CITY OF FAIRVIEW HEIGHTS, IL. REQUEST FOR PROPOSALS Time Collection & Payroll Services July 11th, 2012
CITY OF FAIRVIEW HEIGHTS REQUEST FOR PROPOSAL SECTION I - INTRODUCTION Description of the Government The City of Fairview Heights, Illinois is located in St. Clair County of southwestern Illinois. The City is a major retail destination, with a 2010 Census residential population of 17,078. The City is organized under the Council-City Administrator form of local government. The Mayor and a ten-member City Council establish policy direction for the City, approve the City budget, and decide on taxing levels to fund municipal services. They appoint a full-time City Administrator who has responsibility to oversee City operations and make recommendations to the City Council. The annual operating budget of the City is approximately $24.3 million. The City has approximately 105 full-time employees, along with seasonal and part-time employees. Approximately 300 payroll payments occur monthly. Three labor groups represent approximately half of all payrolls processed, five contracts in total. City services include police protection, maintenance of streets and infrastructure, planning and zoning, code enforcement, parks and recreation, and financial and general administrative services. Purpose of the RFP The purpose of this Request for Proposals ( RFP ) is to obtain written proposals and competitive quotations of services and prices from companies ( Proposals ) to provide full-cycle payroll services for the City. The selected vendor will be expected to provide automated time collection and processing solutions, and provide ancillary services related to payroll processing such as reporting and benefits management. Current Process Currently the City utilizes an inefficient and highly manual system of time collection, certification, and processing. The City currently does not use any type of electronic time collection system. Supervisors/Managers certify time sheets via paper reports. Upon approval, certifications are manually entered by the payroll clerk into the City s payroll system (Civic Systems Clarity) for payroll processing. Transmittals are distributed electronically and via checks. Goals of the RFP: 1. Increase the efficient use of resources through the reduction/elimination of duplicative processes; appropriate use of technology; process automation; access to data sets and reports. 2. Maintain accuracy and timeliness of all aspects of payroll processing including federal and state tax reporting and remittances. RFP - Timecollection & Payroll Services 1 of 12 07/11/2012
3. Reduce risk by having more secure and solid payroll data, improved internal controls, automated regulatory filing and payment. 4. Flexibility to implement new contract requirements, fringe benefits offerings and any other changes to staff remuneration. There is no expressed or implied obligation for the City of Fairview Heights to reimburse responding bidders for any expenses incurred in preparing responses to the RFP. Terms and Conditions The City reserves the right to reject any or all responses, to waive any irregularities or informality in any bids or in the bidding, and to accept or reject any item or combination of items. The award of bid, if made by the City of Fairview Heights, will be to the qualified bidder whose response best complies with all the requirements set forth in the RFP document, and whose response in the opinion of the City of Fairview Heights is best taking into consideration all aspects of the response, including the total net cost to the City of Fairview Heights. This RFP document indicates the anticipated volume based on recent history. This is the City s best estimate, and is in no way guaranteeing these volumes. The City may also reduce or increase its service requirements as needed. In no event will the City permit modifications to a proposal. THE PROPOSAL AS SUBMITTED WILL BE THE LAST AND FINAL OFFER. The proposer selected shall be asked to enter into a written professional services agreement with the City of Fairview Heights. It is anticipated the selected organization will be selected for a period of three years. In the event of a merger of the vendor with another entity, this contract will be transferable to the successor only with the approval of the City. This agreement shall not be assigned or transferred without the written approval of the City of Fairview Heights. Failure to comply with any of the terms and conditions of this RFP by the awarded vendor will be cause for termination of the agreement. SECTION II - INSTRUCTIONS FOR NOTICE, QUESTIONS AND RESPONSE Anticipated Timeline for RFP and Proposals Release RFP July 11th, 2012 Responder Questions Due July 31st, 2012 Proposals Due to City Clerk August 10th, 2012 5pm Proposals Opened August 13th, 2012 10am* Evaluation Period August 14 th August 31st, 2012* Recommendation to Committee September 11th, 2012 * City Council Authorization September 18th, 2012 * *Subject to Change RFP - Timecollection & Payroll Services 2 of 12 07/11/2012
