TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Salesforce CRM License Expansion to Support Districtwide Customer Service Operations
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to execute the amendment to District’s existing agreement with Carahsoft to expand Salesforce CRM licensing from 100 to 170 licenses to support rider customer service needs, enhance customer engagement capabilities, and ensure continued delivery of efficient, reliable, and responsive customer support services.
Staff Contact:
Ahsan Baig, Chief Information Officer
Body
STRATEGIC IMPORTANCE:
Goal - Convenient and Reliable Service
Initiative - Infrastructure Modernization
This action directly supports AC Transit’s strategic priorities of Customer Experience, Operational Efficiency, and Data‑Driven Decision‑Making by expanding access to the District’s enterprise CRM platform, enabling faster and more coordinated responses to customer needs.
The Salesforce CRM platform serves as the District’s centralized customer engagement system, supporting customer service, case management, communications, workflow automation, reporting, and customer analytics. Expanding licensing capacity will ensure that staff across multiple departments can effectively manage customer interactions, improve service responsiveness, and support continuous improvement initiatives.
BUDGETARY/FISCAL IMPACT:
The District currently maintains 100 Salesforce Public Sector Foundation (PSF) licenses. Following successful implementation of the Salesforce CRM platform and expanded adoption across District departments, staff has identified a need for approximately 155 active users. To accommodate current demand and future operational growth, Salesforce and Carahsoft have proposed a licensing package that expands the District's capacity to 170 licenses.
The proposed annual renewal and license expansion cost is $600,000. The negotiated pricing includes:
• Expansion from 100 to 170 Salesforce Public Sector Foundation licenses.
• Immediate access to the additional licenses at no cost through July 30, 2026.
• Elimination of the standard 9% annual increase for FY27.
• Reduced annual contract uplift of 5% for FY28 and FY29.
• Continued access to Customer Community, Digital Engagement, Government Cloud Plus, Salesforce Shield, Premier Success, and MuleSoft integration capabilities.
The negotiated pricing represents a reduction from the original proposal of $616,588 and provides more than $53,000 in savings compared to a standard Salesforce renewal model while maintaining the District’s full CRM solution.
Funding for the renewal and license expansion will be included in the Department of Innovation and Technology operating budget. The expanded licensing supports existing and future business initiatives while maximizing the District’s investment in the Salesforce CRM platform.
BACKGROUND/RATIONALE:
The Salesforce CRM platform is used Districtwide to coordinate and manage customer interactions, facilitate information sharing across operating units, and ensure timely responses to customer needs. The platform serves as the District’s enterprise customer relationship management system and supports customer service, case management, communications, workflow automation, operational reporting, and customer engagement activities.
Since implementation, Salesforce has successfully replaced the District’s legacy customer relationship management processes and has become the system of record for customer service operations. Riders submitting feedback through the District’s website, Customer Service Center, and digital channels receive automated case tracking and improved communication throughout the resolution process.
The Salesforce implementation also established a foundation for additional business capabilities beyond the original legacy replacement, including future implementation of the EasyPass program, expanded customer engagement initiatives, and consolidation of business processes currently managed through separate platforms. As usage has increased across Customer Service, Marketing and Communications, Operations, Civil Rights, Planning, and other departments, additional licenses are required to support operational demand.
Internal assessments indicate approximately 155 users require access to the system. Expanding licensing to 170 users will provide sufficient capacity for current needs while supporting anticipated growth and future business initiatives.
District staff has collaborated with vendors to refine renewal options, resulting in improved pricing, elimination of the standard 9% annual increase for FY27, reduced future increases from 9% to 5%, and immediate access to additional licenses. This amendment ensures the CRM platform can continue to scale with District operations while supporting increasing customer engagement expectations and service delivery requirements.
Staff therefore recommends authorizing the General Manager to execute an amendment to the existing Carahsoft agreement to expand Salesforce CRM licensing capacity.
ADVANTAGES/DISADVANTAGES:
Advantages:
1. Supports increased CRM adoption across the District, improving the ability to meet service expectations.
2. Reduces workflow delays by enabling more staff to directly access and resolve customer cases.
3. Leverages improved pricing from Salesforce and Carahsoft, including a 0% uplift for FY27 and reduced increases for FY28 and FY29.
4. Supports future implementation of EasyPass and other customer engagement initiatives.
5. Disparate application and databases integration using enterprise integration platform provides improved operational visibility through reporting, analytics, and performance monitoring. Granular level data analytics related to customer experience and drill-down capabilities in developing Key Performance Indicator (KPI) dashboard.
6. Maximizes the District’s investment in a fully implemented enterprise CRM platform.
ALTERNATIVES ANALYSIS:
1. Do not approve additional licenses: Not recommended. This would limit the District’s ability to meet customer service demand, reduce system accessibility across departments, and impede timely case resolution.
2. Approve a smaller license increase: Previously considered a 30‑license expansion; however, updated operational assessments support a 70‑license expansion as necessary to meet District‑wide usage.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Staff Report 24-183 - Contract Award for Customer Relationship Management Solution (May 8, 2024)
Board Policy 465 - Procurement Policy
ATTACHMENTS:
None
Prepared by:
Dr. Manjit K. Sooch, Director of Innovation and Technology
In Collaboration with:
Michael Silk, Director of Procurement & Materials Management
Approved/Reviewed by:
Ahsan Baig, Chief Information Officer
Chris Andrichak, Chief Financial Officer