SR 10-11-2022 5E
City Council
Report
City Council Meeting: October 11, 2022
Agenda Item: 5.E
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department
Subject: Award RFP for Enterprise Procurement Lifecycle Management Solution
Recommended Action
Staff recommends that the City Council:
1. Award RFP PRJ0011599 to OpenGov, Inc. for an enterprise Procurement
Lifecycle Management Solution (PLMS) for the Finance Department;
2. Authorize the City Manager to negotiate and execute an agreement with
OpenGov, Inc. for annual subscription costs related to OpenGov’s enterprise
PLMS, which includes solicitation builder and online bidding capabilities, in an
amount not to exceed $392,805 (including a 10% contingency of approximately
$35,700) for five years with future year funding contingent on Council budget
approval; and,
3. Authorize the City Manager to negotiate and execute a second modification to
agreement #4473 in the amount of $17,600 with OpenGov, Inc. to continue to
use and pay the subscription costs for their solicitation builder and online bidding
system through December 2022, while the new agreement associated with
award of RFP PRJ0011599 is finalized.
Summary
The purchase of an enterprise Procurement Lifecycle Management Solution (PLMS)
would allow the City to continue to use an intuitive, efficient and easy to use
procurement process that includes online self-service and collaboration features that
simplify researching, building, evaluating and awarding solicitations, and enables the
City to broadcast solicitations to a wide set of vendors. This system allows staff to
maintain important controls to ensure transparency and the integrity of the competitive
bidding process. Staff recommends awarding RFP PRJ0011599 and approving the
execution of a contract with OpenGov, Inc. for the purchase of a PLMS for a five year
period. Staff also recommends approving a second modification to agreement #4473
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with OpenGov, Inc. to continue to use and pay the subscription costs for their
solicitation builder and online bidding system through December 2022, while the new
agreement associated with the RFP award is finalized.
Background
For over 15 years, the City has used a centralized vendor and bid management system
to post procurement solicitations online. In September 2018, the City entered into a
three-year agreement with Govlist, on a trial basis, to try out additional desired
functionalities, including a request for proposal (RFP) and solicitation-writing tool, a
scope of work library module, an interactive vendor sourcing portal, an online evaluation
management tool, and an analytics and reporting tool. The City used Govlist (which
changed its name to ProcureNow in April 2019) alongside its previous online solicitation
tool.
In 2021, the City shifted all its solicitation development and posting activity to
ProcureNow, due to its ease of use and robust functionality. On July 1, 2021,
ProcureNow was acquired by OpenGov and was rebranded as OpenGov Procurement
(OpenGov). The City continued to use OpenGov on a month-to-month basis pending
the completion of the RFP process for the Procurement and Contract Lifecycle
Management Solution, which was delayed as a result of staffing vacancies and
reprioritization of projects due to COVID. This contract has now exceeded the City
Manager’s administrative authority and requires Council approval to continue until
December 2022, when staff anticipate having a new contract in place.
On March 17, 2021, the City posted an RFP for a Procurement and Contract Lifecycle
Management Solution in an effort to implement a single centralized solution that would
automate and manage 1) all procurement functions and 2) all contract management
functions, including solicitation, vendor selection, contract execution, and contract
administration. Staff has paused the selection and implementation of a contract
management solution at this time due to workload concerns given a number of higher
priority projects, and budgetary concerns. The City will continue to use a basic
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SharePoint repository to manage contracts; however, the OpenGov solicitation builder
and online bidding system capabilities must continue.
Discussion
The Procurement Division (Procurement) of the Finance Department is responsible for
the citywide procurement of goods and services used in the delivery of City services.
Procurement is also responsible for developing and implementing procurement policies
and procedures, and for providing contract administration guidance and support to all
City departments. Annually, Procurement completes over 100 solicitations and supports
over 1,150 active agreements throughout the City, including the review and approval of
new agreements and modifications, financial management of contract balances and
monitoring contracts for compliance with City requirements and policies.