Notice of Intent to Submit Interested companies should submit a Notice of Intent to Submit a Proposal. Once you have received and reviewed the RFP, please send an email to borror@cofh.org indicating your intent to submit a proposal, use subject NOTICE OF INTENT. By submitting a notice of intent you will receive any updates or clarifications to the RFP during this process. Questions concerning Request for Proposal All questions should be submitted via email to borror@cofh.org by 5:00 p.m. on Tuesday July 31st, 2012. Please include in the subject line PAYROLL RFP QUESTIONS. Response to Questions Response to questions will be provided to all companies that submitted a Notice of Intent to Submit Proposal. Responses will be provided as a blind copy to bidders to protect prospective bidders from disclosing their identity prior to the submission of a proposal. Submission of Proposal Proposals will be accepted by Mark T. Kupsky, City Clerk at City Hall until 5:00 p.m. local time, on Friday August 10th, 2012. All proposals must be received by the time and date shown above. Please provide three hard copies, and one master copy in electronic format (CD, flash drive, etc). All proposals must be submitted in writing in a sealed envelope marked in the lower left hand corner PAYROLL SERVICES. Address MAILED proposals to: Mark T. Kupsky, City Clerk City of Fairview Heights 10025 Bunkum Road Fairview Heights, IL 62208 (618) 489-2000 Proposals will be opened at City Hall on Monday, August 13 th at 10:00 a.m. The company name and verification of receipt of responses to Appendix A and Appendix B will be acknowledged. Please see Section III for additional information. During the evaluation process, the City reserves the right to request additional information or clarification from proposers, or to allow corrections of errors or omissions. Proposals are valid for 90 days after the acknowledgment date, and are subject to public disclosure in certain events. The City of Fairview Heights has final authority over the decision process and hereby retains the right to select one proposal or reject all proposals. RFP - Timecollection & Payroll Services 3 of 12 07/11/2012
SECTION III - PROPOSAL REQUIREMENTS General Information All companies must provide, as part of the proposal: Audited Financial Statements for the most recent fiscal year. A Statement regarding any recent or foreseen merger or acquisition. A statement regarding any potential conflicts of interest. References from other local government organizations (municipalities, counties, school districts, etc). For a vendor to be considered the vendor s product must be able to integrate with the City s hardware, security, and software requirements. The City s accounting framework is with Civic Systems (Casselle), on the Clarity version. Proposal Questionnaire All companies interested in providing payroll services to the City of Fairview Heights must provide a general response for each of the items outlined in Section IV Scope of Services, and detailed responses to the Proposal Questionnaire located in Appendix A. Be sure to indicate next to your response which question is being answered. If the answer is contained within any attached marketing material, please state where the response to each question is located. Failure to comply will result in the submission to be considered incomplete. Implementation The proposal should include a detailed description of the installation and implementation process, either via the proposal questionnaire or in a separate attachment. Please include a timeline and detailed explanation of additional costs, if applicable. Training for system administrators, management, and end users should be included. Pricing Proposal Form All proposals shall include a response to the pricing form found in Appendix B. While price is one basic factor for award, it is not the sole consideration. Failure to comply will result in the submission to be considered incomplete. SECTION IV SCOPE OF SERVICES Employee Maintenance Communication between the selected vendor and the City s Finance Department, in order to maintain employee files with the utmost accuracy, will be an essential component of the vendor - City relationship. Self-management tools made available to the City s employees (ie: reporting, changes in personal information and/or deductions, etc) is highly desirable. RFP - Timecollection & Payroll Services 4 of 12 07/11/2012
Time Collection The selected vendor will be expected to implement an automated time collection system to work in conjunction with the various department schedules and union contract variables. The manner of collection (keyboard, swipe card, etc) is to be determined. The proposal should include pricing options for each type of collection system. Payroll Processing The selected vendor will be expected to implement an automated process in which multiple levels of approval are necessary during the certification process. Due to the unique operations of the City, many variables exist within each department. The City utilizes approximately 30 earnings codes and 50 deduction codes, based on operations and labor contracts. The selected vendor must be able to account for variables such as shift differentials, longevity, bonuses, and employee allowances. Files must be made available in order to