TO:
VIA:
FROM:
DATE:
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF FINANCE
JULY 19, 2022
Placentia City Council
AGENDA REPORT
SUBJECT: AGREEMENT WITH PLANETBIDS, INC. FOR E -PROCUREMENT AND
CONTRACT MANAGEMENT SOFTWARE SYSTEM
FISCAL
IMPACT: EXPENSE: FISCAL YEAR 2022-23 - $31,150.00
FISCAL YEAR 2023-24 - $26,419.50
FISCAL YEAR 2024-25 - $27,212.09
BUDGET: $ 31,150.00 General Fund (101523-6136)
SUMMARY:
The City has relied on a manual process for the procurement of goods and services for many years. In an effort to improve efficiencies, Staff is recommending transitioning to an online, Cloud -Based e -Procurement System.
The PlanetBids' eProcurement system simplifies the process of doing business with the City by providing vendors with a searchable on-line database of current bid and proposal solicitations.
Additionally, vendors wanting to do business with the City may create a profile that allows them to be notified automatically when the City is soliciting proposals for commodities and services they provide.
In recent years, PlanetBids has expanded their system beyond bid management to include additional capabilities such as vendor management, advanced ebidding, evaluation management, insurance certificate management and contract management. These additional capabilities would greatly improve the City's ability to identify and reach potential bidders, enhance competition, eliminate the potential for errors in bid evaluation scoring, prequalify vendors for as -needed work, enhance transparency in the City's procurement practices and save substantial staff time.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve the Support Services Agreement with PlanetBids, Inc. for an initial term of three (3) years with two (2) optional one (1) year extensions at the City's discretion for $84,782; and
1.o.
July 19, 2022
City Council Agenda
July 19, 2022
2. Authorize the City Administrator to execute the necessary documents, in a form approved by the City Attorney.
DISCUSSION:
The City's purchasing division endeavors to procure supplies, services and equipment in a manner that provides full and open competition and in accordance with applicable laws and purchasing procedures. The City's Purchasing Officer is further tasked with continually identifying, evaluating and utilizing purchasing methods that best meet the needs of the City and keeping informed of current developments in the field of Public Purchasing, including the increased reliance on eProcurement systems by many local agencies.
The City has relied on a manual process of inviting known vendors and posting solicitations on the City's website to advertise bids and request for proposals (RFPs) for several years. This process requires bids and proposals to be either emailed to the Purchasing Officer, or a hard copy physically delivered in person to City Hall. Sealed bids are required to be opened in public and witnessed by the City Clerk, a practice that was particularly difficult to coordinate during the pandemic.
The e -procurement system will allow vendors who register with the City of Placentia's PlanetBids portal to automatically be notified of new bidding opportunities as they are posted, ask questions, download all necessary documents, and submit their bids directly into the PlanetBids system. This change will eliminate issues associated with large files not being delivered correctly and/or being delivered late, provides the vendor with an immediate confirmation that all documents were received, and will require acknowledgement of any addenda prior to submission of all documents, resulting in significant saving of staff time and reduce opportunities for bid protests.
As part of the City's continued desire to streamline the procurement process, ensure a fair and competitive system and to comply with industry best practices, City Staff has researched additional capabilities of the PlanetBids web -based system and desires to also implement the following modules:
Vendor and Bid Management
The Vendor and Bid Management module will enable vendors to register online, receive notifications of all bid opportunities, confirm vendor certifications, submit proposals, and register as a local and/or minority owned business. In addition, bid management will allow the City to issue bids and RFP's, solicit quick quotes, respond to questions, document all communications related to a specific bid including requiring digitally signed addenda, and allow prospective bidders to review all information on current and past solicitations including bid results.
Advanced eBidding
The Advanced eBidding module is an add-on that is specifically designed to manage construction and public works contracts. This module maintains a bid specification library, can
City Council Agenda
July 19, 2022
restrict bidders to only those that have been pre -qualified, identify and manage subcontractors, communicate mandatory pre-bid meetings, and includes robust ad-hoc reporting, analysis and audit capabilities. It also contains an electronic lock box feature, which maintains sealed electronic bids in accordance with all rules and regulations, eliminating the need for in-person public bid openings.
