REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Agreement with DemandStar Corporation for E-procurement Services
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
On October 8, 2019, the Stadium Authority Board (Board) approved Ordinance No. 2005 amending Chapter 17.30 of the City Code (Stadium Authority Procurement Policy), which rescinded the delegation to Executive Director’s to enter into agreements without prior Board approval. . As of the effective date of the Ordinance (November 8, 2019), all Stadium Authority agreements for services, supplies, materials, and equipment require the approval of the Stadium Authority Board.
Stadium Authority staff follows the competitive procurement requirements outlined under Chapter 2.105 of the City of Santa Clara City Code, for most purchases with an estimated value greater than $15,000. City and Authority staff have only begun to use e-procurement platforms in recent years. Prior to recent procurement process reforms, City staff used antiquated phone and/or fax solicitation of informal quotes. The move to e-platform solicitation processes has improved transparency, competition, and provides a more equal playing field for the bidders. It is also believed that the City obtains better pricing with improved outreach and exposure, with the additional efficiency when vendor communications are channeled through the system during the bid process.
Stadium Authority staff initially considered utilizing BidSync for their e-procurement platform. BidSync is used by the City for City procurements, therefore, staff’s familiarity with the product would minimize implementation and training time. However, a separate license would be required, and the quote for the license was $13,500 annually plus a set-up fee of $7,000. This appears to be excessive given the relatively low number of Stadium Authority purchases. Therefore, staff explored alternate solutions for an e-procurement platform that meets the requirements of the Stadium Authority at a lower cost.
DISCUSSION
The DemandStar product is a competitor to BidSync. While its feature set is not as robust as BidSync’s, it is sufficient to satisfy the Stadium Authority’s volume of bids. There are several pricing options available. Staff is recommending the no-cost option, that allows vendors to select one agency to receive bid notifications at no cost. If a vendor wishes to receive bids for multiple agencies, they would have to pay a fee. For example, the annual fee for all participating agencies in the State of California is $100. The annual fee for all participating agencies in Santa Clara County is $25. If a registered vendor is already paying for access to bids in Santa Clara County, there would be no additional fees for access to Stadium Authority solicitations. Currently, there are 100,000 registered vendors on the DemandStar system.
Alternatively, DemandStar offers a pricing model where the Stadium Authority pays an annual fee of $2,500 and the service would be accessible to registered vendors nationwide, at no cost to the vendors. At this time, staff recommends using DemandStar with the zero-cost option. Staff will assess the performance of the system and return to the Board if any changes are recommended.
The DemandStar system includes the following functionality, as outlined in the agreement (Attachment 1):
A. Allow the Stadium Authority to post bid documents and communicate with vendors regarding solicitations for all types of procurements (RFB, RFP, etc.)
B. Electronically notify vendors when a solicitation is released.
C. Provide a direct link to the DemandStar website via the Stadium Authority’s portal.
D. Allow vendors to view and download all bid documents posted on the system.
E. Allow vendors to post their bid response documentation.
F. Provide customer service support to the Stadium Authority and vendors.
ENVIRONMENTAL REVIEW
The actions being considered do 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 or pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
There is no fiscal impact to the Stadium Authority other than administrative staff time if the Stadium Authority enters into an agreement with DemandStar for the no cost service option.
COORDINATION
This report has been coordinated with the City’s Purchasing Manager, Stadium Authority Treasurer, and Stadium Authority Counsel.
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>.
RECOMMENDATION
Recommendation
Authorize the Executive Director to execute an agreement with DemandStar for procurement services, at no cost to the Stadium Authority.
Staff
Reviewed by: Christine Jung, Assistant to the Executive Director and Kenn Lee, Treasurer
Approved by: Deanna J. Santana, Executive Director
ATTACHMENTS
1. Agreement between DemandStar and Stadium Authority