REPORT TO COUNCIL
SUBJECT
Title
Action to Delegate Authority to the City Manager to Authorize Ongoing Payments for the Existing Agreement with LCPtracker, Inc. for Labor Compliance Software and to Negotiate and Execute Future Agreements and Amendments
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On June 21, 2018, the City Manager executed a Software Service Agreement with LCPtracker, Inc. (LCPtracker) to provide a cloud-based, software-as-a-service (SaaS) solution for tracking certified payroll information in compliance with the California Department of Industrial Relations (DIR) prevailing wage reporting requirements. The State of California mandates that contractors pay prevailing wages for construction, alteration, demolition, installation, or repair work performed under contracts paid in whole or in part by public funds and this program is managed by DIR.
The City uses the LCPtracker system to verify that contractors are paying the required prevailing wages to their employees based on scope performed by the employee. This system is a critical tool for City staff to monitor contractor compliance with prevailing wage laws.
The LCPtracker agreement is renewed annually and fees are based on the value of projects loaded in the system. Currently, the system includes more than $250 million in active projects, largely due to the significant number of projects associated with Silicon Valley Power's system expansion plan. As a result, the total cost of the agreement is projected to exceed $250,000. Since 2018, the City has paid $240,000 for the LCPtracker system.
DISCUSSION
The Purchasing Division Manager has determined that this procurement is exempt from the sole source prohibitions under 2.105.280(b)(2) of the Santa Clara City Code as this renewal of LCPtracker is necessary to ensure continued operation and function of existing systems currently in use by the City. The LCPtracker system is integr...
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