Title
Proposed Amendment No. 1
Contract No. 1803978
Human Resources Information Systems (HRIS) Software as a Service
Body
Agenda of: November 18, 2021
Item No.: 2021-420
Amount: Original Contract Price: $2,108,253.00
Proposed Amendment No. 1 1,494,838.00
New Contract Total: $3,603,091.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: October 11, 2021
RE: Proposed Amendment No. 1
Contract No. 1803978
Human Resources Information Systems (HRIS) Software as a Service
Vendor: Ceridian HCM, Inc.
MOTION
Upon recommendation of Jeffrey E. Small, Chief Information Officer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Interim Chief Executive Officer (ICEO) to enter into Contract No. 1803978, Proposed Amendment No. 1 “Human Resources Information Systems (HRIS) Software as a Service” with Ceridian HCM, Inc., at an increased cost of $1,494,838.00 for a total cost not to exceed $3,603,091.00, and an increased duration of three years for a total duration of six years; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Ceridian is GLWA's current provider for payroll, timekeeping, and human resource information system services. Ceridian has been providing these services under multiple contracts for almost six years. The original contract No. DWSD-CS-1729, assumed by GLWA on January 1, 2016, for the Dayforce HRIS Software as a Service (SaaS) with Ceridian HCM was approved by the Board of Water Commissioners for the Detroit Water and Sewerage Department on May 13, 2015. In November 2018, GLWA Board of Directors approved Contract No. 1803978 to continue these services for three years.
GLWA issued an RFP for a new ERP system to replace both Ceridian’s Dayforce HRIS and GLWA’s financial software system, BS&A. We are currently in negotiations with the selected vendor. GLWA needs to continue the use of the Ceridian HRIS products until the new ERP is implemented.
JUSTIFICATION
Ceridian’s Dayforce Human Resource Information System (HRIS) for the Great Lakes Water Authority facilitates the organization’s ability to manage the entire employee life cycle. System components include payroll administration and processing, benefits administration and processing, workforce management, and talent management (recruitment). Dayforce HRIS is a cloud-based Software as a Service (SaaS) subscription offering from Ceridian which means it is accessible to all team members anytime, anywhere from any device via the Internet.
This amendment will enable GLWA to continue to use Ceridian’s Dayforce as its HRIS until after go-live of GLWA’s future ERP system. Because the new system is not expected to be live until at least January 1, 2024, this amendment is for a three-year term.
PROJECT MANAGEMENT STATUS
Original Contract Time Three (3) years (12/6/2018 - 12/5/2021)
Proposed Amendment No. 1 Three (3) years (12/6/2021 - 12/5/2024)
New Contract Time Six (6) years (12/6/2018 - 12/5/2024)
PROJECT ESTIMATE
Original Contract Price $ 2,108,253.00
Proposed Amendment No. 1 1,494,838.00
New Contract Total $ 3,603,091.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this contract.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): IT Business Productivity Systems (883341)
Expense Type(s): Contractual Operating Services (5910-883341.000-617400-WS7900)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2019 Budget $480,100.00
FY 2020 Budget 700,000.00
FY 2021 Budget 708,253.00
FY 2022 Budget 469,040.00
FY 2023 Financial Plan 498,279.00
FY 2024 Financial Plan 498,279.00
FY 2025 Financial Plan 249,140.00
Financial Plan Forecast $3,603,091.00
Proposed Contract Amount $3,603,091.00
Variance (positive/ (negative)) $ -
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on November 10, 2021. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.