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File #: 2025-4370    Version: 1 Name:
Type: Consent Status: Final
File created: 6/23/2025 In control: ADMINISTRATION COMMITTEE
On agenda: 7/9/2025 Final action:
Title: SERVICENOW SOFTWARE LICENSE AGREEMENT RENEWAL
Sponsors: Wally Ritchie
Attachments: 1. Agenda Report
Related files: 2021-1907, 2021-1991

FROM:                     Robert Thompson, General Manager

                     Originator: Wally Ritchie, Director of Finance 

 

SUBJECT:

 

title

SERVICENOW SOFTWARE LICENSE AGREEMENT RENEWAL

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GENERAL MANAGER'S RECOMMENDATION

 

recommendation

RECOMMENDATION:  Recommend to the Board of Directors to:

A.       Approve a Purchase Order for a one-year contract with Carahsoft Technology, Corp. for a software license agreement with ServiceNow, utilizing the NASPO ValuePoint Master Agreement No. AR2472, California Contract # 7-17-70-40-05 for a total amount not to exceed $296,904; and

 

B.       Approve a contingency of $29,690 (10%).

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BACKGROUND

 

The Orange County Sanitation District’s (OC San) Information Technology (IT) department utilizes the ServiceNow platform to process all incoming service requests, track change requests, store and disseminate knowledgebase articles, track assets, and manage projects.  Additionally, several projects are underway to utilize the ServiceNow platform to host the district’s intranet, manage business continuity plans, track human resources requests, and host a public portal.

 

The ServiceNow platform's versatility has enabled OC San to use a single platform for multiple business functions, reducing the administrative overhead associated with managing several software products.  Integrating the processing and monitoring of diverse business functions within a unified environment has greatly enhanced efficiency and transparency across departments.

 

RELEVANT STANDARDS

 

                     Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard

                     Protect OC San assets

                     Ensure the public’s money is wisely spent

 

 

 

 

PROBLEM

 

The existing ServiceNow software license agreement will expire on August 29, 2025.  With the addition of new functionality, the renewal of the license agreement for the upcoming one-year period requires Board approval.

 

PROPOSED SOLUTION

 

Renew OC San’s ServiceNow software license agreement for one-year utilizing Carahsoft Technology, Corp.’s cooperative agreement.

 

TIMING CONCERNS

 

Renewal of the ServiceNow software license agreement should occur prior to August 29, 2025, to prevent a lapse in coverage.

 

RAMIFICATIONS OF NOT TAKING ACTION

 

Not renewing the annual software license agreement will cause OC San to lose use of the ServiceNow platform and consequently negatively impact the stated relevant standards.

 

PRIOR COMMITTEE/BOARD ACTIONS

 

November 2021 - Approved a Professional Services Agreement to Computer Aid, Inc. (CAI) to provide ServiceNow IT Service Management software and implementation services, Specification No. CS-2021-1244BD, for a total amount not to exceed $474,505; and approved a contingency of 47,451 (10%).

 

ADDITIONAL INFORMATION

 

OC San is utilizing a cooperative agreement with Carahsoft Technology, Corp. through NASPO ValuePoint, an organization that provides contracts, which are competitively solicited nationally, from a variety of industries.  NASPO ValuePoint is a recognized cooperative purchasing program that serves State and local governments, and education; they meet OC San’s requirements for a competitive procurement process.  OC San will be issuing a Purchase Order to Carahsoft Technology, Corp.

 

CEQA

 

N/A

 

FINANCIAL CONSIDERATIONS

 

This request complies with authority levels of OC San’s Purchasing Ordinance.  This item has been budgeted (FY 2024-25 and 2025-26, Section 6, Page 24, Information Technology Operating Expenses) and the budget is sufficient for the recommended action.

 

 

ATTACHMENT

The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:

 

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