Approval of a Cooperative Purchase: Approve a cooperative purchase contract with Vertosoft, LLC in the amount of $534,810.20, plus the current local tax rate, for the OpenGov Procurement/Contracts Software for a period of five (5) years.
 

1. Approve a cooperative purchase contract with Vertosoft, LLC in the current fiscal year for OpenGov Procurement/Contracts Implementation and Annual Software Fees of $122,223.50, plus the current local tax rate; and
2. Approve four (4) subsequent years of a cooperative purchase with Vertosoft, LLC for OpenGov Procurement/Contracts Software Fees for Annual Maintenance of $412,586.70, plus the current local tax rate; and
3. Authorize the City Manager to execute all necessary documents.

We are requesting approval of a cooperative purchase with Vertosoft, LLC to move forward with implementing the OpenGov Procurement and Contracts module as our preferred solution for streamlining purchasing and contract management. After evaluating our current processes and identifying inefficiencies in transparency, compliance, and workflow tracking, OpenGov stands out for its ability to modernize procurement, standardize contract administration, and improve reporting capabilities across departments.
 

Vertosoft, LLC is the vendor who distributes OpenGov software. The attached Vertosoft, LLC Quote dated September 2, 2025 and OpenGov Statement of Work dated September 2, 2025 outline the expenditures required to implement and maintain this solution. It includes the one-time implementation costs as well as ongoing subscription and support services to ensure continued optimization and alignment with best practices. By moving forward with OpenGov, we strengthen accountability, increase efficiency in procurement and contracting, and align with the City’s commitment to responsible stewardship of public resources.

Project Name: OpenGov Procurement/Contracts Software
Cost: $122,223.50 Year 1 - Software + Implementation
         $95,724.99 Year 2
         $100,511.24 Year 3
         $105,536.81 Year 4
         $110,813.66 Year 5
         Total over 5-year period: $534,810.20
Account Number Budgeted:
001-02-039-0113-1-4343 - $22,000
001-02-032-0111-1-4343 - $51,000
001-01-014-0041-1-4231 - $49,223.50 + current local tax rate
FY Budgeted Amount: $122,223.50
Grant Funded: No
Funding Source: General Fund

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1. Approve the cooperative purchase with Vertosoft, LLC documented by: (a) Sourcewell Contract 060624 with Vertosoft, LLC; (b) OpenGov EndUser License Agreement (Revised May 5, 2025); (c) Vertosoft, LLC Quote dated September 2, 2025; and (d) OpenGov Statement of Work dated September 2, 2025; or
2. Not approve the cooperative purchase and do not proceed with procuring the software.

Historically, the City of Flagstaff has utilized OnBase for a centralized contract repository, and Excel spreadsheets to help keep track of contract milestones/deadlines. The OnBase system for Contracts is not very user-friendly and does not have all the functionality to streamline contract management. Purchasing does not have dedicated procurement software that handles all procurements from beginning to end. Instead, the procurement process has relied on Microsoft Office applications and Excel spreadsheets to manage purchasing and PlaneBids third party solicitation website for posting formal solicitations. However, PlanetBids is only a tool for posting and managing procurements that are formally solicited and does not provide procurement needs prior to soliciting nor after the solicitation closes.  

OpenGov’s Procurement/Contracts module, purchased through Vertosoft, will replace our manual, spreadsheet-based approach with a unified, cloud-based platform that manages the entire procurement lifecycle (including solicitation posting) in one place. It streamlines solicitation development, increases supplier participation through simplified online submissions, and provides transparent, automated evaluation tools. Contracts are created and managed with built-in compliance controls, e-signatures, and automated alerts for key deadlines, while visual dashboards and audit logs give staff and Council real-time visibility into spend, performance, and accountability. This modernization will reduce inefficiencies, strengthen compliance, and improve transparency for both employees and vendors.

The purchase was procured by a cooperative purchase method through Sourcewell Contract # 060624-VTO with Vertosoft, LLC where Vertosoft is a reseller of OpenGov software. The term of the contract between Sourcewell and Vertosoft, LLC, and therefore between Vertosoft and the City, is October 23, 2024 through October 25, 2028. The length of the agreement to perform between Vertosoft, LLC and the City is until June 30, 2030, which is a period beyond the expiration of Sourcwell Contract # 060624. Sourcewell Contract # 060624 authorizes extensions, and if extended, the Parties shall update City records by proving an amendment/extension identifying that Sourcewell Contract # 060624 is active until at least June 30, 2030, which does not need to be approved by the City Council. 

High Performing Governance: Encourage public trust through transparency, accessibility and use of the City's public participation policy.
High Performing Governance: Become an employer of choice and provide employees with the necessary tools, training and support.
Team Flagstaff Strategic Plan: Provide exceptional service.

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Reduces the use of paper throughout the City.

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Application Modernization