Evaluation Management
The Evaluation Management module would enable the City to conduct the evaluation of bids and proposals entirely online. It allows the Purchasing Officer and the evaluation committee to fairly assess a proposer's ability to effectively execute a contract and identify the best proposal.
The module allows the Purchasing Officer to assign evaluators, set evaluation criteria, attach related documents, build scoring measures, communicate, automatically tabulate scores and qualify the most responsive bidder. Technical qualifications, proposal, cost, preference, and presentation can be evaluated objectively, while documenting the entire decision-making process.
Insurance Certificate Management
The Insurance Certificate Management module enables risk managers, as well as procurement, public works and contract administrators to automate, maintain, and retrieve up-to-date and relevant information regarding vendor insurance certificates. In addition, it allows vendors to upload and maintain their own insurance information in an entirely paperless environment.
Vendors can view the necessary insurance requirements established by the City and submit their insurance details, including any required documents such as ACORD Certificates and Endorsements, all online.
eBonding - In addition to managing insurance documents, PlanetBids also offers the ability for vendors to submit construction bonds entirely online as well at no cost to the City. This feature further expands the ability of the City and the business community to operate in a safe, socially distant manner while still complying with all purchasing and contract requirements.
Contract Management
This module enables contract administrators, procurement, and public works to maintain and retrieve up-to-date relevant information regarding contracts greatly reducing the need to search through multiple documents or files. Features include tracking subcontractor information, automating emails with deadline alerts, providing an online repository for all contract materials, reporting capabilities as well as the ability to integrate with DocuSign to execute agreements faster.
All of the above modules would enable the City to automate the procurement process, enhance transparency and competition in the market, ensure objectivity in bid and proposal scoring and bring the City up to date with industry best practices. In addition, it would save significant staff time in allowing for the evaluation process to be conducted online, allowing vendors to directly update their profiles and insurance information and allowing the City to significantly improve efficiency.
City Council Agenda
July 19, 2022
Waiver of Bidding
Placentia Municipal Code Section 3.08.070(6) provides that competitive bidding may be waived when "the commodity can be obtained from only one (1) vendor". PlanetBids is the only eProcurement software with all of the City's desired capabilities and is the system of choice for most of our surrounding agencies, providing familiarity and consistency for the business community.
FISCAL IMPACT:
The cost of the agreement over the three-year term is outlined by module below. These costs will be partially offset with the receipt of more competitive bid pricing and saving of staff time.
Funding for the first year is included in the Fiscal Year 2022-23 Budget Account 101523-6136 and future funding will be included in future fiscal years' budgets.
Module
Vendor Mgmt.
Evaluation
Mgmt.
Advanced
e -bidding
Quick Quote
Insurance
Contracts
Docusign
add-on
Total
Prepared by:
One -Time
Setup Fee
$3,500
(Discounted
from $8.500)
FY22/23 FY23/24
$5,875
FY24/25
$6,051.25 $6,232.79
$500 $3,750 $3,862.5 $3,978.38
$500
Incl.
$500
$500
$4,500
$575
$4,875
$4,575
$4,635
$592.25
$5,021.25
$4,712.25
$4,774.05
$610.02
$5,171.89
$4,853.62
Incl. $1,500 $1,545 $1,591.35
$5.500 $25,650 $26,419.5 $27,212.09
Jennife Lan'fpman
Director of Finance
Attachment:
PlanetBids Software Agreement
Review- d
FY25/26
(Optional)
$6,419.77 $6,612.36
FY26/27
(Optional)
$4,097.73 $4,220.66
$4,917.27 $5,064.79
$628.32 $647.17
$5,327.04 $5,486.86
$4,999.23 $5,149.2
$1,639.09 $1,688.26
$28,028.45 $28,869.3
Damien R. Arru
City Administrator
roved:
(Z,