Committee forwards five‑year extension and $10.9M increase to citywide Salesforce agreement

The Budget and Finance Committee on May 15 voted to forward to the Board of Supervisors a resolution approving a second amendment to the city’s agreement with Carahsoft Technology Corporation to procure Salesforce products.

Hao Xie, strategic sourcing manager at the Department of Technology, said the 2016 master purchase created volume discounts (he cited an at‑least 35% discount on standard Salesforce products) and centralized procurement for 19 city departments. The amendment would increase the not‑to‑exceed amount by about $10.9 million, to a new total of approximately $20.6 million, and extend the agreement five years through June 30, 2030.

Nick Menard of the Budget and Legislative Analyst’s office told the committee the contract includes a markup that appears higher than similar government contracts and that roughly one‑third of projected spending under the amendment will be charged to the general fund; the remainder is expected to come from enterprise and special revenue funds.

There were no public speakers. Chair Chan moved the item to the full Board with a positive recommendation; Vice Chair Mandelman was recorded absent for the vote; Supervisors Melgar and Chan voted aye and the motion passed.

The item will proceed to the Board of Supervisors for final action and any contract execution by the Department of Technology and the Office of Contract Administration.