Explanation
BACKGROUND
This ordinance authorizes the City Auditor to fund year three (3) of the existing three (3) year contract with Dayforce US, Inc., and to provide funding for the support, hosting, services, hardware, and maintenance of Dayforce software as a service. This ordinance also authorizes the expenditure of up to $1,868,150.00 from the Department of Technology operating fund, and authorizes the expenditure of $80,000.00 from the Employee Benefits fund.
Dayforce US, Inc. was formerly known as Ceridian HCM, Inc and the company name and branding change occurred in 2024; however, the company structure, federal tax identification, and other pertinent details related to the contract remain the same.
The current contract for these services was authorized by Ordinance 1919-2023, which passed July 17, 2023, and was renewed by Ordinance 1197-2024, which passed June 10, 2024. The agreement has pricing and services extended for three years, subject to annual authorization and appropriation by City Council. This is the third year of the agreement and includes licensing, hosting, maintenance, support, 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 procured 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 fund year three of the three-year extended term for Dayforce subscription and services including maintenance and support of time clocks across city departments 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 fund as follows:
Amount and Description
$1,850,000.00 Dayforce subscription, maintenance and support, and services
$17,490.00 Department of Public Utilities clocks maintenance and support
$660.00 Department of Technology clocks maintenance and support
$1,868,150.00 TOTAL
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 the existing contract with Dayforce US, Inc. for the renewal of the Dayforce software subscription, support, hardware, and services; to authorize the expenditure of $1,868,150.00 from the Department of Technology operating fund; and to authorize the expenditure of $80,000.00 from the Employee Benefits fund. ($1,948,150.00)
Body
WHEREAS, the current three-year contract between Dayforce US, Inc. (formerly known as Ceridian HCM, Inc) and the City Auditor was originally authorized by Ordinance 1919-2023 and subsequently renewed by Ordinance 1197-2024 for the second year of the agreement, and is 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 three of a three-year agreement with Dayforce, Inc. for the purchase of annual Dayforce software subscription, maintenance, professional consulting, hardware, and support services, in the total amount of $1,948,150.00; 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 enable employee self-service, employee onboarding, and 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 and fund the contract with Dayforce US, Inc. for year three of three of the Dayforce software subscription, maintenance, professional, and support services, in the amount of $1,948,150.00.
SECTION 2: That the expenditure of $1,850,000.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Operating fund as follows (see attachment): Dayforce US, Inc. - Dept.: 47 | Div.: 47-02 | Obj Class: 03 | Main Account: 63945 | Fund: 5100 | Subfund: 510001 | Program: IT005 | Amount: $1,850,000.00
SECTION 3: That the expenditure of $1,067.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows: Dayforce US, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | fund: 5100 | Subfund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 Section 5: IT1308 | Amount:$1,067.00
SECTION 4: That the expenditure of $6,786.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows: Dayforce US, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Subfund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 | Section 5: IT1309 | Amount: $6,786.00
SECTION 5: That the expenditure of $7,608.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows: Dayforce US, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Subfund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 | Section 5: IT1310 | Amount: $7,608.00
SECTION 6: That the expenditure of $2,029.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Operating fund (Direct Charge budget) as follows: Dayforce US, Inc. - Dept.: 47 | Div.: 47-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Subfund: 510001 | Program: CW001 | Section 3: 470104 | Section 4: IS02 | Section 5: IT1311 | Amount: $2,029.00
SECTION 7: That the expenditure of $660.00 or so much thereof as may be necessary is hereby authorized to be expended from the Department of Technology, Information Services Operating fund as follows: Dayforce US, Inc. - Dept.: 47 | Div.: 47-02 | Obj Class: 03 | Main Account: 63050 | Fund: 5100 | Subfund: 510001 | Program: IT004 | Section 3: N/A | Section 4: N/A | Section 5: N/A | Amount: $660.00
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, Employee Benefits fund as follows: Dayforce US, Inc. - Dept.: 46 | Div.: 46-01 | Obj Class: 03 | Main Account: 63050 | Fund: 5502 | Subfund: 550201 | Program: RM002 | 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.