Broward County Commission Regular Meeting
Director's Name: George Tablack
Department: Finance and Administrative Services Division: Enterprise Technology Services
Information
Requested Action
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A. MOTION TO APPROVE only reasonable source designation of UKG Kronos Systems, LLC (“UKG”), formerly known as Kronos, Incorporated, as the provider of the Enterprise Time and Attendance System, including software subscriptions, equipment, maintenance, and support, used by approximately 7,000 County employees for timekeeping.
ACTION: (T-10:46 AM) Approved.
VOTE: 9-0.
B. MOTION TO APPROVE Amended and Restated Software License and Services Agreement between Broward County and UKG Kronos Systems, LLC, for Enterprise Time and Attendance System (Contract No. R0865206R1), for an initial five-year period subject to a not-to-exceed amount of $2,800,000, with two optional five-year renewal periods subject to not-to-exceed amounts of $2,800,000 each, for a total not-to-exceed amount of $10,700,000 which includes $1,000,000 for optional services and $1,300,000 for equipment and related support and maintenance; reset the execution authority of the Director of Purchasing for the Agreement pursuant to Section 21.47(b)(3) of the Broward County Procurement Code; and authorize Mayor and Clerk to execute same.
ACTION: (T-10:46 AM) Approved.
VOTE: 9-0.
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Why Action is Necessary
A: In accordance with Broward County Procurement Code Section 21.25(a), Sole Source Procurement, non-standardized only reasonable source procurements above the award authority of the Director of Purchasing must be approved by the Board.
B: In accordance with Broward County Procurement Code Section 21.47(a), Award and Execution Authority, the Board shall make all awards, and authorize the execution of the associated contracts, with a value of more than $500,000, inclusive of the value of any renewals or extensions provided for in the contract; and in accordance with 21.47(b)(3), Award and Execution Authority, the Board may specifically approve in connection with any consideration of an amendment, that the full amount of the Director of Purchasing’s authority be restored with respect to this contract; and in accordance with Section 21.53(a), Duration of Contracts, a County contract shall not exceed five years in duration, inclusive of any renewals or extensions provided for in the contract, without the express approval of the Board.
What Action Accomplishes
A: Designates UKG Kronos Systems, LLC, as the only reasonable source provider of the Enterprise Time and Attendance System software subscriptions, including licenses, maintenance and support, and upgrades.
B: Approves the Amended and Restated Software License and Services, Agreement, and resets the Director of Purchasing’s award authority with respect to Contract No. R0865206R1, for the Enterprise Technology Services Division.
Goal Related Icon(s)
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Previous Action Taken
None.
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE ENTERPRISE TECHNOLOGY SERVICES DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
The purpose of this action is to designate the most reasonable source, UKG Kronos Systems, LLC, as the software developer of the County’s Enterprise Time and Attendance System, and the sole reasonable source for the purchase and maintenance of same (Exhibit 2); and to approve the Amended and Restated Agreement between Broward County and UKG, Inc. (“Restated Agreement”) (Exhibit 1).
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 (“Kronos Agreement”), for the Enterprise Technology Services Division (ETS), in the amount of $1,392,496, plus reimbursable expenses of $50,000, for a total estimated first-year amount of $1,442,496; and authorized the Director of Purchasing to renew the agreement for up to four additional one-year periods, for a total estimated amount of $2,159,930.
The Kronos Agreement provides for the purchase of an Enterprise Time and Attendance System for the Broward County workforce, for both salaried and hourly employees. The initial system purchased included hardware and software, professional and educational services, reimbursable expenses, system hosting and maintenance. The system replaced the previous manual paper process of managing time and attendance requirements for all Broward County agencies and included a combination of time-capture devices, including electronic time clocks with biometric and keyboard entry into a web-based system for employee self-check-in.
Between 2012 and 2019, the Kronos Agreement was amended seven times. Each amendment was authorized by either the Board or the Director of Purchasing. Together, the amendments added services and equipment, extended the term of the agreement, and increased the agreement total to $8,239,996.
In 2023, UKG announced the discontinuation of support for Workforce Central, and the migration of all customers to the UKG Pro Workforce SaaS platform. The County decided to migrate to the new platform, thereby avoiding the need to replace the existing timekeeping infrastructure. The County and UKG negotiated the Restated Agreement to provide software subscriptions and professional services, to extend the term of the Agreement, and to increase the total not-to-exceed amount.
The Restated Agreement was heavily negotiated and contains several non-standard terms, including: UKG’s indemnification obligations are limited to intellectual property infringement, unauthorized use of or access to County data, and UKG’s negligence; and UKG’s liability for claims arising from UKG’s breach of its confidentiality obligations pursuant to the Restated Agreement is capped at four times the amount of subscription fees paid/payable during the 12 months preceding the date the claim arose.
Source of Additional Information
Domenic DiLullo, Chief Information Officer, Enterprise Technology Services Division, (954) 357-8821
Fiscal Impact
Fiscal Impact/Cost Summary
The Restated Agreement is estimated at $10,700,000 over a potential fifteen-year period.
Each requirement processed against this contract will be funded by the appropriate source at the time of release. Goods and services (which includes hardware and software subscriptions, maintenance, software environments and professional services) will be paid out of the ETS Operating Budget over the term of the Restated Agreement. Optional Services over the term of the Restated Agreement will be paid out of the ETS Capital Budget.