Explanation
BACKGROUND
This ordinance authorizes the City Auditor to modify and extend the existing contract with Dayforce US, Inc, for a term of three (3) years and to provide funding for the first year of support, hosting, services, hardware, fees, and maintenance of Dayforce software as a service, authorizes the expenditure of up to $2,400,000.00 from the Department of Technology operating fund and authorizes the expenditure of $80,000.00 from the Employee Benefits fund.
The current contract for these services was authorized by Ordinance 1919-2023, passed July 17,2023 and was effective September 19, 2023 for a period of 36 months expiring on September 19, 2026. It was modified by Ordinance 3362-2024 to add additional modules and services, passed 12/16/2024, then last renewed in 1654-2025, which passed June 30, 2025. This modification will establish agreement with pricing and services extended for 3 years, subject to annual authorization and appropriation of City Council. The pricing would establish caps on any annual price increases of 0% for subscription fees in year one of the new term and no more than 2% in each of years 2 and 3. It includes licensing, hosting, maintenance, support, fees, and professional services for the Dayforce system and time clocks manufactured by Dayforce US, Inc. for enterprise-wide benefits administration, payroll, personnel management, and employee self-service system. Finally, professional services related to managing configurations for the overall system and additional Benefits Administration related professional services are included in this agreement. These additional services are being provided to support planned changes and updates to the City’s various benefits plans, open enrollment planning, and any changes necessary to facilitate exports or reporting. By bundling the hours with services related to this contract, the City can receive these services at a reduced rate.
FISCAL IMPACT
This ordinance will modify and extend the term of Dayforce services and establish pricing for next 3 years, including maintenance and support of time clocks across City and additional funding lines for clocks in the Department of Public Utilities and Department of Technology from available and approved funding in the Department of Technology, Information Services Division, Information Services fund as follows:
Description Amount
Dayforce subscription, fees, maintenance and support, and services 2,379,000.00
Department of Public Utilities clocks maintenance and support 20,300.00
Department of Technology clocks maintenance and support 700.00
TOTAL $2,400,000.00
For Benefits related professional services, funding is available in the Employee Benefits fund in the amount of $80,000.00.
CONTRACT COMPLIANCE
The vendor contract compliance number is CC-025904 and is valid through May 7, 2026.
Title
To authorize the City Auditor to modify and extend the existing contract with Dayforce US, Inc. for the renewal of the Dayforce software subscription, support, hardware, and services; to authorize the expenditure of $2,400,000.00 from the Department of Technology operating fund; to authorize the expenditure of $80,000.00 from the Employee Benefits fund. ($2,480,000.00)
Body
WHEREAS, the current contract with Dayforce US, Inc. originally authorized by Ordinance 1919-2023, and subsequently renewed by Ordinance 1197-2024, and Ordinance 1654-2025, is expiring and the contract can be modified for a 3-year term and pricing, subject to annual appropriation and approval by City Council; and
WHEREAS, it is necessary to authorize the City Auditor (DoT) to provide funding for issuing a purchase order for year one of a modified three-year agreement with Dayforce, Inc. for the purchase of annual Dayforce software subscription, maintenance, professional consulting, hardware, fees, and support services, in the total amount of $2,480,000.00; and
WHEREAS, Dayforce software and touch clocks are a critical component of processing benefits, personnel time & attendance, and payroll for the employees of the City of Columbus. This software as a service provides the City with the capability to web and mobile enable employee self-service, employee onboarding, as well as maintain benefits, manage personnel, and execute payroll functions. Passage of this ordinance ensures continued use without interruption of these mission critical activities and maintains compliance with the subscription agreements in place; and
WHEREAS, professional consulting services are needed for continuing and changing City configurations, reports, and benefits administration management beyond standard support agreement services; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1: That the City Auditor be and is hereby authorized to modify its existing contract with Dayforce Us, Inc. to renew for a three-year term, establish pricing caps, and fund the contract with Dayforce US, Inc. for year one of the renewal of Dayforce software subscription, maintenance, professional, fees, and support services, in the amount of $2,480,000.00.
SECTION 2: That the expenditure of $2,379,000.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund as follows (Please see attachment ORD 0652-2026 ACPO): Dayforce US, Inc. - Dept.: 47 | Div.: 47-02 | Obj Class: 03 | Main Account: 63945 | Fund: 5100 | Sub-fund: 510001 | Program: IT005 | Section 3: N/A | Section 4: N/A | Section 5: N/A | Amount: $2,379,000.00
SECTION 3: That the expenditure of $1,238.30 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows (Please see attachment ORD 0652-2026 ACPO): Dayforce US, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | fund: 5100 | Sub-fund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 Section 5: IT1308 | Amount:
$1,238.30
SECTION 4: That the expenditure of $7,876.40 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows (Please see attachment ORD 0652-2026 ACPO): Dayforce US, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Sub-fund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 | Section 5: IT1309 | Amount: $7,876.40
SECTION 5: That the expenditure of $8,830.50 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows (Please see attachment ORD 0652-2026 ACPO): Dayforce US, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Sub-fund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 | Section 5: IT1310 | Amount: $8,830.50
SECTION 6: That the expenditure of $2,354.80 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows (Please see attachment ORD 0652-2026 ACPO): Dayforce US, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Sub-fund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 | Section 5: IT1311 | Amount: $2,354.80
SECTION 7: That the expenditure of $700.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Division, Information Services Operating fund and the Department of Technology, Information Services Operating fund as follows (Please see attachment ORD 0652-2026 ACPO): Dayforce US, Inc. - Dept.: 47 | Div.: 47-02 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Sub-fund: 510001 | Program: IT004 | Section 3: N/A | Section 4: N/A | Section 5: N/A | Amount: $700
SECTION 8: That the expenditure of $80,000.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Human Resources, Risk Management Division, Information Services Operating fund and the Employee Benefits fund as follows (Please see attachment ORD 0652-2026 ACPO): Dayforce US, Inc. - Dept.: 46 | Div.: 46-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5502 | Sub-fund: 550201 | Program: RM002 | Section 3: N/A | Section 4: N/A | Section 5: N/A | Amount: $80,000.00|
SECTION 9: 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 10: That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 11: This ordinance shall take effect and be in force from and after the earliest period allowed by law.