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SR 06-14-2016 3E City Council Report City Council Meeting: June 14, 2016 Agenda Item: 3.E To: Mayor and City Council From: Gigi Decavalles-Hughes, Director, Finance Department, Procurement 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 second modification to Contract #1450 in the amount of $19,125 with four one-year options totaling $82,415 for a total amended amount of $101,540 with PlanetBids Incorporated, a California-based company, to provide maintenance and product support services for the online bidding portal pursuant to Section 2.24.080(b) of the Santa Monica Municipal Code. This will result in a 14 year amended agreement with a new total amount not to exceed $313,863, with future year funding contingent on Council budget approval. Executive Summary PlanetBids is the on-line bidding portal that the City currently uses to advertise informal and formal solicitations. The current contract expires on June 30, 2016. Staff recommends a modification to the existing agreement that piggybacks on the City of Palo Alto Contract No.S15155399. The five year extension will result in a 14 year amended agreement with a new total amount not to exceed $313,863. Background 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 current bid and proposal solicitations. Additionally, vendors wanting to do business with the City may create a profile that allows them to be notified when the City is soliciting proposals for certain commodities and services. Currently there are 14,172 vendors registered with the City through PlanetBids. The City also has the ability to open its solicitations to an additional 250 vendors registered 1 of 4 with other public agencies within the surrounding region. On average, the City posts 450 formal and informal solicitations annually. 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 ifications and product support requirements. The City has used PlanetBids to post online solicitations since 2007. On May 27, 2014 (Attachment A), Council authorized the City Manager to negotiate and execute a first modification to the contract, extending the term by two years, for a nine- year agreement in an amount not to exceed $212,323. The two-year extension was to delay reissuing a Request for Proposals for web-based vendor and bid management systems so that staff could evaluate any similar services available through its new Enterprise Resource Planning (ERP) system. Discussion As part of the ERP selection process, staff requested that proposers offer a vendor and bid management portal that would provide the system functionalities currently offered by PlanetBids. The City selected Tyler Technologies to replace its existing ERP system in May 2015. Tyler vendor and bid management system does not provide the comprehensive service PlanetBids offers in centralized posting, centralized communication, and access to additional vendors; and in addition would require all existing vendors to re-register through the Tyler System. In addition to offering a better platform, PlanetBids provides Reverse Auction and Emergency Operations (EO) Mobile modules that respond to current needs. The Reverse Auction module allows vendors to bid against each other on an electronic bidding system, increasing the likelihood that the City purchases the commodity at the lowest price. The EO Mobile module allows staff to access the vendor portal via a mobile operation system (IOS) device during an emergency, resulting in a faster response that could minimize the impact of a disaster. 2 of 4 PlanetBids provides the City access to a larger database of vendors, including those not registered with the City, and offline access to all information from the application that is stored on the IOS device. When preparing to issue a Request for Proposals (RFP), the City found that a number of other California cities had recently completed competitive processes for vendor management portals and had selected PlanetBids. Palo Alto is one of several cities that issued such a request procurement process allows for other cities to piggyback on its contracts. Since those Santa Monica to access a quantity discount it might not otherwise receive as it is only paying for up to 10. Contractor Selection Section 2.24.080(b) of the Santa Monica Municipal Code, Exception to Competitive Bidding, allows the City to utilize a competitive bidding process that has already been completed by Federal, State, County, City or special district government agencies, to purchase the same supplies or equipment that the other entity has already purchased under an existing bid. Staff recommends utilizing this process in this case in order to obtain the most competitive pricing. Procurement staff obtained copies of other proposals for like services from the City of No.S15155399, awarded to PlanetBids on June 1, 2015 would be able to save the City money on the per license cost compared to prices quoted to Santa Barbara for similar services. Additionally, the EO module implementation fee included in the Palo Alto PlanetBids agreement is a third of the cost of what City of Palo Alto and City of Santa Barbara had paid previously. Staff estimates that piggybacking on the City of Palo will save the City over $4,500 annually compared to comparable prices quoted to other cities for similar services. 3 of 4 Financial Impacts and Budget Actions The agreement modification to be awarded to PlanetBids Inc. is for $19,125, for an amended agreement total not to exceed $313,863. Funds are available in the approved FY 2016-17 budget plan in the Finance, Public Works, and Information Services Departments. The agreement will be charged based on use, to the following accounts: 01221.533580 $11,475 01402.533580 $ 2,869 01403.533580 $ 2,869 01243.533580 $ 1,912 TOTAL $19,125 Future funding is contingent upon Council approval and budget adoption. Prepared By: Araceli Esparza, Purchasing Services Manager Approved Forwarded to Council Attachments: A. May 27, 2014 Staff Report (web link) 4 of 4