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Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: SEPTEMBER 24, 2024
FROM: FINANCE DEPARTMENT
SUBJECT: APPROVE AN AGREEMENT WITH CARAHSOFT
TECHNOLOGY CORP, FOR THE PURCHASE OF UNLIMITED
SUBSCRIPTIONS, IMPLEMENTATION, AND SUPPORT
SERVICES FOR OPENGOV ONLINE BIDDING AND
CONTRACT MANAGEMENT SOFTWARE
ATTACHMENT (Y/N): YES ITEM # 12
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, approve the Subordinate Contract Number MA 106- 498152 (Agreement) with Carahsoft Technology Corporation, an authorized reseller for OpenGov, and the City of Anaheim (City) for a term of one (1) year, including unlimited subscriptions, implementation, and support services for Online Bidding and Contract Management Software, in an amount not to exceed $380,668.49 for the first year, with an option to renew for two (2) additional one (1) year terms in an amount not to exceed $295,319.17 for the second year and in an amount not to exceed $310,085.33 for the third year, and authorize the Purchasing Agent to execute any and all renewals.
DISCUSSION:
Pursuant to Section 1206 of the City Charter and Section 1.04.310 of the Anaheim Municipal Code, the Purchasing Division is responsible for procuring all materials, supplies, and contractual services required by City departments. In January 2024, the Auditor of the State of California conducted an audit (State Audit) which recommended that the City develop an improved contract management, monitoring, and oversight process as well as implement stronger contract monitoring practices. While the City is committed to improving procurement practices, several manual procurement processes present significant challenges. Without digital tools, tracking the status of procurement activities, vendor performance, and spending trends becomes cumbersome, placing a heavy burden on staff and leading to inefficiencies and delays.
The absence of an automated system makes the procurement process labor-intensive and limits our ability to efficiently manage contracts. Staff recommends the move to a solution that will minimize the efforts around manual collaboration processes and reliance on emails or physical documents for contract drafting or revisions, while also creating a central repository of templates that will simplify production of contracts and other documents to support the procurement lifecycle.
Online Bidding and Contract Management Software
September 24, 2024
Extensive research for a solution was conducted to identify available software in the market, and demos were performed to evaluate their effectiveness. Further research identified a pre-established contract available through a cooperative agreement, for which a competitive Request for Proposal (RFP) process had already been conducted, and in which the OpenGov solution was identified as the best value. The Purchasing office also confirmed through this process that the OpenGov solution is utilized by many other public agencies in the nation, several with similar operations as the City of Anaheim, including nearby cities of Pasadena and Santa Monica. The solution is also used by the County of Orange.
The OpenGov software will streamline the entire procurement process, from the initial development of project specifications and Request for Bids (RFB) and complex RFPs, to contract negotiation, execution, and ongoing management. By fostering collaboration across all stages of the process, the software will expedite procurement timelines, reduce administrative burdens, and improve overall efficiency. This will allow the City to manage its growing volume of solicitations more effectively, ensuring timely project delivery and providing better services to constituents.
With the licenses being procured, OpenGov’s vast repository of more than 25,000 scopes of work, built through the network of over 1,900 government entities that OpenGov works with, can be utilized at our disposal. This extensive resource allows the City to leverage proven templates and best practices, significantly reducing the time and effort needed to draft new scopes of work while ensuring compliance with industry standards and regulations. Furthermore, this significantly expands the City’s vendor outreach during the solicitation process, increasing from the current online advertising reach of approximately 23,000 vendors, to extend to over 350,000 vendors nationwide.
This enhanced reach will increase competition, attracting a more diverse pool of qualified bidders, potentially resulting in better pricing, higher-quality services, and innovative solutions.
With the versatility of the solution, it is anticipated that its use can expand and be leveraged across multiple departments and groups in the City that produce and compile standard documents and contracts. With the unlimited licensing included in the agreement, such expansion will not increase the overall cost, but instead will further increase the value.
Adopting the OpenGov procurement solution represents a critical step forward in modernizing the City’s procurement and contract management processes, driving greater efficiency, cost savings, and enhanced service delivery to our community.
The use of the cooperative agreement is fully compliant with City Council Policy 4.0 and purchasing regulations.
Online Bidding and Contract Management Software
September 24, 2024
IMPACT ON BUDGET:
Sufficient funds are available in the FY 2024/25 City’s Finance Budget. Funding for subsequent years will be subject to City Council approval through the annual budgeting process.
Respectfully submitted, Concurred by,
Kari Bouffard Deborah A. Moreno
Purchasing Agent Finance Director/City Treasurer
Attachments:
1. Proposed Agreement
2. OpenGov California Government Entity Customers