Title
Authorization to Amend Agreement with BEM Systems, Inc. to Extend Term for Real Estate Acquisition Management System (Ordinance S-46374)
Description
Request to authorize the City Manager, or his designee, to amend Technology Products and Professional Services Agreement 140770 with BEM Systems, Inc. (BEM) to provide three additional options to extend the term for one year each. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
BEM currently provides the Finance Department's Real Estate Division with maintenance, customer support and hosting services for the PAECETrak real estate acquisition management system. PAECETrak is a proprietary web-based software application developed and owned exclusively by BEM. The current contract expires April 26, 2020, with no options to extend. The Real Estate Division has a high volume of real property acquisition work to accommodate various City projects, and PAECETrak is critical for the successful management of those acquisitions. Due to the current volume of work, the timing of changing systems is critical to avoid a disruption in service that may result in project delays. Extending the current contract for up to three years, in one-year increments, will allow sufficient time to ensure a smooth transition to an existing enterprise system with minimal disruption to service.
This item has been reviewed and approved by the Information Technology Services Department.
Procurement Information
In accordance with Administrative Regulation 3.10, normal competition was waived as a result of a determination memo citing sole source. PAECETrak is a proprietary web-based software application developed by BEM; no other firm can update, maintain or enhance this proprietary software.
Contract Term
The first year of the three additional one-year options to extend the contract will begin April 27, 2020.
Financial Impact
The cost for first year of the extended term is $67,953 plus applicable taxes, and the cost will escalate annually by 3 percent. Aggregate expenditures for all three option years of the extended term will not exceed $230,000.
Concurrence/Previous Council Action
City Council authorized the procurement of PAECETrak on March 4, 2009. The current maintenance and hosting agreement, which enabled continued use of the system, was authorized by City Council on April 15, 2015.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.