City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: June 17, 2025
Report #:2504-4542
TITLE
Approval of Eight Professional Services Contracts for On-Call IT Project Support and supplemental staffing: Contract C26193247A with INSPYR Solutions, C26193247B with AgreeYa Solutions, C26193247C with TechLink Systems, C26193247D with Compunnel Software Group, C26193247E with Progile Tech Inc, C26193247F with Omm IT Solutions, C26193247G with Infojini Inc, and C26193247H with California Creative Solutions Inc in an Amount Not to Exceed $1,500,000 in Fiscal Year 2026; CEQA Status – Not a Project;
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or designee to execute eight separate five-year contracts for time-limited, on- call, as-needed, IT project support services for a collective total not-to-exceed amount of $1,500,000 in Fiscal Year 2026 with:
1. INSPYR Solutions, Contract Number C26193247A 1;
2. AgreeYa Solutions, Contract Number C26193247B 2;
3. TechLink Systems, Contract Number C26193247C 3;
4. Compunnel Software Group, Contract Number C26193247D 4;
5. Progile Tech, Contract Number C26193247E 5;
6. Omm IT Solutions, Contract Number C26193247F 6;
1 INSPYR Solutions, Contract No. C26193247A; https://www.paloalto.gov/files/assets/public/v/1/it- department/cmr-attachments/it-on-call/inspyr-solutions-llc-c26193247a.pdf 2 AgreeYa Solutions, Contract No. C26193247B; https://www.paloalto.gov/files/assets/public/v/1/it- department/cmr-attachments/it-on-call/agreeya-solutions-c26193247b.pdf 3 TechLink Systems, Contract No. C26193247C; https://www.paloalto.gov/files/assets/public/v/1/it- department/cmr-attachments/it-on-call/techlink-systems-c26193247c.pdf 4 Compunnel Software Group, Contract No. C26193247D; https://www.paloalto.gov/files/assets/public/v/1/it- department/cmr-attachments/it-on-call/compunnel-software-group-c26193247d.pdf 5 Progile Tech, Contract No. C26193247E; https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr- attachments/it-on-call/progile-tech-c26193247e.pdf
6 Omm IT Solutions, Contract No. C26193247F: https://www.paloalto.gov/files/assets/public/v/1/it- department/cmr-attachments/it-on-call/omm-it-solutions-c26193247f.pdf
7. Infojini, Contract Number C26193247G 7; and
8. California Creative Solutions, Contract Number C26193247H 8.
Staff will return for City Council approval for services in Fiscal Year 2027 through Fiscal Year 2030 based on anticipated needs in the future.
EXECUTIVE SUMMARY
With the expiration of the City’s previous IT on-call contracts awarded in 2020, staff issued a new Request for Proposals (RFP No. 1932479) in early 2025 to identify multiple qualified vendors who can provide project-based, time-limited professional services on an as-needed basis. Following a competitive and structured evaluation process, eight firms are recommended out of 34 proposals (two proposals were deemed unresponsive) for contract award based on qualifications, experience, past performance, and competitive pricing. These contracts will enable the City to meet evolving IT project needs over the next five years.
BACKGROUND
In 2019, the City’s Information Technology Department (ITD) issued RFP (CMR #1136010) and awarded seven contracts for IT on-call services. These contracts allowed City departments to engage qualified firms to support time-limited IT projects through task orders.
Recognizing the continuing and evolving need for specialized IT support across various domains and departments, staff issued RFP No. 193247 in early 2025 to replace the expiring contracts.
The goal was to establish a new pool of qualified vendors capable of delivering these services from July 1, 2025, through June 30, 2030. The on-call structure allows the City to access skilled resources as needed for any department for a limited time. The proposed annual not-to-exceed amount increases by $250,000 over the Fiscal Year 2025 contract year.
ANALYSIS
Solicitation Process
The solicitation was posted on OpenGov, the City’s eProcurement platform, for 32 days. 3,339 vendors were notified of the opportunity. The RFP closed on February 17, 2025. Work under each contract will be assigned through individual Task Orders. The City is not obliged to assign any specific amount of work to any contractor. Historically, the department has utilized 50% of the not-to-exceed amount in recent years. As the City’s reliance on technology continues to 7 Infojini, Contract No. C26193247G; https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr- attachments/it-on-call/infojini-c26193247g.pdf
8 California Creative Solutions, Contract No. C26193247H; https://www.paloalto.gov/files/assets/public/v/1/it- department/cmr-attachments/it-on-call/california-creative-solutions-c26193247h.pdf 9 January 16, 2025 IT On-Call Professional Services RFP: https://procurement.opengov.com/portal/palo-alto- ca/projects/141382/addenda
10 June 22, 2020 City Council Staff Report: https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2020/id-11360.pdf grow, there is an increasing demand for enhanced capabilities such as workflow automation, interactive dashboards, SharePoint improvements, and data governance. Staff has received an increase in requests for enhancements and process improvements which warrants the increase of the not-to-exceed amount.
