Awarded to KPMG LLP

Start date: Monday 15 October 2018
Value: £1,650,874
Company size: large
Durham University

Oracle Cloud implementation for HR, Recruitment, Payroll and Expenses

4 Incomplete applications

2 SME, 2 large

7 Completed applications

2 SME, 5 large

Important dates

Published
Tuesday 31 July 2018
Deadline for asking questions
Tuesday 7 August 2018 at 11:59pm GMT
Closing date for applications
Tuesday 14 August 2018 at 11:59pm GMT

Overview

Summary of the work
Digital support for the implementation of Oracle Cloud to cover HR, Recruitment, Payroll and Expenses functionality including configuration, integration, testing and training.
Latest start date
Monday 22 October 2018
Expected contract length
1 month Discovery followed by 9-12 month HCM implementation, with opportunity to expand to ERP.
Location
North East England
Organisation the work is for
Durham University
Budget range

About the work

Why the work is being done
The new Information Systems (IS) Strategy states as its aim that the University move to a digital, business-led service ensuring resilient, user-orientated business and management information systems which support efficient and effective operations. It identifies the implementation of a digital Enterprise Resource Planning capability as one of its priority activities to achieve this and to support driving efficiencies and reducing shadow activity in Professional Support Services.
The current HR, Recruitment, Payroll and Expenses system is out of contract in September 2019 so a replacement for this is required in this timeframe.
Problem to be solved
The current HR, Recruitment, Payroll and Expenses system is out of contract in September 2019 so a replacement for this is required to replace this in this timeframe.
There is currently a fragmented digital systems landscape creating a burden for system integration. Durham University currently uses Oracle E-business Suite (EBS) as its core finance system, a procurement module from WAX Digital and an HR, Recruitment, Payroll and Expenses system from Core International. These systems have digital interfaces to other core University applications. This existing systems landscape is preventing Durham University from realising potential process efficiency improvements.
Who the users are and what they need to do
As a professional support service staff, I need to be supported by digital solutions that deliver the required functionality using best-practice processes, automation, self-service with a good user experience and a single master data source, so that manual interventions can be avoided to drive efficiencies.
Early market engagement
A review has been undertaken of the various digital contracting options available through government frameworks and The Crown Commercial Service (CCS) has
been consulted to gain market insight. With CCS guidance it has been agreed that the Digital Outcomes and Specialists 2 Framework Agreement (DO2) is an appropriate procurement mechanism. Informal market sounding has identified that use of DO2 will give access to a number of candidate suppliers.
Any work that’s already been done
The decision has been made to use the Oracle Cloud product and licenses are available to test and assess.
Initial assessment of the as-is and to-be landscapes has been conducted and this information will be provided in the tender document that will be issued to shortlisted suppliers.
Existing team
Key posts are filled on an interim basis with recruitment of a Programme Manager and a Project Manager being finalised.
Governance has been established with a fortnightly Working Group.
Plans for the backfilling of staff are in place which will likely include HR and Payroll specialists, technical specialists and business analysts.
Current phase
Not started

Work setup

Address where the work will take place
The expectation is that the work will take place at Durham University.
Working arrangements
The ways of working are still to be determined and Durham University are happy for responses to suggest what suppliers believe will be the most effective and appropriate approach. It is likely that this will include working onsite for the majority of the time for face to face meetings etc.
Security clearance
No specific security clearance but adherence to Durham University security and compliance standards.

Additional information

Additional terms and conditions
Additional terms and conditions will cover:
- GDPR
- The requirement to cooperate with Durham University’s other suppliers
- An appropriate set of KPIs
- Regular reviews at working and executive level
- Requirements for innovation and continuous improvement

Skills and experience

Buyers will use the essential and nice-to-have skills and experience to help them evaluate suppliers’ technical competence.

Essential skills and experience
  • Have skills and experience designing and integrating Oracle Cloud solutions and Fusion modules e.g. HCM
  • Have skills and experience configuring and developing Oracle Cloud solutions
  • Have skills and experience developing the technical integration between Oracle Cloud solutions and the wider systems landscape
  • Have skills and experience testing Oracle Cloud solutions
  • Have skills and experience transitioning and migrating to Oracle Cloud solutions
  • Have skills and experience supporting the required process-level business change related to Oracle Cloud solutions, aligning end-to-end, cross-functional processes with Oracle functionality
  • Have skills and experience supporting the associated training and communications related to Oracle Cloud solutions
  • Have skills and experience implementing Oracle Cloud solutions that support the use of casual workers (e.g. providing timesheet data automatically or integrating with appropriate solutions)
  • Have skills and experience implementing Oracle Cloud solutions in phases (e.g. HCM followed by ERP) and therefore the interim integration required
  • Please note: Oracle Cloud solutions primarily relates to the HCM and Payroll modules to cover the required HR, Recruitment, Payroll and Expenses functionality
Nice-to-have skills and experience
  • Oracle SaaS Implementation Services Partner (Platinum or Gold)
  • Have experience implementing Oracle Cloud solutions at Higher Education organisation(s)
  • Have skills and experience implementing Oracle Cloud solutions that support Higher Education reporting requirements (e.g. HESA)
  • Have skills and experience implementing Oracle Cloud solutions that support Higher Education academic recruitment requirements
  • Have skills and experience implementing Oracle Cloud solutions that integrate with Higher Education systems (e.g. student management, research and grants management, events and conferences management, alumni management etc.)

