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C. 59
To: Board of Supervisors
From: Marc Shorr, Chief Information Officer
Date: January  19, 2021
The Seal of Contra Costa County, CA
Contra
Costa
County
Subject: Countywide Financial Modernization Project – Workday, Inc.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On:   01/19/2021
APPROVED AS RECOMMENDED OTHER
Clerks Notes:

VOTE OF SUPERVISORS

AYE:
John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor
Contact: Marc Shorr 925-608-4071
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED:     January  19, 2021
Monica Nino, County Administrator
 
BY: , Deputy

 

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Chief Information Officer, Department of Information Technology (DoIT), or designee, to execute a Master Subscription Agreement with Workday, Inc., for a subscription license to Workday's hosted financial management system, for the period January 11, 2021 through January 7, 2030, in the amount of $9,998,362.00.  

FISCAL IMPACT:

Initial implementation of the new Finance System will be funded by General Fund reserves. Ongoing subscription fees will be charged to user departments and allowable costs will be recovered through the cost plan.  
  
FISCAL IMPACT: (CONT'D)
The cost for the first year of the agreement is $702,869, increasing to $1,083,016 in year two with 2% increases thereafter for the remaining seven (7) years of the agreement.  
  
BACKGROUND:

    DoIT, Auditor-Controller's Office, and the Tax Collectors Office are requesting authority to subscribe to Workday’s hosted financial management system to replace the County's legacy financial system.   
      
    The Auditor-Controller's Office oversees the financial operations of Contra Costa County. The Auditor­ Controller's Office utilizes the Accounting Resource Management System (ARMS) to provide accounting, budgeting, and financial services to County departments, school districts, special districts and cities as defined under Government Code.  
      
    The current Finance system was initially implemented in 1978 as an enterprise solution for submitting financial transactions, making inquiries and running reports in a real-time environment. The existing system is at the end of its useful life and does not support new hardware or software enhancements. As a result, support costs for maintaining the legacy system have increased annually. In addition, new business functionalities and reporting capabilities necessary to comply with federal and state regulatory or statutory requirements are being performed manually with non-standardized business tools.   
      
    In 2020, a business case evaluating the feasibility of replacing the County's financial system with a new system was completed by consultant Gartner, Inc. and presented to the PeopleSoft Steering Committee. The PeopleSoft Steering Committee is comprised of executive members from the County Administrators Office, Auditor-Controller's Office, Tax Collectors Office, Human Resources and DoIT. The business case identified the following three alternative solutions for the County's consideration:  
    1. Remaining on the current legacy systems.
    2. Replace the legacy mainframe financial system with an off the shelf system.
    3. Develop a new in-house system.
      
    Subsequently, the three alternatives were reviewed and evaluated by members of the PeopleSoft Steering Committee to identify the overall cost and benefits of the proposed alternatives, which best met the County's current and future needs.  
      
    At the conclusion of their review, it was determined that a single new finance system has-the-ability to support the functionality identified below and would best meet the County's Finance needs:  
      
    Enhance internal communications through-the-use of information technology and improved business processes.  
      
    Support continual innovation to encourage implementation of best business practices (i.e. encourage streamlining and automation of standard business transactions, enhanced processing and on-line capabilities, etc.).  
      
    Obtain enhanced features and functionality to support increased automation and operational efficiencies (i.e. workflow, self-service, document imaging, employee expense reimbursement, grant management, etc.).  
      
    Encourage the implementation of standard functionality and best business practices embedded in the solution to reduce long-term maintenance impacts and avoid or minimize customizations.  
      
    Improve quality and accessibility of information through standard reports, ad hoc tools and the ability to create new reports. Information access must be perceived by the County's average user as intuitive and efficient.  
      
    Reduce redundant data entry, storage, and paper processing.  
      
    Ensure that the finance platform remains viable and is supported by an achievable product roadmap.  
      
    Utilize technology investment to reduce cost, waste and duplication while increasing productivity, and workflow efficiency overall.   
      
    The proposed finance system should provide integrated functionality, meaning that the individual components of the system utilize a shared repository of information and processes to ensure all users have access to the same information, redundant data entry is not required, reduces departmental reliance on stand-alone systems, and that each of the components has a similar "look and feel".   
      
    PROCUREMENT PROCESS: DoIT enlisted the assistance of the Procurement Division to develop a Request for Proposal (RFP) for the selection and procurement of a new finance system. The RFP was issued on August 20, 2020, posted to the County’s Procurement website and notices sent to three firms advising them of the RFP. The Procurement Division received two responsive proposals.  
      
    An evaluation panel comprised of representatives from DoIT, Tax Collectors Office, and Auditor-Controller's Office reviewed the responses in accordance with the evaluation criteria contained within the RFP. Based on the evaluation of the proposals received, the panel determined that the two firms met the County's requirements and were recommended for interviews. These firms included Workday Inc. of Pleasanton, CA; Oracle Public Sector, of Los Angeles. At the conclusion of the final interviews, Workday, Inc. was identified as the application that best met the County's requirements.  
      
    The Master Subscription Agreement will give the County rights to the following services:
    • Core Financials: Financial management, accounting and reporting, financial consolidation
    • Grants management: Tracking and managing sponsors, awards, grants and grant hierarchies
    • Prism Analytics: Data repository for storage and management of data and tools for the blending and analysis of data from various sources
    • Project management: Ability to build project plans and utilize project breakdown structures that includes phases, tasks and milestones
    • Expenses: Self-service and administrative functions to support employee expense reporting and reimbursement
      
    The system will be hosted by Workday on its servers, but the County will engage a separate third party contractor to implement the system.   
      
    The County can only cancel the contract if Workday breaches the contract, files bankruptcy, or the board of supervisors fails to appropriate funds for a third party financial management system in any fiscal year.  
      
    If an unauthorized party accesses County’s data on the Workday hosted system, Workday will reimburse the County for (a) its costs of forensic investigation to determine the cause of the breach, (b) providing notification of the security breach to government agencies, and to individuals whose personal data may have been accessed or acquired, (c) providing credit monitoring service to individuals whose personal data may have been accessed or acquired for a period of one year after the date on which such individuals were notified of the unauthorized access or acquisition for such individuals who elected such credit monitoring service, and (d) operating a call center to respond to questions from individuals whose personal data may have been accessed or acquired for a period of one year after.  
      
    Workday’s liability for a breach of County data caused by their failure to perform under the agreement is limited to reimbursement of the costs listed in the foregoing sentence, and two times the amount paid by County for the service in the preceding year, approximately $2,000,000.  
      

    CONSEQUENCE OF NEGATIVE ACTION:

    The current financial system is at end of life. It has become a challenge to hire or contract support staff to support the system as the programming language is no longer being taught in schools and there are very few individuals with the skill set in the workforce. If the current system is not replaced the County will continue to endure elevated support costs and could face significant downtime in the event of a system failure.   

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