Professional services may include:
•Server, network, and infrastructure
•Cloud migration and evaluation
•Security and audit compliance
•Disaster recovery and business continuity
•System architecture, VoIP, SharePoint, Exchange, and firewall •Application development, report generation, and mobile device management Vendors were requested to submit hourly rates for multiple labor categories, including:
•Project Manager
•Systems Administrator
•Helpdesk Technician (Levels 1 and 2)
•Network Engineer
•Application Developer
•Web/SharePoint Developer
•Financial Analyst
•Business Analyst
•BI Developer
Table 1: Summary of Request for Proposal
Proposal Description IT On-Call Professional Services RFP 193247 Date Solicitation was Issued January 16, 2025
Date Solicitation was Closed February 17, 2025
Proposed Length of Project 5 years
Number of Vendors Notified 3339
Number of Proposal Packages Downloaded 107
Total Days to Respond to Proposal 32
Pre-Proposal Meeting No
Pre-Proposal Meeting Date N/A
Number of Proposals Received 34, 2 proposals were deemed non- responsive
Proposal Price Range $12 – $200/hour depending on consultant roles as outlined above
Public Link to Solicitation https://procurement.opengov.com/portal/pa lo-alto-ca/projects/141382
Proposals were evaluated by staff from the Information Technology Department based on criteria outlined in the RFP, including proposal quality, feasibility and effectiveness of the proposed solution, relevant experience and staff qualifications, financial stability, ability to meet deadlines, past performance with the City and other agencies, and capacity to provide ongoing support. This is an on-call contract for as-needed services, and each vendor submitted hourly rates that vary by level of service and expertise, reflecting their specialization in different areas of the scope of work. The selected vendors submitted well-structured proposals, demonstrated proven experience, and showed a strong ability to meet current and future City needs. Several have successfully worked with the City in the past and received positive feedback for their responsiveness and service delivery. In addition to technical qualifications, vendors were selected for their ability to meet operational and compliance requirements and to support the City’s long-term goals.
On-call services will be assigned on a Task Order basis. A contractor will be selected based on their resource availability and relevant expertise. Staff will be responsible for evaluating the adequacy of each task order's proposed scope of work, contractor experience, and billing rates.
To provide checks and balances, department directors or designee will be required to approve all task orders, reviewing contractor selection and budget adherence. The City Manager or designee will approve any task order over $100,000. Designated staff will manage the deliverables and budget of each task order, approving invoices to ensure that the billed hours match the hours actually worked as well as acceptance of work progress and products.
Before entering into a task order, staff will review whether work demands and specialized skills not available internally require use of a consultant. Task orders will also require consultants provide documentation and effective knowledge transfer.
These on-call contracts do not guarantee the vendor any minimum level of work, and specific projects will be assigned by Task Order as needed and approved by the City. In addition, the contracts permit the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non-appropriation of funds or simply choosing not to assign any new task orders. The contract may also be temporarily suspended by written notice of the City Manager.
FISCAL/RESOURCE IMPACT
Funding for these on-call contracts in FY 2026 ($380,000) is within levels already proposed for IT; no additional funding is requested. The not-to-exceed amount is higher than the budgeted amount to allow for other departments to be able to utilize these on-call contracts with their own contract services budget.
Funding for subsequent years of the contract will be subject to approval through the annual budget development process. ITD is funded by an internal service fund. Approximately 49% of the department is General Fund funded with the remaining 51% funded by enterprise and special revenue funds.
STAKEHOLDER ENGAGEMENT
Vendors were evaluated by City Staff and chosen through the City’s RFP process, RFP No. 193247.
ENVIRONMENTAL REVIEW
The approval of this contract 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.
LINKS TO CONTRACTS
IT On-Call Project Support Services Contracts
• INSPYR Solutions, Contract Number C26193247A11
• AgreeYa Solutions, Contract Number C26193247B12
• TechLink Systems, Contract Number C26193247C13
• Compunnel Software Group, Contract Number C26193247D14 • Progile Tech, Contract Number C26193247E15
• Omm IT Solutions, Contract Number C26193247F16
• Infojini, Contract Number C26193247G17
• California Creative Solutions, Contract Number C26193247H18 APPROVED BY: Darren Numoto, Chief Information Officer
11 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on-call/inspyr-solutions-llc- c26193247a.pdf
12 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on-call/agreeya-solutions- c26193247b.pdf
13 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on-call/techlink-systems- c26193247c.pdf
14 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on-call/compunnel- software-group-c26193247d.pdf
15 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on-call/progile-tech- c26193247e.pdf
16 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on-call/omm-it-solutions- c26193247f.pdf
17 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on-call/infojini- c26193247g.pdf
18 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on-call/california-creative- solutions-c26193247h.pdf