HomeMy WebLinkAboutStaff Report 14322
City of Palo Alto (ID # 14322)
City Council Staff Report
Meeting Date: 5/16/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Amendment Number Two to Contract No. C20175911 with
Labyrinth Solutions, Inc., to extend the Contract Term through October 21,
2022 at No Added Cost, for Information Technology Professional Services,
Cloud Computing Hosting and Support Services, and As-Needed SAP
Application Technical / Functional Support Services.
From: City Manager
Lead Department: IT Department
Recommendation
Approve and authorize the City Manager or their designee to execute the attached
amendment number two to Contract No. C20175911 (Attachment A) with Labyrinth
Solutions, Inc., to extend the contract term through October 21, 2022 at no added cost,
for information technology professional services, SAP cloud computing hosting and
support services, and as-needed SAP application technical / functional support services,
while the contract with the new vendor selected by the City’s formal solicitation process
is negotiated, approved and executed, and the transition to the new vendor is
implemented.
Background
The City’s history with SAP began in 2002, when the City selected SAP as its preferred
vendor for the City’s Enterprise Resource Planning (ERP) system. The purpose was to
integrate various business processes within the City, which enabled staff to move in the
direction of Digital Government. The SAP ERP system was implemented in 2003 and
supports Accounting, Finance, Purchasing, Project Management, Plant Maintenance,
Budgeting, Payroll, Human Resource Management, and Service Order Management. In
2019, the City completed a major upgrade and migrated the SAP ERP infrastructure to
the cloud.
The original contract with Labyrinth Solutions, Inc., (LSI) was approved by Council and
signed in 2019, CMR 10033 for a three-year term for the SAP ERP upgrade, migration,
and cloud hosting and support services. In 2021, a six-month term extension was
executed by the City Manager (no change to the compensation), expiring April 21, 2022
(Attachment B).
City of Palo Alto Page 2
Discussion
The extension of the contract term with LSI enables the City to complete the contract
negotiation, approval and execution process for the new contract with the new vendor
selected through formal competitive solicitation. In addition, the City requested LSI
continue to be available for at least four weeks to transfer over the existing Amazon
Web Services (AWS) SAP ERP account and knowledge in order to have a successful
transition. Amendment Two to the contract with LSI is for time only, no additional
compensation is requested as the transition to the new vendor is implemented.
This scope of services is distinct from the applications-focused professional services
being presented for Council approval separately. Staff will be returning to Council in late
May/early June for the approval of the contract with the selected vendor chosen from
the City’s formal solicitation process. Staff will provide LSI written notice 30 days prior
to termination of its contract once the new vendor contract is fully executed and the
transition is complete.
Resource Impact
Funding for this contract was budgeted in the Technology Fund as part of the Fiscal
Year 2022 Adopted Operating Budget. No additional funding of this contract is being
requested.
Environmental Review
This is not a project under the California Environmental Quality Act (CEQA).
Attachments:
• Attachment A: C20175911 - Amendment Number 2 - ext term only_final
• Attachment B: C20175911 - Amendment Number 1_ext term only
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 2 TO CONTRACT NO. C20175911
BETWEEN THE CITY OF PALO ALTO AND LABYRINTH SOLUTIONS INC.
This Amendment No. 2 (this “Amendment”) to Contract No. C20175911 (the “Contract” as
defined below) is entered into as of May 2, 2022, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and LABYRINTH SOLUTIONS INC., a
Massachusetts corporation, located at 303 Wayman Street, Suite 300, Waltham, MA, 02451
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of information technology professional services, cloud computing hosting and
support services, and as-needed SAP application technical / functional support services, as detailed
therein.
B. Contract C20175911, previously pursuant to CMAS # 3-19-70-3652A, is updated by
CMAS # 3-21-10-1067, GSA Base Schedule # GS-35F-540GA, CMAS term dates from October 25,
2021 to July 11, 2022.
C. Pursuant to Amendment No. 1, the Parties previously amended the Contract to
extend the term through April 21, 2022 at no added cost to the City in order to complete a formal
solicitation process and award a new contract.
D. The Parties now wish to amend the Contract in order to extend the term of the
contract by 6-months through October 21, 2022 at no added cost to the City in order to execute
and transition the new contract awarded.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20175911
between CONSULTANT and CITY, dated October 9, 2019 as amended by:
Amendment No.1, dated December 13, 2021.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 6, “TERM,” of the Contract is hereby amended to read as follows:
DocuSign Envelope ID: 9DD90B99-E8AA-4D95-A668-0490E3BFEA35
Vers.: Aug. 5, 2019
Page 2 of 3
“6. Term. The term of the Agreement shall commence on the date provided in the Notice to
Proceed issued in writing by the CITY as provided for in the section entitled “Schedule of
Performance” in the Statement of Work, and shall continue for thirty-six (36) months thereafter,
unless terminated earlier as provided for in this Agreement.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
DocuSign Envelope ID: 9DD90B99-E8AA-4D95-A668-0490E3BFEA35
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
LABYRINTH SOLUTIONS INC.
Officer 1
By:
Name:
Title:
Attachments: None
DocuSign Envelope ID: 9DD90B99-E8AA-4D95-A668-0490E3BFEA35
Nader Tirandazi
CEO
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C20175911
BETWEEN THE CITY OF PALO ALTO AND LABYRINTH SOLUTIONS INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C20175911 (the “Contract” as
defined below) is entered into as of December 13, 2021, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and LABYRINTH SOLUTIONS INC., a
Massachusetts corporation, located at 303 Wayman Street, Suite 300, Waltham, MA, 02451
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of providing information technology professional services, cloud computing
hosting and support services, and as-needed SAP application technical / functional support
services, as detailed therein.
B. Contract C20175911, previously pursuant to CMAS # 3-19-70-3652A, is updated by
CMAS # 3-21-10-1067, GSA Base Schedule # GS-35F-540GA, CMAS term dates from October 25,
2021 to July 11, 2022.
C. The Parties now wish to amend the Contract in order to extend the term of the
contract by 6-months, from October 22, 2021 to April 21, 2022, to complete the formal solicitation
process and execute the new contract awarded. This amendment is at no added cost to the City.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20175911
between CONSULTANT and CITY, dated October 9, 2019.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 6.“TERM” of the Contract is hereby amended to read as follows:
“6. Term. The term of the Agreement shall commence on the date provided in the Notice to
Proceed issued in writing by the CITY as provided for in the section entitled “Schedule of
Performance” in the Statement of Work, and shall continue for thirty (30) months thereafter,
unless terminated earlier as provided for in this Agreement.
DocuSign Envelope ID: 15D9D82B-6177-4D75-BC86-7E9C3D5CCC7F
Vers.: Aug. 5, 2019
Page 2 of 3
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
DocuSign Envelope ID: 15D9D82B-6177-4D75-BC86-7E9C3D5CCC7F
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
LABYRINTH SOLUTIONS INC.
Officer 1
By:
Name:
Title:
Attachments: None
DocuSign Envelope ID: 15D9D82B-6177-4D75-BC86-7E9C3D5CCC7F
CEO
Nader Tirandazi