maintain the City s personnel and accounting records. Distribution of Payroll Approximately 300 payroll payments occur monthly, and is normally distributed on the 5 th and 20 th of each month. When a payday falls on a weekend or City holiday, payday is the last business day prior to the regularly scheduled payday. The City currently has a 77% participation rate in direct deposit. Paper checks shall be delivered to City Hall. Transmittals Multiple types of transmittals will be necessary for processing on behalf of the City. In addition to the standard payroll tax and benefit transmittals such as pensions and health insurance, employees are eligible for many types of voluntary deduction programs (ie: 457 plans, insurance programs, not-for-profit contributions, etc). The method of disbursement (electronic vs. checks) for each transmittal vendor shall be at the discretion of the City. Security The selected product should have robust security features that enable customized settings for individuals at various personnel levels. The system must maintain an audit trail that tracks data changed, hold original data and user name of the person modifying or viewing an item. Report data should have the ability for encryption. Training and Support The implementation must include training for system administrators, management, and end users. The proposal should indicate the length of time each training session would last and the recommended number of attendees per session. RFP - Timecollection & Payroll Services 5 of 12 07/11/2012
The vendor must be able to provide support for system administrators, managers, and end users. The vendor must provide a direct support representative(s) that can handle all problem resolution and escalation for the City. Costs for training and support should be included within the proposal. SECTION V PROPOSAL EVALUATION AND CONTRACT AWARD General All proposals received in accordance with these RFP instructions will be evaluated to determine if they are complete and meet the requirements specified in this RFP. An award will be made to the Proposer whose offer is judged to be the most advantageous to the City. The City expressly reserves the right to reject all proposals and make no award under this RFP. Evaluation Procedures All proposals received in accordance with these RFP instructions will be reviewed, analyzed, and evaluated by the City Administrator and staff in accordance with the criteria described below. If needed, additional information may be requested from one or more proposers. Interviews may be conducted with one or more of the Proposers. A recommendation will then be presented to an aldermanic committee. If the committee is in agreement, the recommendation will be forwarded to the full City Council for award consideration. Evaluation Criteria Proposals will be evaluated by the City of Fairview Heights against the following factors, in no particular order: Completeness of Proposal Ability to meet Requirements Services available Price Company Qualifications, Experience, and References The City reserves the right to reject any or all proposals, to waive any irregularities or informalities in the offers received and to change the evaluation process described above if circumstances dictate this or it is otherwise in the best interest of the City to do so. While price is one basic factor for award, it is not the sole consideration. The City will evaluate the proposals and quotations from the information at hand and will also ask questions of a clarifying nature from responders as needed. When the City has tentatively selected a recommendation, it may request a meeting to formulate plans in greater detail, to clarify unclear areas, and to otherwise tie up loose ends prior to the recommendation to the aldermanic committee. Prices of items bid will not be raised or lowered during these meetings, although the total price of the contract RFP - Timecollection & Payroll Services 6 of 12 07/11/2012
may be affected by modifications in service requirements. At any time during these meetings, the City may choose to modify its choice of selection, if the results of the discussions determine such a change be in the best interest of the City. Contract Award The City anticipates entering into a three year professional services agreement with the selected vendor. Clauses shall exist that will allow both parties (City and vendor) to discontinue the agreement based on a pre-established set of criteria. It is the intent of the City of Fairview Heights to award a single contract as the result of this RFP. However, the City reserves the right to apportion the requirements of this RFP among multiple contractors if this is determined to be in its best interests. RFP - Timecollection & Payroll Services 7 of 12 07/11/2012
Appendix A Proposal Questionnaire RFP - Timecollection & Payroll Services 8 of 12 07/11/2012
