SR-05-27-2014-3ICity Council Meeting: May 27, 2014
Agenda Item: 31
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Director of Finance
Subject: Modification to Contract with PlanetBids, Inc. for Maintenance and Product
Support Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a first modification to Contract #1450 in the amount of $25,611 with a one year
option to renew for $26,891 with PlanetBids Incorporated, a California- based, company,
to provide maintenance and product support services for the online bidding site. This
will result in a nine year amended agreement with a new total amount not to exceed
$212,323, with future year funding contingent on Council budget approval.
Executive Summary
PlanetBids is the on -line bidding site that the City currently uses to advertise informal
and formal solicitations. Vendors wanting to do business with the City can create a
profile listing all the commodities they want to be notified on. The current contract
expires June 30, 2014.
Staff is recommending that a request for proposals process for a vendor and bid
management system be postponed for two years pending the selection and
implementation of a new Enterprise Resource Planning (ERP) financial system. Many
ERP systems offer the same system functionalities that are offered by PlanetBids. If the
City selects a product for the ERP that does not include this portal, staff would then
solicit Request for Proposals for a vendor and bid management system. The two year
extension will result in a nine year amended agreement with a new total amount not to
exceed $212,323.
Background
The City has used PlanetBids to post online solicitations since 2007. PlanetBids is a
fully automated web -based vendor and bid management system that allows the posting
of all solicitations in a centralized location and ensures that all vendors receive the
same communications regarding solicitations. This system simplifies the process of
doing business with the City by providing vendors with a searchable on -line database of
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current bid and proposal solicitations. The original contract for one year with two one -
year renewal options was executed by the City Manager in 2007. In 2010, the City
Manager executed a new contract for one year with three one -year renewal options, but
kept the same contract number. At that time the total contract amount was not
cumulative and the contract was executed by the City Manager as the new contract
amount was under his authority. This modification incorporates both contracts and their
renewal options which total nine years.
Discussion
Currently there are 11,972 vendors registered with the City through PlanetBids. The
City also has the ability to open its solicitations to an additional 250 vendors registered
with other public agencies. On average, the City posts 330 formal and informal
solicitations annually.
The City is currently requesting proposals for a new Enterprise Resource Planning
(ERP) system. Proposers were requested to provide a vendor and bid management
portal that would provide the same system functionalities that are offered by PlanetBids.
If the City selects a product for the ERP that does not include this portal, staff would
then solicit a Request for Proposals for a vendor and bid management system. This
modification would allow the City to continue utilizing PlanetBids while staff reviews
emerging technologies and new software collaboration products, including those related
to the bidding process, which would be introduced via the ERP Request for Proposals
(RFP). Staff would then perform a cost analysis to weigh the City's business needs,
new technologies and ability to merge all existing registered vendors into the new
system.
Contractor Selection
In order to evaluate competing systems in 2007, staff published a Request for
Proposals (RFP) and evaluated various vendor solutions. Responses were evaluated
by a multi - departmental committee based on product approach, cost, and ability to meet
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the City's technical specifications and product support requirements. PlanetBids was
determined to be the best bidder and met the City's technical specifications and product
support requirements.
Financial Impacts & Budget Actions
The agreement modification to be awarded to PlanetBids Inc. is for an amended
agreement total not to exceed $212,323 over a period of nine years. Funds in the
amount of $25,611 are available in the approved FY 2014 -15 budget plan in division
01221; the agreement will be charged to account 01221.533580. Budget authority for
subsequent years will be requested in each budget cycle for Council approval. Future
funding is contingent upon Council approval and budget adoption.
Prepared by: Araceli Esparza, Purchasing Services Manager
Approved:
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Gigi Decavalles- ghe
Director of Finance
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Forwarded to Council:
"R�
Rod Gould
City Manager
Reference:
Contract No. 9909
(CCS)