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SR 03-08-2022 3G City Council Report City Council Meeting: March 8, 2022 Agenda Item: 3.G 1 of 4 To: Mayor and City Council From: Lori Gentles, Chief People Officer, Human Resources Department Subject: Approval of Reinstatement and Third Modification of Agreement with Governmentjobs.com dba NEOGOV for Legally Required Job Applicant Tracking Software, Remote Testing Integration, Job Posting Website, and System Training Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a reinstatement and third modification of agreement #10257 with Governmentjobs.com dba NEOGOV, to extend the term of the agreement for an additional five years and increase the total compensation by $192,224, for the continuation of job applicant tracking software, remote testing integration, job posting website, and system training services. This recommended award is made as an exception to the competitive bidding process pursuant to Santa Monica Municipal Code Section 2.24.080(b). This will result in a reinstated and amended agreement for five years with a new total amount not to exceed $357,293, with future year funding contingent on Council budget approval. Summary Governmentjobs.com (doing business as NEOGOV) provides comprehensive applicant tracking software (Insight) used by the Human Resources Department for daily hiring operations. NEOGOV is tailored for public sector hiring, offering a more developed product than generic applicant tracking systems currently on the market. Staff recommends NEOGOV due to its ability to develop and maintain candidate eligibility lists, manage the submission and approval of electronic position requisitions, and track and notify applicants throughout the competitive selection process, and given its robust reporting functionality, including legally required Equal Employment Opportunity reporting. These features are essential to public sector hiring and the Civil Service 3.G Packet Pg. 391 2 of 4 process. Staff requests an exception to the competitive bidding process to execute a reinstatement and third modification of the City’s current agreement with Governmentjobs.com. The reinstatement and modification would extend the term of the agreement for an additional five years and increase compensation by $192,224, for a total not to exceed of $357,293. Discussion Governmentjobs.com is the only vendor with rights to host and support NEOGOV Insight, making the applicant tracking system used by Human Resources exclusive to this vendor. NEOGOV continues to lead the market for public sector applicant tracking systems. The Human Resources Department recommends extending the current agreement with NEOGOV for an additional five years. The reinstatement is required since the previous agreement term expired. Governmentjobs.com was selected through a competitive bid process in 2004 and the City entered into a two-year original agreement. Following expiration of the original term the Human Resources Department requested an exception to the competitive bidding process, under the authority of the City Manager to continue working with the vendor. On February 23, 2016, City Council approval was received to execute an agreement with Governmentjobs.com in an amount not to exceed $36,000 for two years, with three additional one-year renewal options, for a total not to exceed of $93,305 for a five-year period. December 18, 2018, City Council approved a first modification to this agreement to explore contracting with Governmentjobs.com for new employee onboarding software and performance evaluation software, resulting in an amended five-year agreement with a new total amount not to exceed $165,069. However, it was subsequently determined the City’s new Tyler Munis software provided the basic tracking abilities needed for performance evaluations and the City did not contract for the additional performance evaluation software. The City isn’t currently contracted with Governmentjobs.com for employee onboarding software as Staff is exploring an alternative software option for new employee onboarding that may better integrate with other City software systems. 3.G Packet Pg. 392 3 of 4 The NEOGOV Insight software is a web-based product tailored for the public sector and automates the City’s hiring process from requisition to hire. The continuation of this partnership allows for efficient online recruiting and applicant tracking, optional integration of applicant testing services, and provides the City with the necessary technical support for the City’s recruitment processes. Since Governmentjobs.com is the hosting company, there are no other vendors that have rights to provide training, support, and access to the NEOGOV software. Vendor Selection NEOGOV has provided applicant tracking services to the Human Resources Department since 2004 with an original two-year agreement, in an amount not to exceed $55,000. Following the expiration of the original agreement, the Human Resources Department requested an exception to the competitive bidding process, under the authority of the City Manager, to continue working with Governmentjobs.com, as it is the only vendor with rights to host and support NEOGOV, making the applicant tracking system used by Human Resources exclusive to this vendor. Continuing payments to this vendor would exceed the previously authorized City Council authority and therefore City Council approval is requested. Past Council Actions Meeting Date Description 02/23/2016 (Attachment A) Authorization to execute a contractual services agreement with Governmentjobs.com 12/18/2018 (Attachment B) Authorization for modification to the agreement to provide employee onboarding and performance management software and extend the term of the agreement, subsequently completed in two separate amendments. Financial Impacts and Budget Actions Staff seeks authority to extend the agreement term by five years and increase the contract amount by $192,224, for a total not to exceed of $357,294. Future funding is contingent upon Council approval and budget adoption. 