CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Cooperative Procurement 25-215, OpenGov e-Procurement Software, to Vertosoft, LLC for an amount not to exceed $328,250.07 and for a 41-month term
body
DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City began using DemandStar as its e-procurement software provider in 2000. However, the functionality of the solution is not as robust as compared to other e-procurement software solutions on the market. The Procurement Team processes a large volume of work and is currently using a variety of systems, including DemandStar, Tyler EERP, Outlook, Excel, One Note and SharePoint, which create inefficiencies in the solicitation process and missed opportunities for department engagement and contract management.
DISCUSSION:
Staff from the Finance and IT Departments evaluated several e-procurement platforms and determined that OpenGov was the best fit for the City due to the following:
• Increased visibility with access to city solicitations, realizing a potential increase in competition and volume of submissions.
• Contract renewals can be set up for automatic reminder messaging to avoid missed opportunities for contract renewal and contract compliance.
• Reduction of staff time spent on manual tasks
• Increase in efficiency
• Replacement of the manual processes of utilizing email, Excel and OneNote
• Solicitation development with templates and automated workflow
• Leverage a single platform that provides contract visibility
• Request management - departments can request to process a solicitation through the software instead of by email
• Solicitation development library for Procurement Officers to search for similar solicitation documents across the OpenGov platform
• Contract signatures - processing contract signatures through DocuSign
• Ensure timely contract renewals for contract compliance
OpenGov is a single software system designed to manage the entire procurement lifecycle from solicitation creation through contract management. Collaboration between departments will be served through a single point of contact in the software and will replace the back-and-forth of repetitive emails. OpenGov also provides a contract management module that acts as a repository. The repository provides a reminder option for staff to ensure that contract renewals are processed expediently and within compliance. Tyler EERP houses contracts for financial management but does not have the function to provide a prompt, or reminder, system for contract expiration.
OpenGov is currently being used successfully by several Illinois municipalities, including Schaumburg, Aurora, Bloomington, and Champaign/Urbana.
Staff has identified an approved cooperative contract, Omnia Partners Cooperative Contract # PW1925, through Vertosoft, LLC, for the procurement of the OpenGov e-procurement software and implementation.
Staff negotiated a not-to-exceed cost of $328,250.07 for the software implementation and SaaS subscription fees. The term of the contract is 41 months from August 1, 2025, to December 31, 2028.
FISCAL IMPACT:
CIP #: N/A
OpenGov e-procurement software will be expensed to the account numbers listed below. The 2025 Budget includes $40,000 for e-procurement software, which is sufficient to cover the 2025 subscription cost. Implementation costs will be expensed to the Finance Department capital budget, which includes $50,000 for technology consulting and implementation. The implementation cost totals $46,320. The 2026 Budget will be updated to include the OpenGov e-procurement software annual fees.
|
Account Number |
Fund Description |
Total Budget |
|
15102200-551504 |
Capital Projects Fund |
$50,000 |
|
15101100-531312 |
General Fund |
$231,180 |