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Cyborg Human Resources/Payroll . U 2/, u:J()( . . <!..ZG lIB ~I7Y C!.U:ltK- FiCG W #25'1- UMtf/I- 2(, / UJo/ City of Miami Beach COST EFFECTIVENESS ASSESSMENT OF CYBORG HUMAN RESOURCES/P A YROLL SYSTEM January 16, 2001 , .. 2 South Biscayne Boulevard Miami. FL 33131 Telephone (305) 358-2300 January 16,2001 John Bremer City of Miami Beach Information Technology Department 1100 Washington Avenue 4th Floor Miami Beach, FL 33139 Dear Mr. Bremer: KPMG LLP ("KPMG") is pleased to present this proposal to provide the City of Miami Beach ("City") with an analysis of your recently implemented Cyborg Human ResourceslPayroll system ("Cyborg"). Based on our experience with Cyborg and other commercial HR/Payroll packages, we feel we can contribute significantly to this important internal assessment. Our Information Risk Management ("IRM") practice specializes in the evaluation of technology and business processes for KPMG. Often, we provide independent post implementation reviews of human resource, payroll and time capture systems. This proposal describes our understanding of your requirements and our approach, team, deliverable and professional arrangements for performing this analysis. Your Requirements As specified by the City's RFP and subsequent addendum, you would like to engage KPMG to: Provide an independent assessment of the cost effectiveness of integrating additional Cyborg modules and enhancements to meet outstanding business requirements. As part of this assessment, we will determine whether the City should continue modifying Cyborg or consider evaluating alternative HR/PayroIl systems. As specified by the RFP, we will base our assessment on documentation provided by the City, our experience with Cyborg and other HR/PayroIl implementations at similar organizations, and limited interviews with City personnel. In addition to appraising the City's projected Cyborg maintenance and capital costs, we are to take into consideration factors that may impact the benefits to be derived from future Cyborg modifications, such as functional fit, system usability and stability, implementation timeframes, etc. 2 , .. City of Miami Beach Our Approach and Scope of Work To assess the cost effectiveness of continuing with the planned Cyborg modifications, we will: . Review existing City documentation and interview process owners and supporting IT personnel to gain an understanding of the City's HR/Payroll needs, environment; system requirements; HRIpayroll policies, procedures and controls; Cyborg configuration (e.g., employee classifications, pay scale and wage structures, benefit options); infonnation flows; system interfaces; unresolved issues; organizational and technological challenges; enhancement strategies, plans, and timeframes; etc. . Employ appropriate sections ofKPMG's business case and project management methodologies to appraise and revise the City's cost estimates to implement the remaining Cyborg modules and enhancements. These methodologies follow sound practices to arrive at reasonable cost estimates and take into consideration our understanding of the City's HR/Payroll environment and our experience with similar Cyborg implementations. . Identify and assess risks that could adversely impact the planned Cyborg modifications. . Identify alternatives to replace Cyborg entirely or to satisfy outstanding user requirements. We will employ the same approach to build replacement cost estimates and evaluate project risks as we will use to assess Cyborg modifications. . Recommend a course of action that combines the best cost benefit relationship for the City (i.e.: best meets user expectations, provides a reasonable integration timeframe and has few technological or organizational challenges). Deliverable At the conclusion of the engagement, we will present a report to City Management, and to City Council if requested, that outlines the scope and approach of our analysis together with our results and recommendations. You will have an opportunity to review the report and make comments prior to the presentation. Our report will be designed for the infonnation of City Management and the City Council. This report will be intended solely for internal use by the City and should not be distributed to external entities. This condition is not intended to conflict with Florida State legislation. Project Team The engagement service team will comprise KPMG professionals with experience in reviewing and stabilizing Cyborg and other HR/Payroll systems, developing business cases for systems, perfonning fonnal system selections, managing large-scale system integration. 3 .., City of Miami Beach Our team will comprise the following individuals from KPMG: I carn \It.'mher Positiun Roll- Ken Deon Partner Client Service Partner Dennis G. Rodrigues Partner Oversee Project Emmett Lange Senior Manager Lead Fieldwork Joyce Block Consultant Perform Fieldwork The resumes for Emmett Lange and Joyce Block are attached to this document. References Our team members have recently performed Cyborg-related services for the following organizations: Evan Lukik Director Broward County Commission Office of Internal Audit Government Center 115 S. Andrews Avenue, Suite 520 Ft. Lauderdale, FL 33301 Bill Fawcett Corporate Finance Controller Shriners Hospitals for Children 2900 Rocky Point Drive Tampa, FL 33607 Tel: (813) 281-8106 Tel: (954) 357-7100 Fax: (954) 357-7314 Email: elukic@co.broward.fl.us Cyborg controls assessment Cyborg controls assessment and stabilization Timing and Professional Arrangement The project will commence February 26, 2001, and will proceed over a four week period. We estimate our fees to be $45,000 based