SR 10-26-2021 3C
City Council Report
City Council Meeting: October 26, 2021
Agenda Item: 3.C
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To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer, Information Services Department
Subject: Approval of Agreement Modification with Carahsoft Technology Corporation
for Service Now Contract Extension
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a third modification to agreement #10549 in the amount of $965,769 with
Carahsoft Technology Corporation for technology service management services for the
Information Services Department. Staff also recommends that the City Council
authorize the City Manager to negotiate and execute a 5-year amended agreement for a
total contract term of 10 years with Carahsoft Technology Corporation and a contract
authority amount not to exceed $5,738,259.
Summary
ServiceNow is the City’s enterprise workflow and service fulfillment platform that staff
procures through Carahsoft Technology Corporation. It is a best-in-class Software as a
Service (SaaS) system that provides digital workflows, tracking, service fulfillment, and
metrics and is the foundational technology supporting the City’s 311 Customer Manager
System and the City of Santa Monica App, Project Portfolio Management, and
Information Technology Service Management. It is used by every department in the City
for the tracking and fulfillment of constituent and staff requests for service and reporting
of incidents. To continue to support the City’s digital customer experience and further
digitize workflows and processes, staff seeks to expand the use of ServiceNow in a
phased implementation over five years.
Background
In 2017 the City began using ServiceNow for Information Technology Service
Management (ITSM) in the Information Services Department (ISD). In 2018, ISD
implemented the Project Portfolio Management (PPM) module of ServiceNow to assist
in the management and tracking of the City’s approximately 123 technology projects. In
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2020, the City further leveraged the ServiceNow platform by implementing the
Customer Service Management (CSM) module enabling digital workflow fulfillment for
internal staff and external constituent requests/reports.
Also, in 2020, the City implemented the Human Resource Management On/Off-
boarding modules (HRM) to support automation and digitization of Human Resource
processes.
Discussion
The ServiceNow platform allows the City to enhance service delivery, automate
business processes, and enhance collaboration across departments. The current
annual subscription cost for ServiceNow’s SaaS platform, $336,725, includes licensing,
support, and maintenance of the platform as well as the Information Technology Service
Management module, the Human Resources onboarding/offboarding module, and one-
time, short term licensing for Customer Service Management (City of Santa Monica 311
App) that was necessary to address customer service interactions to support the
functions of the City during COVID. Staff recommends modifying the existing contract
with Carahsoft Technology Corporation to renew the existing platform and modules as
well as add additional system functionality to support field service management in
support of Public Works and the Department of Transportation. The annual subscription
cost for year 1 of this contract would increase from $336,725 to $615,769. Staff also
recommends funding a one-time cost of $350,000 to support the project implementation
of this additional functionality. The total year 1 cost for ServiceNow and implementation
services is $965,769.
The ServiceNow platform automates a wide array of business processes and supports
the City’s ability to provide digital services expeditiously, efficiently, and securely. The
platform includes a unified, streamlined, “customer-friendly” interface for constituents
and City staff. The ServiceNow platform allows City staff to build applications and
enhancements rather than relying on third-party vendors to develop or code workflows
in complicated programming languages. This allows staff to focus resources on a single
platform to provide more robust, sustainable, and resilient support.
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This contract modification addresses a five-year projection of additional ServiceNow
capabilities that enable and support customer service engagement, asset management,
facilities management, project management, information security management, and
administration of human resources processes. This will allow the City to continue to
unify services under one software platform and consolidate the City’s technology
infrastructure versus maintaining multiple, disparate systems.
In March 2021, the Customer Service Management (CSM) module was added to
address the deficiencies in customer service interactions during the pandemic. CSM
allows Santa Monica residents and visitors to submit non-emergency requests that are
automatically routed to departments based upon geo-location and type. The
implementation of CSM has achieved resolution time reductions, more efficient use of
staff time, and greater comprehensive awareness of constituent requests. While the
initial implementation of 311 system was within the scope of the current contract, the
continued growth of this system will require additional licensing to sustain and support
wider staff and constituent use.
In 2020, a Moss Adams internal audit report on Human Resources recommended that
the City implement a robust digital automation system to support HR processes. In July
2021, the Human Resources Management (HRM) module was added to improve the
employee experience. This module automates HR interactions, achieves efficiencies,
improves data accuracy of interactions, enhances reporting, and fosters a paperless
experience for employees. It also provides the City with the ability to automatically
On/Off board employees to access control systems thereby enhancing our information
technology and physical security.
The Information Services Department in collaboration with City departments has
created a comprehensive five-year plan to support the current use of ServiceNow and to
support additional functionalities and modules that will allow the City to expand and
enhance its ability to provide digital services in support of an exceptional digital
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constituent experience as resources are made available through the budget process.
Below is an overview of the full five-year implementation plan:
Year 1:
• Improve the core ServiceNow SaaS platform allowing for greater integration and
more agile staff workflow and process development.
• Enhance the Project Portfolio Management system to track Capital Improvement
Program (CIP) projects.
