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Item 4GCity of Southlake, Texas M E M O R A N D U M June 5, 2012 To: Shana Yelverton, City Manager From: Sharen Jackson, Finance Director Tim Slifka, Purchasing Manager Item 4G Approve agreement with SecureBid LLC to allow acceptance of Subject: electronic bids and proposals. _____________________________________________________________________ Action Requested: Approve agreement with SecureBid LLC to accept electronic bids and proposals on behalf of the City of Southlake. Background Information: The Finance Department continually researches ways to lower costs and streamline processes for purchasing City required goods and services. A typical electronic bid service charges the vendor a subscription fee as well as a percentage of contract value per transaction to use their service. This cost is in addition to the amount charged to the City for setting up the service. Our partnership with SecureBid LLC not only offers the service at no cost to Southlake but our vendors will receive a value added option and pay a one-time nominal fee to respond to a bid. This is a great partnership that is a win-win for all involved and optimizes the use of internet technology to accomplish this goal. An added benefit is the efficiency gained by staff with the automation of vendor notifications. We believe the notification enhancements offered by this service may increase vendor participation translating to increased opportunity to obtain best value when bidding for goods or services. Although the cost of this service is incurred by participating vendors, it is significantly less than the cost of a courier, priority mail services or lost opportunities resulting from late submissions. Financial Considerations: There is no cost to the City to enter this agreement with SecureBid LLC. Strategic Link : Providing electronic bid and proposal submissions archive multiple areas of the City’s Strategy Map including: B2 – Collaborate with select partners to implement service solutions. B5 – Improve performance of delivery and operational processes B6 – Optimize use of technology Citizen Input/ Board Review: None Legal Review: Review completed by TOASE the City’s Attorney. Alternatives: Deny approval of agreement with SecureBid LLC. Supporting Documents: SecureBid LLC agreement documents. Staff Recommendation: City Council approval of agreement with SecureBid LLC. SECUEBID AENCYSE AGREEMET RRGGUURNN This Agreeement, dated and enttered into tthis _____ dday of ____________________ 2012, is by and bettween SecuureBid, LLC, a TexasLimitedLLiability Coompany (heereinafter ccalled “SecureBBid") and thee City of Southlake, Texas, (hereinnafter calledd “Client”). (SecureBidd and Client arre sometimees hereinafteer collectiveely referredd to as the ““Parties” annd individually as a “Party..”) WITTNESSETH: WWHEREAS, SeecureBid heereby enterss into an aagreement((the "Agreement") withh the Client reegarding thee provisionof online pprocuremennt support sservices to perform ceertain professioonal servicees requiredof SecureBBid subjectto the terms and coonditions off the Agreemeent; NOW, THEREEFORE, SecuureBid and CClient in coonsiderationn of the forregoing, andd the terms annd conditionss herein conntained, do hhereby agreee as followss: 1. Requuirements annd Extent oof Agreemennt A.SecureeBid covenaants to furnish its bestskill and juudgment asan indepenndent contracctor and too comply wwith Client'ss other proocurement policies andd procedurees in furtherring the intterests of CClient and SSecureBid. SecureBidshall endeaavor to proomote furtherrance of thee Client’s prrocurement objectives iin the mostexpeditiouss and econommical manner consistent with the interests of Client and the requiremeents of the AAgreement. B.SecureeBid agreess to work under the general ddirection off Client and, if applicaable, work with emplloyees, eleccted officiaals and ageents of Clieeded. ent as ne SecureBid is solelyy responsiblle for the pprofessionalquality, tecchnical accuuracy and tiimely deliverry of reliablee and securee online servvices