on the time required to complete the project and the skill and experience level of the individuals assigned. In the event that our procedures require significantly more or less time than projected, we would discuss this with you immediately to determine the best course of action. We believe we can assist you in effectively performing this project in an efficient and timely manner as a result of our Cyborg HRlPayroll experience. In addition to above-mentioned fees, we are reimbursed for our out-of-pocket expenses such as travel, lodging and administrative services. We expect that such expenditures will not exceed 10% of the professional fees. An initial billing of 20% of the total professional fees is due upon the acceptance of this proposal. The balance of professional fees and expenses will be billed biweekly during the course of our fieldwork. Invoices are due on receipt. 4 I'BJ City of Miami Beach KPMG Standard Terms and Conditions I. Services. It is understood and agreed that KPMG's services may include advice and recommendations; but all decisions in connection with the implementation of such advice and recommendations shall be the responsibility of. and made by, Client. In the event of a claim by a third party relating to services under the Proposal or Engagement Letter to which these Standard Tenos and Conditions are attached, Client will indemnify KPMG and its personnel from all such claims, liabilities, cost and expenses, except to the extent detenoined to have resulted from the intentional or deliberate misconduct of KPMG personnel. (including, without limitation, function, process, system and data models): templates; the generalized features of the structure, sequence and organization of software, user interfaces and screen designs; general purpose consulting and software tools. utilities and routines; and logic, coherence and methods of operation of systems (collectively, the "KPMG Technology"). 2. Payment of Invoices. Properly submitted invoices upon which payment is not received within thirty (30) days of the invoice date (or such other due date as may be indicated in the Proposal or Engagement Letter to which these Standard Tenos and Conditions are attached) shall accrue a late charge of the lesser of (i) I % per month or (ii) the highest rate allowable by law. in each case compounded monthly to the extent allowable by law. Without limiting its rights or remedies, KPMG shall have the right to halt or tenoinate entirely its services until payment is received on past due invoices. b) Ownership of Deliverables. Except as provided below, upon full and final payment to KPMG hereunder. the tangible items specified as deliverables or work product in the engagement letter or proposal to which these tenos are attached (the "Deliverables") will become the property of Client. To the extent that any KPMG Technology is contained in any of the Deliverables, KPMG hereby grants Client, upon full and fmal payment to KPMG hereunder, a royalty-free paid-up. worldwide, non-exclusive license to use such KPMG Technology in connection with the Deliverables. a) KPMG Technoloj(y. KPMG has created, acquired or otherwise has rights in, and may, in connection with the perfonoance of services hereunder, employ, provide. modify, create, acquire or otherwise obtain rights in, various concepts, ideas, methods, methodologies, procedures, processes. know-how. and techniques; models c) Ownership ofKPMG ProperlY. To the extent that KPMG utilizes any of its property (including, without limitation, the KPMG Technology or any hardware or software ofKPMG) in connection with the perfonoance of services hereunder, such property shall remain the property of KPMG and, except for the license expressly granted in the preceding paragraph, Client shall acquire no right or interest in such property. Nothing in this Agreement shall be construed as precluding or limiting in any way the right of KPMG to provide consulting or other services of any kind or nature whatsoever to any person or entity as KPMG in its sole discretion deems appropriate. In addition, and notwithstanding anything in this Agreement to the contrary, the parties acknowledge and agree that (a) KPMG will own all right, title. and interest, including, without limitation, all rights under all copyright, patent and 3. Term. Unless tenoinated sooner in accordance with its tenos, this engagement shall tenoinate on the completion ofKPMG's services hereunder. This engagement may be tenoinated by either party at any time by giving written notice to the other party not less than 30 calendar days before the effective date of termination. 4. Ownership. 5 ImBJ other intellectual property laws, in and to the KPMG Technology and (b) KPMG may employ, modifY, disclose, and othelWise exploit th~ KPMG Technology (including, without limitation. providing services or creating programming or materials for other clients). 5. Limitation on Warranties. THIS IS A SERVICES ENGAGEMENT. KPMG WARRANTS THAT IT WILL PERFORM SERVICES HEREUNDER IN GOOD FAITH. KPMG DISCLAIMS ALL OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 6. Limitation on Damages. Client agrees that KPMG, its partners, principals, and employees shall not be liable to Client for any actions, damages, claims, liabilities, costs expenses, or losses in any way arising out of or relating to the services performed hereunder for an aggregate amount in excess of the fees paid by Client to KPMG under this engagement. In no event shall KPMG, its partners, principals, or employees, or Client, its officers or employees, be liable for consequential, special. indirect, incidental, punitive or exemplary damages. costs, expenses, or losses (including, without limitation, lost profits and opportunity costs). In furtherance and not in limitation of the foregoing, KPMG will not be liable in respect of any decisions made by Client as a result of the performance by KPMG ofits services hereunder. The provisions of this Paragraph shall apply regardless of the form of action, damage, claim, liability, cost, expense, or loss. whether in contract, statute, tort (including, without limitation, negligence), or otherwise. 