Title
Motion to approve the purchase of the PaymentWorks Government Edition Software and enter into a five-year term agreement with Carahsoft Technology Corp. in the amount not to exceed $281,068.75 pursuant to Section 35.18(C)(7)(h) of the City’s Code of Ordinances.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinance is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(7)(h) states, “Copyrighted materials, including computer software;”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission Approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed.
SUMMARY EXPLANATION AND BACKGROUND:
1. Currently, vendor registration is manually completed by submitting a filled-out vendor form and a copy of business registration and related tax forms. This information is then manually validated and verified by the accounts payable division of the Finance Department before manually entering the data into the Tyler Munis system to create the new vendor. These manual processes are time-consuming, susceptible to human error, and at risk of fraud.
2. PaymentWorks is a business identity platform that enables payers and payees to exchange verified identity elements in a networked environment. The solution will ensure compliance with the National Automated Clearing House Association (NACHA). It will include a secure vendor portal to interface with Tyler Munis ERP system, and TD Bank. Vendor will maintain their data and updates within the system and will not involve any City employees.
3. The PaymentWorks Connector enables the automation of data transfer between PaymentWorks and the City of Pembroke Pines’ new accounting system (ERP).
4. The City pays approximately 2,200 vendors and onboards about 300-400 new vendors annually. All vendors will be notified and encouraged to access the new payment platform and sign up for the more efficient electronic funds transfer, which is less costly than processing and mailing paper checks. All new vendors and any new vendor requesting a change in payment information will be required to use the new platform. PaymentWorks will guarantee electronic payments up to $2,000,000 per event.
5. This investment is needed to reduce the risks associated with increased bank fraud, reduce costs and outdated manual processes, and successfully integrate with the new ERP.
6. The City of Pembroke Pines is utilizing/piggy-backing on the OMNIA Partners education cooperative purchasing agreement# R191902 for the pricing and discounts offered by Carahsoft (distributors of PaymentWork) as follows:
|
Year |
Effective Date |
Price with Omnia Member discount |
|
Year 1 |
1/1/2024 - 9/30/2024 (Pro-rated) |
$ 40,968.75 |
|
Year 1 |
One-time Onboarding Services |
14,700.00 |
|
Year 2 |
10/1/2024 - 9/30/2025 |
56,350.00 |
|
Year 3 |
10/1/2025 - 9/30/2026 |
56,350.00 |
|
Year 4 |
10/1/2026 - 9/30/2027 |
56,350.00 |
|
Year 5 |
10/1/2027 - 9/30/2028 |
56,350.00 |
|
|
|
$ 281,068.75 |
7. Standard Omnia promotional pricing under Contract # R191902 extends a 2% discount off the annual subscription list price. PaymentWorks is extending additional promotional pricing for executing an agreement by September 30th, 2023. PaymentWorks is offering a 5% discount off the annual subscription list price for Year 1.
8. The One-time Onboard Services list price is $15,000. The One-time Onboard Services cost is receiving a 2% discount, resulting in a cost of $14,700. The annual subscription price has a list price of $57,500. The additional 5% discount off Year 1 results in a cost of $40,968.75, while the remaining Years 2-5 receive a 2% off discount resulting in an annual cost of $56,350. This results in an aggregate amount of $281,068.75 across five years.
9. Motion to approve the purchase of the PaymentWorks Government Edition Software and enter into a five-year term agreement with Carahsoft Technology Corp. in the amount not to exceed $281,068.75 pursuant to Section 35.18(C)(7)(h) of the City’s Code of Ordinances.
Reviewed by Commission Auditor.
Financial Impact
a) Initial Cost: $55,668.75 for initial year ($281,068.75 for the five year period)
b) Amount budgeted for this item in Account No: $25,000 is budgeted and available in account # 001-513-2001-664051-0000-000-0000- Software
c) Source of funding for difference, if not fully budgeted: A budget adjustment is required to transfer funds from accounts listed:
$25,000 - 001-513-2001-515001-0000-000-0000- Special Payment
$5,000 - 001-513-2001-546150-0000-000-0000- R&M Land Bldg & Improvement
$700 - 001-513-2001-552652-0000-000-0000- Non-capital Software and Licenses
d) 5 year projection of the operational cost of the project:
|
|
FY 2024 |
FY 2025 |
FY 2026 |
FY 2027 |
FY 2028 |
|
Revenues |
$0.00 |
$0.00 |
$0.00 |
$0.00 |
$0.00 |
|
Expenditures |
$55,668.75 |
$56,350.00 |
$56,350.00 |
$56,350.00 |
$56,350.00 |
|
Net Cost |
$55,668.75 |
$56,350.00 |
$56,350.00 |
$56,350.00 |
$56,350.00 |
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.