To: Board of Supervisors
From: Marc Shorr, Information Technology Director
Report Title: Execute an Order Form and Amendment to the MSA with Workday, Inc.
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Chief Information Officer, or designee, to execute an Order Form and Amendment to Master Subscription Agreement with Workday, Inc. for subscriptions to Workday’s inventory module, supplier management module, and contracting module, and increase the payment limit by $965,726, to a new payment limit of $10,964,088.
FISCAL IMPACT:
The cost of this product is included in the department’s FY 26-27 budget (100% User Departments).
BACKGROUND:
On January 19, 2021, the Board of Supervisors approved the Master Subscription Agreement (MSA) with Workday, Inc. for license subscriptions to Workday’s hosted financial management system as part of the Countywide Financial Modernization Project (C.59).
The Department of Information Technology (DoIT), in collaboration with County departments, proposes expanding the County’s use of Workday by adding functionality intended to improve procurement and contract management processes and maximize the County’s existing investment in the Workday platform. The proposed expansion includes the following modules and FlexCredits. FlexCredits are prepaid units that can be used for certain Workday services and functionality based on usage rather than per-user licensing or fixed fees.
The proposed Workday modules include:
Inventory: Provides real-time visibility and control over inventory and assets and integrates inventory movements with procurement and financial reporting. Key capabilities include inventory tracking, mobile operations, and automated reorder management to improve stock management and streamline inventory processes.
Contract Lifecycle Management (CLM): Provides end-to-end contract management through centralized contract storage, standardized templates and clauses, workflow automation, and analytics. The module is intended to streamline contract approvals, support compliance, reduce processing time, and improve visibility into contract-related opportunities and obligations.
Strategic Sourcing Supplier Management: Supports sourcing and procurement activities and integrates with CLM to provide centralized supplier and contract information. Capabilities include supplier performance and risk monitoring, contract management, and collaboration tools intended to improve procurement efficiency and supplier management.
The proposed amendment includes an indemnification provision under which the County agrees to indemnify Workday for third-party claims arising from content that the County places in the Workday environment and violations of the MSA by the County.
The proposed amendment will provide continuity of service and allow the County to continue utilizing and expanding its existing Workday environment without transitioning to a different platform.
CONSEQUENCE OF NEGATIVE ACTION:
If this request is not approved, the County will not be able to proceed with the proposed expansion of Workday’s procurement and contract management functionality. This would limit the County’s ability to use its existing Workday investment to provide an integrated system for managing procurement, supplier, and contract lifecycle activities.