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CONTRACT K-1718-45: AN ENTERPRISE LICENSE AGREEMENT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC., (ESRI) IN THE AMOUNT OF $63,750 FOR THE FIRST YEAR, $70,075 FOR THE SECOND YEAR AND $75,500 FOR THE THIRD YEAR OF A THREE-YEAR CONTRACT TO PROVIDE SOFTWARE AND SOFTWARE MAINTENANCE AND SUPPORT FOR THE CITY OF NORMAN'S ENTERPRISE GEOGRAPHIC INFORMATION SYSTEM (GIS).
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BACKGROUND: In its September 8, 1992 meeting, City Council approved the purchase of Arc/Info software from Environmental Systems Research Institute, Inc. (ESRI). This software is the core development and analysis environment for the City's geographic information system (GIS). For 16 years, the City maintained the software with Annual Software Support Agreements. In 2009, The City of Norman entered into a Small Government Term Enterprise License Agreement (SGELA) with ESRI. The SGELA is a three year agreement that allows the City to deploy the core components of the ArcGIS Enterprise Software and Desktop software in uncapped quantities throughout the city. This allows the city to respond to changing priorities more quickly. It also saved the city money over the traditional purchase of software and maintenance separately. This agenda item is a request that the City enter into Contract K-1718-45, which will be the fourth three-year SGELA with ESRI. While the software covered by the SGELA is used by all City departments, the funds to purchase the core components of ArcGIS Enterprise were consolidated into two departments in 2013, Planning and Utilities, to streamline administration of the contract. In 2015, the Retail Marketing Coordinator in the City Manager's Office purchased a license of Business Analyst Online, which is an add-on ArcGIS Online component of the software; therefore is included in this agreement.
DISCUSSION: GIS data and ESRI software are deeply integrated into many of the City’s business practices. If the City allows the SGELA to lapse, we will lose access to all ESRI software on August 26, 2017. ESRI software includes all ArcGIS Server and Desktop software, and ArcGIS Online access. This software is required for the Cityworks work order software used in the Utility and Public Works Departments; maintaining the base data for the New World Systems used by the Police and Fire Departments; the Business Analyst Application used by the Retail Marketing Coordinator, the external website that allows citizens to access GIS information and aerial photography; and the internal web services and Desktop software that are used by Planning and Public Works to administer the development process.
The SGELA is a three year contract that has a population-based fee scale and provides unlimited licensing, maintenance and support for all of ESRI's core GIS software products. It used to only be available for governments with populations of less than 100,000. Norman was less than 100,000 when we first entered into the SGELA, which was $50,000 per year for cities of that size at the time. Because the City passed the 100,000 population point shortly after the initial contract, the cost of the SGELA has increased each time we renewed. Our most recent SGELA was $57,500 per year. ESRI recently expanded the SGELA program to include cities above 100,000. The cost of the SGELA for a city the size of Norman is $75,000 per year.
Because of the city’s current budget constraints and our long standing business relationship, rather than increasing the cost of the contract immediately to $75,000, ESRI agreed to allow Norman to gradually ramp-up to the full amount expected of a city Norman’s size. The first year will be $63,250, the second year will be $69,575, and the third year will be the full price of $75,000. There is an additional $500 per year for Business Analyst Online, which is a fixed price add-on to ArcGIS Online. This contract will lock in the SGELA price for the next three years. This will include the software and services below:
Core Software:
Desktop Software and Extensions (Single Use)
• ArcGIS Desktop Advanced ArcGIS Desktop Standard ArcGIS Desktop Basic
• ArcGIS Desktop Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Publisher, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager, ArcGIS Data Reviewer
Enterprise Software and Extensions (formerly ArcGIS Server) ArcGIS Enterprise and Workgroup (Advanced and Standard)
• ArcGIS Enterprise Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager
Enterprise optional servers
• ArcGIS Image Server
Developer ToolsArcGIS Engine
• ArcGIS Engine Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Engine Geodatabase Update, ArcGIS Network Analyst, ArcGIS Schematics
• ArcGIS Runtime (Standard)
• ArcGIS Runtime Analysis Extension
Other software and services included.
Limited Quantities
• One (1) annual Professional subscription to ArcGIS Developer*
• Two (2) ESRI CityEngine Advanced Single Use Licenses
• 500 Level 1 ArcGIS Online Named Users
• 500 Level 2 ArcGIS Online Named Users
• 62,500 ArcGIS Online Service Credits
• 500 Level 1 ArcGIS Enterprise Named Users
• 500 Level 2 ArcGIS Enterprise Named Users
• 7 Insights for ArcGIS
• 4 ESRI User Conference registrations provided annually($1,495 each)
• 4 Tier 1 Help Desk individuals authorized to call ESRI
• Uncapped access to Self-Paced e-Learning
• Five percent (5%) discount on all individual commercially available instructor-led training classes at ESRI facilities purchased outside this Agreement
Add-on Software:
Business Analyst Online
Access to the Self-Paced eLearning is a benefit not included in traditional Software Support Agreements. ESRI maintains an online campus that has over 100 courses to choose from. The classes range from beginner to advanced levels.
Environmental Systems Research Institute, Inc. (ESRI) is the only source of support for ArcGIS software products. Section 8-204(b)(2) of the Code of the City of Norman authorizes the City Council to waive competitive bidding for the purchase of supplies, materials, equipment, or contractual services which can only be furnished by a single dealer or have a uniform price wherever bought. Funds for the Enterprise License Agreement are available in the following Maintenance & Repair Services and Business Services Accounts:
$56,980 in Account 010-4050-419.42-26 in Planning/GIS Services Division
$6,270 in Account 031-5530-461.42-26 in Utilities/Administration
$500 in Account 010-1011-413.40-99 in the City Manager’s Office.
RECOMMENDATION: Staff recommends City Council approve Contract K-1718-45 an Enterprise License Agreement between the City of Norman and Environmental Systems Research Institute, Inc. and authorize the payment for the first year of the contract in the amount of $63,750.