Fiscal Note
The proposed resolution authorizes the non-competitive selection contract with UKG Inc. for a 5-year term. The contract includes professional services to migrate the system to the cloud as well as subscription services support and maintenance. Funding for the contract is contingent upon adoption of the 2026 Capital and Operating Budgets. The 2026 Information Technology Capital Budget request includes $342,000 for the professional services to migrate to the cloud in 2026 (Enterprise Business Solutions program #12418). The agency has also included $144,000 in the 2026 cost to continue exercise for the system support and maintenance expense in 2026 (Munis account #17700-54335-00000). The agency will include maintenance and support cost increases in future operating budgets. No City appropriation is required in 2025.
Title
Authorizing a non-competitive selection contract between the City of Madison and UKG Inc. for the initial 5-year term for the UKG Pro Subscription Services Support and Maintenance and Professional Services Contract to migrate to the cloud.
Body
WHEREAS, UKG, Inc. has been in use since 2004 and is the provider of the City of Madison’s enterprise timekeeping and scheduling system supporting several City agencies with complex scheduling, vacation management, and time reporting rules configured in accordance with City payroll rules, labor rules, and labor groups, along with integrations having been built with the City’s financial system of Munis; and
WHEREAS, as a next step in the City’s ongoing modernization of technology business solutions and with UKG, Inc. announcing the current City of Madison on-premise version going end-of-life in March of 2027, moving to UKG’s Software-as-a-Service (SaaS) UKG Subscription platform will provide benefits of reduced hardware and infrastructure maintenance, ensure the City is on the most current releases with less interruption of services, increase system security and improve access to staff working at job sites; and
WHEREAS, as with most software of this nature, the manufacturer, UKG, Inc., is the sole source provider of support, maintenance and professional services of this platform. The first-year maintenance and licensing costs will be at a reduced rate due to not being fully on the SaaS platform until early 2027. The initial term costs are outlined by the year below, with future years at a negotiated cost, with professional services for migrating to the cloud as a one-time cost of $342,000 :
2026 - $144,000
2027 - $252,000
2028 - $252,000
2029 - $252,000
2030 - $252,000
WHEREAS, under sec. 4.26(4)(b), of the Madison General Ordinances if the aggregate amount of the fee for services exceeds $75,000 and the contract was not subject to a competitive bidding process, the contract shall meet one of the other requirements of sec. 4.26(4)(a) and be approved by the Common Council; and
WHEREAS, the UKG system has been in use since 2004, an RFP will not be issued to renew the software and maintenance because only UKG, Inc. can support and maintain their proprietary software. Therefore, the proposed contract with UKG, Inc. meets the exception to the bidding process in section 4.26(4)(a)2 which states "The service required is available from only one person or firm”;
NOW, THEREFORE BE IT RESOLVED, that the Mayor and City Clerk are authorized to execute the initial 5-year term for the UKG Pro Subscription Services Support and Maintenance contract and professional services to migrate to the cloud with UKG, Inc.; and
BE IT FURTHER RESOLVED, that the Finance Director or designee is authorized to execute system upgrades, module additions and maintenance contracts with UKG, Inc., on a recurring basis for the useful life of the software pending availability of funds in the budget and in a form approved by the City Attorney.