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TO: Mayor Richard C. Irvin
FROM: Christopher Minick, Chief Financial Officer/City Treasurer
Michael Pegues, Chief Information Officer
DATE: April 10, 2025
SUBJECT:
Renewal of an Agreement for Consulting Services with Marketplace.city, Chicago IL, for the purpose of performing technology purchasing services for a three-year term with an additional two-year option for a total award of $375,000.
PURPOSE:
The City strives to purchase all goods and services in an efficient and cost effective manner at the lowest responsible price. In areas of specialty purchasing the City has in the past used the services of outside vendors to support the City's technology purchasing process. The City has been working with Marketplace.city for the past five years and it has been a successful partnership. Approving an agreement with Marketplace.city (Marketplace) will continue to provide portal to research technology related purchases across the country.
BACKGROUND:
The City uses a variety of processes to purchase goods and services including the use of third party consultants in areas with restricted access or areas requiring technical expertise. Our utilization of brokers/consultants for the purchase of health/life and risk/liability insurance coverage is a typical example.
In 2019, Resolution R19-294 was approved as the first entrance into a partnership with Marketplace.city to provide technology related services/software/equipment. Both parties feel the service has been valuable and allows the current purchasing staff to assist with these procurements but frees up their time to work on other Bids/RFP's. R21-351 was approved to renew and continue this agreement with Marketplace.city.
DISCUSSION:
The City wishes to enter into an updated contract for a three-year term with the option of one two-year extension based on mutual agreement between the City and Marketplace.city.
Marketplace will continue to support for research, sourcing, evaluation, procurement and contracting of technology related products and services at a fee for service price of 7.0% of the purchase price. Vendors pay Marketplace this fee directly upon being chosen to provide services or goods to the City (within 30 days of being paid by the City for a given contract/purchase).
Included in the supporting documents is a summary of activity and projects/cost savings performed by Marketplace. It is projected that the City has saved over $2.0 million in contracted costs and over $426,000 in staff costs have been saved through the use of the Marketplace.city service.
City staff and Marketplace staff will regularly review the performance of Marketplace and provide annual performance reports to the CFO and Council. This review will include the performance of recommended vendors as well as a statistical review of pricing through Marketplace compared against any available data of pricing from other purchasing portals or through an independent search. This reporting will include cost and resource savings to the City.
As the relationship with Marketplace.city has continued to mature, the City looked for further services to extend the consulting services of Marketplace. Discussions with Marketplace.city, Finance and IT staffs, resulted the decision to utilize additional subscription services from Marketplace.city. These services will allow city staff to utilize Marketplace.city services beyond just vendor search and selection as part of the RFP process. Annual fees proposed by Marketplace.city will include services such as research and scoping for unbudgeted projects, budgeting support, direct access to the growing Marketplace.city market landscapes. These additional services, which are defined in detail in the Subscription Service Additions attachment, are $75,000 annually.
Marketplace.city has provided a sole source letter to the City as their combination of market research capabilities and data meshed with end-to-end services are unique to the governmental procurement space. Although Marketplace.city services are available through the Omnia Technology Products, Solutions and Related Services (#23-6692-03) since 2023, City staff determined it is lower cost, more beneficial and more effective to contract directly with Marketplace.city.
All purchases with Marketplace.city will continue to follow the City of Aurora purchasing processes and any purchase over $50,000 will still be presented to the City Council for approval.
Staff will also review the total hours saved by in-house staff in performing independent bids/searches for all items/services purchased during the review period.
For 2025, the Information Technology Department will pay for year 1 with cost offsets from IT departmental cost reductions. Future years will be budgeted for in account 101-1280-419.32-80 Consulting Services.
IMPACT STATEMENT:
Approving this agreement will allow the City to continue to efficiently purchase technology solutions and/or services in an efficient manner.
RECOMMENDATIONS:
That the resolution be adopted.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution approving renewal of an Agreement for Consulting Services with Marketplace.city 20 N. Wacker Drive, Suite, 1000, Chicago IL 60606, for the purpose of performing technology purchasing services for a three-year term with an additional two-year option for a total award of $375,000.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora has employed the use of professional consultants in the purchase of goods and services as an efficient means for such acquisition; and
WHEREAS, Marketplace.city has been a valuable partner with the City for the past six years; and
WHEREAS the City desires to acquire additional subscription and consulting services provided by Marketplace.city; and
WHEREAS a budget amendment will be submitted to ensure funds are available in account 101-1280-419.32-80; and
WHEREAS, the City has reviewed the services of Marketplace.city for the purchase of technology related goods and services and finds their services to provide a competitive and efficient method for such purchase; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the Director of Purchasing is hereby authorized to issue purchase orders for services described in this resolution and as more fully set forth in the contract attached hereto.