Item - 2025.GG23.17

The General Government Committee recommends that:  

1. City Council grant authority to the Chief Technology Officer, in accordance with Sections 195-6.6 and 195-8.5 of the Toronto Municipal Chapter 195 (Procurement), to enter into, and execute a non-competitive contract with Kronos Canadian Systems Inc., a UKG company, commencing from the date of award for a three (3) year term with options to extend the Contract term by up to two (2) additional one (1) year periods, for up to the total amount set out in Confidential Attachment 1 to the report (June 30, 2025) from the Chief Technology Officer, and the Chief Procurement Officer, subject to terms and conditions acceptable to the Chief Technology Officer.

2. City Council direct that Confidential Attachment 1 to the report (June 30, 2025) from the Chief Technology Officer, and the Chief Procurement Officer, remain confidential at this time as it pertains to criteria to be applied to negotiations carried on or to be carried on by or on behalf of the City of Toronto and be made public at the discretion of the Chief Procurement Officer following the execution of the contract authorized by recommendation 1.

The purpose of this report is to request City Council authority to enter a five (5) year non-competitive contract with Kronos Canadian Systems Inc., a Canadian Business Subsidiary of Ultimate Kronos Group (UKG) (USA Based Supplier) for proprietary workforce management software licenses, cloud subscriptions, and related services.

Non-competitive procurements may be undertaken where both the proposed procurement and supplier can be justified in good faith based on an exception set out in Toronto Municipal Code Chapter 195, Procurement. These procurements will be proceeding under the exception related to compatibility, where Kronos Canadian Systems and the City has determined in good faith that both the proposed procurement and the selected supplier, along with the terms and conditions of the contract are beneficial to the City (Toronto Municipal Code, Chapter 195, Procurement, Section 7.1K.).

By 2027, the supplier is retiring and ending support for its legacy on-premises workforce management system, which the City of Toronto has used since 2016 as its enterprise-standard solution for divisions with complex scheduling and workforce planning needs.

This report addresses business continuity for the two divisions currently dependent on the legacy system until full migration to the new platform is complete and state of good repair by moving to an up-to-date, fully supported platform. Additionally, this report supports City’s broader modernization goal to ensuring all divisions with complex scheduling needs are on a single, unified solution.

City Council approval is required in accordance with Municipal Code Chapter 195 - Purchasing, where the current request exceeds the Chief Procurement Officer's authority of the cumulative five-year commitment limit for each supplier under Article 7, Section 195-7.3D of the Purchasing By-Law or exceeds the threshold of $500,000 net of Harmonized Sales Tax allowed under staff authority as per the Toronto Municipal Code, Chapter 71-Financial Control, Section 71-11A.