To: Honorable Mayor and Members of City Council
From: Rajneil Prasad, Finance Director
Prepared By: Morgan Simone, Management Analyst I
TITLE:
Title
OpenGov, Inc. eProcurement Software
LABEL
RECOMMENDED ACTION:
Recommendation
Authorize the City Manager to execute Amendment No. 3 to City Agreement No. C2020-138 with OpenGov, Inc. in the amount of $207,335 for the purchase of an integrated web-based electronic procurement platform, implementation services, and support services, for a 3-year term.
Body
DISCUSSION:
The City of Napa currently operates under a decentralized purchasing and procurement process. Throughout the years, the procurement process for goods, services and public works construction projects has developed differently across City departments and has ultimately become dependent on email workflows, department internal file storage, and differing procurement document templates. This has resulted in inconsistency in the procurement process across departments, a lack of communication between departments and difficulty in ensuring compliance with the City’s procurement policies.
The OpenGov Procurement platform provides several features that will improve and streamline the current procurement process and ensure compliance and consistency with the City’s procurement policies. Utilizing the built-in workflows, procurement templates, evaluation tool, and other features, OpenGov will help the City create and implement a more efficient and effective procurement process that is consistent across all City departments.
While the City of Napa received quotes and evaluated demonstrations from two other vendors for similar services, Finance staff has determined that OpenGov, Inc is the best fit for the City’s procurement needs because they were the most responsive, demonstrated a more user friendly platform for our decentralized purchasing environment that provides tools and resources that we currently do not have access to, and makes the process more efficient.. ,
The City has an existing agreement with OpenGov (C2020-138) for the Financial Transparency Portal,which has been amended twice since 2020. This action would authorize a third amendment to the existing agreement for the purchase of the OpenGov Procurement Platform and related professional services. Staff intends to utilize the Procurement Platform initially for the procurement of services and public works construction projects and then eventually for the procurement of personal property, such as goods and equipment.
FINANCIAL IMPACTS:
The total amendment amount of $207,335.00 consists of Annual Software Fees for 3 years consisting of $59,971.00 for services from December 1, 2023 - November 30, 2024, $62,970.00 for services from December 1, 2024 - November 30, 2025, and $66,119.00 for services from December 1, 2025 - November 30, 2026, and $18,275.00 for Professional Services Deployment. The total amendment amount is contingent on a 3-year commitment, which would be cost savings of 9.5% to the City when the full amount is paid in the current fiscal year.
Actual costs by fiscal year would be $58,255.67 for FY 2023/24, $61,970.33 for FY 2024/25, $65,069.33 for FY 2025/26, and $22,039.67 for part of FY 2026/27. The Finance Department has sufficient available budget to cover the payment and the current year expense. Looking forward, the Finance Department may require budget adjustments in future fiscal years to cover the additional expenditures.
CEQA:
The Finance Director has determined that the recommended action described in this report is not subject to CEQA, pursuant to CEQA guidelines section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Amendment 3 to Agreement C2020-138
ATCH 2 - Agreement C2020-138
NOTIFICATION:
None.