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Home My WebLink AboutESRI - 2014-12-15 (2)1i OVK&2- , Dept. ID IS - 14-001 Page 1 of 1 Meeting Date: 12/15/2014 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 12/15/2014 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Jack K. Marshall, Director of Information Services SUBJECT: Approve Sole Source Purchase from ESRI for ArcGIS (Geographic Information Services) Software Statement of Issue: Administrative Regulation 229 requires City Council approval for all sole source procurements over $50,000. The Customer Support Division which includes the GIS (Geographic Information Services) staff is requesting approval of sole source procurement for purchase of ArcGIS software from ESRI. Financial Impact: Funding in the amount of $60,450.00 is available in the Information Services, Customer Support Division account 10042156.64880, for software license maintenance. Recommended Action: Approve the Sole Source Purchase from ESRI for ArcGIS software. Alternative Action(s): Do not approve the sole source procurement and instruct staff on how to process. This action may result in more costly GIS software from providers who do not specialize in local government solutions. Analysis: ESRI is the sole provider of ArcGIS software, the standard in local government GIS installations. In the GIS industry, there is no comparable provider of GIS software, and virtually all local government GIS systems are ESRI-based. The City first made the commitment to purchase ESRI software in 1993 and this decision has served the city well for over 20 years. We have a significant financial and staff time investment in GIS data, applications, and services which include: mapping support for public safety, public works, planning, permitting, licensing, legal, economic development, and administration. The purchase of ArcGIS software will enable staff to continue to provide up to date, detailed mapping and analysis for city staff, as well as to the general public. Environmental Status: Not Applicable. Strategic Plan Goal: Improve the City's infrastructure Attachment(s): Sole Source Justification HB -10�- Item 7. - I Sale -Source Justification (For use on all goods and services acquisitions.) This justification document consists of two (2) pages. All information must be provided and all questions must be answered. The "Required Approvals" section must include a date for each signature, as appropriate for the transaction. Requesting Department Information Date: November 13, 2014 Requestor Name: Daniel Richards Division Manager: Daniel Richards (Typenames. Do not si n. Department: Information Services Department Plead: Jack Marshall (Tvnin names. Do not si n. Must be same as si nature below. Department Contact information Contact Name: Daniel Richards Street Address: 2000 Main Street Telephone: 714-374-5354 Fax: 714-374-1614 Shipping Address: 2000 Main Street Cellular hone: 714-421-8391 Required Contact Information Contractor/Supplier Name: ESRI Contractor/Supplier Address: 380 New York Street Contractor/Supplier CI /State/Zi : Redlands, CA 92373 Original Contract Amount:* $ (Includes original contract and previously approved amendments Amendment Amount:* (if applicable) $ 'Current amendment only) New Contract Amount:* $60,450 (Includes original contract and all amendments, including current amendment Provide a brief description of the acquisition, Including all goods and/or services the contractor will provide. GIS Software and Cloud Services. Contract Type and Term Contract Type: Select One. ❑ Goods ❑ Service Goods & Services Contract Term: Begin: 1/1/2015 End: 12/31/2015 What account number will be used to purchase? Business Unit: 10042156 Object Code: 64880 Requirmed royals Department Head ® Approv d Denied Fiscal Services Manager pro Q❑ Denied D` ector of Finance provedl istant Manager App t+ved ❑Denied Signature .1��Sigtl re Date Si nature Signature Date Date 9 Date (Transactions exceeding $50-000 must be a roved b Ci Council Item 7. - 2 HB - t 04- CITY OF HUNTINGTON BEACH Sate Source Justification (For use on all goods and services acquisitions.) Complete responses must be provided for all of the following items. A. THE GOOD/SERVICE REQUESTED IS RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED BELOW. 1. Why Is the acquisition restricted to this goodslserviceslsupplier? (Explain why the acquisition cannot be competitively bid.) ESRI is the sole provider of ArcGIS software, the standard in local government GIS installations. In the GiS industry, there is no comparable provider of GIS software, and virtually all local government GIS systems are ESRI based. 2. Provide the background of events leading to this acquisition. The city first made the commitment to purchase ESRI software in 1993, and this decision has served the city well for over 20 years. The city has built a first class GIS based on the ESRI software stack. 