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HomeMy WebLinkAboutFIN-20-051 - Sole Source - FPO20-071 Mobile Time Entry SolutionREPORT TO: Committee of the Whole DATE OF MEETING: 2020-08-24 SUBMITTED BY: Ryan Scott,Manager, Procurement, 519-741-2200 ext. 7214 PREPARED BY: Dianne Stewart,Manager, Business Solutions – Work Management, 519-741-2600 ext. 4654 WARD (S) INVOLVED: N/A DATE OF REPORT: 2020-07-13 REPORT NO.: FIN-20-051 SUBJECT: Sole Source – FPO20-071 Mobile Time Entry Solution __________________________________________________________________________________________ RECOMMENDATION: That KRONOS, Mississauga, Ontario, be the sole source provider for the purchase of Mobile Time Entry (Workforce Dimensions) software at a cost of $110,000.00, plus H.S.T. of $14,300.00, for a total of $124,300.00, provided a satisfactory contract is executed. BACKGROUND: For many years, a manual paper-based procedure has been in place to capture, approve and process hourly timesheets for most divisions within Infrastructure Services and some divisions in Community Services. The current process includes several hand-offs and data-entry before posting the time to payroll, leading to the potential for data errors and time needed for follow- ups, corrections and clarifications. On average, thirteen (13) administrative staff data-enter over 2,108 timesheets on a weekly basis totalling over 109,000 timesheets per year. In addition, substantial time is taken by supervisory staff to approve, clarify and correct daily timesheets for staff. The current solution through the City’s work management solution (Cityworks) has exceeded its end-of-life and is no longer supported by the vendor. The increased volume of data-entry needed for payroll; the current system; and, the supporting process creates an unacceptable risk error and failure. Further there is a growing need to establish a mobile solution for timesheets in order to increase capacity for new/additional responsibilities for administrative staff. Over the last 6 years, the City explored directly or by way of market scans various options to modernize the approach to timesheet processing.In 2019 a Request for Information (RFI) document was released to aid in identifying vendors capable of delivering a mobile-ready application for field and office staff with the capability to integrate into Cityworks as well as the City’s core financial system, SAP. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 6 - 1 KRONOS established itself as the only vendor capable of providing the advanced functionality required by staff; the integrations with both Cityworks and SAP for now, and intothe foreseeable future. SAP has been the City’s Enterprise Resource Planning (ERP) solution since 2008. The strength in partnership between SAP and the KRONOS product set allows the City of Kitchener to fully leverage the integrated solution with the full support of our enterprise solution provider. The long-term strategic collaboration between SAP and KRONOS will ensure a robust solution best suited for the City of Kitchener. REPORT: As per clause 170.8.2 of the Purchasing By-law 2017-106, it states, “The use of a Non-Standard Procurement process is only permitted under the following circumstances: c. where there is an absence of competition for technical reasons and the Goods, Services, Construction, or Consulting Services can only be supplied by one particular Supplier and no alternative or substitute exists;” As per clause 170.8.3 of the Purchasing By-law 2017-106, it states, “All non-standard Procurementprocesses must be approved and conducted in accordance with this By-law including the table set out in this section and all applicable procedures.” RequirementProcurementProcurementApproval Authority ValueProcess Excluding Taxes Goods, Up to $99,999Non-Competitive or Director of Supply Services, Construction, Limited CompetitionServices Consulting Services Goods, Greater than Non-Competitive or Council Services, Construction,$100,000Limited Competition Consulting Services The KRONOS solution is compatible with robust integrations to both Cityworks, SAP and is capable of integrating with an HRIS system (PeopleSoft). Given the strategic partnership between solution providers and the lack of viable alternatives base on business logic and technical requirements, KRONOS satisfies both the compatibility; and the absence of competition due to technical reasons exceptions under the By-law. 6 - 2 The recommendation was reviewed by J. Winter, Director – Asset Management & Business Solutions and D. Stewart, Manager – Business Solutions, Work Management, who concur with the above recommendation. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city’s strategic vision through the delivery of core service. The mobile time entrysolution provides City staff with dynamic views of work activities across teams as appropriate. Management staff can utilize the solutions’ functionality to be responsive to customer inquiries thereby establishing efficiencies and consistent workflows which has the potential of improving customer service both internally and externally. FINANCIAL IMPLICATIONS: The net capital cost for this purchase (A), is fair and reasonable for a purchase of this scope and the upset limit is within the budget allowance (B) provided within the budget. Funding for this purchase is included within the approved capital budget. The estimated capital surplus (D) will remain within the account to help fund additional mobile time management costs. Operating Costs related to license renewalswill be funded from various operating accounts. KRONOS Software Purchase Estimated Cost for this Phase of Work Quote received, including HST$124,300.00 less: HST rebate (12,363.99) Net Cost Being Awarded111,936.01A Projected additional costs- Total Estimated Cost for this Phase of Work111,936.01C Budget for this Phase of Work Cityworks Software Upgrades capital account115,000.00 Total Budget for this Phase of Work$115,000.00B Estimated Surplus/(Deficit) for this Phase of Work (B - C) D3,063.99 6 - 3 COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department 6 - 4