SOW 01 CO 08 Bakersfield HCM Restart GC Updates 5-20-26 - Exhibit C.pdf

© Copyright Highstreet, LLC | highstreetit.com | (301) 348-8718 | [email protected] Page | 1 C hange Order #008
To
SOW #1
Between
Highstreet IT Solutions, LLC (“Highstreet”)
and
City of Bakersfield (“City” or “COB”)
T
his Change Order (“CO”) amends the services (“Services”) and deliverables (“Deliverables”) provided by Highstreet to the City pursuant to the Statement of Work No. 01 (“SOW”) in support of the project described below. This CO is incorporated by reference in and to the SOW and the Master Service Agreement (MSA) by and between Highstreet and the City . In the event of a conflict among this CO, the SOW and the MSA, the following will be the order of precedence: 1) CO 2) SOW and 3) MSA. Upon execution by both parties below, this will be a CO to the SOW. Highstreet is not required to perform any Services outside of the scope of the SOW until this Change Order has been executed by both parties.

I. Describe the requested change:

The City of Bakersfield requests services to reengage and complete the Oracle Fusion Cloud Human Capital Management (HCM) implementation. This change defines the scope to address design optimization, configuration review and updates, data conversion validation, payroll parallel processing, reporting and interface stabilization, inte gration and testing, Redwood user interface enablement, and organizational change management activities necessary to support a successful production deployment.

Deployment is followed by three (3) months of Hypercare support.

T
his change also includes a comprehensive review of existing HCM and Payroll configurations, including, but not limited to, payroll elements, Fast Formulas, workforce structures, and auto assignment logic, to confirm continued applicability based on changes in City business practices since the original configuration. Items previously identified in the project RAID log will be reviewe d and assessed as part of this effort. Where required, con figuration will be adjusted to better leverage standard Oracle Fusi on Cloud functionality, subject to City approval.

T
he work defined in this SOW will be performed primarily by Graviton and supported by Highstreet Tech team. Graviton will lead the implementation and methodology execution. This includes the functional delivery of tasks presented in Section III Table 1: HCM Project Plan and Timeline. Report updates and development will be managed by Graviton. Graviton project team members will provide Hypercare and ECS service. Highstreet will provide Graviton with knowledge transfer on the setup and configuration of the existing Oracle Fusion Cloud environment used as the foundation for the work contained in this CO. Highstreet will also provide technical support for conversions and integrations and will employ Bridges ™ for these tasks.

T
o facilitate the work in this SOW, the contract end date for SOW #01 is changed from December 31, 2027, to December 31, 2028.

II. Define Services, including any Deliverables, required for the requested change:

Graviton and Highstreet shall provide the following Services and Deliverables in support of finalizing the HCM implementation:

1. Discovery, Design, and Build
• Perform discovery, design, and build activities for new or enhanced HCM functionality. • Optimize key HCM design elements, including workforce structures, payroll costing, position costing, association benefit handling, and CalPERS configuration.
• Update Journeys and workflows to align with finalized business processes.

Exhibit C

• Design activities will evaluate whether the approved configuration supports required reporting outcomes, including alignment between payroll results and HR/benefits enrollment data (e.g., CalPERS and other statutory benefits). • As part of design validation, roles and responsibilities across HR, Payroll, departments, and employees will be documented to clearly define ownership of transactions and process execution.

Requirements, Business Processes, and Use Cases will be defined, documented by Graviton and approved by the City prior to the start of the restart Conference Room Pilot 1.

2. Fast Formula Migration and Defect Remediation
• Review existing Fast Formulas, element logic, and coding constructs to validate relevance, correctness, and alignment with current City policies and agreements prior to migration. • Adjust Fast Formulas supporting Payroll, Absence Management, Benefits, and Compensation. • Migrate Fast Formulas to target environments.
• Execute unit testing and regression testing of all Fast Formulas.

3. Redwood Enablement
• Enable the Redwood user interface for applicable HCM modules , including Journeys, where supported by Oracle Fusion Cloud.
• Define test scenarios and execute Redwood related testing. • Validate Journey execution and usability within the Redwood experience. • Document issues, limitations, and workarounds.
• Provide best practices, and suggestions.