How suppliers will be evaluated

How many suppliers to evaluate
5
Proposal criteria
  • Technical expertise (35%)
  • Implementation plan including approach and estimated timeframes (20%)
  • Team structure and skills, including CVs (5%)
  • How they've identified risks and dependencies and offered approaches to manage them (5%)
Cultural fit criteria
  • Management of team and working practice(s) including attending and supporting governance meetings (4%)
  • Collaboration with other supplier(s) (4%)
  • Working in a university environment (4%)
  • Recruitment and retention, training and on-boarding of personnel (3%)
Payment approach
Fixed price
Assessment methods
  • Written proposal
  • Case study
  • Work history
  • Reference
  • Presentation
Evaluation weighting

Technical competence

65%

Cultural fit

15%

Price

20%

Questions asked by suppliers

1. What modules or products have you procured from Oracle?
Fusion Cloud Service:
• Financials
• Advanced Collections
• Project Contract Billing
• Project Financials
• Grants Management
• Expenses
• Purchasing
• Self Service Procurement
• Supplier Portal
• Sourcing Cloud
• Supplier Qualification Management
• Procurement Contracts
• Automated Invoice Processing
• WebCenter Forms Recognition
• Human Capital Management Base
• Global Payroll
• Performance Management
• Time and Labour
• Talent Review & Succession Management
• Career Development
• Goal Management
• Oracle Talent Acquisition
• Taleo Scheduling Cloud Service
• Learning Cloud Service
• Additional HCM Environment
2. What is your appetite for implementing Oracle Cloud ERP (i.e. finance) after HCM Cloud?
The appetite for implementing Oracle Cloud ERP after HCM Cloud is very high. The initial focus is on HCM because of a system going out of support in September 2019 but ERP will be required after this.
3. Are you considering Taleo Recruitment or Oracle Recruitment Cloud?
We are considering Oracle Recruitment Cloud, although the timing of the implementation may dictate use of Taleo in the first instance.
4. Are any countries other than the UK in scope of the implementation?
No
5. Are there any dependencies/other milestones during the above timeline that we should be considering?
The primary milestone and dependency is the current HR, Recruitment, Payroll and Expenses going out of contract in September 2019.
6. Do you have a shared services-type environment for HR?
No
7. What are your security and compliance standards that the suppliers have to adhere to?
The rules to be adhered to are:
• Use the University’s multi factor authentication and appropriate levels of encryption in line with the University’s current security protocols
• Setup third party access for services and reporting with associated access controls
• Implement role-based access controls with associated function and data security elements
• All access should be enabled through single sign on via MS Active Directory
• Compliance with the University’s IT security standards where in scope
• Compliance with the University’s Information Governance standard where in scope
• Setup logging and auditing and monitoring capability
8. How many staff does Durham university have?
There was a headcount of 4320 at end of year (4366 atypical workers).
9. Will contingent workers (i.e. contractors, agency staff etc.) be in scope of the implementation?
Yes, contingent workers will be in scope of the implementation.
10. Are any staff employed outside of the UK?
Yes, there are currently 16 staff based outside the UK.
11. What types of casual workers do you employ and expect to be in scope of the implementation?
• Hourly paid academics (demonstrating, marking, supervision, tutorial etc.)
• Students (bar work, ambassadors)
• Invigilators/External Examiners
12. What non-workers (e.g. alumni) are in scope of the implementation?
Non-workers in-scope of the implementation include:
• Honorary staff
• Emeritus professors
• Professors in practice
13. What time capture applications do you currently use?
Time capture for casual workers is currently done through spreadsheets and an online taxable fees application. There are a number of clock-in/out of shift-based systems for staff in colleges as well as spreadsheets, access databases etc.
Additional hours for contracted staff is paper based.
14. Is absence in scope of the implementation (and therefore the LAMS replacement)?
It is expected that absence will be in scope for the implementation and therefore the replacement of LAMS. This can be further assessed as part of Phase 1 Discovery.
15. What integrations are there currently to/from your payroll, HR, recruitment and expenses system?
• Two-way Oracle EBS and the GL specifically (receives costs centre info and provides payroll info).
• One-way Taxable fees application providing timesheets data for casual staff.
• One-way College Time for clock-in/out timesheet data via csv.
• Two-way with DUND (receives User details and provides HR information); DUND then interfaces to LAMS, AMS and Symmetry.
• One-way Version One which interfaces to BACS.
• One-way to pFact (provides Payroll information). To be replaced in November.
• Two-way with RTI (HMRC).
• One-way to Pension providers (USS, DUPS (AON) and Aviva). All are via SFT but USS a two-way feed.
16. What is your main challenge with the current system landscape?
The key challenges with the current system landscape are:
• The as-is systems are at risk (going out of support in September 2019)
• There is poor functionality (e.g. around rostering, timesheets and casual workers) and significant manual interventions are required
