TITLE
Recommendation to authorize City Manager, or designee, to execute an amendment to Contract No. 34520 with Carahsoft Technology Corporation, of Reston, VA, for Service Management application user licenses and maintenance, to increase the annual contract amount from $68,040 to $110,565, with a 20 percent contingency in the amount of $22,113, for a revised total contract amount not to exceed $636,911 over the four-year contract term; and
Increase appropriations in the General Services Fund Group in the Technology and Innovation Department by $42,525, offset by funds available. (Citywide)
DISCUSSION
On January 10, 2017, the City Council awarded a contract to Carahsoft Technology Corporation to provide, install, train, and support City staff in the use and implementation of a new Service Management application, ServiceNow, for a first year contract amount not to exceed $303,515; thereafter, in an annual amount not to exceed $68,040, with the option to renew for two additional one-year periods, for ongoing licensing and maintenance fees, for a total contract amount not to exceed $507,635 over the four-year contract term.
City Council approval is requested to amend Contract No. 34520 with Carahsoft Technology Corporation, to increase the annual contract amount from $68,040 to $110,565, with a 20 percent contingency in the amount of $22,113, for a revised annual contract amount not to exceed $132,678, for the remaining contract term. With this amendment, the total contract amount will not exceed $636,911. This is to increase the number of ServiceNow user licenses from 120 to 195. With the implementation of the new Tyler Munis Enterprise Resource Planning System (LB COAST) and the increase in technical and application support workflows facilitated through ServiceNow, there has been an increase in the number of Technology and Innovation and Financial Management staff using the ServiceNow application. The increased number of licenses ensures that all active support staff have sufficient ServiceNow user licenses.
This matter was reviewed by Deputy City Attorney Amy R. Webber on May 13, 2019, by Purchasing Agent Tara Yeats on May 9, 2019, and by Budget Management Officer Rhutu Amin Gharib on May 21, 2019.
TIMING CONSIDERATIONS
City Council action is requested on June 11, 2019, to ensure the contract is amended expeditiously.
FISCAL IMPACT
With the amended annual contract cost of $132,678, the total aggregate contract amount will not exceed $636,911 over the four-year term. The Technology and Innovation Department currently has the appropriation of $68,040 in FY 19 for the ongoing licensing and maintenance fees. The additional cost for the licenses is unbudgeted; therefore, an appropriation increase of $42,525 in the General Services Fund Group in the Technology and Innovation Department is requested. Costs for these services will come from funds available in the current fiscal year and will be recovered from client departments through the annual Technology and Innovation MOU in future years. This recommendation has no staffing impact 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 ERIKSEN
DIRECTOR OF TECHNOLOGY AND INNOVATION
APPROVED:
PATRICK H. WEST
CITY MANAGER