4. Data Conversion and Validation
• Data Conversion and Validation will be consistent with the Data Management Strategy presented on May 5, 2026. The project management team, in collaboration with the technical team, will determine the number of conversion cycles that will be required.
• Following the conference room pilots and prior to the commencement of Payroll Parallel Processing, a full data refresh and validation cycle will be conducted, recognizing that previously converted data may no longer reflect current conditions.
• Perform pre- and post-conversion validations for testing and production environments. • Manually handle vendor benefits files, as required , including the review, correction and transformation of ve ndor- provided benefit files when Bridges feeds are unavailable or data is fractured or incomplete to convert. • Prepare and validate position and workforce structure conversion files.

5. Payroll Parallel Processing and Costing
• Perform payroll data preparation, which may include review of pre‑payroll inputs such as timecards, earnings eligibility, deductions, and assignment data.
• Execute payroll runs and conduct post‑payroll balancing and reconciliation, including comparison of gross‑to‑net results, costing outputs, and payroll balances.
• Support iterative payroll adjustments and reprocessing, recognizing that timecard data may be updated during payroll processing in accordance with City payroll practices.

All payroll configuration updates , including payroll element validation, will be completed prior to the start of Payroll Parallel Processing. The City will provide full access to all relevant timecard and payroll data electronically to produce a complete payroll parallel.

6. Integrations and Vendor Testing
• Review interface designs, schedules, and dependencies. • Define vendor testing scope, timelines, and dependencies, including advance lead times required for vendor coordination and data changes.
• Coordinate end-to-end testing with external vendors.
• Resolve interface defects and confirm successful retesting. • Demonstrate and document the end ‑to‑end vendor lifecycle, including data generation, transmission, validation, error handling, and reconciliation, supported by walkthroughs and knowledge transfer sessions.

7. Reporting, Interfaces, and Technical Documentation
• Create and update Functional Design Documents (FDDs) for reports, interfaces, and Fast Formulas. • Update conversion mapping templates and technical reference documentation. • Inventory existing reports and interfaces.
• Validate availability of reporting to support state and federal requirements, including but not limited to state compensation reporting and ACA‑related outputs.
• Update data models, hierarchies, and report templates as required. • Perform system testing and User Acceptance Testing (UAT) for reports and interfaces.

All development, including integrations and conversions, will be fully developed and unit tested by Graviton and approved by the City prior to the start of the restart Conference Room Pilot 2 . The City is responsible for review and acceptance of all converted data.

8. Organizational Change Management and Training
• Support organizational adoption, training readiness, and process clarity. • Training activities will incorporate process scripts and role ‑based guidance aligned to finalized configuration and deployment readiness.
• Process-DynamiX™ is not contemplated in this change order.

III. Define the impact to the existing project schedule. If any dates change, include an updated project schedule:

The Oracle Fusion Cloud Implementation will restart on May 6th, 2026, or the date of last signature of this change order. The parties will adhere to the project phases and timelines outlined in the table below.

Table 1: HCM Project Plan and Timeline
Task Name Start Finish
Stage 0 - Project Management 05/06/26 04/05/27
Stage 1 - Plan 05/06/26 05/29/26
Project Management Plan 05/06/26 05/29/26
Requirements, Business Processes, Use Cases 05/06/26 05/29/26 Stage 2 - Design 06/01/26 08/14/26
CEMLI Cycle 1 (CEMLI1) 06/01/26 07/17/26
Conference Room Pilot 1 (CRP1) 07/20/26 08/14/26
Communications Plan 08/03/26 08/14/26
Stage 3 - Build 08/17/26 10/30/26
CEMLI Cycle 2 (CEMLI2) 08/17/26 10/02/26

Task Name Start Finish
Conference Room Pilot 2 (CRP2) 10/05/26 10/30/26
Payroll Element Validation 08/17/26 10/23/26
Project Scope 09/21/26 10/02/26
Test Plan 09/14/26 10/02/26
End User Training Plan 10/05/26 10/30/26
Stage 4 - Test 11/02/26 03/19/27
CEMLI Cycle 3 (CEMLI3) 11/02/26 11/27/26
System Test 11/30/26 01/22/27
CEMLI Cycle 4 (CEMLI4) 01/25/27 02/12/27
User Acceptance Test 02/15/27 03/19/27
Payroll Parallel Test 11/02/26 03/19/27
End User Training Content 11/30/26 02/05/27
Production Cutover Plan 02/15/27 03/12/27
Stage 5 - Deploy 03/08/27 06/25/27
End User Training 03/08/27 04/23/27
Production Cutover 03/22/27 04/02/27
Operations Transition Plan 04/05/27 04/30/27
Production Support 04/05/27 06/25/27
IV. Provide an updated Services or Deliverable payment schedule, and any changes to rates or resources:

The services provided within this SOW and remaining services from the original scope will be delivered at a firm fixed price, deliverables-based agreement. Below is a revised milestone schedule of remaining HCM implementation services to be delivered:

Table 2: Payment Milestones
Payment Milestone / Deliverable Payment Amount Planned Invoice Date
CO-08-01 Requirements, Business Processes, Use Cases $65,003 Jun-26 CO-08-02 CEMLI Cycle 1 (CEMLI1) $18,572 Jul-26
CO-08-03 Conference Room Pilot 1 (CRP1) $18,572 Aug-26 CO-08-05 CEMLI Cycle 2 (CEMLI2) $37,145 Sep-26
CO-08-06 Conference Room Pilot 2 (CRP2) $46,431 Oct-26 CO-08-07 Payroll Element Validation $67,295 Oct-26
CO-08-08 Project Scope $50,471 Oct-26
CO-08-09 Test Plan $50,471 Oct-26
CO-08-10 End User Training Plan $50,471 Nov-26
CO-08-11 CEMLI Cycle 3 (CEMLI3) $117,766 Nov-26
CO-08-12 System Test $75,000 Jan-27
CO-08-13 CEMLI Cycle 4 (CEMLI4) $75,000 Feb-27
CO-08-14 User Acceptance Test $103,765 Mar-27
CO-08-15 Payroll Parallel Test $103,765 Mar-27
CO-08-16 Production Cutover Plan $58,491 Mar-27
CO-08-17 End User Training Content $18,652 Feb-27
CO-08-18 End User Training $34,639 Apr-27

Payment Milestone / Deliverable Payment Amount Planned Invoice Date
CO-08-19 Production Cutover $58,491 Apr-27
CO-08-20 Operations Transition Plan $17,000 Apr-27
CO-08-21 Hypercare Month 1 $51,000 Apr-27
CO-08-22 Hypercare Month 2 $51,000 Jan-27
CO-08-23 Hypercare Month 3 $51,000 Feb-27
Total Revised Billing – HCM Implementation $1,220,000
Expenses - Travel (see note below) $82,293
Total Revised Services & Travel – HCM Implementation $1,302,293 Conference Room Pilot (CRP) Outcomes:

CRP sessions are cumulative validation checkpoints. CRP1 and CRP2 are designed to progressively validate configuration readiness.

The outcome of CRP 1 is to validate the integrated functionality . CRP 2 (final CRP) will validate end -to-end business processes, including pre payroll, payroll execution, post payroll activities, reporting, and supporting HR transactions are validated as completely and accurately as possible to support User Acceptance Testing and production readiness.

Travel will be invoiced based on actual travel expenses as incurred.

Based on the change, below is the new contract value for SOW#1:

V. Assumptions affecting estimates in this CO:

The estimates, pricing, and schedule reflected in this Change Order are based on the following assumptions:
• The City will provide a designated executive sponsor, project manager, and functional subject matter experts to make timely decisions, approve deliverables, and resolve issues necessary to support the project schedule. • Requirements, business processes, and use cases will be reviewed and updated through Conference Room Pilot 1 and Conference Room Pilot 2. Upon conclusion of Conference Room Pilot 2 Graviton will produce the Project Scope deliverable whereby the requirements, business processes, and use cases will be finalized. Updates and additions

following the project scope deliverable must be mutually agreed upon and subject to the Scope Management process defined by the Project Management Plan deliverable.
• Graviton will lead functional implementation activities and methodology execution, and Highstreet will provide technical support, integration services, and knowledge transfer as expressly defined in this Change Order and SOW .

