REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 24, 2022
FROM
LARRY AINSWORTH, Chief Information Officer, Innovation and Technology Department
SUBJECT
Title
Amendments to Terms and Conditions of Sale Agreement with Logicalis, Inc. for ServiceNow Software and Services
End
RECOMMENDATION(S)
Recommendation
1. Approve Project Change Request, dated March 17, 2022, as Amendment No. 1 to the Terms and Conditions of Sale Agreement No. 21-452 with Logicalis, Inc. to modify the existing scope of work for ServiceNow software and services by adding an additional scope of work for professional services effective May 24, 2022, at a cost not to exceed $22,950, increasing the total contract cost from $1,905,903 to an amount not to exceed $1,928,853.
2. Approve Project Change Request dated May 13, 2022 as Amendment No. 2 to the Terms and Conditions of Sale Agreement No. 21-452 with Logicalis, Inc. to:
a. Affirm that the term of the Agreement is June 22, 2021 through June 21, 2026,
b. Modify the existing scope of work for ServiceNow software and services, as amended in Amendment No. 1, by adding an optional scope of work for software licenses, training, and professional installation/configuration services, and
c. Provide an allocation in an amount not to exceed $471,147 for any project change requests for future purchases for the existing scope of work that exceed $1,905,903, the additional scope of work that exceed $22,950, and/or any optional scope of work for the period May 24, 2022 through June 21, 2026, increasing the total contract cost from an amount not to exceed $1,928,853 to an amount not to exceed $2,400,000.
3. Authorize the Chief Executive Officer or the Chief Information Officer to execute non-substantive Project Change Requests for Agreement No. 21-452 with Logicalis, Inc. for future purchases within the existing scope of work, the additional scope of work, and/or any optional scope of work, subject to review by County Counsel, so long as the total cost of all Project Change Requests do not exceed $471,147 or the total contract amount of $2,400,000, or change the duration of the contract.
4. Direct the Chief Information Officer to transmit copies of all Project Change Requests to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Jake Cordova, Assistant Chief Information Officer, 388-5501)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Operating costs are recovered via service rates approved annually by the Board of Supervisors (Board). The cost for these amendments with Logicalis, Inc. (Logicalis), the authorized reseller of ServiceNow Information Technology Service Management (ITSM), will not exceed $494,097 combined. Costs are included in the Innovation and Technology Department (ITD) Computer Operations 2021-22 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
ITD uses multiple applications to provide helpdesk services, manage online service requests and provide necessary change management updates. The implementation of a software subscription with ServiceNow for ITSM is in process that will enable ITD to leverage a single application for helpdesk ticketing, online service requests, and to provide change management updates to improve efficiency and streamline processes.
On June 22, 2021 (Item No. 49), as the result of a competitive procurement, the Board approved Terms and Conditions of Sale Agreement No. 21-452 (Agreement) with Logicalis, including non-standard terms, to purchase the ServiceNow software licenses and provide training and professional installation/configuration services in the not-to-exceed amount of $2,400,000, comprised of $1,905,903 for ServiceNow products and services and a contingent allocation not to exceed $494,097 for future purchases, from June 23, 2021 through June 22, 2026.
Subsequently, it was determined that the Board’s approval for the Agreement did not reflect the term as June 22, 2021 through June 21, 2026, and that the total cost for the Agreement did not include the contingent allocation in an amount not to exceed $494,097 for future purchases. In addition, modifications to the existing scope of work are required. Accordingly, a project change request was prepared as Amendment No. 1 to modify the existing scope of work by adding an additional scope of work for professional services at a cost not to exceed $22,950, which reduces the contingent allocation from an amount not to exceed $494,097 to an amount not to exceed $471,147. A second project change request was prepared as Amendment No. 2 to affirm the term of the Agreement as June 22, 2021 through June 21, 2026, add an optional scope of work for software licenses, training, and professional installation/configuration services, which may include implementing and using an integrated help desk solution for reporting and tracking service requests from County departments, and provide for an allocation in an amount not to exceed $471,147 for any project change requests for future purchases for the existing scope of work that exceed $1,905,903, the additional scope of work that exceed $22,950, and/or any optional scope of work from May 24, 2022 through June 21, 2026.
Amendment No. 1 approves a Project Change Request dated March 17, 2022, to modify the existing scope of work by adding an additional scope of work for professional services effective May 24, 2022, at a cost not to exceed $22,950, which increases the total Agreement amount from $1,905,903 to an amount not to exceed $1,928,853.
Amendment No. 2 approves a Project Change Request dated May 13, 2022, to affirm the term of the Agreement as June 22, 2021 through June 21, 2026, further modify the existing scope of work by adding an optional scope of work for software licenses, training, and professional installation/configuration services, and provides for an allocation in an amount not to exceed $471,147 for any project change requests for future purchases for the existing scope of work that exceed $1,905,903, the additional scope of work that exceed $22,950, and/or any optional scope of work from May 24, 2022 through June 21, 2026, increasing the total contract cost from a not-to-exceed amount of $1,928,853 to a not-to-exceed amount of $2,400,000 to allow for contingencies during implementation services and adjustments to licensing as necessary for optimal usage and system performance.
ITD recommends approval of Amendment No. 1 and Amendment No. 2 to the Terms and Conditions of Sale Agreement No. 21-452.
PROCUREMENT
The original Agreement was competitively sourced via Request for Proposals (RFP) No. ISD121-ADM-4083 via the County’s Electronic Procurement Network (ePro) for ServiceNow ITSM software licenses, training, and professional installation/configuration services from ServiceNow authorized resellers.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel, 387-5455) on May 13, 2022; Purchasing (Michelle Churchill, Supervising Buyer, 387-2070) on May 2, 2022; Risk Management (Victor Tordesillas, Director, 386-8623) on April 29, 2022; Finance (Sofia Almeida, Administrative Analyst, 387-4378) on May 16, 2022; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5426) on May 16, 2022.