Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Juan Raigoza, Controller
Subject: Approval of agreements for Accounts Payable Invoice Automation Project
RECOMMENDATION:
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Adopt a resolution approving, adopting, and authorizing the President of the Board of Supervisors to:
A) Execute a master services agreement and associated order forms with Coupa Software Inc. to provide software development, maintenance, and support services related to its accounts payable invoice automation solution for the term of November 18, 2024 through November 17, 2027, with two one-year options to extend through November 17, 2029, for a total amount not to exceed $2,695,868; and
B) Execute an agreement and associated order forms with RelishIQ Inc. for a cloud-based services subscription in connection with the Coupa Software services for the term of November 18, 2024 through November 17, 2027, with two one-year options to extend through November 17, 2029, for a total amount not to exceed $339,910; and
C) Execute an agreement with Wayland Consulting LLC to manage the implementation of the Coupa Software for the term of November 18, 2024 through November 17, 2025 with one year option to extend through November 17, 2026 for a total amount not to exceed $469,675.
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BACKGROUND:
The County of San Mateo Controller’s Office (the “Controller’s Office”) maintains the County’s accounting system and records, promotes the County’s operational effectiveness, and ensures its financial transparency and integrity by providing quality accounting, audit, and financial reporting services. Among other functions, the Controller’s Office processes invoices for payment to the County’s vendors and others receiving payments.
The Controller’s Office seeks to streamline invoice processing with an accounts payable invoice automation (AIPA) software solution. The software solution will automate and standardize departmental invoice review and approval processes, increase online visibility to status of invoices, and fully integrate with County’s financial accounting system, OFAS, resulting in a faster turn-around time to pay vendors without sacrificing proper internal controls.
DISCUSSION:
On October 13, 2023, the County through the Controller’s Office conducted a formal competitive bidding process seeking proposals (RFP) for an accounts payable invoice automation software provider. The RFP sought, among other requirements, APIA solutions that provide electronic workflow capabilities to automate and standardize departmental invoice review and approval processes, increase online visibility to status of invoices, enable electronic extraction of data from invoice documents, and fully integrate with County’s financial accounting system, OFAS, resulting in a faster turn-around time to pay vendors without sacrificing proper internal controls. The RFP was posted to Public Purchase, an online database of government bid opportunities. In response, the County received ten proposals.
A committee comprised of staff from the County Executive Office, San Mateo Medical Center, Human Services Agency, Information Services Department, and Controller’s Office evaluated the proposals based on the criteria identified in the RFP and recommended selection of Coupa Software Inc. (Coupa), a cloud-based AIPA software provider. Coupa, has a large presence in procurement, supply chain, and AP solutions, and offers robust services. Coupa’s proposal includes services provided by Relish, Inc. under a cloud-based subscription to support verification and data services in connection with the APIA solution.
After concluding negotiations, staff recommends that the Board approve and authorize the County to enter a master services agreement and associated order forms with Coupa to provide software development, maintenance, and support services related to accounts payable invoice automation for the term of November 18, 2024 through November 17, 2027, with two one-year options to extend through November 17, 2029, for a total amount not to exceed $2,695,868.
In addition, staff further recommends that the Board approve and authorize the County to enter into an agreement and associated order forms with RelishIQ Inc. for a cloud-based services subscription in connection with the Coupa Software services for the term of November 18, 2024 through November 17, 2027, with two one-year options to extend through November 17, 2029, for a total amount not to exceed $339,910.
In order to efficiently manage the implementation of the APIA software across County departments and coordinate with the County and software vendor teams, it is necessary and advisable to retain a project manager. Accordingly, on September 3, 2024, the Controller’s Office conducted a formal Request for Proposal (RFP) for a qualified project manager. In response, the County received two proposals.
The Controller’s Selection Committee evaluated the proposals and recommends awarding a contract to Wayland Consulting LLC. Wayland Consulting has extensive functional and technical experience in software implementations. Staff recommends that the Board approve and authorize the County to enter into an agreement with Wayland Consulting LLC manage the implementation of the Coupa Software for the term of November 18, 2024 through November 17, 2025 with one year option to extend through November 17, 2026 for a total amount not to exceed $469,675.
Pursuant to Administrative Memo B-4, a copy of the RFPs matrixes for these procurements are included with this memorandum.
The County Attorney’s Office has reviewed and approved the Resolution and proposed agreements as to form.
Risk Management has approved variations to the insurance and indemnification provisions in the Coupa agreement.
ISD has reviewed and approved the proposed agreements with respect to its compliance with established County IT Standards.
PERFORMANCE MEASURE:
FISCAL IMPACT:
The County’s maximum aggregate fiscal obligation under the proposed agreements authorized by this action is $3,505,453 including the two one-year extensions for Coupa Software Inc. and Relish Inc., and one year for Wayland Consulting LL. The proposed agreements are to be funded through intrafund transfers from non-departmental services, included in the FY 2024-25 Recommended Budget and through service charges in subsequent years’ budgets.