Item - 2025.GG26.23

The General Government Committee recommend that:

1. City Council authorize the Chief People Officer to negotiate and enter into a non-competitive agreement with Cornerstone OnDemand Inc., in the amount of $4,796,753 net of Harmonized Sales Tax ($4,881,176 net of Harmonized Sales Tax recoveries) for a three (3) year period, commencing on January 1, 2027 to December 31, 2029, with two (2) additional optional periods, on terms and conditions satisfactory to the Chief People Officer, People and Equity and in a form satisfactory to the City Solicitor.

The purpose of this report is to request authority to enter into a non-competitive contract with Cornerstone OnDemand Inc., for professional services and licenses for the City's Enterprise Talent Management System and Online Content Libraries in the amount of $4,796,753 net of Harmonized Sales Tax ($4,881,176 net of Harmonized Sales Tax recoveries) for an initial period of three (3) years commencing on January 1, 2027, to December 31, 2029, with two (2) additional option year renewals.

Cornerstone OnDemand, referred to internally as "ELI," is a comprehensive talent management system used to centralize and automate learning and development processes across the organization. Initially procured as a Learning Management System, Cornerstone OnDemand has evolved into the City's Enterprise Talent Management System through additional capabilities, including online performance management.

A non-competitive procurement is required as a change cannot be made for economic or technical reasons without causing significant inconvenience prior to the expiration of the current contract. The current contract expires on December 31, 2026. Executing a new interim contract will ensure uninterrupted access to the Enterprise Talent Management System and associated Online Content Libraries, maintaining continuity of services for the City.

This integrated technology solution:

- Supports the City's learning and talent management approach

- Enables data and analytics capabilities to align learning and development resources to identify employee requirements

- Facilitates online enterprise and divisional learning and reporting in a central repository

- And supports the learning and development needs of City employees via multiple modalities and accessible 24/7.

If the recommendations in this report are not approved, the City will not have access to its enterprise talent management system, eliminating critical learning infrastructure and the ability to track and report on legislatively mandated training. This system is foundational to workforce compliance and capability across Divisions. Its discontinuation would expose the City to compliance risks, disrupt core operational functions, and compromise our ability to develop, retain, and manage talent effectively.

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. This non-competitive procurement with Cornerstone OnDemand Inc. will be proceeding under the exception code related to Compatibility, 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 7.1E.).

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 vendor under Article 7, Section 195-7.3(D) 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 71-11(A).