59,192, from $11,171,457 to $11,230,649. This provides the County with an additional month of access to the system before SAP officially terminates support on January 31, 2026.
Recommendation No. 2 will extend the on-premises software maintenance and support for the Support Relationship Management software, the Master Data Management software, and the SAP portal in Agreement No. 16-166 for an additional two years through December 31, 2027, during the County’s transition to the Cloud, and increase the contract amount by $270,142, from $11,230,649 to $11,500,791.
On July 30, 2024 (Item No. 1), the Board approved Agreement No. 24-674 with SAP to migrate the County’s on-premises system to the SAP S/4 HANA RISE Private Cloud environment by 2027 in the amount of $20,701,203 for the term of July 31, 2024, through September 8, 2029. Agreement No. 24-674 was subsequently amended by the Board on June 10, 2025 (Item No. 33), and through delegated authority on September 22, 2025, and October 10, 2025, to add services utilizing available contract credits with no changes to the contract amount or term.
Recommendation No. 3 will replace the Termination of Software Clause 6.1 in Agreement No. 24-674, increasing the County’s right to terminate any previously licensed SAP Software and/or Named Users from one time to up to four times to align with SAP’s new standard terms, with no changes to the contract total or the contract term.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kristina Robb, Deputy County Counsel, 387- 5455) on November 14, 2025; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on November 7, 2025; and County Finance and Administration (Garrett Baker, Administrative Analyst, 387-3077) on November 19, 2025.