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HomeMy WebLinkAbout063660-R2 - General - Contract - UKG Kronos Systems, LLCCSC No. 63660-R2 CITY OF FORT WORTH CONTRACT RENEWAL NOTICE May 28, 2026 UKG Kronos Systems, LLC Attn: Legal Department 900 Chelmsford Street Lowell, MA 01881 Re: Contract Renewal Notice City Secretary Contract No. 63660 (the "Contract") Renewal Term No. 2 of 7, July 14, 2026 to July 13, 2027 The above referenced Contract with the City of Fort Worth expires on July 13, 2026 (the "Expiration Date"). Pursuant to the Contract, contract renewals are at the sole option of the City. This letter is to inform you that the City is exercising its right to renew the Contract for an additional one (1) year period, which will begin immediately after the Expiration Date. All other terms and conditions of the Contract remain unchanged. Please return this signed acknowledgement letter, along with your quote for charges for the new renewal term, and current insurance certificate, to the address set forth below, acknowledging receipt of the Contract Renewal Notice. To ensure that your company information is correct and up-to-date, please log onto PeopleSoft Purchasing at https://www.fortworthtexas.gov/departments/finance/purchasing, If you have any questions concerning this Contract Renewal Notice, please contact us at the email address listed below. Sincerely, City of Fort Worth IT Solutions I Finance I Contracts 100 Fort Worth Trail Fort Worth, TX, 76102 zz IT_ Finance _ Contractskfortworthtexas.gov OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Contract Renewal Page 1 of 2 [Executed effective as of the date signed by the Assistant City Manager below.] / [ACCEPTED AND AGREED:] City: AaM&— By: Dianna Giordano (Jul 21, 2026 08:29:37 CDT) Name: Dianna Giordano Title: Assistant City Manager Date: 07/21/2026 UKG Kronos Systems LLC: DocuSigned by: By: Name: a Title: OF1378EOCOA6472... Date: CITY OF FORT WORTH INTERNAL ROUTING PROCESS: Approval Recommended: By: Name Title: Kevin Gunn Director, IT Solutions Approved as to Form and Legality: By: Candace Pagliara (Jul 21, 2 26 07 :51 CDT) Name: Candace Pagliara Title: Sr. Assistant City Attorney Contract Authorization: M&C: 25-1113 Approval Date: 12/09/2025 Form 1295: 2025-1388073 Sr Order Processing Analyst Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. By: Name: David Zellmer Title: Sr. IT Solutions Manager City Secretary: By: Name: Title: Jannette Goodall City Secretary 4.d44Upn4� FORT�y�9d0 QaaannE�65bga OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Contract Renewal Page 2 of 2 Ln N v m ai of m o oo co N N M O al M m m Ln m rn a N N m ro a Ln lfl N N N iA lD D D 'onN N N W M M M O y a of � 7 7 W 0�0 m tvi 00 pa 0o ao 0 0 Lr) Ln N Ln N 7 m N 10 �D N N O O O m u U N (1) p p c V lf) W O O Lf) Lr) 0) o 0 m N N Q U V O p m �D VI O O T m cm M Cf OARS. 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(ALL) Authorize Execution of Amendments with immixTechnology, Inc. and UKG Kronos Systems, LLC for Purchase of Public Safety Payroll Solution Software and Related Services in a Combined Amount Up to $1,100,000.00 and Add Six Renewal Options at a Five Percent Annual Increase for the Information Technology Solutions Department RECOMMENDATION: It is recommended that the City Council: 1. Authorize the execution of an amendment to City Secretary Contract No. 52679 with immixTechnology, Inc in the amount of $100,000.00, for a revised annual amount of $1,243,749.00, for purchase of Public Safety Payroll Solution Software through December 2025 using Texas Department of Information Resources Contract No. DIR-CPO-5688; and 2. Authorize the execution of an amendment to City Secretary Contract No. 63660 in the amount of $1,000,000.00, for a revised annual amount of $1,100,000.00, for the purchase of Public Safety Payroll Solution Software and related services beginning in January 2026 and add six renewal options at a five percent annual increase using OMNIA Partners Contract No. 24-6833, for the Information Technology Solutions Department. DISCUSSION: On October 25, 2016, City Council approved Mayor and Council Communication (M&C) P-11957 authorizing execution of City Secretary Contract (CSC) No. 52679 with immixTechnology, Inc., a value- added reseller, for the purchase of UKG Kronos, LLC branded timeclock integration software, timeclocks, and related services for integration of City timeclocks into the PeopleSoft Enterprise Resource Planning (ERP) system in an amount up to $300,000.00. On September 28, 2021, City Council approved M&C 21-0732 authorizing execution of an amendment to CSC No. 52679 for implementation of a new Public Safety Payroll Solution (PSPS) using UKG- branded products for the Police and Fire departments. On February 27, 2024, City Council approved M&C 24-0137 authorizing execution of an amendment to CSC No. 52679 with immixTechnology, Inc. to increase the annual amount of the agreement for a revised annual contract amount up to $650,000.00 to support purchase of technology licenses for PSPS. On September 17, 2024, City Council approved M&C 24-0802 authorizing execution of an amendment to CSC No. 52679 to increase the annual contract amount to an amount up to $1,143,749.00, as amended. Historically, the Information Technology Solutions (IT Solutions) department has entered into agreements with value-added resellers such as immixTechnology, Inc. (immixTechnology) for purchase of goods and services. Value-added resellers are typically more responsive and more customer -focused than purchasing directly from a manufacturer. Since execution of CSC No. 52679, immixTechnology has consistently failed to provide timely quotes or invoices which has resulted in City staff returning to City Council to request increased authority for payment of licenses/services provided in previous contract