7. Cooperation. Client shall cooperate with KPMG in the performance by KPMG of its services hereunder. including, without limitation, providing KPMG with reasonable facilities and timely access to data, information and personnel of Client. Client shall be responsible for the performance of its employees and agents and for City of Miami Beach the accuracy and completeness of all data and information provided to KPMG for purposes of the performance by KPMG of its services. 8. Force Majeure. Neither Client nor KPMG shall be liable for any delays resulting from circumstances or causes beyond its reasonable control, including, without limitation. fire or other casualty, act of God, strike or labor dispute, war or other violence, or any law, order or requirement of any governmental agency or authority. 9. Limitation on Actions. No action, regardless of form, arising under or relating to this engagement. may be brought by either party more than one year after the cause of action has accrued, except that an action for non-payment may be brought by a party not later than one year following the date of the last payment due to such party hereunder. 10. Independent Contractor. It is understood and agreed that each of the parties hereto is an independent contractor and that neither party is, nor shall be considered to be, an agent, distributor or representative of the other. Neither party shall act or represent itself. directly or by implication. as an agent of the other or in any manner assume or create any obligation on behalf of, or in the name of, the other. II, Confidentiality. Client and KPMG acknowledge and agree that all information communicated to either Client or KPMG by the other party in connection with the performance by a party under this Agreement shall be received in confidence, shall be used only for purposes of this Agreement, and no such confidential information shall be disclosed by the respective parties or their agents or personnel without the prior written consent of the other party. Except to the extent othelWise required by applicable law or professional standards, the parties' obligations under this section do not apply to information that: (a) is or becomes generally available to the public other than as a result of disclosure by Client or KPMG, (b) was known to either Client or KPMG or had been previously possessed by Client or KPMG 6 .,., without restriction against disclosure at the time of receipt thereof by Client or KPMG, (c) was independently developed by Client or KPMG without violation of this Agreement or (d) Client and KPMG agree from time to time to disclose. Each party shall be deemed to have met its nondisclosure obligations under this Paragraph as long as it exercises the same level of care to protect the other's information as it exercises to protect its own confidential information, except to the extent that applicable law or professional standards impose a higher requirement. KPMG may retain, subject to the terms of this Paragraph, copies of Client's confidential information required for compliance with applicable professional standards or internal policies. If either party receives a subpoena or other validly issued administrative or judicial demand requiring it to disclose the other party's confidential information, such party shall provide prompt written notice to the other party of such demand in order to permit such party to seek a protective order. So long as the notifying party gives notice as provided herein, the notifying party shall thereafter be entitled to comply with such demand to the extent City of Miami Beach permitted by law, subject to any protective order or the like that may have been entered in the matter. 12. Survival. The provisions of Paragraphs 1,2,4, 5,6,9.10, II, 12 and 13 hereof shall survive the expiration or termination of this engagement. 13. Assignment. Except as provided below. neither party may assign, transfer or delegate any of the rights or obligations hereunder without the prior written consent of the other party. Either party may assign its rights and obligations hereunder to any affiliate that is a successor in interest to all or substantially all of the assets or business of such party, without the consent of the other party. 14. Entire Agreement. These terms. and the Proposal or Engagement Letter to which these terms are appended, including Exhibits, constitute the entire agreement between KPMG and Client with respect to the subject matter hereof and supersede all other oral and written representation, understandings or agreements relating to the subject matter hereof. 7 . . . mIJ City of Miami Beach We look forward to working with you on this important project. For your convenience in fonnalizing this engagement, please sign below and return a copy of this proposal to me or Emmett Lange. Should you have any questions, please contacted me at (305) 913-2605 or Emmett Lange at (954) 383- 1134. Very truly yours, ~~ Dennis Rodrigues Partner Infonnation Risk Management KPMG LLP ACCEPTED ON BEHALF OF THE CITY OF MIAMI BEACH BY: SIGNATURE~ ~OC:. NAMEfTITLE Jorge M. Gonzalez, City Manager DATE ~f\,L"1 ~I I 'J-OO I ATTEST: J.A<.LL~ ~~ Robert Parcher, City Clerk APPROVED AlTO FORM &l.ANGUAGI & FOR EXEQU110M 1!f JiI/t/!f;;~-]- ;';:-0/ 8