TITLE
Recommendation to adopt Specifications No. RFP PW16-177 and award a contract to Arcadis U.S., Inc., of Highlands Ranch, CO, for the purchase of a Project Portfolio Management Application, in an amount not to exceed $561,561, and a subsidiary Service Level Agreement in an annual amount not to exceed $90,000, for a period of two years, with the option to renew for two additional one-year periods; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contracts, including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into a Master Subscription Agreement and associated Service Level Agreement with Arcadis U.S., Inc. (Arcadis), to furnish project management software.
The Project Portfolio Management Application (PPM) will allow the Departments of Public Works, Airport, Water, and Gas and Oil to better manage their capital projects. The PPM provides a web-based application that will give Departments the ability to centrally store all project information, including schedules, resources, documentation, and tasks. Additionally, the PPM will align with the City’s “dig once” workflow by notifying City Departments when rights-of-way construction projects are planned or scheduled, allowing Departments to coordinate future rights-of-way capital projects and ensure the five-year excavation moratorium policy is not violated.
The Request for Proposals (RFP) was advertised in the Long Beach Press-Telegram on August 5, 2016, and 5,781 potential proposers were notified of the bid opportunity. Of those proposers, 81 downloaded the RFP via the City’s electronic bid system. The RFP document was made available by the Purchasing Division, located on the seventh floor of City Hall, and on the Division’s website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. An RFP announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 22 local, minority and women-owned business groups. Six proposals were received on September 15, 2016. Of those six proposers, one was a Minority-owned Business Enterprise (MBE) and none were Woman-owned Business Enterprises (WBEs), Small Business Enterprises (SBEs), or Long Beach businesses (Locals).
A selection committee, comprised of staff from the Departments of Public Works, Water, and Gas and Oil, reviewed the written proposals and invited three firms to provide demonstrations. Of those three firms, two firms were asked to return and provide an additional high-level system overview to the management team on December 6th and 7th, 2016. After the final presentations were completed, the committee identified Arcadis U.S., Inc., of Highlands Ranch, CO, as the most qualified firm to provide the requested PPM services.
Arcadis’s project management software is currently being used by the Irvine Ranch Water District (IRWD) and the City of Columbus, Ohio (Columbus). Both agencies provided an overview and demonstrations of the day-to-day activities in the PPM to the City during the evaluation process. Columbus has been using Arcadis’s software for approximately five years to manage all their capital improvement program projects, while IRWD has been using Arcadis for over five years to manage construction projects. The committee believes Arcadis’s availability of their key staff members, the breadth of their portfolio management capabilities, and their client base reviews and recommendations positions them as the firm of choice. They also provided the lowest cost proposal.
Local Business Outreach
In an effort to align with the City’s outreach goal, Long Beach businesses are encouraged to submit proposals for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download RFP specifications. Through outreach, 568 Long Beach vendors were notified to submit proposals, of which five downloaded and none submitted a proposal. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the proposer pool.
This matter was reviewed by Deputy City Attorney Linda T. Vu on September 21, 2017 and by Budget Analysis Officer Julissa José-Murray on October 2, 2017.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. RFP PW16-177 and award a contract concurrently is requested on October 17, 2017, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total cost of the Master Subscription Agreement for the PPM, which includes rollout and implementation, will not exceed $561,561. The total cost for the Service Level Agreement, which is separate from the Master Subscription Agreement, will not exceed $90,000 annually. Costs for both the Master Subscription Agreement and the Service Level Agreement will be split evenly amongst existing appropriations in the Capital Projects Fund (CP 201) in the Public Works Department (PW), the Gas Fund (EF 301) in the Gas and Oil Department (GO), the Airport Fund (EF 320) in the Airport Department (AP), and Water and Sewer Funds (EF 310 and EF 311) in the Water Department (WA). If future appropriations are needed, each Department will individually return to the City Council. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER