REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 19, 2026
FROM
ENSEN MASON, Auditor-Controller/Treasurer/Tax Collector
SUBJECT
Title
Amendment to Agreement with The Peloton Group, LLC for SAP Enterprise Support Services
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 4 to Agreement No. 18-588 with The Peloton Group, LLC, extending SAP enterprise support services by three years, for a total contract period of August 7, 2018 through June 30, 2029, with no change to the total aggregate contract amount of $24,976,200.
(Presenter: Ensen Mason, Auditor-Controller/Treasurer/Tax Collector, 382-7000)
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 result in the use of additional Discretionary General Funding (Net County Cost). The estimated cost of the three-year extension is $3,600,000; however, there is no change to the total contract amount of $24,976,200 since the full amount was not expended. Budget adjustments to the Auditor-Controller/Treasurer/Tax Collector’s (ATC) 2026-27 budget are not requested at this time. ATC will return to the Board to request additional Discretionary General Funding in future recommended budgets, if needed.
BACKGROUND INFORMATION
On October 1, 2017, the County successfully implemented a new enterprise resource planning (ERP) system with software from SAP Public Services, Inc. (SAP), which replaced the old Financial Accounting System, the TZ Treasury system, and several functions of the existing electronic procurement system (ePro). The current contract with The Peloton Group, LLC allows the County to continue receiving professional SAP ERP support services following the end of the system implementation’s post-production support.
On August 7, 2018 (Item No. 10), as the result of a competitive process, the Board approved Agreement No. 18-588 with The Peloton Group, LLC and Agreement No. 18-589 with Labyrinth Solutions, Inc. dba LSI Consulting (Agreements) to provide SAP enterprise support services at fixed rates by classification for the period of August 7, 2018, through June 30, 2023, in an aggregate amount not to exceed $2,500,000 per fiscal year, for a total aggregate contract amount of $12,500,000 for both vendors.
On May 19, 2020 (Item No. 25), the Board approved Amendment No. 1 to the Agreements to provide additional SAP enterprise support services to migrate Arrowhead Regional Medical Center (ARMC) from Meditech into SAP and to assign a full-time SAP Advanced Business Application Programming developer to assist the Real Estate Services Department (RESD) with feeding required data from SAP to Aurigo, RESD’s new project management tool, increasing the total aggregate contract amount by $2,543,600, from $12,500,000 to $15,043,600, with no change to the contract term of August 7, 2018, through June 30, 2023.
On December 7, 2021 (Item No. 12), the Board approved Amendment No. 2 to the Agreements to provide additional SAP enterprise support services to onboard additional ARMC divisions with the SAP Inventory Module, increasing the total aggregate contract amount by $1,532,600, from $15,043,600 to $16,576,200, with no change to the contract term of August 7, 2018, through June 30, 2023.
On April 25, 2023 (Item No. 17), the Board approved Amendment No. 3 to the Agreements to extend SAP enterprise support services by an additional three years, for a total period of August 7, 2018, through June 30, 2026, increasing the total aggregate contract amount by $8,400,000, from $16,576,200 to $24,976,200.
The recommended amendment will extend Agreement No. 18-588 with The Peloton Group, LLC for SAP enterprise support services by three additional years through June 30, 2029, with no change to the contract amount of $24,976,200. The extended services are required due to the difficulties the County has experienced with hiring in-house experts to support the S/4HANA ERP cloud environment and assist in the SAP Procurement System upgrade to SAP Ariba.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kristina Robb, Deputy County Counsel, 387-5455) on April 9, 2026; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on April 6, 2026; and County Finance and Administration (Garrett Baker, Administrative Analyst, 387-3077) on April 30, 2026.