MEMO TO: Members of the City Council
FROM: Mayor John Marchione
SUBJECT:
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Approval of Amendment No. 2 with Kronos, Inc. for Software Support and Maintenance of Workforce Management Systems; and Professional Services for Implementation in an Amount of $592,146
I. RECOMMENDED ACTION
recommendation
Approve contract amendment no. 2 with Kronos, Inc. for consulting services and three-year software maintenance and support agreement for the implementation of Workforce Management Systems in a total amount of $592,146. The proposed amendment is within the approved project budget.
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II. DEPARTMENT CONTACTS
Jonny Chambers, TIS Director 425-556-2160
Malisa Files, Finance Director 425-556-2122
Cathryn Laird, Acting Human Resources Director 425-556-2125
Maria O’Neill, Technology Project Manager 425-556-2720
III. DESCRIPTION/BACKGROUND
In 2017, an RFP was posted for replacement of our existing and outdated HR, Payroll and Timekeeping software systems. From the eight RFP responses received, Kronos, Inc. was selected as a solution provider. Their software solution proposal included a product called Workforce Central as the core HR solution. In October 2018, the City entered into contracts with Kronos, Inc. for software solutions and JK Seva as an implementation partner.
In March of 2019, the JK Seva contract was terminated as a result of their inability to adequately staff the implementation effort.
Prior to re-engaging with the implementation effort, the City revisited a conversation with Kronos concerning the version of the product that would best support the City’s needs over the long term.
In 2017 when the City selected the Kronos Workforce Central solution, the Kronos Workforce Dimensions product had not yet reached maturity as a mainstream HR solution across Public-Sector organizations. Since then, it’s gained recognition as Kronos’ flagship product and is deployed across several state and local government entities. Kronos as well as the City team believe that the Dimensions product is the best version of the software for the City. Kronos is the preferred implementor of this product in the Public-Sector space at this time
IV. PREVIOUS DISCUSSIONS HELD
|
Date |
Meeting |
|
March 28, 2017 |
Overview of contract proposal with SoftResources |
|
April 18, 2017 |
Approval of contract with SoftResources for Workforce RFP |
|
September 18, 2018 |
Staff Report on ROI |
|
October 2, 2018 |
Approval of contract with Kronos, Inc. |
|
April 23, 2019 |
Project Update to FAC Committee of the Whole |
|
June 25, 2019 |
Project Update to FAC Committee of the Whole |
|
July 23, 2019 |
Project Update to FAC Committee of the Whole |
|
Today |
Contract Amendment No. 2 |
V. IMPACT
A. Service/Delivery:
The change from Workforce Central to Workforce Dimensions requires the City to amend the Kronos contract with updated implementation, support, and maintenance terms. Kronos has provided an updated scope of work and cost adjustments for the implementation of Workforce Dimensions. The amendment extends the support and maintenance agreement by one year.
B. Fiscal Note:
The $592,146 increase to the Kronos contract is offset by both the termination of the JK Seva contract as well as an acceptable reduction in contingency dollars. Projected one-time implementation costs on the project remain unchanged. Ongoing costs through 2021 are reduced. Ongoing costs projected for the one-year extension of support and maintenance services will be budgeted for in the 2021/2022 biennial budget.
VI. ALTERNATIVES TO STAFF RECOMMENDATION
Council can choose to approve the contract as submitted or not approve the contract and staff will create and post a new RFP for implementation services delaying the project and risking the failure of existing timekeeping systems.
VII. TIME CONSTRAINTS
A delay in approval of the Kronos Amendment beyond the August 20, 2019 Council meeting delays the project, escalates the risk that key legacy HR/Payroll systems will fail before the Kronos solution is fully deployed, increases the cost of mitigating that risk, and potentially increases the cost of the project overall.
VIII. LIST OF ATTACHMENTS
Attachment A: Kronos Amendment No. 2
Exhibit A: Scope of Work
Exhibit B: Order Form
Exhibit C: Terms and Conditions