3. Describe the uniqueness of the acquisition (why was the goodfservicelsupplier chosen?). ESRI is considered the default choice in GIS software and services for the public, as well as the private sector. The ESRI brand has become synonymous with GIS, and city has a substantial Investment in techonology based on the ESRI platform. 4. What are the consequences of not purchasing the goods/services or contracting with the proposed supplier? GIS data, applications, and services would cease to function. This includes mapping support for public safety, public works, planning, permitting, licensing, legal, economic development, and administration. The conversion to an inferior platform would take years, and result in a substantial loss of GIS capability. b. What market research was conducted to substantiate no competition, including evaluation of other items considered? (Provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department concluded that such alternatives are either inappropriate or unavailable. The names and addresses of suppliers contacted and the reasons for not considering them must be included CAR an explanation of why the survey or effort to identify other goodstservloes was not performed.) The various other providers of GIS sofware do not specialize in local government solutions, or only provide niche products aimed a specific applications (public safety dispatch, marketing, etc.). Of the other major providers, Intergraph (Hexagon) markets to the public safety systems area, Mapinfo is geared towards marketing and demographics, and AutoDesk develops products for the engineering and architectual community. The markert research was performed when the software was originally purchased in 1993. The city already uses Intergraph software for public safety, has owned iVlapinfo licenses in the past (Fire Department), and currenty owns AutoDesk software for Computer Aided Design i the Engineering Division. HB -1 os- Item 7. - 3 B. PRICE ANALYSIS I. How was the price offered determined to be fair and reasonable? (Explain what the basis was for comparison and include cost analyses as applicable.) ESRI has a set pricing schedule for its products and services, which are comparable to Microsoft and other software vendors, and are competitive with the only other company that offers products remotely similar to ESRI products, Intergraph. the Intergraph pricing schedule can be found at: https:/Iwww.gsaadvantage.gov/ref text1GS35F0091K/ON7E1A.2VH2LV_GS-35F- 00116E 1GSPRICELISTGS35F0011KASOP61614MOD01XPDF 2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier. By acquiring products from the vendor, the city will continue to leverage the three million dollar GIS system that supports every department in the city. The city saves substantial money from its investment In GIS technology, and ESRI is the Industry leader in providing cost effective solutions to local governements, including most governments entities in Orange County. Remit completed form to: City of Huntington Beach — Purchasing Division 2000 Main Street, Huntington Beach, CA 92648-2702 Item 7. - 4 HB -106- SOLE SOURCE LETTER Environmental Systems Research Institute, Inc. (Esri) 380 New York Street Redlands, CA 92373 E-mail: j ricks oquesrixom DATE: May 15,2014 TO: To Whom It May Concern RE: Esri Sole Source Justification for Geographic Information System Software This letter confirms that Esri, as owner and manufacturer, is the sole -source provider of software maintenance (teclinical support plus Esri software updates/upgrades) for Esri products, Esri is the sole -source provider of the following Esri products in the commercial, state, and local government marketplace: • ArcGIS for Aviation Bundle • ArcGIS for Desktop Advanced • ArcGIS for Desktop Standard • ArcGIS for Maritime Bundle • ArcGIS for Server and extensions • ArcGIS Online (excluding data owned by 3d party providers) ArcGIS Runtime and Extensions • Certain proprietary training courses • Esri Business Analyst Online • Esri Community Analyst • Esri Business Analyst Server • Esri Defense Mapping Bundle • Esri Developer Network (EDN) subscriptions • Esri MapStudio • Esri Maps Products • Esri Roads and Highways • Portal & Hosted Portal for ArcGIS In an effort to support diversity in federal contracting., Esri has authorized certain small businesses (see GSA Advantage! for details) as resellers; of the following Esri products to eligible entities purchasing under a GSA Schedule. Esri GSA resellers cannot sell Esri software to state or local entities: • ArcGIS for Aviation • ArcGIS for Desktop Advanced • ArcGIS for Desktop Standard • ArcGIS for Maritime: Bathyrinetry • ArcGIS for Maritime: Charting • ArcGIS for Server and extensions • Certain Esri instructor -led training courses • Esri Business Analyst Server • Esri Defense Mapping • Esri Production Mapping Esri distributes certain software licenses, excluding those listed above, through open -market value-added resellers and distributors. If you have further questions, please contact me at 909-793-2853, extension 1- 1990. jaAlie Ricks J-8933 Page I of I 05/15)2fj 14 HB -107- Item 7. - 5