REPORT TO COUNCIL
SUBJECT
Title
Award a Contract to OpenGov, Inc. for the Implementation, Licensing, Maintenance, and Support of a Computerized Maintenance Management System (CMMS) for a 10-Year Term in an Amount Not to Exceed $3,821,911.25 (F26-208)
Report
REPORT IN BRIEF
Approval is requested to award a contract to OpenGov, Inc. of San Francisco for the implementation, licensing, maintenance, and support of a Computerized Maintenance Management System (CMMS) for a 10-year term in an amount not to exceed $3,785,767.25, consisting of $361,440 for implementation services, $3,407,527.25 for software licensing, maintenance, and support, and up to $16,800 for travel and expenses. Approval is also requested for a 10% contingency on the implementation services in the amount of $36,144, for a total authorized amount not to exceed $3,821,911.25, in substantially the same form as Attachment 1 to the report.
EXISTING POLICY
Pursuant to Section 2.08.060(c), of the Sunnyvale Municipal Code (SMC), contracts for this type of service are awarded pursuant to a Request for Proposals (RFP) best-value process, unless otherwise exempt from the competitive bidding process. City Council approval is required for the procurement of goods and/or services exceeding $250,000 in any one transaction.
Pursuant to Section 2.08.060(f) of SMC, the Purchasing Officer determined that use of an alternative method of procurement was in the City's best interest. The alternative procurement method was conducted in a manner intended to preserve fair and open competition and the integrity of the procurement process.
The proposed CMMS replacement supports the Council Strategic Goal of a City that invests in modern public infrastructure by improving the City’s ability to manage, maintain, and plan for its facilities, utilities, transportation assets, and other public infrastructure.
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(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
BACKGROUND AND DISCUSSION
The City’s current Computerized Maintenance Management System (CMMS) has reached the end of its useful life and no longer satisfies the City’s usability and operational requirements. For example, the system does not provide a mobile application for field service personnel or integrate with the City’s GIS asset data. These limitations impede the City’s ability to effectively maintain its facilities and manage public works and utility operations. The system’s limited reporting functionality and ineffective preventive-maintenance and repair-scheduling capabilities reduce staff’s ability to efficiently identify, prioritize, respond to, and resolve operational issues.
On September 26, 2024, the City issued Request for Proposals (RFP) F24-224 to purchase and implement a new CMMS. The City received eight proposals on October 30, 2024, and an interdepartmental staff team evaluated them. The evaluation included interviews, system demonstrations, sandbox testing, and reference checks. After the evaluation, Council approved rejecting all proposals received in response to RFP F24-224 (RTC 25-0823) because all proposals exceeded the City’s available budget and directed staff to revise the scope of work and re-advertise the solicitation. After refining the requirements and adding details to the specifications, the City issued RFP F26-208 on October 21, 2025. The City received five proposals on November 3, 2025. An interdepartmental evaluation team again evaluated the proposals through interviews, system demonstrations, sandbox testing, reference checks, and site visits.
Unfortunately, neither RFP produced a proposal that met the combined requirements of the Environmental Services Department and the Department of Public Works and was within the City’s available budget. After the two robust RFP processes were unsuccessful, the Purchasing Officer authorized an alternative procurement method pursuant to SMC Section 2.08.060(f). Under the approved alternative procurement method, the City requested proposals from reputable CMMS vendors based on the requirements developed through RFP F26-208.
Based on the evaluation conducted through the alternative procurement process, OpenGov, Inc. was determined to offer the best value to the City and was selected for contract negotiations. The new system will provide mobile access for field staff, integrate with the City’s GIS asset data, improve preventive maintenance and repair scheduling, and provide enhanced reporting and asset-management capabilities. These improvements will allow staff to better track, prioritize, and complete maintenance work across City facilities, utilities, transportation assets, and other public infrastructure. OpenGov’s proposed solution meets the City’s functional and technical requirements. Following OpenGov’s selection, staff negotiated the proposed agreement.
The proposed agreement includes a detailed Statement of Work addressing implementation, configuration, integrations, testing, training, and acceptance requirements. The agreement provides for annual 5% increases to the software subscription fees during the 10-year contract term and includes annual user conference passes.
The proposed CMMS replacement will result in a 10-year financial commitment beginning October 1, 2026, and ending September 30, 2036. The costs include one-time implementation services, ongoing software subscription and operational costs, and travel expenses.
The total base contract cost over the 10-year term is $3,785,767.25, consisting of:
• Ongoing software subscription and operational costs: $3,407,527.25
• One-time professional services and implementation costs: $361,440
• Travel and expenses: Up to $16,800, billed as incurred and not to exceed the authorized amount
The contract also includes a 10% contingency for implementation services in the amount of $36,144, for a total authorized amount not to exceed $3,821,911.25
FISCAL IMPACT
Funding is currently available for project 837330 - CMMS Replacement from the Technology and Communication Services Fund in the amount of $943,517. Funding is also available for project 819771 - Utility Maintenance Management System from the Water Infrastructure Fund ($225,000) and the Wastewater Operating Fund ($225,000) (Attachment 2 to the report).
The combined available funding of $1,393,517 is sufficient to cover implementation of the replacement system and two and a half years of ongoing subscription costs. However, the remaining subscription costs will need to be built into future year budgets and the out years of the affected long-range financial plans during the FY 2027/28 budget development cycle.
The cost of this agreement continues a trend noted in the FY 2026/27 Budget that information technology costs continue to greatly exceed broader inflation. The City’s projects assumed ongoing subscription costs of around $80,000 annually, while this agreement's costs are around $350,000 annually. Staff strives to find the best value during procurement and negotiates aggressively for the best price, but prices continue to rise across the board for these systems. The City increased the inflation factor used in the Information Technology Fund to address these trends and will continue to monitor IT costs and adjust its related cost assumptions.
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
Take the following actions:
- Award a contract to OpenGov, Inc. for the implementation, 10-year licensing, maintenance, support, and installation of a replacement CMMS system with a not-to-exceed amount of $3,785,767.25;
- Approve a 10% contingency on implementation services in the amount of $36,144, for a total authorized amount not to exceed $3,821,911.25; and
- Authorize the City Manager to execute the contract in substantially the same form attached when all necessary conditions have been met.
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: Aaron Bert, Director of Public Works
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Draft Agreement
2. Project Budget Summary Sheet