REPORT TO COUNCIL
SUBJECT
Title
Action on ARCOS Master Service Agreement with ARCOS, LLC for the Purchase, Implementation, and Support of a Scheduling and Resource Management Software Platform for Silicon Valley Power (SVP).
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Silicon Valley Power (SVP) is experiencing significant growth with several planned expansion projects and upgrades. This growth has also led to an increased level of complexity in the infrastructure to deliver electricity to Santa Clara residents and businesses. With the anticipated growth, the traditional method of managing resources to facilitate SVP’s operations is not practical without a specialized software tool. SVP requires an automated resource management system to assign, track, and manage SVP’s operation staff to respond to planned, unplanned, and emergency events.
DISCUSSION
Pursuant to City Code Section 2.105.140(c), a formal Request for Proposals (RFP) was conducted, with the award recommendation based on “best value.” The RFP was published using the City’s e-procurement system to solicit proposals from qualified firms to provide a scheduling and resource management solution to effectively manage the scheduling of resources such as staff, contractors, and equipment for SVP. A total of 53 companies viewed the RFP, and two responses were received by the deadline. One firm’s response was that their software did not have the “call-out” feature, and therefore, that firm chose not to submit a proposal.
The sole responsive proposal from ARCOS, LLC (ARCOS) was reviewed and evaluated by staff against the requirements and criteria published in the RFP. ARCOS was invited to provide a software demonstration and submit a best and final offer. SVP staff determined that ARCOS’ software solution met the requirements of the RFP and noted the following key attributes:
• Resource management platform and callout system
• Crew manager with real-time crew availability and tracking
• Management reporting
• System maintenance and back-up
The ARCOS Software as a Service (SaaS) solution will provide real-time status information about resources including resource requirements, resource utilization, work completion, and restoration and repair. This need has emerged with the on-going expansion and increasing complexity of the electric network and supporting systems. The ability to analyze resource utilization for tasks and projects under both regular and abnormal system conditions will support the development and maintenance of an efficient and optimized workforce.
Staff conducted reference checks with the City of Lincoln (Lincoln, NE), Pedemales Electric (Kyle, Texas), and Ocala Utility Services (Ocala, FL). All references were positive.
The proposed Master Service Agreement (ARCOS MSA) with ARCOS includes the general terms and conditions including a maximum compensation of $1,000,000. The purchase of the modules and professional services for configuration, implementation, testing, and training is issued under Work Order No. 0001, pursuant to the ARCOS MSA. This Work Order No. 0001 incorporates a detailed scope of services, a compensation schedule for implementation with payments tied to the successful completion of key project milestones and includes a 20% retainage amount for the one-time implementation fee that will be released after final system acceptance. The cost of proposed cost of Work Authorization 001 is $500,129.
Annual software subscription fees are based on the products subscribed to by SVP, which will include ARCOS Callout, ARCOS Crew Manager, and ARCOS API. If the City chooses to extend the ARCOS MSA for an additional three years, the cost is estimated to be about $500,000 for the three-year period. The annual estimated costs may change as annual increases are based on changes to the Consumer Price Index (CPI).
The proposed agreement has a maximum compensation of $1,000,000, as detailed in the following table.
|
Cost Element |
Amount |
|
Initial Term |
|
|
One-Time Implementation Fee |
$ 102,000 |
|
Year 1 Software Subscription |
$ 127,540 |
|
Year 2 Software Subscription |
$ 132,642 |
|
Year 3 Software Subscription |
$ 137,947 |
|
Total (Years 1-3) |
$ 500,129 |
|
|
|
|
Three-Year Renewal (at the sole discretion of the City) |
|
Estimated Cost Years 4 - 6 |
$ 499,871 |
|
|
|
|
Total (Years 1-6) |
$1,000,000 |
|
TOTAL MAXIMUM COMPENSATION IN PROPOSED ARCOS MSA |
$1,000,000 |
|
Additional Services/Contingency |
$ 500,000 |
|
PROPOSED TOTAL MAXIMUM COMPENSATION AUTHORIZED |
$1,500,000 |
Under the proposed agreement, additional services or extensions are authorized using a work order similar to Work Order 001 attached or change to work order where applicable. Such work orders or changes to work orders cannot exceed the maximum compensation unless the agreement is amended. Staff recommends that the City Manager is authorized to negotiate and execute amendments to the ARCOS MSA, additional work orders, or changes to work orders in order to (1) exercise the option to extend the term through September 2030; (b) adjust rates based on specified percentage plus increases in the Consumer Price Index; and (c) add/delete functionalities and services required to support future system requirements, subject to budget appropriations and review and approval as to form by the City Attorney.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15061(b)(3) of the Title 14 of the California Code of Regulations in that there is no possibility that the proposed actions will have a significant effect on the environment.
FISCAL IMPACT
The maximum compensation under the proposed ARCOS MSA is $1,000,000 to provide and implement a scheduling, dispatch, and resource management solution. Work Order No. 0001 covers the initial three-year period at a cost of $500,129 for implementation services ($102,000) and annual subscription costs ($398,129). Sufficient funds are available in the Electric Utility Capital Budget (Project 2395 - Operations and Planning Technology) for implementation services. Sufficient funds are available in the Electric Utility Operating Fund for the annual fees.
Funding for future years will be included in proposed budgets for the corresponding years.
COORDINATION
This report has been coordinated with the Finance Department and 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 <mailto:clerk@santaclaraca.gov> or at public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute an ARCOS Master Service Agreement with ARCOS, LLC (ARCOS MSA) for an initial three-year term beginning on or around October 1, 2024, and ending on or around September 30, 2027, with the option to extend three additional years through September 30, 2030, with a maximum compensation not to exceed $1,000,000, subject to budget appropriations and review and approval as to form by the City Attorney;
2. Authorize the City Manager to execute Work Order No. 0001 to the ARCOS Master Service Agreement to provide and implement a scheduling, dispatch, and resource management solution subject to the maximum compensation of the ARCOS Master Service Agreement; and
3. Authorize the City Manager to take any actions as are necessary or advisable to implement and administer the ARCOS Master Service Agreement and negotiate and execute new Work Orders and amendments to the ARCOS MSA and Work Order No. 0001 to (a) extend the term through September 30, 2030; (b) adjust rates in accordance with the applicable Work Order; or (c) add or delete services or solution functionalities required to support future system requirements or City needs for a total maximum compensation not to exceed $1,500,000 over a six-year period, subject to budget appropriations and review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Proposed ARCOS Master Service Agreement
2. Proposed Work Order No. 0001 to the ARCOS Master Service Agreement