SR 11-13-2018 3D
City Council
Report
City Council Meeting: November 13, 2018
Agenda Item: 3.D
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To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer, Information Services Department
Subject: Carahsoft Contract Modification for implementation services for the City’s
Service Management Platform, ServiceNow
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a second modification to agreement #10549 (CCS) with Carahsoft Technology
Corporation, a Virginia-based company, for implementation services for the City’s
service management platform, ServiceNow, for an amount not to exceed $359,382
(Including $22,350 contingency). This will result in a 5-year amended agreement with a
new total estimated amount of $1,376,382, with future year funding contingent on
Council budget approval.
Summary
In our efforts to deliver a 21st Century government that works better and costs less, the
City is currently implementing ServiceNow to replace the current Information
Technology Service Management (ITSM) platform. This will give us stronger tools to
modernize and enhance service delivery, business process automation, and
collaboration across departments. During the course of implementation, staff has
identified additional capabilities for automation and process improvements. Staff
recommends modifying the existing agreement with Carahsoft Technology Corporation
to expand the scope of the ServiceNow implementation to include two additional system
modules: one for business process management to assist with current efforts towards
digitizing business processes to improve service to community customers, and one for
project and portfolio management to assist with the management of the Information
Services Department project portfolio.
Discussion
Council authorized City staff to replace the ITSM solution with ServiceNow in
September 2017. The original scope of implementation is nearly complete. During
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implementation, staff identified business improvement processes that would benefit
from the use of two new software modules in ServiceNow.
Business Process Management
The City is in the process of identifying improvement opportunities through digitizing and
streamlining complex business processes such as those involved in procurement of
goods and services. In December 2017, the City issued a Request for Proposals (RFP)
to identify a software solution for Business Process Management (BPM) to assist with
development of digital business processes and analytic tools to enhance service
delivery. RFP#150 was advertised on the City’s online bidding site and advertised in
the SMDP. A total of 1,485 vendors were notified, 57 vendors downloaded the RFP and
3 firms responded. Responses were reviewed by a selection panel from the Finance
and Information Services Departments. Proposals were submitted by Carahsoft
Technology Corp. (Carahsoft), K2 technologies, and Interfacing Technologies.
Carahsoft’s proposal of ServiceNow was selected due to its flexibility, ability to fulfill the
needs of highly customized workflows through a well-documented and capable
application programming interface (API), and easy to use tools for developing workflow
solutions for simple business processes. Moreover, ServiceNow offers a rich ecosystem
of partners and consultants, enabling the City to choose from a wide pool of
professional service providers, if necessary. The total cost of this project is $153,740,
including $122,100 for skill development and training, and four-year licensing costs
totaling $31,640. The total cost of $153,740 was under the city manager’s authority an d
executed under contract #4489. In an effort to integrate all services under one contract
it is being incorporated into the existing ServiceNow contract.
Project and Portfolio Management
The Information Services Department (ISD) is implementing a framework for managing
project activities, and the IT project portfolio. In March 2018, City staff conducted a
competitive bidding process to assess and determine which project and portfolio
management software best met organizational needs. A short list of 6 so lutions was
generated after investigating over 70 project and portfolio software products. Each of
the 6 solutions were deemed excellent and met requirements to varying degrees.
ServiceNow was selected since it met all the functional requirements and was able to
provide the most unified experience with the existing ITSM platform. The total cost of
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this project would be $205,642, including $108,750 for implementation and training, and
four-year licensing costs totaling $96,892 ($24,223 annually).
To leverage the City’s investment in its ITSM system, staff recommends modifying the
existing agreement with Carahsoft to increase licensing and expand the scope of
implementation services of ServiceNow to include business process management and
project management.
Past Council Actions
Meeting Date Description
09/26/2017
(Attachment A)
Original bid and award of agreement with Carahsoft for
ServiceNow products and services
Financial Impacts and Budget Actions
Future year funding is contingent on Council budget approval.
Staff seeks authority to increase the amount of the agreement with Carahsoft
to license and implement additional functionality. Contract Modification
Request: Carahsoft
Agreement #
Current
Authorized
Amount
Modified
Request
Amount
FY 2018-19
Budget Dept/CIP
Account #
Total Revised
Contract
Amount
10549 (CCS) $1,017,000 $1,017,000
$85,470 SO019701.689000 $85,470
$108,750 C7100030.689000 $108,750
$96,892 01140001.529230 $96,892
$68,270 Finance TBD $68,270
TOTAL $1,376,382
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Prepared By: Yvonne Varela, Project Portfolio Manager
Approved
Forwarded to Council
Attachments:
A. September 26, 2017 Staff Report (Web Link)
B. Oaks Initiative Disclosure - Carahsoft
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:
Carahsoft Technology Corporation
Name(s) of trustees, directors, partners, and officers:
Craig P. Abad
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Craig P. Abad
Prepared by: __________ Title: Contracts Manager
Signature:
Email: contracts@carahsoft.com
FOR CITY USE ONLY:
Bid/PO/Contract# _________ _
Date: 06/ 15 /2018
Phone: 703-871-8500
Permit# _________ _
Kristina Smith
REFERENCE:
Modified Agreement
No. 10549
(CCS)