City Council
Report
City Council Meeting: October 11, 2022
Agenda Item: 5.E
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department Subject: Award RFP for Enterprise Procurement Lifecycle Management Solution Recommended Action
Staff recommends that the City Council:
1. Award RFP PRJ0011599 to OpenGov, Inc. for an enterprise Procurement Lifecycle Management Solution (PLMS) for the Finance Department;
2. Authorize the City Manager to negotiate and execute an agreement with OpenGov, Inc. for annual subscription costs related to OpenGov’s enterprise PLMS, which includes solicitation builder and online bidding capabilities, in an amount not to exceed $392,805 (including a 10% contingency of approximately $35,700) for five years with future year funding contingent on Council budget approval; and,
3. Authorize the City Manager to negotiate and execute a second modification to agreement #4473 in the amount of $17,600 with OpenGov, Inc. to continue to use and pay the subscription costs for their solicitation builder and online bidding system through December 2022, while the new agreement associated with award of RFP PRJ0011599 is finalized.
Summary
The purchase of an enterprise Procurement Lifecycle Management Solution (PLMS) would allow the City to continue to use an intuitive, efficient and easy to use procurement process that includes online self-service and collaboration features that simplify researching, building, evaluating and awarding solicitations, and enables the City to broadcast solicitations to a wide set of vendors. This system allows staff to maintain important controls to ensure transparency and the integrity of the competitive bidding process. Staff recommends awarding RFP PRJ0011599 and approving the execution of a contract with OpenGov, Inc. for the purchase of a PLMS for a five year period. Staff also recommends approving a second modification to agreement #4473 2 of 6
with OpenGov, Inc. to continue to use and pay the subscription costs for their solicitation builder and online bidding system through December 2022, while the new agreement associated with the RFP award is finalized.
Background
For over 15 years, the City has used a centralized vendor and bid management system to post procurement solicitations online. In September 2018, the City entered into a three-year agreement with Govlist, on a trial basis, to try out additional desired functionalities, including a request for proposal (RFP) and solicitation-writing tool, a scope of work library module, an interactive vendor sourcing portal, an online evaluation management tool, and an analytics and reporting tool. The City used Govlist (which changed its name to ProcureNow in April 2019) alongside its previous online solicitation tool.
In 2021, the City shifted all its solicitation development and posting activity to ProcureNow, due to its ease of use and robust functionality. On July 1, 2021, ProcureNow was acquired by OpenGov and was rebranded as OpenGov Procurement (OpenGov). The City continued to use OpenGov on a month-to-month basis pending the completion of the RFP process for the Procurement and Contract Lifecycle Management Solution, which was delayed as a result of staffing vacancies and reprioritization of projects due to COVID. This contract has now exceeded the City Manager’s administrative authority and requires Council approval to continue until December 2022, when staff anticipate having a new contract in place.
On March 17, 2021, the City posted an RFP for a Procurement and Contract Lifecycle Management Solution in an effort to implement a single centralized solution that would automate and manage 1) all procurement functions and 2) all contract management functions, including solicitation, vendor selection, contract execution, and contract administration. Staff has paused the selection and implementation of a contract management solution at this time due to workload concerns given a number of higher priority projects, and budgetary concerns. The City will continue to use a basic 3 of 6
SharePoint repository to manage contracts; however, the OpenGov solicitation builder and online bidding system capabilities must continue.
Discussion
The Procurement Division (Procurement) of the Finance Department is responsible for the citywide procurement of goods and services used in the delivery of City services.
Procurement is also responsible for developing and implementing procurement policies and procedures, and for providing contract administration guidance and support to all City departments. Annually, Procurement completes over 100 solicitations and supports over 1,150 active agreements throughout the City, including the review and approval of new agreements and modifications, financial management of contract balances and monitoring contracts for compliance with City requirements and policies.
The City uses OpenGov as its solicitation and RFP builder and as its online bidding solution. OpenGov’s existing functionality enables users to develop procurement requests using a “Turbo-Tax-like” interface that guide users through the process to create bids and RFPs. The system serves as the City’s online bidding system to post and publish bids and proposals broadly to a wide set of vendors. OpenGov provides management and support for the vendor selection process including automated tabulation of bids and proposal scores and interview and demonstration management.
The automation of pricing table/proposal comparisons alone saved the Procurement Division hours of staff time spent manually consolidating this information. OpenGov also provides access to an inventory of other agencies’ bids, RFPs, product specifications, and scopes of work, which serve as reference materials for staff and enhance the quality of City solicitations. Overall, the features and functionality provided by OpenGov are robust in comparison to the other solutions evaluated through the RFP; they provide the best functionality that meets the needs of the City.
Approval to purchase the PLMS would enable staff to continue to use an intuitive and easy to use system to manage the procurement process and ensure that the City maintains important safeguards and controls to ensure transparency and integrity in the procurement process.
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While staff is not seeking approval to purchase a contract management solution at this time, staff will continue to evaluate the need for implementing such a solution and will return to Council for approval to purchase a contract management solution as necessary.
Vendor Selection
Bidder Recommendation
Best Qualified
Person/Firm
OpenGov, Inc.
Evaluation Criteria Experience and ability to perform services promptly, project approach, cost, value add/breadth of service, and
functional capabilities.
Municipal Code SMMC 2.24.190
RFPs Received
Autocene, Inc. CGI Technologies and
Solutions, Inc.
CobbleStone Software
*Govlist, Inc. (dba
ProcureNow) (now operating
as OpenGov, Inc.)
Icertis, Inc. Keenology Corp.
Pantheon, Inc. Premikati Sysoft
*Acquired by OpenGov, Inc.
RFP Data
Posted On Posted On
Advertised In
(City Charter &
SMMC)
Vendors
Downloaded
Date Publicly
Opened
03/17/2021 City's Online
Bidding Site
Santa Monica Daily
Press 76 07/14/2021
Justification to Award
Staff from the City Attorney’s Office, the Finance Department, the City Clerk, the Information Services Department, and the City Manager’s Office evaluated and scored all proposals for a procurement lifecycle management system and a contract 5 of 6
management system, and then interviewed three shortlisted firms. The firms were evaluated based on experience and ability to perform services promptly, project approach, cost, value add/breadth of service, and functional capabilities. Based on these criteria and criteria in SMMC 2.24.190, staff recommends awarding the procurement lifecycle management to the incumbent OpenGov, Inc. as the best qualified person or firm to provide the procurement lifecycle management portion of the project. OpenGov, Inc. provides the best functionality that meets the needs of the City.
The City will not move forward with a contract management system at this time.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to award a new contract with OpenGov, Inc. for the annual subscription costs of a procurement lifecycle management system and authority to increase the amount of the existing agreement with OpenGov, Inc. to extend the services through December 2022.
New Contract – OpenGov, Inc.
FY 2022-23 Budget
Request Amount Future Years Department Account #
Total Contract
Amount
$78,561 $314,244 01300009.525070 $392,805
Contract Modification Request – Existing OpenGov, Inc. Contract Agreement# Contract
Authorized
Amount
FY 2022-23
Modified
Request Amount
Department
Account
Total Revised
Contract
Amount
4473 $250,000 $17,600 01300009.525070 $267,600
Future year funding is contingent on Council budget approval.
Prepared By: Oscar Santiago, Budget Manager
Approved Forwarded to Council
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Attachments:
A. OpenGov, Inc. FY22-23 Oaks
B. Original Contract - CT#4473 Govlist
C. 1st Modification to Contract#4473 OpenGov