REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
August 4, 2026
FROM
LEONARDO GONZALEZ, Director, Human Resources Department
DON LE, Chief Information Officer, Innovation and Technology Department
LYNN FYHRLUND, Chief Innovation Officer, County Administrative Office
SUBJECT
Title
Amendment to Agreement with Oracle America, Inc. for the Human Capital Management Software Implementation Services and Cloud Services Replacement Project
End
RECOMMENDATION(S)
Recommendation
1. Rescind the previously approved reimbursement of Oracle America, Inc. travel expenses in the not-to-exceed amount of $924,000, for implementation services provided pursuant to Agreement Nos. 26-311, 26-312 and 26-313, for the period of May 5, 2026, through May 4, 2031.
2. Approve Amendment No. 1 to Agreement No. 26-312 with Oracle America, Inc., for software and implementation services to design and develop an integrated system to manage essential workforce functions, including but not limited to onboarding, benefits administration, training, payroll, compensation, and performance management, to include reimbursable travel expenses in the not-to-exceed amount of $924,000, increasing the total contract amount from $21,441,044 to $22,365,044, with no change to the period of May 5, 2026, through May 4, 2031.
(Presenter: Leonardo Gonzalez, Director, 387-5570)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
Improve County Government Operations.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). The estimated cost of the five-year agreements with Oracle America, Inc. (Oracle) is not-to-exceed $29,429,642, including $924,000 for reimbursable travel expenses. The $924,000 cost for reimbursable travel expenses was approved by the Board of Supervisors (Board) on May 5, 2026 (Item No. 37) through Recommendation No. 5. Although Agreement No. 26-312 is increasing as a result of this change, there is no overall cost impact to the collective agreements with Oracle as approved by the Board on May 5, 2026. Adequate appropriation is included in the County Administrative Office (CAO) 2026-27 Budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The County currently uses PeopleSoft to support critical human resources, payroll, and related business functions. The existing system no longer meets the County’s operational needs, as it lacks functionality, and results in inflexible business processes. Oracle Cloud solution provides enhanced functionality across key areas such as Human Resources (HR), payroll, recruitment, benefits administration, time and labor, and workforce planning for the new Human Capital Management (HCM) system.
Oracle will provide implementation services and knowledge transfer to support the County’s transition from PeopleSoft to the new HCM system. These services will include project planning, system configuration, implementation support, and training for County staff. To facilitate implementation and ensure successful adoption of the new platform, Oracle personnel will periodically travel to the County to conduct on-site workshops, training sessions, and implementation activities.
On May 5, 2026 (Item No. 37), as the result of Request for Proposals No. ISD125-TOPS-5669, the Board approved a total of 10 agreements (Agreement Nos. 26-311 through 26-320) for a collective not-to-exceed amount of $28,505,642, for software and implementation services to design and develop an integrated system to manage essential workforce functions, including but not limited to onboarding, benefits administration, training, payroll, compensation, performance management, and for ongoing cloud services and support for the integrated Human Capital Management System, for an agreement period from May 5, 2026 through May 4, 2031.
On May 5, 2026 (Item No. 37, Recommendation No. 5), the Board also approved reimbursement of Oracle travel expenses in an amount not-to-exceed $924,000, for implementation services provided pursuant to Agreement Nos. 26-311, 26-312, and 26-313 for a period from May 5, 2026, through May 4, 2031. As a result, the total estimated cost of the five-year agreement with Oracle is not-to-exceed $29,429,642.
Oracle has now requested that the previously approved reimbursable travel amount be incorporated into the total contract amount in Agreement No. 26-312 as this contract is primarily for implementation services and the primary driver for project travel. Amendment No. 1 to Agreement No. 26-312 adds the not-to-exceed amount of $924,000 to the total contract amount for Oracle implementation-related reimbursable travel expenses, increasing the total contract amount from $21,441,044 to $22,365,044, with no change to the agreement period of May 5, 2026, through May 4, 2031.
As a result, Recommendation No. 5, previously approved on May 5, 2026, for reimbursable travel expenses as a separate not-to-exceed amount of $924,000 must be rescinded from Agreement Nos. 26-311 and 26-313. Approval of Amendment No. 1 will replace the prior authorization for reimbursable travel expenses to support implementation of the Human Capital Management (HCM) system and related training activities.
HR, ITD, and CAO recommend approval of Amendment No. 1 to continue to support the new HCM system implementation.
PROCUREMENT
Not Applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455; Kaleigh Ragon, Deputy County Counsel, 387-5455) on July 7, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on July 8, 2026; Risk Management (Stephanie Pacheco, Staff Analyst II, 386-9039) on July 8, 2026; County Finance and Administration (Garrett Baker, Administrative Analyst, 387-3077) on July 15, 2026.