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Home My WebLink AboutStaff Report 2408-3375CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, September 09, 2024 Council Chambers & Hybrid 5:30 PM Agenda Item 11.Approval of Purchase Order C25192371 with Carahsoft Technology Corporation, utilizing an OMNIA Cooperative Purchasing Agreement, to Procure DocuSign eSignature software for a One-Year Term Not-To-Exceed Amount of $125,965. CEQA: Not a project City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: IT Department Meeting Date: September 9, 2024 Report #:2408-3375 TITLE Approval of Purchase Order C25192371 with Carahsoft Technology Corporation, utilizing an OMNIA Cooperative Purchasing Agreement, to Procure DocuSign eSignature software for a One-Year Term Not-To-Exceed Amount of $125,965. CEQA: Not a project RECOMMENDATION Staff recommends that City Council approve and authorize the City Manager or their designee to execute Purchase Order C25192371 with Carahsoft Technology Corporation, utilizing an OMNIA cooperative contract no. 23-6692-011, to procure DocuSign eSignature software through August 22, 2025, in an amount Not-To-Exceed $125,965. BACKGROUND On April 30, 2015, the City of Palo Alto deployed DocuSign‘s digital signature services to enhance its operational efficiency. This initial contract aimed to provide digital signature, electronic forms, and electronic workflow services. Leveraging the State’s California Multiple Award Schedules (CMAS) contract with Carahsoft Technology Corporation in July 2018, the City secured DocuSign eSignature services at a significant discount, approximately 50% off the list price, while also leveraging pre-negotiated terms and conditions. This procurement was recommended by staff under the exemption to competitive solicitation as permitted by PAMC section 2.30.360(j), which allows purchases through cooperative agreements such as CMAS. The City's commitment to efficient procurement practices continued through subsequent years, with past purchases in 2019, 2020, and 2021 for DocuSign services also utilizing the same CMAS contract, as per PAMC 2.30.360(j). On September 27, 2021, the City Council was presented with a request to authorize the City Manager or their designee to execute Purchase Order C22183161 with Carahsoft Technology Corporation for a three-year term spanning from August 23, 2021, to 1 https://www.omniapartners.com/suppliers-files/A-D/Carahsoft_Technology_Corp/Contract_Documents/23- 6692-01/23-6692-01_Carahsoft_MAD.pdf August 22, 2024. The contract outlined annual fees totaling $126,753 and a maximum not-to- exceed amount of $380,258 (CMR 134822). ANALYSIS DocuSign has significantly transformed document handling processes, enabling staff to review and approve documents from any device, thereby reducing turnaround times and enhancing productivity. Furthermore, DocuSign's tracking capabilities have streamlined the review and approval process by providing real-time visibility into the status of documents, minimizing the need for manual follow-ups. With a 25,000-envelope allowance each term year and 635 active users on the DocuSign platform, the City has experienced widespread adoption and effectiveness of the solution. The majority of envelopes are completed within 3 days, with a significant portion finalized within the first 24 hours, highlighting the efficiency and reliability of the DocuSign solution. A project to evaluate alternate solutions is in progress, due to resource constraints it was not possible to complete prior to the renewal date. During this one-year term, Staff will perform analysis of DocuSign usage and costs, review other electronic signature platforms to compare functionality, and total cost. If a new electronic signature platform is more cost effective, having continued access to the DocuSign platform for a year will facilitate a smooth transition and provide additional time for implementing and training users to use the selected new solution. Failure to approve this one-year purchase order would have a significant impact on daily operations, as the absence of a viable alternative would impede workflow cycles significantly, resulting in delays and increased administrative burdens for City staff. FISCAL/RESOURCE IMPACT Funding for this purchase order in FY 2025 in the amount of $125,965 is within budgeted levels adopted by the City Council in the Informational Technology Department, no additional funding is requested. The Information Technology (IT) Department is funded by an Internal Service Fund (ISF) that allocates costs to other funds across the City to provide technology related services to other City departments and funds. Approximately 45% of the services