• Processes are inefficient
• Reporting is clunky and manual (e.g. HESA reporting)
• There is a fragmented system landscape with a lack of standardisation
• Lack of central authentication and authorisation and role-based access control.
17. Is time capture/processing in scope of the implementation?
Time capture / processing is in scope of the implementation. This will be further assessed in Phase 1 Discovery around whether this can be delivered through Oracle functionality or additional applications are required (e.g. for casual workers to clock in and out).
18. What is the data migration scope (specifically: data objects, history, number of source systems)?
We would expect to migrate data from the existing Core HR system, our internal Leave and Absence Management System, and legacy data from our Cyborg payroll system which predated the implementation of Core HR. We would look to assess the extent of this migration including data objects, history, etc. as part of Phase 1 Discovery.
19. How many PAYE references do you currently have?
There are two PAYE references.
20. How many and what payrolls do you currently have?
There are 4 payrolls with payments processed against the:
• Main payroll
• Pensioners payroll
• External examiners payroll
• Expenses payroll
There is also a payroll for non-paying workers (emeritus professors, visitors, professors in practice etc.).
21. How many pay elements (e.g. allowances, deductions) do you currently have?
Approximately 160 in total excluding arrears elements.
22. How are expenses currently paid (through payroll or through AP)?
Expenses are paid through payroll twice per month.
23. What and how many expenses types do you currently have?
If in line with the expenses policy they are non-taxable but there are some taxable expenses also paid.
24. What testing do you expect to perform yourself (e.g. system integration testing, user acceptance testing)?
Functional Testing – Existing processes/workflows operate via new system.
System Integration Testing – The new system integrates with other systems/databases currently used by the existing system.
User Acceptance Testing – The final product has been fully tested by the end users and formally accepted.
Load/Performance Testing (non-Functional) – Test performance by simulating load to check that the new product performs at least as well as the existing system(s).
Remote Access Testing – The new system is fully accessible outside the DU network.
Device Testing – The new system is fully compatible on a range of devices (e.g. Windows, iOS, Android).
25. What technical development capability do you have and expect to use during the implementation (e.g. middleware development)?
CIS has technical development capability and would expect to use this during the implementation to interface the Oracle HCM system to other CIS supported systems and processes such as Identity Management, Web Interfaces, etc. which require access to the information currently held in our HR systems.
26. What process mapping capability do you have and expect to use during the implementation?
There is limited process mapping capability and it is expected that the successful supplier will be responsible for fully integrated, end-to-end process design across integrated modules. This will be supported DU resources from the associated functions (e.g. HR, Payroll) so that the processes are understood internally to enable ownership to be handed over.
27. What change, communications and training capability do you have and expect to use during the implementation?
It is not expected that the successful supplier will be responsible for the wider business change and the University will use other capability.
The University has communications capability but it is expected that the successful supplier will advise on and support a communications strategy.
There is limited training capability and it is expected that the successful supplier will be responsible for providing the necessary training to staff, through a train the trainer model where sustainable training capability and knowledge is embedded in the University.
28. What risks do you currently foresee with the implementation?
The primary risk with the implementation is the timeline with the current system out of support in September 2019.
Other risks include Expenses being part of the ERP module, the interim integration to Finance that will be required, fulfilling Higher Education specific functionality and engaging sufficiently with users.
29. What transformational aspects will there be as part of the implementation (e.g. organisational changes, operating/support model changes)?
There will be transformation aspects to the implementation including organisational changes and operating/support model changes. It is expected that the successful bidder will be responsible for the process-level design that will inform the changes, but not responsible for the wider transformation.
30. What is your budget range?
The budget for an implementation partner included in the business case was originally based on a full implementation including ERP (Finance).
This is currently being revised and will be informed by this process.
31. What and how many expenses types do you currently have?
Approximately 30 types that could be provided at the tender stage.
32. Are expenses taxable/Niable or not?
If in line with the expenses policy they are non-taxable but there are some taxable expenses also paid.
33. Answer to question 23 is incorrect.
Please refer to question 31.