The City uses OpenGov as its solicitation and RFP builder and as its online bidding
solution. OpenGov’s existing functionality enables users to develop procurement
requests using a “Turbo-Tax-like” interface that guide users through the process to
create bids and RFPs. The system serves as the City’s online bidding system to post
and publish bids and proposals broadly to a wide set of vendors. OpenGov provides
management and support for the vendor selection process including automated
tabulation of bids and proposal scores and interview and demonstration management.
The automation of pricing table/proposal comparisons alone saved the Procurement
Division hours of staff time spent manually consolidating this information. OpenGov
also provides access to an inventory of other agencies’ bids, RFPs, product
specifications, and scopes of work, which serve as reference materials for staff and
enhance the quality of City solicitations. Overall, the features and functionality provided
by OpenGov are robust in comparison to the other solutions evaluated through the RFP;
they provide the best functionality that meets the needs of the City.
Approval to purchase the PLMS would enable staff to continue to use an intuitive and
easy to use system to manage the procurement process and ensure that the City
maintains important safeguards and controls to ensure transparency and integrity in the
procurement process.
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While staff is not seeking approval to purchase a contract management solution at this
time, staff will continue to evaluate the need for implementing such a solution and will
return to Council for approval to purchase a contract management solution as
necessary.
Vendor Selection
Bidder Recommendation
Best Qualified
Person/Firm
OpenGov, Inc.
Evaluation Criteria
Experience and ability to perform services promptly, project
approach, cost, value add/breadth of service, and
functional capabilities.
Municipal Code SMMC 2.24.190
RFPs Received
Autocene, Inc. CGI Technologies and
Solutions, Inc.
CobbleStone Software
*Govlist, Inc. (dba
ProcureNow) (now operating
as OpenGov, Inc.)
Icertis, Inc. Keenology Corp.
Pantheon, Inc. Premikati Sysoft
*Acquired by OpenGov, Inc.
RFP Data
Posted On Posted On
Advertised In
(City Charter &
SMMC)
Vendors
Downloaded
Date Publicly
Opened
03/17/2021 City's Online
Bidding Site
Santa Monica Daily
Press 76 07/14/2021
Justification to Award
Staff from the City Attorney’s Office, the Finance Department, the City Clerk, the
Information Services Department, and the City Manager’s Office evaluated and scored
all proposals for a procurement lifecycle management system and a contract
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management system, and then interviewed three shortlisted firms. The firms were
evaluated based on experience and ability to perform services promptly, project
approach, cost, value add/breadth of service, and functional capabilities. Based on
these criteria and criteria in SMMC 2.24.190, staff recommends awarding the
procurement lifecycle management to the incumbent OpenGov, Inc. as the best
qualified person or firm to provide the procurement lifecycle management portion of the
project. OpenGov, Inc. provides the best functionality that meets the needs of the City.
The City will not move forward with a contract management system at this time.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to award a
new contract with OpenGov, Inc. for the annual subscription costs of a procurement
lifecycle management system and authority to increase the amount of the existing
agreement with OpenGov, Inc. to extend the services through December 2022.
New Contract – OpenGov, Inc.
FY 2022-23 Budget
Request Amount Future Years Department
Account #
Total Contract
Amount
$78,561 $314,244 01300009.525070 $392,805
Contract Modification Request – Existing OpenGov, Inc. Contract
Agreement# Contract
Authorized
Amount
FY 2022-23
Modified
Request Amount
Department
Account
Total Revised
Contract
Amount
4473 $250,000 $17,600 01300009.525070 $267,600
Future year funding is contingent on Council budget approval.
Prepared By: Oscar Santiago, Budget Manager
Approved
Forwarded to Council
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Attachments:
A. OpenGov, Inc. FY22-23 Oaks
B. Original Contract - CT#4473 Govlist
C. 1st Modification to Contract#4473 OpenGov
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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.