provided are for the General Fund 2 September 27, 2021 Report, Item #6, PDF page 67, is available to view at https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=3307&compileOutputType= 1 with the remaining 55% for other funds such as Enterprise, special revenue, and other internal service funds. STAKEHOLDER ENGAGEMENT The services were coordinated with internal stakeholders and the service provider. The Information Technology Department has met with all City departments to collect their business needs for an electronic signature platform and documented their must-have features. Other available solutions meeting these requirements and features will be evaluated during this one- year period. ENVIRONMENTAL REVIEW The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(c)(3) because it can be seen that there is no possibility that the activity in question may have a significant effect on the environment. ATTACHMENTS Attachment A: Carahsoft Technology Corp Contract C25192371 APPROVED BY: Darren Numoto, Chief Information Officer *** PURCHASE ORDER AGREEMENT *** This City of Palo Alto (City) Purchase Order agreement (PO) with CARAHSOFT is made pursuant and subject to OMNIA Master Agreement#: 23-6692-01 for the procurement of TECHNOLOGY PRODUCT SOLUTIONS AND RELATED SERVICES. Notwithstanding the Master Contract, this PO is governed by California law without regard to conflict of law principles. The venue for any dispute under this PO is Santa Clara County, California. This PO hereby attaches and incorporates the following contract documents into this PO by reference as though fully set forth herein, and should any conflict arise, shall be interpreted in the following priority: 1. OMINIA Master Agreement#: 23-6692-01 2. CARAHSOFT Quote with Terms and Conditions 0010 FY25 DocuSign Enterprise Pro for Gov 103,250 USD 1.00 103,250.00 PM: Madina.Klicheva@CityofPaloAlto.org APT-0393-611 DocuSign Enterprise Pro for Gov - Env Enterprise Pro for State and Local Government - Envelope DocuSign, Inc. - APT-0393 Qty 25,000 Start Date: 08/23/2024 End Date: 08/22/2025 Vendor Address CARAHSOFT TECHNOLOGY CORP. 11493 SUNSET HILLS ROADS SUITE 100 RESTON VA 20190 Tel: 1-888-662-2724 Fax: 703-871-8505 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Information Technology Services City of Palo Alto 250 Hamilton Ave., 2nd Floor Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGESPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order.DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Service Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C25192371 Date 08/15/2024 Vendor No.106008 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by CTY Term 08/23/2024 - 08/22/2025 Buyer/Phone Alice Harrison / 650-329-2173 Email Alice.Harrison@CityofPaloAlto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 1 of 2 All Products Purchased under this agreement are available via Electronic Distribution only. No tangible media or documentation will be available or shipped under this agreement. Access to the products purchased under this agreement is in no way dependent upon any tangible media that may have been received prior to, or separately from, this agreement. To support the California sales and use tax exempt status of electronically downloaded software allowed under California regulation 1502 (F) (1) (D), vendor invoices for all purchases made under this agreement must accurately state that software distribution is solely via electronic download and that no tangible media or documentation will be shipped to or received by our agency. 0020 FY25 Enterprise Premier Support 22,715 USD 1.00 22,715.00 APT-0148-611 Enterprise Premier Support 22% of Recurring Fees (22% of List Price per $100 of List License Fees) DocuSign, Inc. - APT-0148 Qty 25,000 Start Date: 08/23/2024 End Date: 08/22/2025 ------------------------- Sub-Total 125,965.00 Vendor Address CARAHSOFT TECHNOLOGY CORP. 11493 SUNSET HILLS ROADS SUITE 100 RESTON VA 20190 Tel: 1-888-662-2724 Fax: 703-871-8505 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Information Technology Services City of Palo Alto 250 Hamilton Ave., 2nd Floor Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer Total 125,965.00 THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGESPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order.DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Service Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C25192371 Date 08/15/2024 Vendor No.106008 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by CTY Term 08/23/2024 - 08/22/2025 Buyer/Phone Alice Harrison / 650-329-2173 Email Alice.Harrison@CityofPaloAlto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 2 of 2