City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: January 21, 2025
Report #:2412-3918
TITLE
Approval for the City Manager or their Designee to Execute PO C25193331 with Carahsoft, Utilizing a General Services Agreement (GSA) Contract Number 47QSWA18D008F, to Procure SAP Signavio/LeanIX, SAP Governance, Risk, Compliance (GRC) and Identity Access Governance (IAG) Solutions for a 3-Year Term for a Total Not-To-Exceed Amount of $1,032,431; CEQA Status: Not a Project
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their designee to execute PO C25193331 with Carahsoft, utilizing a General Services Agreement (GSA) Contract Number 47QSWA18D008F, to procure SAP Signavio/LeanIX, SAP Governance, Risk, and Compliance (GRC), SAP Integration Suite of products and services for a 3-year term (January 1, 2025 to December 31, 2027), with a total not-to-exceed amount of $1,032,431 (Attachment A).
BACKGROUND
The City of Palo Alto aims to enhance business process efficiency, strengthen user access controls, and streamline data exchange with approved vendors. To achieve this, staff recommends procuring SAP tools through Carahsoft, a vendor leveraging General Service Agreement (GSA) Contract Number 47QSWA18D008F1.
The key components of this initiative include:
• SAP Cloud Identity Access Governance (IAG): Enables secure user provisioning and access controls.
1 GSA Contract: 47QSWA18D008F
https://www.gsaadvantage.gov/ref_text/47QSWA18D008F/100V5C.3VR800_47QSWA18D008F_47QSWA18D008F- 11-24-2024-565316.PDF
• SAP Signavio/LeanIX Solutions: Provides business process management, risk analysis, and process insights.
These tools will allow the City to address critical compliance requirements, improve system management efficiency, and align with recommendations from the 2022 Baker Tilly audit report titled “Assessment of SAP Functionality and Internal Controls and part of the FY22 Baker Tilly Annual Risk Assessment2.”
This purchase will establish an automated framework for risk analysis, access monitoring, and governance of business processes, ensuring stronger compliance and security.
ANALYSIS
Approval of this purchase order will enable the City to meet critical compliance and security needs efficiently and cost-effectively. The City will acquire the following SAP solutions from Carahsoft. Carahsoft is a technology solutions provider that services the public sector. The City is procuring this software through a cooperative agreement. A cooperative purchasing agreement a contract that allows multiple entities to purchase goods and services at negotiated rates and are created by combining the buying needs of multiple entities to achieve a more economical purchase. Staff will be returning to Council in February for approval of implementation services for these tools.
Table 1: Three-Year Cost Summary (2025 – 2028)
02/01/2025 - 01/31/2026
Product Quantity Price Total Cost
SAP Process Manager 5 $6,159 $30,795
SAP Process Hub 2 $714 $1,428
SAP Process Insights 1 $69,212 $69,212
SAP Application Portfolio Management 1 $48,531 $48,531
SAP Risk and Compliance 1 $24,266 $24,266
SAP Integration (Starting on 08/01/2025) 2 $27,064 $54,128 SAP Cloud Identity (Starting on 08/01/2025) 2 $23,912 $47,824 Year 1 Subtotal $276,184
02/01/2026 - 01/31/2027
SAP Process Manager 5 $6,159 $30,795
SAP Process Hub 2 $714 $1,428
SAP Process Insights 1 $69,212 $69,212
SAP Application Portfolio Management 1 $48,531 $48,531
SAP Risk and Compliance 1 $24,266 $24,266
2 FY22 Annual Risk Assessment – Baker Tilly, pages 39-42. fy22-annual-risk-assessment.pdf
SAP Integration 2 $54,127 $108,254
SAP Cloud Identity 2 $47,823 $95,646
Year 2 Subtotal $378,132
02/01/2027 - 01/31/2028
SAP Process Manager 5 $6,159 $30,795
SAP Process Hub 2 $714 $1,428
SAP Process Insights 1 $69,212 $69,212
SAP Application Portfolio Management 1 $48,531 $48,531
SAP Risk and Compliance 1 $24,266 $24,266
SAP Integration 2 $54,127 $108,254
SAP Cloud Identity 2 $47,823 $95,646
Year 3 Subtotal $378,132
Grand Total $1,032,431
FISCAL/RESOURCE IMPACT
Funding for this purchase order in FY 2025 is within budgeted levels adopted by the City Council in the Information Technology Department, no additional funding is requested.
The Information Technology (IT) Department is funded by an Internal Service Fund (ISF) that allocates costs to other funds across the City to provide technology related services to other City departments and funds. Approximately 49% of the services provided are for the General Fund with the remaining 51% for other funds such as Enterprise, special revenue, and other internal service funds.
STAKEHOLDER ENGAGEMENT
The services were coordinated with internal stakeholders and the service provider.
ENVIRONMENTAL REVIEW
The approval of these contracts is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(c)(3) because it can be seen that there is no possibility that the activity in question may have a significant effect on the environment.
ATTACHMENTS
Attachment A: C25193331 CARAHSOFT TECHNOLOGY CORP 1.PDF APPROVED BY:
Darren Numoto, Chief Information Officer