DocuSign Envelope ID: AC14BA83-047A-4EDB-8986-0E9BC0365D95
5.E.a
Packet Pg. 112 Attachment: OpenGov, Inc. FY22-23 Oaks (5373 : RFP for Procurement Lifecycle Management Solution)
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:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
DocuSign Envelope ID: AC14BA83-047A-4EDB-8986-0E9BC0365D95
Waranya Simbeck
N/A
8/22/2022
OpenGov, Inc.
Head of Finance
msimbeck@open
gov.com
Officers -Zachary Bookman - CEO; Paul H. Denton - CAO; Thiago Sa Freire -
President; Suresh Seshadri - CFO; Ammiel Kamon - CTO
Directors - Zac Bookman, Joe Lonsdale, John Chambers, Marc Andreessen,
Katherine August-deWilde, Amy Hald
5.E.a
Packet Pg. 113 Attachment: OpenGov, Inc. FY22-23 Oaks (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 114 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 115 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 116 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 117 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 118 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 119 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 120 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 121 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 122 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 123 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 124 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 125 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 126 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 127 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 128 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 129 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 130 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 131 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 132 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 133 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 134 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 135 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 136 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 137 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 138 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
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Packet Pg. 139 Attachment: Original Contract - CT#4473 Govlist (5373 : RFP for Procurement Lifecycle Management Solution)
1
Contract No. 4473
FIRST MODIFICATION TO SAAS SERVICES AGREEMENT
This First Modification of SAAS Services Agreement No. 4473 ("First
Modification") entered into as of _________________(“Execution Date”), by and between
the City of Santa Monica, a California municipal corporation ("City"), on the one hand, and
OpenGov Inc. a Delaware corporation ("OpenGov"), and Govlist Inc., a Delaware corporation
("Govlist"), on the other hand, is made with respect to the following:
RECITALS:
A. On or about September 4, 2018, the City and Govlist entered into an SAAS
Services Agreement Contract No. 4473 ("Original Agreement") relating to a procurement and
solicitations solution.
B. The City has been informed that Govlist and OpenGov entered into that certain
Stock Purchase Agreement effective July 1, 2021. Govlist wishes to assign the Original
Agreement to OpenGov. OpenGov represents that it will provide and meet all of Govlist’s
obligations as set forth in the Original Agreement with the City.
C. The parties now enter into this First Modification for the assignment of the
Original Agreement to OpenGov on the terms and conditions set forth herein.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. Recital. The terms of the Recital are incorporated herein by reference as a term of
this First Modification.
2. Consent to Assignment. Based upon the representations made by Govlist and
OpenGov, the City hereby approves the assignment of the Original Agreement from Govlist
to OpenGov as of July 1, 2021. Effective as of July 1, 2021, OpenGov shall assume all of the
rights and obligations of Govlist under the Original Agreement.
3. Notices. All notices, demands, requests or approvals to OpenGov shall be sent
to 6525 Crown Blvd # 41340, San Jose, CA 95160, Attn: Legal, legal@opengov.com.
DocuSign Envelope ID: F5A612AE-5D29-4DB8-B663-06D1081C18D5
12/29/2021
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Packet Pg. 140 Attachment: 1st Modification to Contract#4473 OpenGov (5373 : RFP for Procurement Lifecycle Management Solution)
2
IN WITNESS WHEREOF, the parties execute this First Modification as of the date first
written above.
Assignor:
Govlist Inc.,
a Delaware Corporation
#VENDOR
_______________________________
NAME: Sean Wani
TITLE:
Assignee:
OpenGov,
a Delaware Corporation
#VENDOR2
___________________________________
NAME Paul H. Denton
TITLE: CFO
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
RICK COLE
City Manager
DocuSign Envelope ID: F5A612AE-5D29-4DB8-B663-06D1081C18D5
Interim City Attorney
12/23/2021
Joseph Lawrence
Secretary
12/23/2021 12/23/2021
City Manager
12/29/2021
David White
12/29/2021
City Clerk
Denise Anderson-Warren
5.E.c
Packet Pg. 141 Attachment: 1st Modification to Contract#4473 OpenGov (5373 : RFP for Procurement Lifecycle Management Solution)