• Expand and support the growth of the City of Santa Monica 311 App and
fulfillment system to include all staff who provide direct service to the public. The
annual subscription cost for the additional licenses for (CSM) module is $145,824
and will require one-time implementation fees of $150,000 for CSM and
ServiceNow Core expansion.
• Add new functionality for Public Works and the Department of Transportation
through the new Field Service Management (FSM) module. FSM will allow for
greater transparency of staff time allocation and demand for services, automate
manual processes, eliminate redundant applications, and improve staff
efficiencies. The elimination of redundant applications will save the City $79,000
annually. The annual subscription cost for FSM module is $143,808 and will
require one-time implementation fees of $200,000.
• Remove existing licenses for PPM $3,397 and for ITSM $7,190 dashboards from
our current annual licensing.
• The annual subscription cost for Year 1 of this contract is $615,769.
Year 2:
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• Enhance the City’s cyber resilience by implementing the IT Security Operations
Module (SecOps). The Security Operations Module (SecOps) provides additional
vulnerability and threat management functionality and decreases security
incident response times. This annual subscription cost for SecOps functionality is
$47,318. The ServiceNow SecOps module will require one-time implementation
fees of $190,000.
• Add dashboard capabilities for Project Management $3,397 which were removed
in Year 1.
• The subscription cost for Year 2 will be $666,485
Year 3:
Improve automation and efficiencies of HR services by upgrading to the complete
ServiceNow HR Enterprise suite. ServiceNow HR Enterprise provides a single
platform for all HR employee life cycle management services, case management,
and HR Service Management. These new capabilities will improve the employee
experience, allow employees to access and modify Human Resources
information anytime, anywhere from any device, and improve HR staff
efficiencies. The annual subscription cost for HR Enterprise is $123,423.
• Improves internal ISD efficiencies through the implementation of hardware and
software asset management modules. In 2019, a Moss Adams audit of the City’s
technology infrastructure found that the City lacked an IT asset management
system for technology investments. Hardware Asset Management (HAM) will
provide the capability to track and manage hardware investments. Software
Asset Management (SAM) will automate the tracking and managing of software
investments, automate software license management, reduce total software
costs for the City, and assist in achieving compliance with our software licensing
agreements. Year 3 will also include additional dashboard capabilities for IT
service management. The annual subscription costs for Hardware and Software
Asset Management are $33,360. The annual subscription for the additional
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dashboards is $7,190. There will be one-time costs of $270,000 to implement
and configure Hardware and Software Assessment Management and HR
Enterprise.
• The subscription cost for Year 3 will be $756,541
Year 4 and Year 5:
• Annual subscription costs are estimated to remain at $756,541.
Annual Subscription
Costs
One-time
Implementation
Costs
Combined Total
Current $ 336,725 $ - $ 336,725
Phase 1 Enhancements $ 279,044 $ 350,000 $ 629,044
Total with Year 1 $ 615,769 $ 350,000 $ 965,769
Future Enhancements
Year 2 Enhancements $ 666,485 $ 190,000 $ 856,485
Year 3 Enhancements $ 756,541 $ 270,000 $ 1,026,541
Total with All Enhancements $ 1,423,026 $ 460,000 $ 1,883,026
Annual Amount Year 4 $ 756,541
Annual Amount Year 5 $ 756,541
Existing Contract Authority $ 1,376,382
Total Contract Authority $ 5,738,259
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Past Council Actions
Meeting Date Description
9/26/2017
(attachment A)
Contract Award to Carahsoft Technology Corporation for the
purchase and implementation of the Information Technology
Service Management (ITSM) solution, ServiceNow.
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.
11/13/2018
(attachment B)
Second Modification to Carahsoft Technology Corporation
for the purchase and implementation of the Information
Technology Service Management (ITSM) solution,
ServiceNow.
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.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding for Year 1 from the General Fund and to modify
the contract with Carahsoft Corporation for software licensing, hosting, and
maintenance. Funds are available in the FY 2021-22 budget in the Information Services
Department and the Capital Improvement Program for Year 1 costs of this contract.
Staff also seeks contract authority for $5,738,259. Staff will return to Council to seek
additional budget authority to fund future enhancements in years 2 through 5.
Contract Modification Request
Current
Authorized
Amount
Modified
Request
Amount
FY 2021-22 Budget Dept/CIP
Account #
Amount
$1,376,382 $965,769 C7100030.689000 $745,769
C0107670.689000 $164,991
C6004770.689000 $55,009
Total Contract: $5,738,259
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Prepared By: Margaret Talamantes, Administrative Services Officer
Approved
Forwarded to Council
Attachments:
A. September 26, 2017 Staff Report (Web Link)
B. November 13, 2018 Staff Report (Web Link)
C. Santa Monica Oaks Initiative - Carahsoft
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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 # ___________________________
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Packet Pg. 496 Attachment: Santa Monica Oaks Initiative - Carahsoft (4607 : ServiceNow Contract Modification 3)