A. MOTION TO APPROVE only reasonable source designation of Kronos Incorporated, (“Kronos”) as provider of the Enterprise Time and Attendance System used by County employees for timekeeping.
ACTION: (T-10:33 AM) Approved.
VOTE: 8-0. Commissioner Geller was not present.
B. MOTION TO AUTHORIZE Director of Purchasing to negotiate and execute a Sixth Amendment to the Software License and Service Agreement between Broward County and Kronos Incorporated, subject to approval from the County Attorney’s Office as to legal sufficiency, to extend the current agreement for a period of five years, followed by an optional three-year extension through March 28, 2027, including increasing the total not-to-exceed amount by $3,640,000 for a new total estimated not-to-exceed amount of $8,239,996.
ACTION: (T-10:33 AM) Approved. (Scrivener’s Error – See County Administrator’s Report: The Summary/Explanation Background table, under the “Not-to-Exceed Breakdown” column for Optional Services on the Fifth Amendment, currently reads: $523,000. Should read: $575,000.)
VOTE: 8-0. Commissioner Geller was not present.
|
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT, THE ENTERPRISE TECHNOLOGY SERVICES DIVISION AND THE PURCHASING DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
The Office of Economic and Small Business Development Division (OESBD) established a County Business Enterprise (CBE) participation goal of 10% for the Kronos project applicable to training, implementation and professional services. Kronos has achieved 34.5% CBE participation. Enterprise Technology Services has reported there are no planned training and implementation required as a part of the Sixth Amendment’s scope of work; however, if such services are exercised, the 10% CBE goal will apply. (Exhibit 2)
This item supports the Commission's Vision and Goals for "Consistently delivering responsive, efficient, quality services to the public and internal customers." The centralized timekeeping solution has enhanced County government operations by replacing inefficient paper-based timekeeping processes, with an improved system that automates and integrates employee timekeeping.
On June 12, 2012 (Item No. 29), the Board approved an Agreement between Broward County and Kronos Incorporated for an Enterprise Time and Attendance System, Request for Letters of Interest (RLI) No. R0865206R1, for the Enterprise Technology Services Division (ETS), for up to five years for a total estimated amount of $2,159,930. The Agreement provided Kronos' Enterprise Time and Attendance System, including hardware and software, professional and educational services, hosting services, and support and maintenance.
On June 21, 2013, the Director of Purchasing executed the First Amendment to the Agreement, which refined scheduled milestones and deliverables at no additional cost to the County.
On June 25, 2013, the Director of Purchasing executed the Second Amendment to the Agreement to account for certain technological advances.
On January 27, 2014, the Director of Purchasing executed the Third Amendment to account for additional future purchases.
On September 9, 2014 (Item No. 76), the Board approved the Fourth Amendment to the Agreement, providing additional software licenses, clocks, professional services, and support and maintenance, and increasing the total not-to-exceed amount by $1,340,066 to a total not-to-exceed of $3,499,996.
On May 9, 2017 (Item No. 13), the Board approved the Fifth Amendment to the Agreement, which extended the duration of the existing Agreement through March 28, 2019, and increased the total not-to-exceed amount by $1,100,000 for a total not-to-exceed contract amount of $4,599,996.
The following is a summary of each amendment to the Agreement:
| Agreement |
Total Not-to-Exceed |
Not-to-Exceed Breakdown |
| Original Agreement |
$2,159,930
|
Goods & Services: $2,109,930
Reimbursables: $50,000 |
| First Amendment |
unchanged |
|
| Second Amendment |
unchanged |
|
| Third Amendment |
unchanged |
|
| Fourth Amendment |
$3,499,996
(added $1,340,066)
|
Goods & Services: $540,066
Reimbursables: $50,000
Optional Services: $750,000 |
| Fifth Amendment |
$4,599,996
(added $1,100,000)
|
Goods & Services: $500,000
Reimbursables: $25,000
Optional Services: $523,000 |
| Proposed Sixth Amendment |
$8,239,996
(added estimated $3,640,000) |
|
The proposed Sixth Amendment will extend the Agreement for an additional five-year term through March 28, 2024, and provide a subsequent three-year optional renewal term through March 28, 2027. The Sixth Amendment will increase the not-to-exceed amount by $3,640,000. The Amendment will maintain the current pricing paid for additional equipment, software licenses, and professional services, and pricing for support and maintenance will increase by not more than 3% annually for each year of the extension and the optional renewal period.
With an estimated life expectancy of at least six to eight years, it is in the best interest of the County to continue with the services provided by Kronos due to the overall investment in upgrades and staff training. A replacement system would be at an estimated cost of over $10 million, which does not include training and future upgrades.
Negotiations for the Sixth Amendment were held on January 9, 2019, and January 16, 2019. The meetings were attended by representatives from Kronos Incorporated, the Purchasing Division, the Enterprise Technology Services Division, and the Office of the County Attorney.
|