PAYROLL PRODUCT PROCESSING FUNCTIONALITY 1. Describe how mid-period salary increases/decreases are handled by your system. 2. Describe the process in adding or terminating employees from the payroll system. 3. Describe how your system will enable us to pay multiple earnings/taxes/benefits deductions at different levels on the same check. 4. Describe your approach to multiple positions pay, i.e. current and acting. 5. Describe how your system recovers deduction amounts not withheld from payroll checks. 6. Describe your system approach to prorated earnings and how they are handled. 7. Describe how your system calculates garnishments, including multiple garnishments. 8. Describe situations that would cause down time, and/or reduced functionality, for other application areas when payroll processing. 9. Describe the audit process for each payroll. 10. Describe your system s approach to quarterly and year-end processing. 11. Describe your timeline on the correction of an employee pay check. 12. Describe how retroactive pay adjustments are handled for a single employee or an entire employee group. Would the process be different if the retroactive adjustment is back 6 months or more? 13. Describe your experience in calculating FLSA for non-sworn full-time and parttime personnel and sworn Police personnel. How is FLSA recorded and tracked in the system? 14. Please describe your processes of changing labor distribution codes in the payroll system. 15. Describe how your system could interface with the City s accounting system. 16. Describe how your system accommodates modifications to Employee Benefits, either through life status changes or open enrollment processing. 17. Will designated City personnel have access to the payroll data to extract reports or for research purposes? 18. The City participates in the Illinois Municipal Retirement Fund (IMRF), a police pension fund, and other voluntary retirement plans. Please describe your experience in reporting employee earnings and contributions to such plans. 19. Does your system provide/assist with payroll tax reconciliations? 20. Describe the City s staff involvement and responsibility in the payroll process. 21. Describe your payroll customer service approach and response time guarantees, for both system administrators and end users. 22. Describe how your budget administration tool assists with effective decisions regarding future compensation/benefits. TIME AND ATTENDANCE / LEAVE MANAGEMENT 1. Describe your online timesheet entry system. What, if any, supervisorial approval process exists? 2. Describe any workflow included with web time entry and acceptance/denial. RFP - Timecollection & Payroll Services 9 of 12 07/11/2012
3. Describe your experience with third-party time entry system, and what potential challenges may exist with its integration. 4. Describe how your system includes outlier variables such as shift differentials. 5. Describe how/if your system includes various types of payroll lock down dates to freeze timesheet edits for payroll processing. 6. Describe how your system allows for the tracking of labor metrics by Department. SECURITY 1. Describe the security measures taken to ensure the confidentiality of employee personal information. 2. Describe how your data is backed up in the event of a natural disaster or a major unforeseen event both locally and offsite. 3. Describe the details of the security control of your system. It should contain: a. Sign-on and time-out security b. Page and dialog security c. Batch environment security d. Application data security e. Online timesheet security TECHNOLOGICAL APPROACH 1. Describe your work flow services. Please outline the process or steps required to complete business tasks from beginning to end. 2. Describe your customization capabilities. 3. Describe your policy regarding third-party customization. 4. Describe your onsite assistance with technological and operational support. 5. Describe the platform upon which the system is based/operates including technical affiliates upon whom the system is reliant for direction and support. 6. Describe your preferred reporting tools and if they are included as part of your base product. Can they be customized? 7. Following review of our needs for reporting, please define the number of customizable reports and what would be included with the software/licensing. 8. What is the 3-5 year plan for product enhancements of your product? RFP - Timecollection & Payroll Services 10 of 12 07/11/2012
Appendix B Pricing Proposal Form RFP - Timecollection & Payroll Services 11 of 12 07/11/2012
Clearly identify all assumptions used to create the costs shown below. In addition, note any other costs not outlined below: 1. One Time Expenses Please detail all one-time expenses, including: a. Implementation Services b. Data Conversion c. License Fees d. Training e. Hardware Costs f. Other One Time Costs g. Total One Time Costs 2. Semi-Monthly or Per Payroll Expenses a. Itemized (to the extent possible), to include all aspects of the pay period cycle including transmittals. b. Estimated Total for Year One 3. Quarterly Reporting Fees 4. Year End Processing a. Employee / Employer W-2 5. Estimated Grand Total of All Year 1 Costs a. Summation of figures 2-b, 3, and 4-a. b. DO NOT include the one-time costs of item 1-g. 6. Changes in Fees a. First Year Estimate (2-b figure) b. Second Year Rate Change (if any) c. Third Year Rate Change (if any) - End - RFP - Timecollection & Payroll Services 12 of 12 07/11/2012