City of San BernardinoFinance Department, Purchasing Division JUSTIFICATION OF SINGLE/SOLE SOURCE REQUEST ITEM Description: Geographic Information System Software and Services DATE: 06/25/2025 Name of Vendor: Earth Science Research Institute ESRI Select Source: __ __Sole Source: Item is manufactured and/or only distributed by one vendor. ____ Single Source: Item is available from several vendors, but item is the only one that will work. Please answer all questions in detail, in order to prevent delays in the evaluation. Please do not provide one sentence answers. If any additional pages are needed to answer all questions, please attach all pages to this document. 1. Why is the acquisition restricted to this good/service/supplier? (Explain why the acquisition cannot becompetitively bid). Please enter answer below:While alternative GIS software solutions exist in the market, the City's acquisition is restricted to ESRI due to the City's existing infrastructure and operational requirements. The City's GIS infrastructure has been built exclusively on ESRI's ArcGIS platform for over two decades, creating technical dependencies that make alternative solutions incompatible with existing systems. The City's operational systems, databases, customizations, and workflows are specifically designed around ESRI's technology, and transitioning to alternative platforms would require complete system replacement rather than simple substitutions.2. Describe the uniqueness of the purchase (why was the good/service/supplier chosen?) Please enter theanswer below:ESRI's ArcGIS platform provides unique proprietary mapping algorithms, specialized analytical tools, and data processing capabilities that are integral to the City's critical municipal operations. The City requires continuity of the specific ArcGIS Business Analyst functionality for emergency response coordination, public safety dispatch, utility operations, asset management, and planning services. ESRI's software provides seamless integration with existing databases, emergency response systems, and regional partner systems that also utilize ESRI platforms. The specialized functionality, technical architecture, and data compatibility requirements make ESRI's solution uniquely suited to meet the City's operational needs.3. What are the consequences of not purchasing the goods/service or contracting with the proposedsupplier? Procurement services provided to the departments/vendors would be delayed.Critical municipal operations would be severely impacted including:Emergency response and public safety dispatch systems would lose GIS mapping capabilitiesUtility operations and infrastructure management would be disruptedPlanning and development services would be unable to perform spatial analysisAsset management and public works maintenance scheduling would be compromisedLoss of over 20 years of customized workflows, databases, and system integrations Inability to coordinate with regional partners using ESRI platformsSignificant operational downtime during any attempted system migration Potential public safety risks due to compromised emergency response capabilities 4. What market research was conducted to substantiate the single source, including evaluation of other items considered? None. a. (Please 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, addresses and phone numbers of suppliers contacted and the reasons for not considering them must be included or an explanation of why the survey or effort to identify other goods/services was not performed.) All alternatives were determined to be inappropriate due to: Data Conversion Challenges: Over 20 years of spatial data, custom databases, and workflows built specifically for ESRI's proprietary formats cannot be easily converted to other platforms without significant data loss and functionality compromise. Integration Requirements: Existing emergency response systems, utility management databases, and regional coordination systems are specifically designed to interface with ESRI's ArcGIS platform and cannot integrate with alternative solutions without complete system redesign. Training and Expertise: Over 50 City staff members have been trained exclusively on ESRI platforms, representing a significant investment in human capital that would be lost with platform migration. Regional Compatibility: Regional partners and mutual aid agencies utilize ESRI platforms, requiring compatible systems for emergency response coordination. Cost Analysis: Migration costs including software licensing, data conversion, system integration, staff retraining, and operational downtime were estimated to exceed $2 million, making alternatives costprohibitive compared to continued ESRI usage. While these alternatives are viable GIS solutions, they are not compatible with the City's existing infrastructure and operational requirements, making ESRI the only practical choice for continued operations.5. How was the price offered determined to be fair and reasonable? Explain what the basis was for comparison and include cost analyses as applicable. (I.E. Compared to vendor’s previous or current offer to the city or to another agency/company – or any other method of comparison that will substantiate fair and reasonable pricing in the absence of competition) Pricing was determined to be fair and reasonable through: Historical Comparison: Current pricing represents only a minimal increase from the previous 2022 ESRI Enterprise Agreement, demonstrating cost stability over the three-year period. Government Pricing: ESRI provides standardized government pricing that is consistent across similar municipal clients, ensuring the City receives equivalent rates to other comparable government entities. Cost Analysis: The annual cost of $180,720 is significantly less than the estimated $2+ million cost of migrating to alternative platforms, plus ongoing operational costs. Multi-Year Stability: The three-year agreement provides cost certainty and protection against annual price fluctuations, representing better value than year-to-year contracts.
Industry Standard:ESRI's pricing structure is consistent with industry standards for enterprise GIS software and maintenance services for organizations of similar size and complexity.6. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.Cost savings and avoided costs include:Migration Avoidance:Avoiding estimated $2+ million in platform migration costs including software licensing, data conversion, system integration, and staff retraining.Operational Continuity:Preventing costly operational disruptions to critical services including emergency response, utilities, and public safety.Training Efficiency:Leveraging existing staff expertise and training investment, avoiding $200,000+ in retraining costs for 50+ staff members.Multi-Year Pricing:Three-year agreement provides cost stability and potential savings compared to annual contract renewals subject to price increases.Integration Savings:Avoiding costs associated with rebuilding integrations with emergency response systems, utility databases, and regional partner systems.Data Integrity:Preventing potential data loss and corruption costs associated with converting 20+ years of spatial databases and custom applications.1. ____________________________ _________________Department Head Date2. ____________________________ _________________Approved Not Approved(Up to $50,000)Director of Finance & Management Services Date3. ____________________________ _________________Approved Not Approved(Up to $100,000)City Manager DateJustification:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________4. Over $100,000 – must be submitted for City Council Approval.