Responsibilities not described herein will be defined by the Graviton deliverables defined by the Project Management Plan. Any changes in defined responsibilities must be mutually agreed upon by the City and Graviton project management teams.
• The scope of services is limited to the services and deliverables defined in this Change Order and SOW. Upon completion of Conference Room Pilot 2 Graviton will submit the Project Scope Document deliverable establishing the final list of application functionality, modules, reports, interfaces integrations, and data conversions to be completed prior to go- live. Following approval of the Project Scope deliverable, a ny additional functionality, modules, reports, interfaces, integrations, data conversions, or redesigns will be subject to the Scope Management process defined by the Project Management Plan deliverable.
• Interface activities are limited to stabilization, correction and completion of items identified during the previous project phases, along with new objects resulting from changes in benefit plans, union agreement changes, etc. Any net new interface requirements will be mutually agreed upon and documented in the Project Scope deliverable. • At the conclusion of Conference Room Pilot 2, the Graviton project team will complete the Project Scope deliverable establishing the scope of Fast Formulas needed to meet the City’s requirements. The City and Graviton will endeavor to repurpose previously developed Fast Formulas where those fast formulas can efficiently and accurately meet the City’s requirements. Where additiona l Fast Formulas, or changes to Fast Formulas are required to meet the City’s requirements, Graviton will take the lead in developing those fast formulas. • Graviton and Highstreet maintain extensive libraries of report templates that will be made available to the City to support its reporting needs. The City agrees to utilize these standard reports to the greatest extent possible. In some cases, minor adjustments to existing processes may be required (for example, accessing required information across two reports, or a combination of a report and a system view, rather than a single consolidated report) with an understanding that the utilization of provided reports fit within the timeliness required for payroll processing • Custom report development will be minimized and pursued only when necessary. Any such requests will be reviewed and approved by senior leadership from the City, Graviton, and Highstreet to ensure alignment and to avoid unnecessary effort.
• Organizational Change Management and training services are limited to adoption support, readiness activities, and training deliverables required to support the defined deployment. Ongoing training or support beyond the defined Hypercare period is excluded.
• The City is responsible for the accuracy, completeness, and approval of all source data used for conversions, payroll, benefits, and integrations, including final acceptance of all converted data prior to production deployment. • Payroll configuration will be finalized and approved prior to the start of Payroll Parallel Processing. Delays in configuration approval may impact payroll parallel testing results and the overall project schedule. Provided that the reports deliver the necessary information in a timely manner to support business processes. Defects identified during payroll parallel will be corrected.
• External vendors and third
-party providers will be available and responsive to support integration and end-to-end testing activities in accordance with the project schedule. Delays or issues caused by third parties are outside the control of Highstreet and Graviton. The City will take the lead in coordinating vendor activities. While the City cannot control the vendors, it will endeavor to communicate proactively with its vendors to avoid scheduling issues. Vendor timelines and dependencies must be agreed and confirmed prior to testing cycles; delays attributable to vendors may require schedule

adjustments, in which cases the City and Graviton will mutually agree to appropriate contingency plans to meet the overall schedule objectives.
• Identity, Single Sign‑On (SSO), and person number handling for new hires will be aligned through a journey leveraging the City IT and OCI Center of Excellence ’s existing process ; any AI ‑ or OCI ‑based enhancements are limited to assessment and recommendations unless otherwise approved. • The project schedule assumes a restart date of May 6, 2026, or the date of last signature of this Change Order, whichever is later. Delays in execution or approvals will result in corresponding schedule adjustments. • City stakeholders will be available to participate in Conference Room Pilots, testing cycles, User Acceptance Testing, training, and cutover activities as scheduled. Missed or delayed participation may require schedule changes and/or a change order.
• Hypercare support is limited to three (3) months following production deployment and assumes deployment occurs in accordance with the agreed production cutover plan. The same Graviton team will be available to provide ECS (per additional change order/contract with COB).
• Services are provided under a fixed price, deliverables-based model. Rework or additional effort resulting from changes in scope, requirements, assumptions, or delays outside of Highstreet’s or Graviton’s control may require a change order. • Travel expenses will be invoiced based on actual expenses incurred and are subject to the travel amount defined in this Change Order unless otherwise approved in writing by the City. • Except as expressly modified in this Change Order, all terms and conditions of the Statement of Work and Master Services Agreement remain in full force and effect.

VI. Except as expressly modified in this CO, the terms and conditions of the SOW are in full force and effect.

IN WITNESS WHEREOF, the parties have so agreed as of the date written above.

Accepted By: Accepted by:

Accepted By: Highstreet IT Solutions

By: _____________________________________

Name: __________________________________

Title: ____________________________________

Date: ____________________________________
Accepted By: City of Bakersfield

By: _____________________________________

Name: __________________________________

Title: ____________________________________

Date: ___________________________________

Bakersfield City CouncilJune 24, 2026

Bakersfield City Council
June 24, 2026