terms. On multiple occasions, City staff were required to escalate requests to the manufacturer, UKG Kronos, LLC, for assistance. Despite efforts to work with the manufacturer to expedite requests, immixTechnology has continued to not meet the City's requirements and set expectations. To prevent further issues with receipt of invoices, City staff recommend the approval of a final increase to CSC No. 52679 in an amount of $100,000.00 to close out existing orders placed through immixTechnology. City staff also recommend the increase of CSC No. 63660 with UKG Kronos, LLC, the manufacturer of PSPS products, to purchase all existing subscriptions, hardware, and related services directly. Upon approval of this M&C, IT Solutions will be able to process all revised quotes for existing subscriptions purchased through immixTechnology and transition all current and future subscriptions to be purchased directly through UKG Kronos, LLC. Funding is budgeted in the Other Contractual Services account within the Info Technology Systems Fund for the IT Solutions Department. COOPERATIVE PURCHASE — State law provides that a local government purchasing an item under a cooperative purchasing agreement satisfies State laws requiring that the local government seek competitive bids for purchase of the item. Cooperative contracts have been competitively bid to increase and simplify the purchasing power of local government entities across the State of Texas. SUCCESSOR CONTRACTS — The City will initially use the cooperative agreements to make purchases authorized by this M&C. In the event the cooperative agreements are not renewed, staff would cease purchasing at the end of the last purchase agreement, coinciding with a valid cooperative contract. If the City Council were to not appropriate funds for a future year, staff would stop making purchases when the last appropriation expires, regardless of whether the then -current purchase agreement has expired. If the cooperative agreements are extended, this M&C authorizes the City to purchase similar products under the extended contract. In the event a cooperative agreement is not extended, but vendor and cooperative purchasing agency execute new cooperative agreement(s) with substantially similar terms, this M&C authorizes the City to purchase the products under the new contract(s). If this occurs, in no event will the City continue to purchase goods and services under the new agreement beyond August 2032 without seeking Council approval. ADMINISTRATIVE CHANGE ORDER — An administrative change order or increase may be made by the City Manager up to the amount allowed by relevant law and the Fort Worth City Code and does not require specific City Council approval as long as sufficient funds have been appropriated. AGREEMENT TERMS — Upon City Council approval and execution of the related amendments, CSC 52679 will expire May 14, 2026 and CSC 63660 will expire July 13, 2026, each in alignment with the underlying Cooperative Agreements. RENEWAL OPTIONS — Upon City Council approval and execution of the related amendments, CSC 52679 will have no remaining renewal options and CSC 63660 may be renewed for six (6) additional one-year terms, each with a 5\% annual increase, in accordance with the underlying OMNIA Partners cooperative contract. These actions do not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal period. FISCAL INFORMATIONXERTIFICATION: The Director of Finance certifies that funds are available in the current operating budget, as previously appropriated, in the Info Technology Systems Fund to support the approval of the above recommendations and execution of the contract. Prior to any expenditure being incurred, the Information Technology Solutions Department has the responsibility to validate the availability of funds. TO Fund Department Account Project Program Activity Budget Reference # Amount ID I ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity BudgetT Reference # Amount ID ID J Year I (Chartfield 2) Submitted for City Manager's Office by_ Originating Department Head: Additional Information Contact: ATTACHMENTS Dianna Giordano (7783) Kevin Gunn (2015) Mark DeBoer (8598) FID Table -AMENDMENTS FOR PUBLIC SAFETY PAYROLL SOLUTION SOFTWARE.xlsx (CFW Internal) Form 1295 2025-1388073 2025.11.12.pdf (CFW Internal) Fund Availability -AMENDMENTS FOR PUBLIC SAFETY PAYROLL SOLUTION SOFTWARE.pdf (CFW Internal) FORT WORTH. City Secretary's Office Contract Routing & Transmittal Slip Contractor's Name: UKG Kronos Systems, LLC Subject of the Agreement: Second renewal to CSC 63660 with UKG Kronos Systems, LLC for the purchase of Public Safety Payroll Solution (PSPS) software, hardware, and related services. M&C Approved by the Council? * Yes 8 No ❑ If so, the M&C must be attached to the contract. Is this an Amendment to an Existing contract? Yes ❑ No 8 CSC 63660-R2 If so, provide the original contract number and the amendment number. Is the Contract "Permanent"? *Yes ❑ No 8 If unsure, see back page for permanent contract listing. Is this entire contract Confidential? *Yes ❑ No 8 If only specific information is Confidential, please list what information is Confidential and the page it is located. Effective Date: If different from the approval date. Expiration Date: July 13, 2027 If applicable. Is a 1295 Form required? * Yes 8 No ❑ *If so, please ensure it is attached to the approving M&C or attached to the contract. Project Number: If applicable. *Did you include a Text field on the contract to add the City Secretary Contract (CSC) number? Yes 8 No ❑ Contracts need to be routed for CSO processing in the following order: 1. Katherine Cenicola (Approver) 2. Jannette S. Goodall (Signer) 3. Allison Tidwell (Form Filler) *Indicates the information is required and if the information is not provided, the contract will be returned to the department.