Workday Special procurement Amendment 1

This is a Special Procurement Amendment Notice issued by the State of Oregon, Department of Administrative Services, State Procurement Services on behalf of the DAS Workday Oregon Team. The procurement involves a non-competitive contract amendment with Workday, Inc., for continued professional services supporting the state's Workday Human Resources and payroll systems. The services encompass expert consultation, system configuration, updates, and deployment of the Workday solution, with a specific focus on the Statewide Payroll Transformation Project. Key deliverables include hands-on technical support, development of customized solutions, best practices guidance, mentoring, real-time issue resolution, and repair and redevelopment of existing Workday modules. The critical objectives center on implementing structural payroll changes mandated by a class action lawsuit settlement and labor grievances, including elimination of forecasted hours, transition to biweekly pay schedules, and modification of overtime compensation for salaried employees, all of which must be completed by July 1, 2027. The contract term extends from January 1, 2025, through December 31, 2030, with a seven-calendar-day public notice and protest period ending May 14, 2026. The State Chief Procurement Officer approved this amendment on May 6, 2026, and inquiries should be directed to Rachel Smith, IT Procurement Strategist, at 971-707-0263 or Rachel.r.smith@das.oregon.gov.

This procurement is designated as a special, non-competitive procurement with no set-asides for disadvantaged enterprises or restrictions on organizational types, as it is limited to the incumbent vendor, Workday, Inc., based on unique technical qualifications as the sole proprietor and developer of the SaaS platform. The state justifies this single-source procurement citing critical operational needs, time-sensitive legal mandates, and Workday's unique expertise and state-specific knowledge that are unavailable from competing vendors. The original Professional Services Agreement was executed on December 22, 2023, under an Emergency Procurement provision and was previously amended in December 2024. As of April 17, 2026, $833,650.75 has been expended against the original contracted services totaling $2,727,500, with this amendment adding $2,500,000 in additional costs for enterprise readiness advisory services and project support. The cumulative maximum not-to-exceed compensation under all agreements is $5,227,500. To address competitive procurement concerns, DAS commits to conducting market research and a Request for Information during the third year of the extension to objectively assess whether other qualified vendors can meet the state's specialized technical requirements, with potential transition to competitive procurement thereafter.