Explanation
Background:
This ordinance authorizes the City Auditor to modify its existing contract with Dayforce US Inc., formerly known as Ceridian HCM, Inc, to include subscriptions for Talent module features and guided implementation services. This enhancement reflects the culmination of months of collaborative planning with the leadership team in the Department of Human Resources, fulfilling the Department’s long-term vision for a more integrated and strategic human capital management system. The phased rollout of new functionalities through 2026 will occur at a substantial discount with phased-in pricing, aligning with the city’s commitment to modernization and efficiency.
Dayforce was initially selected as the city’s core payroll and personnel system through a competitive process authorized by Ordinance 0848-2019. The system went live in September 2020 and currently serves as the unified platform for payroll, benefits administration, core HR functions, employee onboarding, scheduling, reporting, analytics, and time and attendance. The current contract was authorized by Ordinance 1919-2023, passed on July 17, 2023 and has pricing and services extended for 3 years, subject to annual authorization and appropriation of City Council.
The city has benefited from this modernization and digital transformation by offering a unified and efficient platform for activities supporting the functions of multiple agencies such as Auditor’s Office, Civil Service, and some Human Resources activities. City employees are able to interact with the system via web and mobile applications to complete activities online such as request time off, view earnings and leave balances, download tax statements, file life and work events for benefits changes, and manage their employee profile information for emergency contacts, direct deposit, tax forms, addresses, and dependents. With the secure and stable cloud-based Dayforce system, the city has enhanced its capabilities for operations, compliance, cybersecurity, data protection, multi-factor authentication, business continuation, and disaster recovery in a continually evolving and up-to-date system.
Building on this foundation, the city will expand Dayforce to include Talent module features such as Advanced Hub, Knowledge Base, Case Management, Employee Engagement, Performance, Compensation, and Learning Management. These additions will address current gaps in enterprise-level HR functionality, consolidate disparate systems, and enable a consistent, equitable employee experience citywide. By unifying HR processes and reducing redundancies, this effort enhances data security, simplifies reporting, and streamlines operations, all while delivering real-time, actionable insights to decision-makers.
The blueprint for this expansion was developed in partnership with the Department of Human Resources and aligns with its strategic vision. The initial focus will integrate HR offerings into an enterprise-level solution, establishing Dayforce as the primary platform for delivering critical citywide information, such as employment policies, benefit plans, and bargaining unit agreements. This unified system will also provide a pathway for additional city agencies to consolidate their HR systems into a cohesive framework, advancing the city’s broader “One-City” objectives.
A phased approach is recommended in recognition of managing the complexity of the scope of work, spreading demand for available resources, addressing organizational priorities, and reducing overall project risk. Working incrementally and delivering value in stages will address critical processes and immediate pain points first, and improve the overall quality of the rollout.
Demonstrations were held for the Department of Human Resources on the functionality available in the Talent suite and the potential to consolidate its systems into a single platform over time. The Director of Human Resources has agreed to move forward with this project to improve the employee experience, fill in gaps in functionality offered city wide, and to achieve system rationalization for functionality. Pricing was determined through negotiations with Dayforce and the pricing offered is a combination of applying city’s existing discount with an end of year pricing promotion offered by Dayforce.
This ordinance authorizes an expenditure of $590,000.00 from the Auditor’s Bond Fund to support the expanded functionality within the Dayforce platform and for professional guided implementation services by Dayforce US Inc. This ordinance also requests a waiver of the relevant competitive bidding requirements of Columbus City Code Section 329 to add these additional services to the current contract. Dayforce is the software developer and the only Software as a Service provider for its products. It is also the current contract holder for the city’s Human Capital Management system. The funding includes contingencies for change management, data integration, and unforeseen project needs, providing flexibility for the project manager to authorize necessary changes or agreements to ensure successful completion. By adopting these enhancements, the city continues to invest in its workforce and infrastructure, setting the stage for future advancements in efficiency, security, and employee engagement.
Contract Compliance:
Dayforce US Inc: CC-025904, expires 5/7/2026, D365#025904
Principal place of business: 3311 East Old Shakopee Road Minneapolis, MN 55425USA
Fiscal Impact:
Funds of $590,000.00 are available and appropriated within the Auditor’s Bond Fund, Fund 7783.
Future operating budgets in 2026 will result in an increase of approximately $3.12 per employee, per month, to the Dayforce subscription (estimated at $410,000.00 annually for 11,000 employees); however, this amount will be offset by an estimated reduction of an estimated $330,000.00 in licensing and support direct expenses for a net impact of $80,000.00 in future budgets while providing a greater degree of functionality, access, security, and coverage across the entire organization. Greater savings could potentially be achieved by consolidating other systems with similar functionality into Dayforce.
Title
To authorize the City Auditor to modify an existing agreement with Dayforce US Inc. for $590,000.00 for software subscription to include the Dayforce Talent module and professional services for guided implementation; to authorize the City Auditor to enter into contract with such additional vendors as may be necessary to complete the addition; to waive the competitive bidding provisions of Chapter 329 of Columbus City Code to enter into such contracts; and to authorize the expenditure of $590,000.00 from the Auditor’s Bond Fund. ($590,000.00).
Body
WHEREAS, the current contract between Dayforce US, Inc. and the City Auditor for three years was authorized by Ordinance 1919-2023, subject to annual appropriation and approval by City Council for the software subscription, maintenance, professional consulting, hardware, and support services; and
WHEREAS, there is a need for expanding the Dayforce platform to include the Talent module for features to improve the employee experience and add parity of functionality across the city;
WHEREAS, the unification of human resources and payroll systems will provide the city greater efficiency and achieve system rationalization by combining payroll, HR, benefits, talent, and workforce management into a single system;
WHEREAS, the consolidation of data into a single, secure source will provide improved reporting and connected analysis while reducing the amount of personnel information duplicated throughout the enterprise; and
WHEREAS, it is necessary to authorize an expenditure from the Auditor's Bond Fund to pay for this contract modification; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor be and hereby is authorized to modify its existing contract with Dayforce US Inc. for adding the Talent module subscription services and professional services for implementation in an amount up to $590,000.00 for professional services related to Dayforce.
SECTION 2. That, for the same purposes as set forth in Section 1 of this ordinance, the City Auditor is hereby authorized to enter into change orders with Dayforce and other contracts and/or such additional consultant vendors as may be necessary and available, this Council recognizes that this ordinance does not identify all the contractor(s) to whom all of the contract(s) will be awarded and understands that its passage will give the City Auditor the discretion and final decision in determination of the contract(s) that are in the best interests of the city and necessary for the successful implementation of this addition to the Dayforce payroll and personnel system. For the purposes of this ordinance, this Council deems it in the best interests of the city to delegate this contracting decision to the City Auditor and to waive the relevant competitive bidding requirements of the Columbus City Code section 329.
SECTION 3. That the expenditure of $590,000.00, or so much thereof as may be needed is hereby authorized from fund 7783 (Auditor Bond Fund) Dept./Div. No. 22-01 , Object Class 06, Main account 66530, Project P783002-100002 per the account codes in the attachment to this ordinance.
SECTION 4. That funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. 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 6. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund when the project has been completed and the monies are no longer required for said project.
SECTION 7. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.