REPORT TO COUNCIL
SUBJECT
Title
Action on Agreement with NeoGov for the Human Resources’ Applicant Tracking System and Related Software Subscription Services
Report
BACKGROUND
The City has utilized GovernmentJobs.com, Inc. (d/b/a/NeoGov, hereinafter “NeoGov”) since 2011 as its primary online platform for managing the entire recruitment life cycle. NeoGov provides an essential applicant tracking system that specializes in public sector recruitment processes. This specialized expertise significantly streamlines the hiring process while ensuring compliance with federal Equal Employment Opportunity requirements. NeoGov’s services include comprehensive tools for advertising current job openings to a wide pool of candidates, accepting and processing electronic applications, and facilitating communication and interview scheduling with candidates. Currently, the City utilizes the recruitment module, Insight, in order to advertise jobs, collect applications, and communicate with candidates. In addition to the current modules in use, the City will be launching two (2) new NeoGov modules that offer targeted advertising based on a candidate’s related experience, and a performance appraisal and management module to facilitate an improved internal appraisal process for existing employees.
The City’s initial agreement with NeoGov was executed in 2011, with subsequent subscription renewals authorized via annual order forms. To ensure the continuity and security of these critical services, the City and NeoGov have collaboratively developed a new master agreement. This updated document is designed replace the outdated agreement template while accurately capturing the current scope of services and City’s required terms and conditions.
To formalize the current service arrangement and ensure uninterrupted access to secure to the NeoGov platform, this item presents for Council consideration approval of a new master agreement with NeoGov. This agreement incorporates updated terms and conditions and establishes clear, long-term annual pricing for existing and new services.
DISCUSSION
Pursuant to City Code Section 2.105.280(b)(2), which authorizes an exemption from standard procurement requirements for services necessary to ensure the continuous operation of an existing program, the new master agreement with NeoGov is designated as a single source purchase. The City’s hiring operation relies on NeoGov’s platform for every stage of recruitment. Transitioning to a new system would be highly disruptive and fiscally inefficient at this time, requiring substantial implementation costs, staff training, and complex data migration.
The new master agreement provides an opportunity for the City to improve services through new subscriptions while re-establishing terms and pricing and aligning all subscriptions onto the same renewal timeline. In addition to the current modules in use, the City will be launching two (2) new NeoGov modules that offer targeted advertising based on a candidate’s related experience, and a performance appraisal and management module to facilitate an improved internal appraisal process for existing employees.
With no interruption to current services, the new agreement will align all subscriptions to the fiscal year, with the new modules provided at a pro-rated rate for the period of December 1, 2025 to June 30, 2026. As of July 1, 2026 all module subscriptions will be available for a full 12-month term ending on June 30, 2027. Together, this 19-month period constitutes the initial term of the new agreement.
Pricing will remain fixed for the initial term of the agreement, after which the agreement will automatically renew up to five (5) successive twelve (12) month terms with price increases capped at no more than five percent (5%) from the previous year. Either party may elect not to renew a particular subscription by providing written notice to the other party at least thirty (30) days prior to the expiration of the then current term. The agreement will automatically terminate on June 30, 2032, unless extended by both parties through a formal written amendment. The table below details the costs for the initial term and the estimates costs for the five (5) auto-renewing terms, assuming the NeoGov implements five percent (5%) increases each year.
|
Term |
Term Dates |
Cost with max 5% increases |
|
Initial Term |
12/1/2025 - 6/30/2027 |
$152,344.64 (19-month term) |
|
Renewal Year 1 |
7/1/2027 - 6/30/2028 |
$102,308.57 |
|
Renewal Year 2 |
7/1/2028 - 6/30/2029 |
$107,423.99 |
|
Renewal Year 3 |
7/1/2029 - 6/30/2030 |
$112,795.19 |
|
Renewal Year 4 |
7/1/2030 - 6/30/2031 |
$118,434.95 |
|
Renewal Year 5 |
7/1/2031 - 6/30/2032 |
$124,356.70 |
|
|
Total |
$717,644.04 |
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. Furthermore, 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.
FISCAL IMPACT
The maximum compensation for the initial term of the agreement ending on June 30, 2027 is $152,344.64. The budget for these services was included as part of the FY 2025/26 and FY 2026/27 Operating Budget. Appropriations in future years as listed in the table above will be incorporated as part of the budget development process.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov.
RECOMMENDATION
Recommendation
Authorize the City Manager or designee to execute an agreement with NeoGov for an applicant tracking system and related software subscription services for an initial 19-month term ending on June 30, 2027 and five (5) subsequent auto-renewing terms (ending no later than June 30, 2032) with a maximum compensation not to exceed $152,344.64 for the initial term and $717,644.04 if all renewal terms are automatically renewed in a final form approved by the City Attorney and subject to the appropriation of funds.
Staff
Reviewed by: Marco Mercado, Acting Director of Human Resources
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. SaaS Services Agreement - NeoGov Services Between the City of Santa Clara and NeoGov