DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Customer First San Antonio (C1SA) Project - Software and Implementation Services for Point-of-Sale and Reservation/Registration Systems
SUMMARY:
This Ordinance authorizes a contract with The Active Network, Inc., to provide the City Departments’ and residents with a standardized, modern enterprise platform for processing, reporting and managing payment transactions through a new Point of Sale System (POS) as well as a Reservation and Registration System (RRS) for increasing public access to a wide range of City events and facilities. The systems will meet Payment Card Industry (PCI) compliance standards, inclusive of new Europay, MasterCard and Visa (EMV) requirements. The estimated contract value for the proposed solution from Active Network is $1.73 million for the software and implementation for both POS and RRS and $254,000 annually thereafter for software maintenance and subscription fees. The total cost of the project inclusive of Active costs, hardware and installation costs, and other professional services is $2.63 million. This project will be funded with $1.73 million from the Capital Budget. The $890,397 above and beyond the current Capital Budget funding will be requested through the Budget process. The estimated cost breakdown for the project is as follows:
|
POS (Active Payment Manager) |
|
Implementation Services - Active |
$ 271,742 |
|
Software & Licensing - Active |
$1,033,500 |
|
Other Professional Services |
$ 360,000 |
|
Hardware & Installation |
$ 444,500 |
|
Year 1 Software Maintenance |
$ 81,125 |
|
Contingency |
$100,000 |
|
POS Subtotal |
$2,290,867 |
|
RRS (Active Net) |
|
Implementation Services - Active |
$ 152,800 |
|
Other Professional Services |
$ 25,000 |
|
Hardware & Installation |
$ 65,000 |
|
Annual Subscription |
$ 60,730 |
|
|
|
|
|
|
|
Contingency |
$ 30,000 |
|
RRS Subtotal |
$ 333,530 |
|
PROJECT TOTAL |
$2,624,397 |
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the offer submitted by Active Network for an enterprise platform for processing, reporting and managing payment transactions as well as a system for accessing a wide range of City events and facilities for a total cost of $ 1.73 million.
There will be a single contract with The Active Network, Inc., for both the POS and RRS systems. Each system will be deployed and governed with a unique statement of work. The RRS solution (ActiveNet) is expected to be developed and implemented at Parks & Recreation within a nine-month period upon contract execution. Other departments that will use the ActiveNet Solution will be brought onto the system thereafter.
The POS solution (Active Payment Manager) will be accomplished in phases. The first phase will be the core implementation of Payment Manager, with the second phase being the integration of the software with SAP Accounts Receivable and implementation at the Finance Department. The first and second phases are expected to be accomplished within a nine-month period upon contract execution.
Additional phases for POS solution include: implementation at other departments using SAP as their current payment system; integration with proposed new permit software and implementation at the Cliff Morton Development and Business Services Center integration with Chameleon software and implementation at Animal Care Services; integration with Millennium software and implementation at Library; integration and implementation of the False Alarm Management System (FAMS) and the Ground Transportation Unit System (GTU) at Police.
This project was prompted by challenges with existing labor- and paper-intensive business processes for cashiering/collections and facility reservation/event registration functions. A key driver of the project is enabling citizens and customers to access services and payment options easily and securely online. Recent citizens’ surveys showed the largest decrease in satisfaction was from the City’s lack of online services and payments.
In order to develop a scope of work for this project, the City hired Information Services Group (ISG) to assist the City in developing the requirements for the Request for Competitive Sealed Proposal (RFCSP) that was issued on November 14, 2013 to seek a solution that would provide the City with a POS and RRS system. A single proposal response was received on January 22, 2014.
An evaluation committee consisting of advisors from various departments including representatives from the City Manager’s Office, Finance, Parks, Information Technology Services, CVB, SAPL, Police departments and ISG reviewed the proposal submitted.
The Finance Department, Purchasing Division assisted to ensure compliance with City procurement policies and procedures. The proposal was evaluated based on all published criteria which included respondents experience, background, and qualifications and their proposed plan; which included their response to the City’s technical and functional requirements.
The evaluation committee met on May 2, 2014 to discuss and evaluate the responsive proposal received. After scores were finalized by the selection committee, The Active Network, Inc., was notified to begin drafting two statements of work for the POS and RRS, respectively.
ISSUE:
This contract will provide City Departments’ and residents with a standardized, modern enterprise platform for processing, reporting and managing payment transactions as well as for accessing a wide range of City events and facilities. The Finance Department is seeking approval of the proposed contract with The Active Network, Inc., for its in-house Payment Manager Solution (for point-of-sale functionality) and hosted Active Net solution (for its reservation-registration functionality).
This contract is exempted from the SBEDA program requirements based on the lack of commercially useful subcontracting opportunities and the proprietary nature of the work to be performed.
Local Preference Program Ordinance was not applied to this solicitation.
The Veteran-Owned Small Business Preference Program does not apply to this contract since it was solicited prior to January 15, 2014, the effective date of the program.
ALTERNATIVES:
Should this contract not be approved, several systems used by departments, such as Millennium at Library and Chameleon at Animal Care, would remain disconnected from SAP, the City’s financial system. Payment processes and tools would remain inconsistent across departments and online transactions would remain limited. The City would limit its ability to make its facilities available to the public. Parks and certain downtown locations will remain available through an aging mainframe system that is neither available to most City departments nor available online. Additionally, the only place that citizens could make and pay for a park reservation would be at the Darner Center at Old Highway 90 and Callaghan Road. Event registration, such as for recreational activities, youth activities, workshops, and entertainment events, would remain ad hoc and primarily paper-driven throughout departments.
FISCAL IMPACT:
The total funding for implementation of the C1SA Project will come primarily from the Capital Budget.
Project will be accomplished in phases. Additional funding will be provided through the Budget process to fully complete roll-out of Active point-of-sale solution. Contract allows for roll-out by phases and funding availability.
RECOMMENDATION:
Staff recommends the approval of this purchase with The Active Network, Inc., for an enterprise platform for processing, reporting and managing payment transactions as well as for accessing a wide range of City events and facilities for a total cost of $1.73 million.
This contract is procured by means of a Request for Competitive Sealed Proposal and a Contracts Disclosure Form is required.