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Contract No.: Sole Source 16-17-035
Current Term:
Expiration Date:
Title: Environmental Systems Research Institute
Recommendation:
Incorporated (ESRI)
M Sole Source Contract
❑ Solicit Competition
Procurement Contracting Officer:
Richard McLaren
❑ Access Contract
❑ Other
Background:
The City of Miami's (City) Information Technology Department (ITD) originally acquired Geographic
Information System software (GIS) from Environmental Systems Research Institute Incorporated (ESRI) in
1989 as a Sole Source, authorized by Resolutions 89-362, 91-291, 01-1310, 04-0698 and executed as ESRI
Agreement No. E200 6108 by the City Manager and ESRI. On January 28, 2010, Resolution 10-0025 was
approved for the Sole Source finding of ESRI, pursuant to Section 18-92 (a) (1) and (3) of the Code of the
City, ESRI software is integrated into many of the City's systems, such as, Land Management, Enterprise
Resource Planning (ERP), Computer Assisted Dispatch (CAD), E -Team and others. ITD has an on-going
need for GIS from ESRI, not only for the above mentioned software systems, but also for additional modules
(i.e., Arcgis, Arcgis Desktop, Arcview, Arceditor, Arcinfo, Arcims, Arcgis Image Server, Arcgis server, Arcinfo
Workstation, Arcgis Desktop and Server Extensions, ESRI Developer, GIS Portal Toolkit, Map Production
System Atlas, Maplex 3.X, Mapstudio Military Overlay Editor, Netengine, Production Line Toolset, etc.) as
well as, certain proprietary training courses. Currently, the licensing and maintenance are renewed annually
pursuant to Section 18-72 (b) (15) of the Code of the City.
Research Conducted:
Market Research was conducted by the Procurement Department using the internet. ESRI has a market
share >25%. Competitors include Hexagon AB 15-20%, General Electric 5-10%, Pitney Bowes 5-10%,
MacDonald, Dettwiler and Associates Ltd. 5-10%, Bentley Systems, Inc. 5-10%, and various others with c5%
market share. This data came from an IBISWorld report (attached).
Most of the competitors are much smaller without the resources to deliver a robust and comprehensive suite
of GIS modules that fulfill all the needs of the City. No competitors delivering a similar suite of modules that
the City could envision switching to were identified. However, with the depth of ESRI modules and software
systems being utilized by the City, a replacement option would be very costly.
ESRI has also partnered with the International City/County Management Association (ICMA) to provide
additional tools to its members (the City of Miami is a member). Attached is a case study on Fort Lauderdale
as an ESRI Smart Community, and another on Carver County, Minnesota.
Comparable Contracts:
NIA
Recommendation:
The Procurement Department recommends a Sole Source award to ESRI. ESRI continues to build a better
mousetrap. There are no reasons to change and every reason to stay the course. As the largest provider of
GIS they have the resources to continue to improve their products, as well as. their user interfaces. They
also have more installed users, which means more feedback on problems and suggestions for improvements
Procurement Contracting Officer.
Procurement Contracting Manager:
Director/Asst. Director:
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