RFP for Payroll/HR Systems Consulting Services March 1, 1999 The University of California requests proposals for Payroll and Human Resources systems consulting services as further described below. A. BACKGROUND The University of California is the largest employer in the State of California and has some of the most complicated pay practices in the country. Its workforce includes an extremely wide range of employees, including part-time student employees, Health Science faculty, Extension faculty, Senior Managers, and many categories of staff employees. Various pay practices are required to meet the needs of these various groups. In addition, approximately 50,000 employees are represented by one of 22 unions. The University issues over 200,000 W2’s and supports four different pay schedules. To assist in attracting and retaining faculty and staff, the University offers a wide variety of benefits, operates its own retirement system and offers a variety of before and after tax investment alternatives for employees. The University of California currently operates a custom payroll system which also includes functions normally included in vendor Human Resource systems. The system is based loosely on a very early version of the Integral Systems, Inc. (ISI) Payroll System. Originally installed in the early 80’s, the system has undergone significant enhancement over the years and underwent a major system upgrade which was completed approximately five years ago. A separate version of the system is operated for or by each campus and two other UC-related entities- the Associated Students of UCLA and Hastings College of the Law. The entry of data and inquiry functions are highly decentralized. That is, individual departments enter the vast majority of transactions online and perform the majority of individual record inquiries. A custom-developed authorization system was implemented as an integral feature of the departmental update capability. Currently a project is underway to supplement the departmental "CICS" screens with additional web-based graphical user interface screens. Many campuses supplement the system with campus-developed data warehouses to satisfy various central Payroll and HR office and departmental analytical and reporting needs. Two years ago the University embarked on a project to reassess its payroll and personnel systems, including the associated work practices and services the systems support. This review also considered deployment of "employee self service" capabilities to provide employees the ability to update directly via Web browsers the portion of their employment records for which they are responsible and the ability to obtain information from their own payroll and HR records. B: REQUEST FOR CONSULTING SERVICES As part of this review, various issues associated with the future of the existing Payroll system were raised. To assist in an assessment of future directions, external consulting services will be engaged. Proposals from consultants are being solicited to address the following: • What is the best architecture to address the information and processing needs of Payroll and HR departments? The current system assumes an integrated model for Payroll and HR functions. In order to best meet HR and payroll needs, should this be continued or changed? • What is the future of the existing system? Should the University continue to enhance it, should a new system be purchased and customized to incorporate existing and desired features or should a new custom system be developed? What are the approximate costs of each alternative, the advantages and disadvantages of each and when, given the features and functions of the existing system, should the system be upgraded or replaced? • Should a project be undertaken to provide easier access to all records normally contained in an Employee Personnel file, perhaps through implementation of an image recordkeeping system? Currently, records for an employee may exist in an employing department, campus payroll office, staff or academic HR/personnel office, risk management and perhaps other offices. Some information is in electronic form or duplicated and available to or in multiple offices while other exists in only one office. The multiplicity of locations in which this data is stored interferes with the ability to easily access all data about an employee. Is implementation of a system to consolidate such data cost beneficial? What should be the architecture for such a system? What would be the range of costs for such system? • Identify opportunities for improving integration of payroll data with financial and research administration systems. • Review the existing model of payroll system support and operations. Currently the system is centrally maintained but is operated at or for each campus. Can a different model better serve the current needs? What would be the cost implication any alternative models of support and operations? • Are there opportunities to re-engineer payroll and human resource business processes to achieve greater simplicity and cost savings? Are the differences among campus business processes idiosyncratic or do they respond to key campus missions? In completing the requested assessment, the successful consultant will be expected to interview approximately six individuals from each campus and from the Office of the President for the purpose of information gathering. Additionally, the consultant will be expected to provide status reports and present the final recommendations to various committees and groups. It should be expected that eight such presentations will be required. Thirty copies of the final consultant report, and of any interim reports, will be required. C: PROPOSALS Respondents should indicate how they propose to address the requirements outlined in section B, above. At a minimum, the following should be included in each response: • Qualifications to perform the services requested. Descriptions should be provided of previous engagements which demonstrate the capability to perform the requested services . • Resumes of individuals who are proposed to work on this engagement. • A workplan, including schedule and hours, for addressing the requirements of this Request. • A total, not-to-exceed cost for this engagement and details as to how the total was calculated. • A list of five references that may be contacted by the University to verify the qualifications and workproducts of the individuals included in the proposal. D. SUBMITTALS Respondents should submit 15 copies of their proposal to: Deborah Wolfe, Information Resources and Communications, University of California, 1111 Franklin Street, Oakland, CA 94607-5200. Responses must be received by the University by March 26, 1999. Questions can be addressed to Jim Dolgonas, Assistant Vice President, Information Systems and Computing, Office of the President. Phone: (510) 987-0458; Email: Jim.Dolgonas@ucop.edu. E. UNIVERSITY EVALUATION CRITERIA A University selection committee will review proposals. In evaluating proposals, the University will consider the perceived quality of the response, including consultants’ proposed workplan, schedule, experience and qualifications presented and other factors. Consultants will be judged, in part, based on their knowledge of payroll and HR functions, their abilities to understand the functionality of existing systems and processes to assess costs and benefits, and knowledge of relevant technologies. Comments from references will also be included in the University’s evaluation. Interviews with the top two bidders’ proposed engagement team may be requested by the University, in addition to a requirement for additional written materials, to ascertain the qualifications of proposed consultants. The above factors, in addition to the cost of the proposals, and other factors the University may deem appropriate, will be used to identify the lowest responsive proposal.