REPORT TO COUNCIL
SUBJECT
Title
Reject all Proposals Received for the Computerized Maintenance Management System (F24-224)
Report
REPORT IN BRIEF
Approval is requested to reject all proposals received in response to Request for Proposals (RFP) No. F24-224 for the implementation of a Computerized Maintenance Management System to replace the City’s outdated system. The RFP sought a solution to enhance the automation and workflows of the City’s Environmental Services and Public Works Departments.
EXISTING POLICY
Pursuant to Section 2.08.140(b) of the Sunnyvale Municipal Code, the City Council may reject bids or proposals received in response to formal competitive bid solicitations. This Code section also provides that if all bids are rejected, the City has the discretion to re-advertise.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The City is seeking a comprehensive, all-in-one Computerized Maintenance Management System solution that is either commercial off-the-shelf (COTS) software or software as a service (SaaS). The software must integrate with the City’s Geographic Information and Customer Relationship Management systems and will be utilized by the Environmental Services and Public Works departments.
A Request for Proposals (RFP) was issued on September 26, 2024. Eight (8) proposals were received. After the written proposals were evaluated by staff from Information Technology, Environmental Services, and Public Works, three proposers were invited to the proposer demonstrations/interview: Central Square, KloudGin, and PSD. After the interview and presentation, staff elevated one vendor to participate in a sandbox evaluation. This step involved testing against detailed workflow scripts to determine how well the proposed solution supported the City’s operational needs as well as the functional requirements specified in the RFP.
The results of the sandbox testing revealed critical gaps between the proposed solution and the City’s daily functional requirements, particularly in areas related to GIS integration and workflow automation. These shortcomings could lead to significant increases in manual administrative effort, delays in service delivery, and potential inconsistencies in data accuracy. In turn, such inefficiencies may expose the City to heightened liability, compliance challenges, and even safety risks if critical information is not captured or communicated in real time.
Based on this outcome, staff determined that none of the proposals were suitable for award. Staff recommends rejecting all proposals and considering future solicitations focused on readvertising to vendors with proven capabilities in public works and environmental services automation. Staff will also evaluate whether the City may bypass a formal RFP process in favor of an alternative, expedited procurement method, including the use of cooperative purchasing agreements and or piggybacking on contracts competitively bid by other agencies, where justified.
FISCAL IMPACT
There is no fiscal impact from rejecting the proposals.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Reject all proposals received in response to Request for Proposals (RFP) F24-224 Computerized Maintenance Management System.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Kathleen Boutté Foster, Chief Information Officer
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager