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
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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.
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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.
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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)
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