Administrative
Report
H.14., File # 23-6685 Meeting Date: 9/5/2023
To: MAYOR AND CITY COUNCIL
From: LUKE SMUDE, ASSISTANT TO THE CITY MANAGER
TITLE
APPROVE A THREE-YEAR AGREEMENT WITH OPENGOV, INC., FOR THE PROVISION,
IMPLEMENTATION, AND MAINTENANCE OF A WEB-BASED ELECTRONIC PROCUREMENT APPLICATION TOOL FOR AN INITIAL COST OF $44,160 AND AN ONGOING LICENSE AND MAINTENANCE COST OF $28,350 IN YEAR TWO AND $29,768 IN YEAR THREE
EXECUTIVE SUMMARY
In an ongoing effort to modernize and improve City operations, staff is recommending the approval of an agreement with OpenGov, Inc. (OpenGov) to deliver and maintain a cloud-based electronic procurement (eProcurement) solution to help the City implement a more effective, transparent, and accountable procurement process.
BACKGROUND
The City of Redondo Beach conducts numerous procurements for a wide variety of products and services each year. The Financial Services Department oversees the purchasing function, but works closely with each Department to create, release and evaluate various vendor solicitations. These include requests for qualifications, requests for proposals, as well as open bids for specific products.
At this time, templates for the various solicitations are not standardized and staff spends a great deal of time preparing solicitation templates to fit the City’s needs.
In 2022, staff from Financial Services, Public Works, Community Development Departments began evaluating the City’s procurement process and discussing ways in which it could be improved and modernized. This working group quickly identified that the City’s paper-based processes were outdated and created time consuming manual work that could be better managed by an eProcurement application.
There are several eProcurement applications currently avaiable and staff researched these products, scheduling multiple vendor demonstrations. Staff found that the OpenGov Procurement Suite offered the best mix of functionality, usability, and price. The OpenGov platform will improve solicitation development and management, enhance vendor engagement, provide a platform for solicitation evaluation and simplify the City’s contract award process.
The OpenGov Procurement Suite is the only solution that offers logic-based templates that allow staff to quickly develop custom solicitations that comply with procurement regulations and contain the City’s standard legal language. The solution also provides the City with access to more than 80,000 California-based vendors already registered in the OpenGov database that can be notified
H.14., File # 23-6685 Meeting Date: 9/5/2023
California-based vendors already registered in the OpenGov database that can be notified electronically, by category, when the City releases new solicitations. Additionally, the standardized platform includes electronic proposal submissions and provides a single source of information that internal collaborators and approvers can access to evaluate submissions and communicate throughout the evaluation process. Training and template development for City personnel are included in the Agreement’s implementation cost.
The City’s regular purchasing procedures contain a number of competitive purchasing options that include the use of “Piggyback Bids” or cooperative purchasing agreements that leverage recently released proposals or bids from other jurisdictions. These mechanisms give the City enhanced purchasing power, and provide assurance that the City receives pricing that is in line with current market conditions. Staff investigated these methods and was able to obtain preferred pricing, as a benefit for being a longtime OpenGov customer, that beat other available cooperative purchasing rates.
Staff is recommending a three-year agreement with OpenGov with $44,160 due in year one, for software and professional services fees, $28,350 due in year two, and $29,768 due in year three, for a total not to exceed amount of $102,277, which represents a 30% savings from the cooperative pricing for software and maintenance fees published by the National Association of State Procurement Officials (NASPO), a nationally recognized strategic purchasing partner.
COORDINATION
This item was coordinated between the Financial Services Department, Public Works Department, Community Development Department and City Manager’s Office. The City Attorney’s Office approved the Agreement as to form.
FISCAL IMPACT
Funding for the first year of the Agreement was approved as part of the FY 2023-24 budget adoption process via Decision Package #62. Funding for subsequent years will be considered as part of the annual budget process.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - OpenGov, Inc.
· Decision Package #62 - FY 2023-24
· Certificate of Insurance - OpenGov, Inc.