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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Kim Shanklin , Chief of Staff |
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PRESENTER(S): |
Kim Shanklin, Chief of Staff |
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Kyle Brimley, IT Director |
TITLE:
title
Change Order: Human Resource Information System (HRIS) Change Order No. 1 - Payroll Module Subscription (Workday, Inc.)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute Change Order No. 1 and associated disbursements with Workday for implementation of the payroll module software subscription fees and costs associated with a delay to the project implementation timeline for a period of 10 years at a cost of $1,087,860.
BACKGROUND:
UTA is currently implementing a new Human Resource Information System (HRIS). This software is intended to help better administer UTA’s Human Resource processes. One of these processes relates to Payroll. This change order is for the ongoing subscription fees needed for the Payroll module for the effective term of the Workday contract. Without this change order, the use of the Payroll module would not be possible.
The original procurement for the new HRIS system was executed under Utah State Contract AR2507. This original contract was approved by the Board of Trustees on January 24, 2024. The original terms for the contract were for 10 years (January 24th, 2024 thru January 23, 2034). This change order does not extend any of the terms, it just mirrors them. The project team has also determined a need to push rollout from summer 2025 to fall of 2025 to accommodate additional design and coordinate implementation of key integrations with other systems.
DISCUSSION:
The Workday Human Resource Information System (HRIS) system provides a suite of modules used to help organizations administer its Human Resource responsibilities. This includes Payroll functions for an organization. The Payroll module requires annual subscription fees to allow usage of the tool. During the course of the 8 months UTA has been implementing the Workday HRIS software solution. As implementation progressed it became clear the importance of adding the payroll SKU to the implementation. This required an in-depth analysis and review concluded mid-October and was approved by executive staff and the Executive Director. Adding the Payroll SKU will allow us to optimize our payroll process and will integrate with JDE while UTA seeks to replace that antiquated financial system. It will reduce manual processing for Payroll and Total Rewards staff. This SKU will provide additional self-service options for employees in addition to those anticipated in our new HRIS and Trapeze systems. This will be consistent with a best practice to have HCM/benefits and payroll in the same system. This change order will provide the necessary subscription fees for access to this module over the course of the original ten-year term for the contract. It also provides implementation consultation for the project through the fall 2025 rollout. The general terms for the contract are for 10 years, including implementation the first two years.
CONTRACT SUMMARY:
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Contractor Name: |
Workday, Inc |
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Contract Number: |
PO-2403817-1, Utah State Contract AR2507 |
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Base Contract Effective Dates: |
1/24/2024 - 1/23/2034 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
$7,669,122 |
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Amendment Amount: |
$1,087,860 |
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New/Total Contract Value: |
$8,756,982 |
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Procurement Method: |
State of Utah Contract |
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Budget Authority: |
Approved 2024 Capital Budget |
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ALTERNATIVES:
If this change order is not approved, the Payroll module will not be purchased and we will continue processing payroll in JDE.
FISCAL IMPACT:
On the December 4, 2024 board meeting agenda a Technical Budget Adjustment (TBA) is proposed that includes the amount of $22,000 that will fund the difference needed in year 1 for the payroll module. Upon approval of that TBA, funds will be available in the 2024 and 2025 years of the capital plan to cover costs for years 1 and 2 of the ten years. Approval of this change order is contingent on approval of the TBA. Starting in 2026, funds will be coming from the IT Department’s operational budget. All capital funds will come from the ICI228- Chief People Office (CPO) New HRIS System Application Upgrade capital project in the 2024 approved capital budget and the approved 2024-2028 Five Year Capital Plan. All funds are UTA funds. The funding allocations are outlined in the table below:
|
Year |
Amount |
Source/Account Code |
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Year 1 (2024-2025 prorated) |
$20,554 |
Capital Project ICI118 Account Code: 40-2228.65000.5009 |
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Year 2 (2025-2026) |
$356,079 |
Capital Project ICI118 Account Code: 40-2228.65000.5009 |
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Year 3 (2026-2027) |
$82,865 |
Operating, Account Code: 5200.504.50455.91 |
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Year 4 (2026-2027 |
$84,523 |
Operating, Account Code: 5200.504.50455.91 |
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Year 5 (2028-2029) |
$86,213 |
Operating, Account Code: 5200.504.50455.91 |
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Year 6 (2029-2030) |
$87,937 |
Operating, Account Code: 5200.504.50455.91 |
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Year 7 (2030-2031) |
$89,695 |
Operating, Account Code: 5200.504.50455.91 |
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Year 8 (2031-2032 |
$91,490 |
Operating, Account Code: 5200.504.50455.91 |
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Year 9 (2031-2033) |
$93,320 |
Operating, Account Code: 5200.504.50455.91 |
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Year 10 (2033-2034) |
$95,184 |
Operating, Account Code: 5200.504.50455.91 |
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Expected 10-year Total |
$1,087,860 |
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ATTACHMENTS:
Change Order #1 - Payroll subscription and extension costs