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Home My WebLink AboutStaff Report 2412-3918CITY OF PALO ALTO CITY COUNCIL Special Meeting Tuesday, January 21, 2025 Council Chambers & Hybrid 5:30 PM Agenda Item 5.Approval for the City Manager or their Designee to Execute PO C25193331 with Carahsoft, Utilizing a General Services Agreement (GSA) Contract Number 47QSWA18D008F, to Procure SAP Signavio/LeanIX, SAP Governance, Risk, Compliance (GRC) and Identity Access Governance (IAG) Solutions for a 3-Year Term for a Total Not-To- Exceed Amount of $1,032,431; CEQA Status: Not a Project City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: IT Department Meeting Date: January 21, 2025 Report #:2412-3918 TITLE Approval for the City Manager or their Designee to Execute PO C25193331 with Carahsoft, Utilizing a General Services Agreement (GSA) Contract Number 47QSWA18D008F, to Procure SAP Signavio/LeanIX, SAP Governance, Risk, Compliance (GRC) and Identity Access Governance (IAG) Solutions for a 3-Year Term for a Total Not-To-Exceed Amount of $1,032,431; CEQA Status: Not a Project RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or their designee to execute PO C25193331 with Carahsoft, utilizing a General Services Agreement (GSA) Contract Number 47QSWA18D008F, to procure SAP Signavio/LeanIX, SAP Governance, Risk, and Compliance (GRC), SAP Integration Suite of products and services for a 3-year term (January 1, 2025 to December 31, 2027), with a total not-to-exceed amount of $1,032,431 (Attachment A). BACKGROUND The City of Palo Alto aims to enhance business process efficiency, strengthen user access controls, and streamline data exchange with approved vendors. To achieve this, staff recommends procuring SAP tools through Carahsoft, a vendor leveraging General Service Agreement (GSA) Contract Number 47QSWA18D008F1. The key components of this initiative include: • SAP Cloud Identity Access Governance (IAG): Enables secure user provisioning and access controls. 1 GSA Contract: 47QSWA18D008F https://www.gsaadvantage.gov/ref_text/47QSWA18D008F/100V5C.3VR800_47QSWA18D008F_47QSWA18D008F- 11-24-2024-565316.PDF • SAP Signavio/LeanIX Solutions: Provides business process management, risk analysis, and process insights. These tools will allow the City to address critical compliance requirements, improve system management efficiency, and align with recommendations from the 2022 Baker Tilly audit report titled “Assessment of SAP Functionality and Internal Controls and part of the FY22 Baker Tilly Annual Risk Assessment2.” This purchase will establish an automated framework for risk analysis, access monitoring, and governance of business processes, ensuring stronger compliance and security. ANALYSIS Approval of this purchase order will enable the City to meet critical compliance and security needs efficiently and cost-effectively. The City will acquire the following SAP solutions from Carahsoft. Carahsoft is a technology solutions provider that services the public sector. The City is procuring this software through a cooperative agreement. A cooperative purchasing agreement a contract that allows multiple entities to purchase goods and services at negotiated rates and are created by combining the buying needs of multiple entities to achieve a more economical purchase. Staff will be returning to Council in February for approval of implementation services for these tools. Table 1: Three-Year Cost Summary (2025 – 2028) 02/01/2025 - 01/31/2026 Product Quantity Price Total Cost SAP Process Manager 5 $6,159 $30,795 SAP Process Hub 2 $714 $1,428 SAP Process Insights 1 $69,212 $69,212 SAP Application Portfolio Management 1 $48,531 $48,531 SAP Risk and Compliance 1 $24,266 $24,266 SAP Integration (Starting on 08/01/2025)2 $27,064 $54,128 SAP Cloud Identity (Starting on 08/01/2025)2 $23,912 $47,824 Year 1 Subtotal $276,184 02/01/2026 - 01/31/2027 SAP Process Manager 5 $6,159 $30,795 SAP Process Hub 2 $714 $1,428 SAP Process Insights 1 $69,212 $69,212 SAP Application Portfolio Management 1 $48,531 $48,531 SAP Risk and Compliance 1 $24,266 $24,266 2 FY22 Annual Risk Assessment – Baker Tilly, pages 39-42. fy22-annual-risk-assessment.pdf SAP Integration 2 $54,127 $108,254 SAP Cloud Identity 2 $47,823 $95,646 Year 2 Subtotal $378,132 02/01/2027 - 01/31/2028 SAP Process Manager 5 $6,159 $30,795 SAP Process Hub 2 $714 $1,428 SAP Process Insights 1 $69,212 $69,212 SAP Application Portfolio