as desccribed hereiin. C.SecureeBid shall provide suufficient quualified perrsonnel neccessary to fully compleete all serviices requireed under thiis Agreemennt in a proffessional maanner consistent with thhe requiremeents of the AAgreementaand applicabble professioonal standarrds. D.Securiity and encrryption parameters of thhe System aare detailedin Exhibit AA. 2. Scopee of Servicees The proffessional serrvices providded by SecuureBid to Cliient under tthe terms off this Agreeement includetthe followingg: A.Reliabble access too the Systemm through thhe primary aauthorized uuser account and associaated user accounts estabblished by this Agreemeent and Clieent. Accessto user accoounts and funnctionalityoof the Systeem is providded for a miinimum of 998.9% of up--time each year. Interruptions in System acceess or functtionality willl be commmunicated thhrough emaail to Clientin as much advance nottice as possible, and wiill be restriccted to Systtem maintennance as needded. B.Electrronic posting of procurrement soliccitations inccluding, but not limiteed to Requessts for Propoosals, Requeests for Quaalifications,and Requessts for Inforrmation. Poosting of soliccitations will include fieelds in the Syystem that aallow at a mminimum: Solicitatioon title 1. Solicitatioon identification numberr 2. Solicitatioon descriptioon 3. Applicablee NAICS andNIGP commmodity and seervice codess 4. Solicitatioon posting daate and timee 5. Solicitatioon closing daate and timee 6. C.Electrronic uploadding of multtiple documments related to solicitaation postinngs in diversee digital foormats including Microosoft Wordd, Microsoftt Excel, MMicrosoft Acccess, Microsooft PowerPooint, AdobePDF, Adobee Photoshopp, various image file ttypes (i.e. JJPEG, BMP, etc.), and AuutoCAD files.. D.Securee message ssystem for eeach solicitaation that allows third-party vendoors to submitquestionstto Client andd for Clientto respond so that all interested vendors mayview questioons and responses. Thhe messagesystem alloows for Clieent to initiaate messagees to vendorrs for announncements annd updates tto solicitatioons. E.Electrronic uploadding of multtiple documents by thirrd-party venndors responnding to soliccitation posttings in diveerse digital formats including Microosoft Word,Microsoft EExcel, Microsooft Access, MicrosoftPPowerPoint,Adobe PDFF, Adobe Phhotoshop, vaarious imagee file types (i.e. JPEG, BBMP, etc.), aand AutoCADD files. F.Access to all acctive and aauthorizedpprocuremennt solicitatioon postingss and documeents for thirrd-party venndors seekingg opportunitties to do buusiness with Client. G.Prohibbited accesss of Client to submitteed responsees and docuuments of tthird- partyvvendors, inccluding venddor identificcation, untill such timeas the possted closingdate and timme has passsed. Additionally, venndors have no access tto submitted responsess and documeents once thhe posted closing date aand time hass passed. H.Custoee assistanceby email tthrough theSystem 24--hours eachday, mer servic and byy telephoneduring the hours of 7:000 am – 7:00 pm Centrral Standard Time, Monday – Friday. I.A onee-time fee wwill be chargged to thirdd-party venddors solely ffor the submmittal pponses and documentsto Client soolicitationppostings. Thhis fee will be $35 foreach of res solicitaation postingg that eachthird-partyvendor responds to. SSecureBid reeserves theright to incrrease or deccrease this bid/proposaal submittall fee by upto 25% annnually with prior noticeprovided to Client. 