TITLE
Recommendation to adopt Specifications No. ITB TI19-024 and award contracts to File Keepers, LLC, of Los Angeles, CA; MetaSource, LLC, of Anaheim, CA; Omni Pro, Inc., of Chino, CA; and, SourceHOV (Sourcecorp BPS, Inc.), of Irving, TX, to provide as-needed scanning services from various City locations, in an annual aggregate amount of $2,000,000, with a 15 percent contingency in the amount of $300,000, for a total annual aggregate amount not to exceed $2,300,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; authorize City Manager, or designee, to execute all documents necessary to enter into the contracts, including any necessary amendments; and
Increase appropriations in the General Services Fund (IS 385) in the Technology and Innovation Department (TI) by $2,774,590 for scanning services, the purchase of scanner equipment and associated project management expenses, offset by charges to user departments and funds and potential short-term internal loans between funds. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with four firms to provide as-needed document scanning services. On August 21, 2018, City Council awarded the systems design and licensing component of the Electronic Document Management System (EDMS) project to Compulink Management Center, Inc., dba Laserfiche Solutions Group (Laserfiche). The EDMS project was included in the technology systems category of the critical technology infrastructure needs that was presented to the City Council on December 5, 2017.
This portion of the EDMS project requires the departments to complete a substantial backfile conversion effort to scan hardcopy documents as well as microfilm and microfiche. The most immediate need is to complete the backfile conversion of hardcopy documents for those City departments that are moving to the new Civic Center. This scanning effort will also include imaging, indexing, and storing the documents in the Laserfiche system so that they are fully useable and accessible. Scanning documents into Laserfiche will help the City to meet its goals by:
• Mitigating/eliminating physical hardcopy storage requirements in the new Civic Center building by storing files electronically so that they can be easily retrieved by Civic Center employees using computers and mobile devices;
• Improving business processes by automating some workflows;
• Enhancing document management practices by reducing the number of paper files/storage space;
• Realizing operational efficiencies by automating manual business processes;
• Providing timely disaster recovery for the City's documents and records; and,
• Aligning the City’s policies and practices with best practices for governmental records retention regulations.
The bid was advertised in the Long Beach Press-Telegram on December 8, 2018, and 5,016 potential bidders specializing in scanning services were notified of the bid opportunity. Of those bidders, 37 downloaded the bid via the City’s electronic bid system. The bid document was also made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing. A bid announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 28 local, minority, and women-owned business groups. Eleven bids were received on January 15, 2019. Of those bidders, two were Minority-owned Business Enterprises (MBEs), one was a Women-owned Business Enterprise (WBE), two were certified Small Business Enterprises (SBEs), and one was a Long Beach business (Local). The following four firms were the lowest responsible bidders:
• File Keepers, LLC of Los Angeles, CA (not a MBE, WBE, SBE, or Local)
• MetaSource, LLC of Anaheim, CA (not a MBE, WBE, SBE, or Local)
• Omni Pro, Inc., of Chino, CA (not a MBE, WBE, SBE, or Local)
• SourceHOV (Sourcecorp BPS, Inc.), of Irving, TX (not a MBE, WBE, SBE, or Local)
Multiple agreements are recommended to ensure that a pool of responsible firms is readily available to quickly deliver scanning services as they are needed by City departments. Selecting four firms will also provide the departments with a broader range of choices due to competing resource needs due to the impending Civic Center move.
Local Business Outreach
In effort to align with the City’s outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division assists businesses with registering on the PlanetBids database to download the bid specifications. Through outreach, 552 Long Beach vendors were notified to submit bids, of which two downloaded and one submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Amy R. Webber on March 26, 2019, Purchasing and Business Services Manager Sandy Tsang-Palmer on March 25, 2019, and by Budget Analysis Officer Julissa José-Murray on March 29, 2019.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. ITB TI19-024 and award contracts concurrently is requested on April 16, 2019, to ensure the contracts are in place expeditiously so that the scanning services can start in time for the move to the new Civic Center by minimizing the need to move and/or store documents.
FISCAL IMPACT
In the Critical Technology Infrastructure Needs presentation on December 5, 2017, $7,000,000 was planned for use on the conversion, implementation, and software licensing of an EDMS system, which consists of $5,000,000 in cash and $2,000,000 in costs that were to be financed through a lease-purchase.
On August 21, 2018, the City Council awarded a contract for the EDMS to Compulink Management Center, Inc., dba Laserfiche Solutions Group, of Long Beach, CA. The recommendation appropriated $2,225,410 of the $5,000,000 in originally anticipated cash outlay for system software and services and first-year maintenance. The remaining $2,774,590 in cash is to be used to implement the first year’s scanning of existing records, purchase scanning equipment, and provide management oversight for the project. Consistent with the funding plan detailed in the December 5, 2018 Critical Technology Infrastructure Needs presentation, funding for these services will come from a combination of charges to user departments and General Services Fund (IS 385) funds available, with the potential of short-term internal loans between funds.
Annual contract expenditures for scanning services will not exceed $2,300,000. An appropriation increase is requested in the General Services Fund (IS 385) in the Technology and Innovation Department (TI) for $2,774,590 for scanning services, the purchase of scanner equipment, and associated project management expenses. Costs will be recovered via user charges to departments and associated funds. If revenue from these charges is not immediately available, internal short-term borrowing between funds may be used in the interim. The City’s total scanning needs may exceed the funds available. There is no appropriation increase requested for the contingency portion of the scanning services at this time. Any work not currently budgeted will only proceed at such time that appropriations have been approved by the City Council. If there are additional needs, staff will return with options for additional funding, which may include some department-specific funding. This recommendation is not expected to require additional staff hours beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LEA D. ERIKSEN
DIRECTOR OF TECHNOLOGY AND INNOVATION
APPROVED:
PATRICK H. WEST
CITY MANAGER