City Council
Report
City Council Meeting: October 24, 2023
Agenda Item: 5.C
1 of 4
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Award Agreement to Procore Technologies, Inc. for Construction Management Software
Recommended Action
Staff recommends the Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute an agreement with Procore Technologies, Inc. for Construction Management software to manage the Public Works Department Capital Improvement Program construction projects. This recommended award is made as an exception to the competitive bidding process pursuant to Santa Monica Municipal Code (SMMC) Sections 2.24.250(b) and is for a total amount not to exceed $300,000 over three years with two, one-year renewal options with future year funding contingent on council budget approval.
Summary
The City of Santa Monica’s Engineering and Street Services and Architecture Services Divisions within the Public Works Department manage the construction of an average of 33 projects annually, valued at approximately $35 million in annual construction volume (excluding substantial unique projects). Both Divisions have been using Procore Technologies, Inc. (Procore) software since 2017 to manage project-specific data during the construction phases of Capital Improvement Program (CIP) projects. City staff have invested considerable time customizing the software to the City’s needs, learning to use the full capabilities of the program, and training other City staff in its use. Additionally, Procore offers unique capabilities to meet the requirements, standards, and needs of the City. As a result, staff recommends awarding a three-year agreement with Procore 2 of 4
as an exception to competitive bidding per Santa Monica Municipal Code (SMMC) Sections 2.24.250(b) with two, one-year renewal options for an amount not to exceed $300,000 over five years for construction project management software.
Discussion
The City of Santa Monica’s Public Works Department builds and maintains the infrastructure that serves the community. The Engineering and Street Services and Architecture Services Divisions within the Public Works Department have subscribed to Procore for the past six years.
A Request for Quotes (RFQ) was issued in July 2017. Six vendors responded and Procore was selected as the best bidder. Procore was the second lowest bidder and offered an out-of-the-box solution that was simultaneously customizable to the City’s needs. This met the implementation goals and requirements of the staff responsible for managing the City’s construction projects. The award of the RFQ resulted in a threeyear contract, ending in December 2020. Under the renewal terms of the contract, staff had the option to extend the contract for an additional one-year period, which resulted in a one-year term extension to December 2021. In 2021, an Exception to Competitive Bidding was approved under the City Manager’s authority to continue service through December 2023.
Use of the software allows Engineering and Street Services and Architecture Services staff to standardize, maintain, and administer CIP projects through proprietary subscription-based construction project management software from Procore, the only provider of this software.
Renewing the Procore license is essential to maintaining and supporting the construction of the City’s annual CIP projects on an on-going basis. Procore offers proprietary construction management software that is uniquely tailored to the City’s needs and use. Procore’s software platform is specifically targeted for construction, which has resulted in successful management of project data by City staff. The platform is designed to streamline and connect to a wide range of other software systems used 3 of 4
in the construction management process. Introducing new software at this time would be costly due to the time that would be required to retrain staff, import historic project data, customize project information, and establish new standards for City staff usage.
Prices obtained from Procore for the next three years are competitive with the original proposal received in 2017.
Vendor Selection
Exception to Competitive Bidding
Procore offers proprietary construction management software that is uniquely tailored to every agency’s needs and use. The platform is designed to streamline and connect to a wide range of integrations and compliment other software systems such as Bluebeam, DocuSign, MS Office, SharePoint, and Primavera. The current system meets the needs of the staff responsible for construction management. Furthermore, City staff have invested years of time to learn and integrate the software into daily use. Soliciting new bids for the software could disrupt the City’s operations as the implementation of new software or services would divert staff resources away from other priorities and increase the risk of errors and disruptions. Staff recommends that Procore Technologies, Inc. be retained to provide proprietary subscription-based construction project management software as an exception to competitive bidding per SMMC Sections 2.24.250(b). b. Good or service is only available from one license holder, including, proprietary goods.
Environmental Review
The award agreement is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The agreement is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The agreement will continue to provide the City with project management software services for administrative functions. Therefore, it can be seen with certainty that the contract would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA. 4 of 4
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund and Water Fund to award a contract with Procore Technologies, Inc. for software services for construction management administration of capital projects.
Contract Request
FY 2023-24
Budget
Request Amount
Future Years
Amount CIP Account # Total Contract
Amount
$50,000 $200,000 C0108040.689000 $250,000
$10,000 $40,000 C5004850.689000 $50,000
$60,000 $240,000 Total $300,000
Future year funding is contingent on Council budget approval.
Prepared By: Sebastian Felbeck, Senior Construction Manager Approved Forwarded to Council
Attachments:
A. Oaks Initiative Form - Procore Technologies, Inc.