3. Connfidentialityy A.Fromtime to timme during the term of thhis Agreemeent, it may be necessarry for performmance of thhis Agreement for a parrty (the "Dissclosing Party") to discllose Confideential Informaation (as deefined beloww) to the otther party ((the "Receivving Party").. In such event, and tothe extent allowed byy the appliccable law gooverning this Agreemennt, the Receeiving Partyaagrees to (i)) maintain inn strict conffidence all CConfidential Informatioon disclosedto it by thee DisclosingParty; (ii)limit access to the CConfidentiall Informatioon solely too the Receiviing Party's oofficers, direectors, emplloyees and aagents who have the neeed to revieww the informaation in connnection witth the underrtakings of tthis Agreemeent; (iii) inssure that peersons with prroper accesss to the Connfidential Innformationwwill abide bby the termss of this secction; and (ivv) use the Coonfidential Information solely in furrtherance off this Agreemment. B.For thhe purposesof this section, "Confidential Infoormation" shhall mean (i) any informaation or maaterial whicch is propriietary, senssitive or connfidentialtto the Discllosing Party,to any relatted entity off the Disclossing Party, oor to any enntity doing bbusiness with the Disclosing Party, and (ii) any materialdesignated as "Confiddential Information" byy the Disclosing Party, of which theReceivingPParty may obbtain knowleedge or acceess as a resuult of this Agreement. C.TheRReceiving Party shall conntinue to obbserve the requirements of this secction, notwithhstanding tthe terminaation of this Agreemeent, for soo long as tthe Confideential Informaation remainns proprietaary and sensiitive. D.In thee event of aa breach of this sectionn by the Recceiving Partty, the Discllosing Partysshall be entiitled to injunctive relieff in additionn to any othher remedy,including claims for dammages that it might otheerwise have. E.Clientt is responnsible for protectingthe confiddentialityoof any userr IDs associaated with thhis agreemeent. In adddition, Cliennt is responsible for paasswords annd all activityy with SecureBid accouunts includinng that of ussers authoriized by theClient thattake placetthrough theprimary acccount or asssociated acccounts. Clieent must keeep accountss and passwoords confidential. Cliennt must tellSecureBidrright away aabout any poossible misuuse of accounnts or any seecurity incideent relatedto the SecureBid Systemm. iithstandingtthe above, CClient may ddisclose Connfidential Information to the F.Notw extentrequired by law or inresponse too a written Public Infoormation Acct Request uunder Texasllaw. In the eevent that ddisclosure ismandated,the Custommer agrees too provide wrritten noticeto SecureBid. 4. Storagge of ClientData Confidenntial Clientdata including, but nnot limited to activeand pendiing procurement solicitations, solicitation-relateed messagess and respoonses, bid tabulations,, and submmitted vendorbbids and propposals shallbe stored oon the SecurreBid Systemm for a periood of three yyears at no cosst to the Cliient, a periood that takees effect witth date of eexecution ofthis Agreemment. Client shhall retain full accessto this data during tthis time thhrough the authorizeduser accountss establishedd and mainttained undeer the termss of this Agrreement. AAfter three yyears has passeed from thee date of exxecution of tthis Agreemment, SecureeBid requirees executionn of a separate Data Archiival Agreemment with CClient that sspecifies teerms and coonditions for the long-termm storage off Client dataa, which hass an annual ccost associated with theese services. 5. Statuss of SecureBBid A.SecureeBid shall not be considdered an emmployee of Client, but shall occupyy the statusof indepenndent contrractor as a professional service provider. SecureBidshall performm its tasks aand duties cconsistent wwith such staatus, and will make no cclaim or demmand for anyy right or prrivilege applicable to an agent, servant or emmployee of CClient, incluuding, but nott limited to, worker’s ccompensatioon, disabilityy benefits, ttax withholdding, accideent or healthinsurance, uunemploymeent insurancce, social security or rettirement meembership. 6. Indeemnificationn SECUREBBID AGREESS TO INDEEMNIFY, DEEFEND ANDD SAVE HAARMLESS CLIENT ANDD ITS RESPECTTIVE OFFICEERS, OFFICIALS, CONSSULTANTS, AGENTS ANND EMPLOYYEES FROMANY AND ALLL CLAIMS AAND LOSSES ACCRUINGG OR RESULLTING FROMM ANY ACTOF SECUREEBID, INCLUDINNG ITS OFFFICERS, CONNTRACTORSS, AGENTS AAND EMPLOOYEES, CONNTRACTORSAND SUBCONTTRACTORS IN CONNECCTION WITHH THE PERFFORMANCEOOF THIS AGGREEMENT,AND FROM ANNY AND ALLL CLAIMS ANND LOSSES AACCRUINGOOR RESULTIING TO ANYY PERSON, FFIRM, CORPORAATION, ORLEGAL ENTTITY THATMAY BE INNJURED ORR DAMAGEDBY SECUREEBID, INCLUDINNG ITS OFFFICERS, COONTRACTORRS, AGENTTS, EMPLOYYEES, CONTTRACTORSAND SUBCONTTRACTORS IIN THE PERFFORMANCEOF THIS AGGREEMENT. 