Title
Information Technologies Department recommending the Board:
1) Make findings in accordance with Section 3.13.030 (B) of the County Ordinance that specialty skills and qualifications not expressly identified in County classifications are involved in the performance perpetual Agreement 8922 with UKG Kronos Systems, LLC;
2) Approve and authorize the Chair to sign competitively bid, perpetual Agreement 8922 with UKG Kronos Systems, LLC to provide workforce management and Telestaff software and migration services for an initial five-year term in the amount of $1,227,950; and
3) Authorize the Purchasing Agent to execute any necessary administrative amendments relating to this perpetual agreement that do not alter compensation, contingent upon approval by County Counsel and Risk Management.
FUNDING: General Fund.
Body
DISCUSSION / BACKGROUND
On September 20, 2016, the Board approved a contract with Kronos, Inc. to provide a workforce management system to track, manage, and control employee time and attendance (Legistar item 16-0843 v1). The Kronos workforce management system interfaced with the MUNIS payroll module and the El Dorado County Sheriff's Office's (EDSO) Telestaff program, bringing the County onto one time entry system. The Kronos workforce management system and Telestaff services have been renewed annually since 2017.
In October 2022, Kronos announced that Workforce Central Kronos Private Cloud (KPC) would be deemed end of life (EOL) on December 31, 2025. In addition, the Telestaff On-Premise solution used by EDSO would be deemed end of engineering at the same time. On October 4, 2023, El Dorado County posted a Request for Proposal (RFP) for a new Time and Attendance System (RFP 24-961-015). Bids were due November 3, 2023. The bid opening review was held on November 6, 2023, and the scoring deadline for the evaluation committee was December 22, 2023. The top 5 rated responders were invited to provide demonstrations between January 17-19, 2024. Following the demonstrations and an additional question and answer period, the evaluation committee selected UKG Kronos Systems, LLC (UKG) as the preferred solution, and the Notice of Intent to Award was published on March 5, 2024.
El Dorado County (EDC) stakeholders and UKG began Statement of Work (SOW) development activities in March 2024 and contracting activities started in July 2024. On August 7, 2024, UKG notified El Dorado County that the contract would need to be signed by September 30, 2024 in order to retain the quoted pricing and to meet the implementation deadlines with their current in-house lead times for migration projects. EDC escalated the contracting activities in order to meet this deadline. With project lead-times of twenty-weeks, and a proposed migration and implementation project of six to nine months, meeting this deadline is imperative to ensure the system is fully operational on UKG Pro and Telestaff Cloud before December 31, 2025.
Contract 8922 is a perpetual contract, with an initial term of five years. Monthly subscription services for UKG Pro, the new timekeeping platform, and UKG Telestaff Cloud, the new Telestaff platform, are $17,444.50 per month at current volumes. Implementation and migration professional services are $97,950. Contingency work for additional professional services requested outside the scope of the original SOW is $30,000 over the life of the contract. On premise historical reporting licenses for Workforce Central, the original platform, are a one-time cost of $5,000. The original not-to-exceed amount of the contract is $1,227,950, which allows for five-years of licenses, implementation and migration costs, contingency work, and the potential growth of license volumes/costs over time. The license costs will renew after the initial five-year period for one-year at a time, with an allowable four percent increase per year. Per Board Policy C-17 Procurement Policy, Information Technologies will return to the Board for approval of the continued use of the Agreement after the initial five-year term.
ALTERNATIVES
The Board could request the department to explore the transition to an alternate provider, however there are limited solutions and time frames in which to change platforms.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Procurement & Contracts, a division of the Chief Administrative Office, Auditor's Office, El Dorado County Sheriff's Office
CAO RECOMMENDATION / COMMENTS
Approved as recommended.
FINANCIAL IMPACT
Appropriations are included in the IT Fiscal Year 2024-25 Budget for implementation and licensing costs, and licensing costs will be included for future years as needed.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to obtain Board Chair signature on one copy of Agreement 8922 and forward it to CAO-Procurement & Contracts, Attention Annika Andersson.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Tonya Digiorno, Director of Information Technologies