Explanation
Background: This legislation authorizes the Director of the Department of Technology to enter into contract with Lawson Software, for the installation and related services associated with the Central Payroll and Human Resources Information Management System. This system will replace an aged, out-dated system that is reaching the limit capacity associated with maintaining data, processing information and programs, and need replaced by October 1, 2008.
The Capital Improvement Plan for the City of Columbus contains a provision for the upgrade of the City of Columbus' HRIS systems and an integrated Payroll and HR system. The integrated Payroll and HR system initiative was dubbed the Columbus Human Resources Information System (CHRIS) and an Executive Committee was formed consisting of stakeholders from the Auditor's Office, Civil Service Commission Office, Department of Finance, Department of Human Resources, Department of Technology as well as the Mayor's Office. Changing technology and the availability of new programming options (real-time update, workflow, etc.) have made apparent the inefficiency and ineffectiveness of our current system. As a stop-gap measure, many of the business units within various City departments have implemented their own "in-house" systems (either purchased or developed by staff) to manage, manipulate, and report on the human capital information not easily accessible through the citywide payroll/personnel system. Although found to be necessary, this approach has resulted in duplicitous effort by a number of personnel throughout the City organization while not making the same data readily available to all City work units that might have use for it.
It has been agreed that the purchase and implementation of a new human resources information system that provides critical functionality currently associated with the current City payroll/personnel and various "in-house" systems be the next action taken toward improving the efficiency and effectiveness of the City's overall human capital management efforts. The project is slated to commence November 15, 2007 and conclude October 1, 2008.
A Request for Proposal was drafted by the Executive Committee with input from the People Team for functionality requests. In addition a seven (7) member Evaluation Committee was formed. The Evaluation Committee exercised due diligence by completing the competitive bid process in compliance with Columbus City Code Section 329. The Request for Proposal, SA002289, was sent out via the Purchasing Office to potential suppliers and posted to the Vendor Services website on January 11, 2007. All vendors registered with the City under the applicable commodity codes were notified via broadcast email and or faxes. In all, seventy-two (72) registered vendors (including 5 MBE, 5 FBE, 4 MBR) were notified electronically via email and/or fax. Additionally, notifications were mailed to forty (40) more vendors on a supplemental list compiled by Executive Committee members from industry sources such as the American Payroll Association and the Gartner Group.
The Request For Proposal was advertised in the following City Bulletins:
January 20, 2007: City Bulletin 03
January 27, 2007: City Bulletin 04
February 03, 2007: City Bulletin 05
February 10, 2007: City Bulletin 06
February 17, 2007: City Bulletin 07
February 24, 2007: City Bulletin 08
There were 8 proposals submitted to the Purchasing Office by the due date of March 1, 2007, at 11:00 AM:
|
Offeror |
Software Fees |
Implementation fees |
1st year Maint. |
TOTAL* |
|
CHERRYROAD |
1,486,060 |
5,184,840 |
326,933 |
6,997,833 |
|
EMPOWER |
1,486,060 |
4,718,908 |
326,933 |
6,531,901 |
|
KRONOS |
968,920 |
589,700 |
150,200 |
1,708,820 |
|
LAWSON |
795,500 |
1,384,680 |
159,100 |
2,339,280 |
|
NAVIGATOR |
1,726,725 |
4,183,520 |
379,880 |
6,290,125 |
|
TIER |
315,536 |
919,975 |
70,119 |
1,305,630 |
|
TYLER |
515,800 |
678,150 |
137,993 |
1,331,943 |
|
ULTIMATE |
1,146,595 |
800,000 |
185,000 |
2,131,595 |
|
|
|
|
|
|
Out of the bid process, the evaluation of the RFP was a multi-step process. The first step consisted of a review by the Evaluation Committee of the written proposals. Proposal responses were reviewed, judged, scored according to the criteria contained in the RFP. Scoring was weighted as follows:
• 25%: The Offeror's Background, qualifications, and project plan.
• 55%: The quality and feasibility of the offeror's technical proposal
• 20%: Cost
For Step Two of the evaluation, the two highest rated Offerors, Lawson Software and Tier Technologies were selected for holding additional discussions to elaborate upon their qualifications and proposals by making presentations to the evaluation committee. Each company was provided the same list of scenarios detailing the Employment Lifecycle, System-wide Payroll, and Personnel events based upon upcoming contract events and past payroll issues, as well as Civil Service and HR experiences. Lawson Software demonstrated that they could provide all applications and functionality necessary for the HRIS system, whereas, Tier could not provide some necessary functionality; such as yet not limited to online applications.
After reviewing the bids, and after the completion of the evaluation-presentation process, it was recommended that the award be made to Lawson Software, with the initial bid in the amount of $2,339,280.00 being reduced through negotiations to $2,189,912.60, as they were the overall responsive, responsible and best bidder per specification.
