DATE: October 9, 2019
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator / CFO
Jordon Shaw, IT Director
Brian Wilcox, Purchasing Manager
SUBJECT:
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COF Contract No. 2018-0177 Sole-source purchase from Environmental Systems Research Institute, Inc. (ESRI) of Redlands, California in the total amount of $51,000 for the year beginning August 25, 2019 for the IT Department. ($65,000 budgeted in 110-82510-41350 for fiscal year 2020)
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Purpose
The purpose of this procurement is to purchase annual renewal of enterprise license agreements for maintenance of the City’s GIS software. The City utilizes ESRI GIS software for its GIS program.
Background
City Purchasing Policy allows for the following category of sole-source purchases valued at or greater than $25,000 not to require individual authorization by the Board of Mayor and Aldermen (but which shall be reported to the Board):
• Repairs to, maintenance of, licenses for and/or maintenance agreements for products already in use by the City, so long as the product manufacturer representative has stated in writing that the vendor is the sole source available to the City, and so long as the vendor has stated in writing that the quoted pricing is the lowest municipal unit pricing available at that time and in the foreseeable future for the quantity indicated.
Staff believes the proposed purchase, if authorized, would be a sole-source purchase. Evidence to support this opinion includes that the City purchases the software maintenance services directly from ESRI, the software company. ESRI has indicated in writing that it is the sole supplier of the maintenance services for the ESRI software that is the subject of the quoted services.
Financial Impact
The IT Department budget for fiscal year 2020 allocates $65,000 out of the General Fund for the purchase of ESRI software support services. The amount of this procurement is $14,000 (22%) under budget.