SR 09-26-2017 3B (2)
City Council Report
City Council Meeting: September 26, 2017
Agenda Item: 3.B
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To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer, Information Systems Department
Subject: Software License Agreement for ISD Service Management System
Recommended Action
Staff recommends that the City Council:
1. Award RFP #117 to Carahsoft Technology Corporation, a Virginia-based
company, for the purchase and implementation of the Information Technology
Service Management (ITSM) solution, ServiceNow.
2. Authorize the City Manager to negotiate and execute an agreement with
Carahsoft Technology Corporation, in an amount not to exceed $1,017,000
(including $88,000 contingency), over a five-year period, with future year funding
contingent on Council budget approval.
Executive Summary
The Information Services Department (ISD) provides technology support and advisory
services to the City’s computer users. Reliable access to technology has become a
mission critical part of delivering cost-effective excellent service. ISD manages
requests for services via an Information Technology Service Management (ITSM)
system. The department’s ITSM has become outdated and no longer meets ISD’s
needs as a tool to address the City’s evolving IT demands. This has led to process
inefficiencies, redundant work for staff, and has contributed to delays in service-delivery
due to staff reliance on work-around solutions. In April 2017, staff conducted a
competitive bidding process to assess the ITSM market to confirm whether upgrading
the existing system would yield the best return on investment, as compared to
purchasing an out-of-the-box, more feature-rich solution to better meet the City’s needs.
As a result of the competitive process, staff identified ServiceNow as the solution that
best aligns with City requirements. At this time, staff recommends executing a contract
with Carahsoft Technology Corporation for licensing, training, and implementation
services of ServiceNow. The initial costs for implementation, including year one
licensing, training and $88,000 contingency, would be $531,000. The ongoing licensing
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costs for year two through five would be $486,000. The total five-year not to exceed
contract amount would be $1,017,000.
Background
ISD provides technology support and advisory services to the City’s computer users.
The department fulfills citywide hardware, software, and installation service requests in-
person and by phone. These requests are managed via an ITSM system which is used
to resolve and track requests, incidents, and problems, as well as to manage hardware
and software via a unified endpoint management system module.
ISD has been using ITSM systems since 1996. Since that time, the City’s reliance on
technology has matured and so have department needs. Today, given the focus on
mobility, security and service delivery, ISD is implementing best practices such as ITIL
(a set of detailed practices for ITSM that focuses on aligning IT services with the needs
of business) to better serve the City. The current system no longer meets the needs of
the department. Staff issued an RFP in April 2017 to evaluate the marketplace.
Discussion
The City is driving changes in the way everyday business is conducted. Initiatives such
as Total Workplace, which promotes an environment where staff can work securely
from anyplace and at any time, embraces the use of new mobile technologies such as
laptops, tablets, smartphones, and cloud-based software. In order to support an ever
evolving mobile and flexible work environment, the ability to provide remote support for
mobile technologies is imperative. Additionally, on demand services such as password
reset and software installation, need to be automated and available through a self-
service portal. These needs have incited changes that require ISD to evolve by
adopting a different approach to service delivery. The ITSM solution selected
addresses these needs by providing a streamlined service approach incorporating the
use of widely recognized IT industry best practices and processes, ITIL.
Vendor/Consultant Selection
On April 27, 2016, the City issued a Request for Proposals (RFP) for the purchase and
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implementation of a new ITSM solution. The RFP was posted on the City’s online
bidding site and notices were advertised in the Santa Monica Daily Press, in
accordance with City Charter and Municipal Code provisions. A total of 1,620 vendors
were notified, 101 vendors downloaded the RFP. Seven firms responded. Responses
to the RFP were reviewed by a selection panel of staff from the Information Services
Department. Proposals were submitted by the following firms for implementation
services of their proposed ITSM solution: Acktinos, Allied Digital Services LLC,
Carahsoft Technology Corp., Ivanti, Inc., Marxtar, Online Business Systems, and RjR
Innovations.
Evaluation was based on the following selection criteria: firm’s system implementation
experience, ability to meet project work plan and timeliness, cost of services, stability
and references, value added-breadth of service, and presentation/demonstration of
proposed solution. Staff then shortlisted and interviewed the three top firms. Staff also
conducted interviews with the software manufacturers to better evaluate the proposed
solutions. Based on this criteria and criteria in SMMC 2.24.073, staff recommends
Carahsoft Technology Corp. as the best qualified firm for the purchase and
implementation of ITSM solution, ServiceNow. Carahsoft’s proposed solution,
ServiceNow, best aligns with the City’s IT needs in terms of an up-to-date feature-rich,
ITIL compliant solution.
The ServiceNow product features and user interface will improve the end-user
experience as it relates to ease of use. The product focuses on managing end-user
activities and processes as a service, to better define structure and to automate
workflow. This service-oriented approach facilitates system expandability for use in
other non-IT areas, such as facilities management, project management, and human
resources. This expandability could have the potential to unify a variety of City Services
under one software platform. Carahsoft has had extensive experience managing similar
engagements for public agencies, such as City of Long Beach, County of Sacramento,
and Cal State LA. The firm’s proposal best adheres to product requirements in terms of
proposing a feature-rich, cloud-based solution. Carahsoft received praise from their
references for their effective implementation approach and process analysis, which led
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to the success of the ServiceNow system in their organization.
Financial Impacts and Budget Actions
The contract to be awarded to Carahsoft Technology Corporation is for an amount not
to exceed $1,017,000. Funds of $531,000 are available in the FY 2017-18 budget in
the Information Services Department and the Capital Improvement Program. The
contract will be charged to accounts S010160.589000 ($304,000) and
C55000314.589000 ($227,000). Future year funding is contingent on Council budget
approval.
Prepared By: Yvonne Varela, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Oaks_Initiative-Carasoft
CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
REFERENCE:
AGREEMENT NO. 10549
(CCS)