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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />AUGUST 16, 2016 <br />TITLE; <br />AGREEMENT WITH PLANETBIDS <br />FOR E- PROCUREMENT SYSTEM <br />(STRATEGIC PLAN NO. 4, 11B) <br />Ze <br />CITY MANA _R <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ <br />As Amended <br />❑ <br />Ordinance on Vt Reading <br />❑ <br />Ordinance on 2 n Reading <br />❑ <br />Implementing Resolution <br />❑ <br />Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute an agreement with PlanetBids, <br />Inc. for web -based procurement services for a three -year period beginning August 16, 2016 and <br />ending August 15, 2019 with provision for a two -year renewal option exercisable by the City <br />Manager, in an amount of $33,375 for the first year and an annual amount not to exceed <br />$27,400 for subsequent years, subject to non - substantive changes approved by the City <br />Manager and City Attorney. <br />DISCUSSION <br />The Finance and Management Services Purchasing Division (Purchasing) administers the City's <br />centralized purchasing processes. On August 5, 2013, Purchasing Division entered into an <br />agreement with PlanetBids, a certified Small Business and Women Business Enterprise, in an <br />effort to streamline the procurement process. Through the implementation of the Bid <br />Management Module System (System) the City has achieved a more efficient and transparent <br />method for electronically advertising, monitoring and awarding formal and informal bids and <br />proposals, while significantly increasing the number of vendors notified of the City's bid and <br />proposal solicitation. <br />The year before the bid management module was implemented, Purchasing division processed <br />1,100 requisitions and 27 formal invitations for bid, which were advertised to an average of five <br />vendors. Furthermore, staff time incurred for each bid approximated between two to three hours. <br />During fiscal -year 2014 -2015, a year after implementation, 1,371 requisitions and 45 formal <br />invitation for bids were processed and an average of 31 vendors were notified for each <br />solicitation. Additionally, the City's Requests for Proposals are now publicized online by <br />Purchasing staff; all without incurring additional overtime or staff time. <br />An added benefit in implementing the software is vendors now have the capability to register <br />online as opposed to staff searching for vendors to notify of the City's bid and requesting <br />25J -1 <br />