This ordinance will authorize the Department of Technology to enter into contract with Lawson Software; with the contract amount being $2,189,912.60; of which $71,900.60 will be utilized as contingency funds in the event of cost overruns. These contingency funds will not be utilized if not needed.
Also, this ordinance will authorize the Director of the Department of Finance and Management, on behalf of the Department of Technology to establish a purchase order for the acquisition of hardware and software, from Smart Solutions, needed for this project. This purchase will be made from a pre-existing Universal Term Contract (UTC), established through the competitive bid process by the Purchasing Office (FL001717 - BPCMP01EA expiration date March 31, 2008). The amount for this purchase order will be $231,079.80; of which $11,003.80 will be utilized as contingency funds in the event of cost overruns. These contingency funds will not be utilized if not needed.
These companies are not debarred according to the Federal excluded parties listing or prohibited from being awarded a contract according to the Auditor of State unresolved findings for recovery certified search.
Fiscal Impact: The CHRIS project is in need of $2,420,992.40 in funding. Carryover funding in the amount of $600,000.00 is available in the Human Resources Information project within the Information Services Bond Fund. The balance of funding needed for this project, in the amount of $1,820,992.40, is included in the total of bonds to be sold during the November 14, 2007 Bond Sale.
Emergency: Emergency legislation is requested to meet timelines associated with installation and to facilitate prompt contract execution and related payment for services.
Contract Compliance:
Lawson Software #41-1251159 Expiration Date: 09/06/09 (PHC)
Smart Solutions #34-1403269 Expiration Date: 05/18/2009 (AS1)
Title
To authorize the Director of the Department of Technology to enter into contract with Lawson Software for the installation and related services for the Central Payroll and Human Resources Information Management System; to authorize the Director of the Department of Finance and Management, on behalf of the Department of Technology, to establish a purchase order for the acquisition of hardware and software, from Smart Solutions, from a pre-existing Universal Term Contract; to authorize the expenditure of $2,420,992.40 from the Information Services Bond Fund; and to declare an emergency ($2,420,992.40) (AMENDED BY ORD 0362-2008 PASSED 4/14/2008)
Body
WHEREAS, this legislation authorizes the Director of the Department of Technology to enter into contract with Lawson Software, for the installation and related services for the Central Payroll and Human Resources Information Management System, and
WHEREAS, a Request for Proposal was drafted by the Executive Committee with input from the People Team for functionality requests. In addition a seven (7) member Evaluation Committee was formed. The Evaluation Committee exercised due diligence by completing the competitive bid process in compliance with Columbus City Code Section 329, and
WHEREAS, this ordinance will also authorize the Director of the Department of Finance and Management, on behalf of the Department of Technology, to establish a purchase order for the acquisition of hardware and software, from Smart Solutions, needed for this project. This purchase will be made from a pre-existing Universal Term Contract (UTC), and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary for the Director of Technology to enter into contract with Lawson Software for the installation and related services associated with the Central Payroll and Human Resources Information Management System; and for the Director of the Department of Finance and Management, on bahalf of the Department of Technology, to establish a purchase order with Smart Solutions for the acquisition of hardware and software, in order to implement this project and to ensure that this project is not delayed, thereby preserving the public health, peace, property, safety, and welfare; now, therefore
BE IT ORDAINED BY THE CITY COUNCIL OF COLUMBUS:
SECTION 1: That the Director of the Department of Technology is hereby authorized to enter into contract with Lawson Software, for the installation and related services associated with the Central Payroll and Human Resources Information Management System, with the total amount of the contract being $2,189,912.60.
SECTION 2: That the Director of the Department of Finance and Management, on behalf of the Department of Technology, is hereby authorized to establish a purchase order for the acquisition of hardware and software, from Smart Solutions, needed for this project; made from a pre-existing Universal Term Contract (FL001717 - BPCMP01EA expiration date March 31, 2008), in the amount of $231,079.80.
SECTION 3: That for the purpose of paying the costs referred to in sections 1 and 2, the expenditure of $2,420,992.40 or so much thereof as may be necessary is hereby authorized to be expended from:
Dept./Div.: 47-02| Fund: 514| Subfund: 002| Project Name: Human Resources Information| Project Number: 470049| OCA Code: 514049| Obj. Level 1: 06 | Obj. Level 3: 6655| Amount: $2,189,912.60 - Lawson Software.
Dept./Div.: 47-02| Fund: 514| Subfund: 002| Project Name: Human Resources Information| Project Number: 470049| OCA Code: 514049| Obj. Level 1: 06| Obj. Level 3: 6655| Amount: $231,079.80 - Smart Solutions.
SECTION 4: That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5: That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is herby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.