HomeMy WebLinkAboutFCS-17-057 - Sole Source - Geographical Information Systems (GIS) Software
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-03-20
SUBMITTED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Ryan Scott, Buyer, 519-741-2200 ext. 7216
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2017-03-09
REPORT NO.: FCS-17-057
SUBJECT: Sole Source – Geographical Information Systems (GIS)
Software
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RECOMMENDATION:
That ESRI Canada Limited, Toronto, Ontario, be the sole source provider for
Geographical Information Systems (GIS) software licencing at a cost of $450,000.,
plus H.S.T of $58,500., for a total of $508,500., for a three (3) year term.
BACKGROUND:
The City uses the ESRI software platform for all GIS related work. The software
platform consists of GIS desktop software, GIS mobile applications used in the field,
and GIS server software which provides underlying GIS capability to systems such as
OnPoint and Cityworks. More recently, the software platform offers a number of cloud
based software solutions that enable Kitchener’s Open Data catalogue, Story Maps and
ArcGIS Online that can generate real-time maps out of the GIS data resources.
The Enterprise License Agreement (ELA) is a software licensing model that ESRI has
been moving clients to over the past ten years. The ELA model simplifies licensing
processes and offers full access to all GIS software that ESRI provides. Until this time,
ESRI has continued to offer the City a “pay as we need” licensing model for access to
specific modules only.
The local municipalities and the Region of Waterloo use ESRI software products which
enables the high level of collaboration that exists between the organization’s GIS
functions. The Region of Waterloo and the City of Waterloo currently license ESRI
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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software through an ELA. The City of Cambridge is investigating the move to an ELA
later this year.
The average annual spend over the past three (3) years was $326,000, before taxes.
REPORT:
In early 2017, ESRI significantly increased the cost of the pay as you go licensing model
by 57%. The price increase of this licensing model, coupled with the expected growth of
mobile applications in use to support field staff and asset management activities, has
increased the pay as you go licensing fees past the tipping point making an ELA the
most cost effective option for the City.
Entering into an ELA will also provide access to additional GIS software that had
previously been considered too expensive to acquire under the previous licensing
model. This has the potential to increase efficiencies in GIS services.
The price for the ELA licencing model is 3.5% lower than proposed costing for the pay
as you go licensing model.
Article 9 -170.9.1 (c) of the Purchasing By-law allows for acquisition by negotiation
where there is a proven need for product standardization which is necessary to ensure
compatibility with existing products, standards, services, systems or strategies.
As the public often utilizes services in more than one municipality, a collaborative
purchasing approach ensures a standardized and consistent public experience
throughout the Region and will allow the City to maintain the existing functionality as
well as the potential for shared knowledge and the sharing of best practices. Utilizing
the same software will provide a consistent interface for citizens and provide increased
opportunities for system enhancements that could benefit the citizens experience from a
regional standpoint.
This recommendation is supported by D. Murray, Director of Technology Innovation and
Services, D. Adams, Manager of GIS and R. Scott, Buyer, who concur with the above
recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
Existing annual funding for this purchase is $100,000 and comes from relevant
operating/capital accounts. Price increases and growth in mobile applications has led to
a funding shortfall ($40,000) for the three year term of this award. For 2017, this
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shortfall will be jointly funded by the GIS and CityWorks capital accounts. Ongoing
funding for this purchase will be reviewed as part of the 2018 budget development
process.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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