Management 1 $48,531 $48,531 SAP Risk and Compliance 1 $24,266 $24,266 SAP Integration 2 $54,127 $108,254 SAP Cloud Identity 2 $47,823 $95,646 Year 3 Subtotal $378,132 Grand Total $1,032,431 FISCAL/RESOURCE IMPACT Funding for this purchase order in FY 2025 is within budgeted levels adopted by the City Council in the Information 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 49% of the services provided are for the General Fund with the remaining 51% 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. ENVIRONMENTAL REVIEW The approval of these contracts 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: C25193331 CARAHSOFT TECHNOLOGY CORP 1.PDF APPROVED BY: Darren Numoto, Chief Information Officer This City of Palo Alto (City) Purchase Order (PO) with Carahsoft Technology Corp. (Contractor) is entered into between City and Contractor pursuant to GSA Contract No. 47QSWA18D008F. This PO hereby attaches and incorporates the following attachments by reference as though fully set forth herein: 1.GSA Contract No. 47QSWA18D008F (including all documents included by reference) 2.City of Palo Alto Purchase Order Terms and Conditions (Services) 0010 SAP Signavio Process Manager 30,795 USD 1.00 30,795.00 Catalog number: 8011437-1-19-611 City PM: Jitendra.Kulkarni@CityofPaloAlto.org Quote no. 50682788 GSA MAS 8F : 47QSWA18D008F SAP Signavio Process Manager (1-19 Tier; Block of 1 User; Per Year) SAP Industries, Inc. - 8011437-1-19 Start Date: 01/01/2025 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 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C25193331 Date 12/18/2024 Vendor No.106008 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by CTY Term 01/01/2025 - 12/31/2025 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 4 End Date: 12/31/2025 QTY 5 0020 SAP Signavio Process Collaboration Hub 1,426 USD 1.00 1,426.28 Catalog number: 8011440-1-99-611 SAP Signavio Process Collaboration Hub (1-99 Tier; Block of 10 User; Per Year) SAP Industries, Inc. - 8011440-1-99 Start Date: 01/01/2025 End Date: 12/31/2025 QTY 2 0030 SAP Signavio Process Insights, 69,211 USD 1.00 69,211.03 Catalog number: 8015441-1-INFINITE-611 SAP Signavio Process Insights, base package (1-Infinite Tier; Block of 1 Flat Fee; Per Year) SAP Industries, Inc. - 8015441-1-Infinite Start Date: 01/01/2025 End Date: 12/31/2025 QTY 1 0040 SAP LeanIX Application Portfolio Mgmnt 48,531 USD 1.00 48,530.74 Catalog number: 8018161-1-2-611 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 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C25193331 Date 12/18/2024 Vendor No.106008 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by CTY Term 01/01/2025 - 12/31/2025 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 4 SAP LeanIX Application Portfolio Management (1-2 Tier: Block of 100 APPLICATION; Per Year) SAP Industries, Inc. - 8018161-1-2 Start Date: 01/01/2025 End Date: 12/31/2025 QTY 1 0050 SAP LeanIX Technology Risk & Compliance 24,265 USD 1.00 24,265.37 Catalog number: 8018114-1-2-611 SAP LeanIX Technology Risk and Compliance (1-2 Tier: Block of 100 APPLICATION; Per Year) SAP Industries, Inc. - 8018114-1-2 Start Date: 01/01/2025 End Date: 12/31/2025 QTY 1 0060 SAP Integration Suite 54,126 USD 1.00 54,126.32 Catalog number: 8008411-611 SAP Integration Suite, standard edition (1-Infinite Tier; Block of 1 Tenant; Per Year) SAP Industries, Inc. - 8008411 Start Date: 07/01/2025 End Date: 12/31/2025 QTY 2 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 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C25193331 Date 12/18/2024 Vendor No.106008 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by CTY Term 01/01/2025 - 12/31/2025 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 3 of 4 0070 SAP Cloud Identity Access Governance 47,823 USD 1.00 47,822.64 Catalog number: 8015452-1-5-611 SAP Cloud Identity Access Governance, standard edition (1-5 Tier; Block of 1000 Resource; Per Year) SAP Industries, Inc. - 8015452-1-5 Start Date: 07/01/2025 End Date: 12/31/2025 QTY 2 ------------------------- Sub-Total 276,177.38 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 276,177.38 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 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C25193331 Date 12/18/2024 Vendor No.106008 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by CTY Term 01/01/2025 - 12/31/2025 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 4 of 4