6. Teermination A.ThisAAgreement mmay be termminated by Client at anny time, for any reason, by giving SeecureBid at lleast five (5) days priorwritten nottice. SecureeBid may alsso terminatee this Agreemeent, upon giving Clientt at least thirty (30) ddays prior wwritten nottice, for Cliient’s failuretto substantially performm in accorddance with the terms of this Agreement. Onn the effectivee date of such terminattion, SecureBid shall ceease all servvice deliveryy. Within 30 days after terrmination,SSecureBid shhall submit tto Client alll files, calcuulations, exhhibits, and oother relateddocuments. SecureBBid shall nnot be entiitled to any damagesas a resuult of terminattion, includiing, but nott limited too loss of annticipatedpprofits or reevenues or oother economicc loss arisingg out of or rresulting from terminatiion. B.Termiination is noot Client's ssole remedyy. In no evvent shall CClient’s actioon of terminatting this Agreeement, whhether for caause or otheerwise, be deeemed an exclusive eleection of Clientt’s remedies, nor shall ssuch terminaation limit, iin any way,at law or att equity, Cliient’s right toseek damaages from or otherwise pursue SecureBidffor any deefault or brreach hereundeer or other aaction. C. This AAgreement iss effective uupon the datte signed byy the partiess and shall continuee until terminated subjeect to the terms of this ssection of thhe Agreement. 7. General Provisions A.Assignmennt. This Aggreement shhall be bindding on thee Parties heereto, their succcessors, asssigns and rrepresentatiives. SecurreBid shall not transfeer or assignn this Agreemeent or interrest in or tto this Agreeement or any part hereof, withhout havingfirst obtainedd Client’s prior writtenn consent, wwhich may be withhelld in the soole discretioon of Client. B.Governingg Law and VVenue. Thiss Agreemennt shall be ggoverned byy and construed solely in aaccordance wwith the lawws of the Staate of Texass, except with respect to its conflictsof law provision. EXCCLUSIVE VENNUE FOR ANNY LEGAL ACCTION SHALLL LIE IN Taarrant County,TTexas. C.Notiices.All wrritten noticees to Client bby SecureBidd shall be adddressed to: Tim Slifka PurchasingManager City of Soutthlake 1400 Main Street, Suitte 440 Southlake,Texas 760992 All wrritten noticees to SecureBBid by Client shall be adddressed to:: Brian Trustty SecureBidLLLC 6716 Summmer Meadoww Lane Dallas, Texas 75252 D.No Financial Interesst. SecureeBid covennants and representsthat SecureBid, its officcers, employees, agentts, and subb-contractorrs will havee no substaantial financial interest, direct or inddirect, in services, prodducts, materials or equuipment thatt will be speciffied for thedelivery of services as ddefined hereein. E.Survival.Any and allrepresentattions and coonditions maade by SecureBid under this Agreemennt shall surviive the execcution, delivvery and terrmination off it. F.Cumulativve Remediess. In the eevent of deefault by SeecureBid heerein, hhall have allrights and rremedies affforded to it at law or inn equity to rrecover dammages Client s and inteerpret or ennforce the tterms of thhe Agreemennt. The exxercise of aany one right or remedysshall be witthout prejuddice to the eenforcement of any othher right orremedy alloowed at law orr in equity. G.Incorporattion of Addditional Proovisions. Each provission and clause requiredby law or tthe Agreemeent to be innserted intothis Agreemment shall bbe deemed tto be includedherein and this Agreeement shaall be read and enforrced as thoough each were physically included hherein. H.Waiver.TThe failure oon the partof Client heerein at anyy time to require the perfoormance bySecureBid oof any portioon of this Aggreement shhall not be ddeemed a wwaiver of, or inany way afffect Client’ss rights to eenforce suchh provision oor any otherr provisions. Any waiverbby Client herrein of any provision heereof shall nnot be takeen or held too be a waivver of