DATE: March 5, 2024
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Amendment to Agreement with Carahsoft Technology Corp
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a Second Amendment to Agreement No. 19-247 with Carahsoft Technology Corporation, for software and associated implementation services related to County Information Technology service requests, effective upon execution, increasing the maximum compensation by $1,031,422 to a total of $4,031,422, with no change to the five-year term of June 18, 2019 through June 17, 2024.
REPORT
There is no additional Net County Cost associated with the recommended action, which will allow the Internal Services Department - Information Technology Division (ISD-IT) to expand the use of ServiceNow as an Information Technology (IT) Infrastructure solution. Approval of the recommended action will continue the licensing for ServiceNow software which replaced and consolidated multiple commercial and home-grown systems supporting County IT service requests, including the County’s incident management solution, software license management, device management, change management, and several other small systems, into a single system to increase operational efficiency and lower overall costs. The increase will be funded with the Department’s Information Technology Services Org 8905 FY 2023-24 Adopted Budget and will be included in future budget requests. This item is countywide.
ALTERNATIVE ACTION(S):
If your Board does not approve the recommended action, ISD-IT will be unable to pay for software licenses in the final year of the agreement. This will result in ISD-IT not being able to process information technology service requests on behalf of its staff and other county departments.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The recommended amendment will add $1,031,422 to provide for the expand use of the ServiceNow platform absorbing other software systems, resulting in cost savings. The increase will be funded by the Department’s Information Technology Services Org 8905 FY 2023-24 Adopted Budget and will be included in future budget requests. The maximum compensation for the five-year term of the Agreement will not exceed $4,031,422. Sufficient appropriations and estimated revenues are included in the Department’s IT Org 8905 FY 2023-24 Adopted Budget and will be included in future budget requests.
DISCUSSION:
On June 4, 2019, your Board approved Agreement No. 19-247 with Carahsoft Technology, Inc. (Carahsoft), to provide a replacement Information Technology Service Management platform for the aging eRams system, to manage IT-related service requests. The new system, ServiceNow, is a robust solution that has allowed for better workflow management, automation, and increased efficiencies, related to managing incoming service requests from departments. This replacement has allowed ISD-IT to provide better, more responsive service to departments, and more transparency on the status of service requests.
On June 8, 2021, your Board approved First Amendment to Agreement No. 19-247 with Carahsoft to increase the maximum compensation from $1,500,000 to $3,000,000, to expand the use of ServiceNow platform, necessary to absorb a variety of IT functions performed by a combination of disparate commercial and home-grown systems, including the County’s incident management solution, software license management, device management, change management, and several other small systems.
The number of systems that the ServiceNow platform was intended to replace, has exceeded what ISD-IT originally anticipated. ISD-IT now desires to increase the maximum compensation to adequately provide for the ServiceNow system and related services, and the additional systems that ServiceNow has replaced.
The recommended amendment with Carahsoft increases the maximum compensation by $1,031,422, from $3,000,000 to a total of $4,031,422, in order to continue use of the ServiceNow platform. The $1,031,422 increase in compensation includes $567,850 for licensing costs, $50,000 for additional project management software, $300,000 for asset management services, and $113,572 for additional services. As of February 2, 2024, approximately $2,813,555 has already been spent on the Agreement, including $1,866,670 for licensing and $946,885 for services.
As of January 17, 2024, there is one pending invoice for this agreement in the amount of $567,850 for license renewals.
Approval of the recommended action will allow ISD-IT to continue using ServiceNow to process information technology service requests on from staff and other county departments.
REFERENCE MATERIAL:
BAI# 30, June 8, 2021
BAI# 54, June 4, 2019
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Second Amendment to Agreement with Carahsoft
CAO ANALYST:
Ahla Yang