3.G Packet Pg. 393 4 of 4 Contract/Agreement/Purchase Order Modification Request Agreement # Current Authorized Amount FY 2021-22 Budget Modified Request Amount Future Year Modified Request Amount Dept/CIP Account # Total Revised Contract Amount 10257 $165,069 $22,284 $169,940 01130004- 552010 $357,293 Prepared By: Mark Brower, Deputy Director Approved Forwarded to Council Attachments: A. Original Agreement B. First Modification C. Second Modification D. NEOGOV Oaks Initiative 2022 3.G Packet Pg. 394 3.G.aPacket Pg. 395Attachment: Original Agreement (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.aPacket Pg. 396Attachment: Original Agreement (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.aPacket Pg. 397Attachment: Original Agreement (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.aPacket Pg. 398Attachment: Original Agreement (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.aPacket Pg. 399Attachment: Original Agreement (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.aPacket Pg. 400Attachment: Original Agreement (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.aPacket Pg. 401Attachment: Original Agreement (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.aPacket Pg. 402Attachment: Original Agreement (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.aPacket Pg. 403Attachment: Original Agreement (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.aPacket Pg. 404Attachment: Original Agreement (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.aPacket Pg. 405Attachment: Original Agreement (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.bPacket Pg. 406Attachment: First Modification (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.bPacket Pg. 407Attachment: First Modification (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3.G.bPacket Pg. 408Attachment: First Modification (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 1 SECOND MODIFICATION OF AGREEMENT NO. 10257 (CCS) This Second Modification of Agreement Number 10257 (CCS) (“Second Modifica- tion”), entered into as of _________________(“Execution Date”), by and between the City of Santa Monica, a municipal corporation (“City”), and Governmentjobs.com dba NEOGOV (“NEOGOV”) is made with reference to the following: RECITALS A. On or about May 12, 2016, the City and NEOGOV entered into Agreement Number 10257 (CCS) for job applicant tracking software services, through the In- sight Enterprise Software License Subscription (“Original Agreement”). B. On or about June 4, 2018, the City and NEOGOV entered into a First Modifica- tion of Agreement Number 10257 (CCS) (“First Modification”) to extend the con- tract term and increase the contract value. The Original Agreement and First Modification may be referred to collectively herein as “the Agreement.” C. The City and NEOGOV desire to modify the Agreement to extend the contract term, include additional services to be performed by NEOGOV, and increase the contract price to pay for those additional services. TERMS AND CONDITIONS Now, therefore, the undersigned parties do hereby mutually agree to modify the Agree- ment as follows: 1. Section 1 of the Agreement entitled “Term” shall be deleted in its entirety and re- placed with the following paragraph: Term. This Agreement begins on the Execution Date and terminates on May 12, 2021, unless terminated earlier as set forth in the Original Agreement or extended by the parties in writing. 2. Section 2 of the Agreement entitled “NEOGOV Services” shall be modified by adding the following paragraph: Additional Services. NEOGOV will perform all of the additional ser- vices (“Additional Services”) described in Exhibit A-2, Scope of Ser- vices. NEOGOV will complete the Additional Services in accordance with Exhibit B-2, Budget. 3. Section 4 of the Agreement entitled “Compensation” shall be modified by adding the following sentences: The City will compensate NEOGOV for the Additional Services in an amount not to exceed $71,634, as set forth in Exhibit B-2. The total compensation for services pursuant to the Original Agreement, the First Modification, and this Second Modification shall not exceed $165,069. DocuSign Envelope ID: E6ADC891-E685-4440-B1B3-9F047F099F6C 4/2/2019 3.G.c Packet Pg. 409 Attachment: Second Modification (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 2 4. Exhibit A-2 and Exhibit B-2 attached hereto are incorporated herein by this refer- ence. 5. Except as expressly modified by this Second Modification, all other terms and con- ditions of the Agreement shall be and remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Second Modification as of the date and year first written above. 