any otheer provisionshereof or any other breeach hereoff. I.Entire Agrreement. TThis Agreemeent and thee Exhibits reeferenced herein are incorrporated herein for allpurposes annd, together, constitutee the entiree Agreementt and supersedde all prioragreementts and understandingsbetween tthe Partiesconcerningg the subjectmmatter of thhis Agreemennt. J.Severabilitty. The invalidity, illegality oor unenforcceability off any provisionn of this Agreeement shalll not affectt the validityy, legality or enforceability of any oother provisionn of this Agreeement. K.Authority. SecureBidrepresentsto Client thhat SecureBiid has full ppower hhority to exeecute, delivver and perfform this Aggreement, aand the execution, delivery, and aut and perfformance heereof has beeen duly auuthorized byy its manageement and governingbboard and no oother actionn is or wasrequired too be taken to permit tthe executioon, deliveryy and performaance of thisAgreement.. L.Professionnal Credit. SecureBid shall havee no right to publicizze its involvemment in the Project or iits work pursuant to thhis Agreemeent, or any portion theereof, includingg without limitation iin ay prommotional maaterials, prrofessional publicationss, or competittion submisssions, except upon the pprior writtenn approval oof Client. IN WITNESSS WHEREOFF, the Partiees have execcuted this AAgreement, tto be effective as of thee date first sstated abovee. SecureBid,LLC An Texas Liimited Liability Companny As SecureBiid By: Printed Namme: BBrian Trusty Title: PPresident City of Soutthlake, Texaas As Client By: John Teerrell, Mayorr ATTEST: By: ____________________________________________ Alicia RRichardson, TTRMC, City SSecretary Approved aas to Form annd Legality: By:__________________________________________ City Atttorney EXHIBIT A SecureeBid Security and EEncryptioon Parameters All loginss and registeered use of tthe SecureBid System are performeed via a Secuure Socket LLayer (SSL) whiich ensuresup to 256-boom individuaal user’s commputers. Thhe it encryption to and fr SSL is a ccryptographiic protocol tthat providees communiccation securrity over thee Internet, encryptinng the segments of netwwork connecctions abovee the Transpport Layer, uusing asymmmetric cryptograaphy for keyy exchange,symmetric encryptionffor privacy,and messagge authenticcation codess for messagge integrity. This protoocol allows cclient-serverr applicationns to communiicate across a network iin a way dessigned to preevent eavessdropping annd tamperin g. At its moost basic, thee SSL Certifiicate of theSecureBid SSystem is a ppiece of software that encryptsall information moving to and fromm the websitte. This meaans no exchaange betweeen SecureBid and its vissitors can bee intentionally or accideentally “oveerheard” or ttampered wwith by a thirdd party, reggardless of wwhether thevisitor is upploading, subbmitting, ordownloadinng documennts, including the viewinng of submittted bids andd proposals.. The SSL CCertificatennot only conffirms the ideentity of SeccureBid to the visitor’sbrowser, buut also encryypts informaation sent andreceived byy SecureBid.. The SecuureBid System utilizes ahigh-grade256-bit SSLencryptionto protect oonline transactiions and usee of the systeem. The cooding and enncryption ofthe SecureBBid System prevents the openingg and accesss of bids andd proposals by any userother thanthe vendor who submitteed these doccuments throough the SeccureBid webbsite. A “seccurity curtaain” has been encodedinto the sysstem that prrevents agenncy staff froom viewing tthe source oof submittedd bids and propposals (vendoors) and thee actual submmitted docuuments untilthe designaated bid clossing date andd time has paassed. Withh the releasee of the acceess and infoormation resstriction to tthe agencyaat the bid cloosing time, tthe securityy curtain insttantly falls iin place forvendors so they can no loonger accesss the documents they haave submitteed. This code has beenn written and passwordd protectedwithin the aadministratoor panel of tthe system sso is not acccessible to either agencyoor vendor useers at any tiime.