REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 1, 2026
FROM
ENSEN MASON, Auditor-Controller/Treasurer/Tax Collector
SUBJECT
Title
Amendment to Agreement with SAP Public Services, Inc., to Incorporate a Business Associate Agreement
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 5 to Agreement No. 24-674 with SAP Public Services, Inc., for software as a service and infrastructure as a service, to incorporate Schedule 1 - Business Associate Agreement, effective September 1, 2026, with no change to the agreement total of $20,701,203, or the term of July 31, 2024 through September 8, 2029.
(Presenter: Vanessa Doyle, Assistant Auditor-Controller/Treasurer/Tax Collector, 382-7004)
Body
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 there is no change to the agreement total of $20,701,203. Sufficient appropriation has been included in the Auditor-Controller/Treasurer/Tax Collector’s 2026-27 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The County and select non-county entities use Enterprise Resource Planning (ERP) software licensed from SAP Public Services, Inc. (SAP) for the County’s enterprise financial management system to perform financial operations and reporting.
On April 19, 2016 (Item No. 13), as the result of Request for Proposals No. ACT114-ACTT-0951, 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 software, which replaced the old Financial Accounting System, the TZ Treasury System, and several functions of the existing electronic procurement 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), December 15, 2020 (Item No. 20), and December 16, 2025 (Item No. 20), increasing the total contract amount from $4,090,737 to $11,500,791, to include the purchase of additional licenses and support fees, and extending the annual software maintenance and support for a total period of May 1, 2016 through December 31, 2027.
On July 30, 2024 (Item No. 1), as the result of a non-competitive procurement, the Board approved Agreement No. 24-674 (Agreement) 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.
The Agreement 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 amount of $20,701,203 or term of July 31, 2024 through September 8, 2029.
On December 16, 2025 (Item No. 20), the Agreement was further amended by the Board to replace the Termination of Software Clause, 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 amount of $20,701,203, or term of July 31, 2024 through September 8, 2029.
Approval of the recommended Amendment No. 5 will incorporate the Schedule 1 - Business Associate Agreement (BAA) between San Bernardino County and SAP, to the existing Agreement. While reviewing compliance with the Health Insurance Portability and Accountability Act (HIPAA), the County found that its ERP system contains a small amount of protected health information (PHI) and that no BAA had previously been made with SAP. Even though only a minimal amount of PHI is involved, a BAA is still needed to comply with HIPAA Privacy and Security Rules. Both San Bernardino County and SAP are committed to adhering to protecting and maintaining the privacy of this information in accordance with HIPAA standards.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kristina Robb, Deputy County Counsel, 387- 5455) on August 5, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2072) on August 10, 2026; and County Finance and Administration (Garrett Baker, Administrative Analyst, 387-3077) on August 13, 2026.