COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Jill Olsen, Administrative Services Director
SUBJECT:Title
Action: Master Services Agreement and Statement of Work for Procurement Management System Software, Professional and Support Services with OpenGov, Inc. (Jill Olsen)
Body
FUNDING SOURCE:
General Fund
PURPOSE:
To consider approving the Master Services Agreement (MSA) (Contract 500754) and Statement of Work (SOW) with OpenGov, Inc. (OpenGov) for software and professional and support services for a Sourcing and Manage Request Software-as-a-Service (SaaS) system in accordance with City Code Section 3.10.010.3.A.18.
BACKGROUND:
The City’s decentralized purchasing structure requires each department to conduct informal solicitations and prepare all related documentation. The current process, whether informal or formal, relies heavily on manual Word and Excel templates, extensive email exchanges, and repetitive tasks that often result in duplicated efforts including rework to correct inconsistencies for compliance management. Consequently, the solicitation process is time-consuming, difficult to standardize, and operationally inefficient.
The City currently uses Euna OpenBids (formerly DemandStar) basic platform mostly for formal electronic solicitation submission; however, the system is outdated, limited in functionality, and although free for a one-agency registration, does require suppliers to pay subscription fees if expanding their registration to multiple agencies. To modernize and streamline procurement operations, staff evaluated several end-to-end procurement platforms, including OpenGov.
Following system demonstrations, reference checks with multiple Arizona agencies (Mohave County, Kingman, Florence, Phoenix, Queen Creek, Tucson, Valley Metro and several others), and comparative analysis, staff determined that OpenGov Manage Request and Sourcing modules within their Procurement and Contracts Management Suite offers the most intuitive, comprehensive, and adaptable solution. More than 34 Arizona agencies currently use all or specific modules within this Suite, and all referenced agencies reported strong customer support and successful implementation.
The recommended OpenGov Manage Request and Sourcing modules will automate the sourcing lifecycle-from request intake and solicitation development through evaluation and award recommendation. Key benefits include standardized templates with version controlled legal language, solicitation instructions, centralized collaboration, automated workflows, electronic solicitation submission, improved vendor engagement, enhanced compliance, and increased staff efficiency.
COMMUNITY IMPACT:
Materially reduce administrative workload, improve solicitation quality and transparency, and strengthen continuity in procurement practices across the organization.
FISCAL IMPACT:
Funds in the amount of $115,000 are available in Year 1, Fiscal Year (FY) 2025-26 budget, for the purchase, implementation, and support of the new Sourcing and Manage Requests system, including applicable taxes. The cost for the 5-year term is $463,706.68 which includes a 5% annual increase, plus estimated applicable taxes. Years two through five will be included in the future respective General Fund operating budgets.
Year 1 is $109,813.46, plus estimated applicable tax
Year 2 is $ 82,107.42, plus estimated applicable tax
Year 3 is $ 86,212.79, plus estimated applicable tax
Year 4 is $ 90,523.42, plus estimated applicable tax
Year 5 is $ 95,049.59, plus estimated applicable tax
ATTACHMENTS:
Master Services Agreement (500754)
Statement of Work-PS10195
Order Form (5-Year Pricing Summary) Q-07716
SUGGESTED MOTION:Recommended Action
I move to approve the Master Service Agreement and Statement of Work with OpenGov, Inc., in the approximate amount of $463,706.68 plus applicable taxes over five years; and authorize the City Manager to execute all necessary documents on behalf of the City.