Title
[Contract] Suspend Competitive Bidding for the Purchase of Environmental Systems Research Institute, Inc. (ESRI) Enterprise Agreement [Two-Thirds Vote Required]
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FileID
File ID: 2026-01085
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion by a two-third vote to: 1) suspend competitive bidding for Geographic Information Systems (GIS) software licenses and support, in the best interests of the City; and 2) authorize the City Manager or designee to execute a Software Enterprise Agreement (EA) with Environmental Systems Research Institute, Inc. (ESRI) in the not-to-exceed amount of $1,400,000 for a three-year contract period.
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Contact
Contact: Dan McCoy, Program Manager, (916) 808-2873, dmcoy@cityofsacramento.org; Rong Liu, IT Manager, (916) 808-1979, rliu@cityofsacramento.org; Darin Arcolino, Chief Information Officer, (916) 808-0403, darcolino@cityofsacramento.org; Department of Information Technology
Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Agreement
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Description/Analysis
IssueDetail
Issue Detail: GIS technologies are critical tools for improving the quality, accuracy, and responsiveness of government services provided by the City. GIS technology is an integrated cross-sectoral software platform that is used to capture, store, check, integrate, analyze, and display data related to a position on the Earth’s surface. ESRI’s ArcGIS family of software is a collection of industry-standard products that work together to provide an integrated GIS system and an enterprise solution platform to support the City’s business needs. No other GIS software vendor provides such a full-featured platform with products that cover the entire spectrum of software components required. The City has been using ESRI GIS software for over 25 years. ESRI software is embedded in all City departments and provides robust real-time support to a variety of City operations including 911 dispatching, garbage pickup routing, 311 Service Center, building permit applications, code enforcement, zoning and land-use planning, street and park maintenance, water distribution and wastewater collection, underground service alert marking, Emergency Operations Center, and public information requests.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are consistent with AP-4101- Procurement of Non- Professional Services. City Code section 3.56.230.C authorizes the City Council to suspend competitive bidding for the purchase of services or supplies when, upon a two-thirds vote, the City council determines it is in the best interest of the City to do so. City Council approval is required for extending Professional Services beyond five years and executing a contract amendment that increases the contract amount to $250,000 or more per City Professional Services Policy and City Code 3.04.20.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns administrative activities and government fiscal activities that do not constitute a “project” as defined by the CEQA Guideline sections 15378 (b)(2) and 15378 (b)(4) and are not subject to the provisions of CEQA
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: ESRI is the industry leader in GIS and developer of the ArcGIS family of software products and GIS services. This EA will further expand on the ESRI software licenses and capabilities already employed throughout the city. An EA will give licensed users unlimited access to a variety of ESRI products including ArcGIS Server, ArcGIS Velocity Server, ArcGIS Image Server, ArcGIS Velocity Server, ArcGIS Desktop, ArcGIS Spatial Analyst Extension, ArcGIS Geostatistical Analyst Extension, and ArcGIS Schematics Extension. Staff conducted extensive research of other GIS software and determined that only ESRI’s software products have the capabilities that fully support the City’s operations and business requirements.
In addition, ESRI is the only provider of their EA, software licenses, support, and maintenance. As such, staff are recommending sole source procurement of an EA for a three-year term. The proposed EA will save the City approximately $400,000 in software licensing costs over the three-year term.
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FinancialConsiderations
Financial Considerations: No additional funding is requested. Funding is available within various departmental operating and Capital Improvement Program (CIP) budgets for those departments that utilize ESRI software.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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