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 ABC Corporation #VENDOR By: _______________________________ DocuSign Envelope ID: E6ADC891-E685-4440-B1B3-9F047F099F6C City Attorney 3/25/2019 Lane Dilg John Closs Controller NEOGOV 3/25/2019 Rick Cole City Manager 4/2/2019 Denise Anderson-Warren City Clerk 4/4/2019 3.G.c Packet Pg. 410 Attachment: Second Modification (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 3 Exhibit A-2 Scope of Services Two annual renewal terms for Insight Enterprise Software License: Term 5/13/2019-5/12/2020 5/13/2020-5/12/2021 One-time set up and two annual renewals of Onboard (ON) Subscription License. Statement of Work 1.0 Onboard (ON) Onboard (ON) is designed to facilitate the onboarding process for new hires. As de- scribed below, NEOGOV maintains standard forms as part of the annual subscription. A subscription to Onboard (ON) will include the following functionality:  Electronic Employee File  Federal I9 and W4 forms  Task Manager  Employee data upload  Build your own Onboarding forms* *Onboard (ON) includes Federal I9 standard forms that are updated annually and Fed- eral W4 forms updated every 2-4 years. Additional forms or form maintenance is availa- ble from NEOGOV at the following cost.  Background forms $295 per form  Dynamic Forms $195 per form  Updates to existing forms $200 an hour 2.0 NEOGOV Integrations NEOGOV offers Standard Integrations as well as platform APIs for third party system integration(s). A subscription to Standard Integrations includes the following:  Conduct project scope, review integration plan, discuss timeline, and set schedule for required meetings  Annual maintenance by NEOGOV Note: NEOGOV APIs are to be configured directly by the City using NEOGOV docu- mentation. If required, professional services may be included by NEOGOV to help de- fine and validate scope, business requirements, timelines, and associated costs (if appli- cable). DocuSign Envelope ID: E6ADC891-E685-4440-B1B3-9F047F099F6C 3.G.c Packet Pg. 411 Attachment: Second Modification (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 4 Setup and Implementation The following activities will be conducted as a part of the Services:  The City to review the project kick-off tutorial for information on the project time- line, deliverables, and establish project expectations.  NEOGOV will work with City staff to understand the existing processes as well as other workforce business practices where applicable.  NEOGOV will establish the City’s production environment.  All NEOGOV products will be implemented off-site. Customer may integrate NEOGOV solutions with other systems using standard NEOGOV integration tools, web services and/or flat files. The specifications and scope must be defined prior to agreeing to a timeline or price.  Following NEOGOV product rollout, NEOGOV and the City will conduct two post go-live conference call(s) (if scheduled) to ensure that the rollout was completed suc- cessfully and that any production questions are addressed promptly. Training  NEOGOV training is available online (web-based, pre-built, content).  NEOGOV’s pre-built, online training consists of a series of web courses as well as a series of hands-on exercise designed to introduce the standard features and functions and may be used as reference material by City staff following training to conduct day- to-day activities. The pre-built, online training includes exercises that are designed to be flexible enough to allow staff led training sessions internally to introduce user-spe- cific requirements and processes for staff to learn the system as closely as possible to actual processes after go-live. Annual Recurring Fees:  The City shall pay all annual recurring Fees (including for any NEOGOV Integra- tions) for the Initial Term within 30 days of the date of contract execution. Setup and Implementation Fees:  The City shall pay all Setup and Implementation Fees within 30 days of the date of contract execution. Training Fees:  Customer shall pay all training Fees within 30 days of the date of contract execution. DocuSign Envelope ID: E6ADC891-E685-4440-B1B3-9F047F099F6C 3.G.c Packet Pg. 412 Attachment: Second Modification (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 5 Exhibit B-2 Budget The City will compensate NEOGOV for two annual renewal terms of Insight Enterprise Software License. Term Renewal Amount 5/13/2019-5/12/2020 $19,832.50 5/13/2020-5/12/2021 $19,832.50 The City will compensate NEOGOV for one time set-up and two annual renewals of Onboard (ON) Initial Term: ON one time setup: and prorated term: 4/1/19 – 6/30/19 ON Annual Term 2: 7/1/19 – 6/30/20 ON Prorated Term 3: 7/1/20 – 5/12/21 Line Description1 ON Prorated Term (4/1/19 – 6/30/19) Non-Recurring Fees 1. Onboard (ON) Subscription $6,300.00 2. Setup and Implementation $5,000.00 3 Standard Online Training (Cost waived if onsite train- ing option is selected) Waived 4. 4 Days of Consecutive Onsite Training/System Setup NA $10,000.00 5. NEOGOV Integrations Subscription & Setup Not Included Not Included Sub Total: $6,300.00 $15,000.00 Total Due Now: $21,300.00 Line Description1 Onboard Annual Term (7/1/19 – 6/30/20) 1. Onboard (ON) Subscription $25,200.00 Line Description1 Onboard Prorated Term Fee2 (7/1/20 – 5/12/21) 1. Onboard (ON) Subscription $22,050.00 DocuSign Envelope ID: E6ADC891-E685-4440-B1B3-9F047F099F6C 3.G.c Packet Pg. 413 Attachment: Second Modification (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV) 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: Governmentjobs.com Inc. (D/B/A NEOGOV) Name(s) of trustees, directors, partners, and officers: Shane Evangelist, CEO Stephen Koo, CFO Name(s) of persons with more than a 10% equity, participation, or revenue interest: N/A No individual person with over 10% ownership. Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ Michael Burns Accounting Director 3/3/2022 Renewals@neogov.net 888-636-4681 3.G.d Packet Pg. 414 Attachment: NEOGOV Oaks Initiative 2022 [Revision 1] (4937 : Reinstatement and Third Modification with Governmentjobs.com dba NeoGOV)