DATE: September 22, 2026
TO: Board of Supervisors
SUBMITTED BY: Mike Kerr, Director of Information Technology/Chief Information Officer
SUBJECT: Retroactive Agreement with Environmental Systems Research Institute, Inc.
RECOMMENDED ACTION(S):
TITLE
1. Under Administrative Policy No. 34 for competitive bids or requests for proposals (AP 34) determine that an exception to the competitive bidding requirement under AP 34 is satisfied and a suspension of competition is warranted due to unusual or extraordinary circumstances as Environmental Systems Research Institute, Inc. (Esri) is the only vendor that can provide maintenance and support for ArcGIS, the geographic relational data and mapping software used by the County, and that the best interests of the County would be served by entering into a retroactive Agreement with Esri for ArcGIS software licensing, maintenance, and support services;
2. Approve and authorize the Chairman to execute a retroactive Agreement with Esri for ArcGIS software licensing, maintenance, and support services effective September 13, 2026, through September 12, 2029, total not to exceed $2,582,200; and
3. Approve and authorize the Director of Information Technology/Chief Information Officer, or their designee, to add and remove products and services as needed to support the County’s use of ArcGIS, not to exceed $100,000 during the term of the Agreement, with no increase to the maximum compensation.
REPORT
There is no increase in Net County Cost associated with the recommended actions. Approval of the first and second recommended actions will suspend the competitive bidding process under AP 34 and approve the recommended Agreement with Esri for ArcGIS software licensing, maintenance, and support services. Continued access to ArcGIS allows surrounding municipalities to share information used for jurisdictional planning, demographic forecasting, coordinated public safety responses during emergencies, and environmental risk assessments. Approval of the third recommended action will authorize the Director of Information Technology/Chief Information Officer (CIO), or their designee, to add and remove software products as needed and pursuant to the scope of the Agreement, not to exceed $100,000 of the total maximum compensation. This item is countywide.
ALTERNATIVE ACTION(S):
If the first and second recommended actions are not approved, the County will no longer have access to the ArcGIS software, which may hinder collaborative efforts with surrounding municipalities and negatively impact public safety and operations countywide. If the third recommended action is not approved, ITSD will return to your Board to amend the Agreement as product or service needs change.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
The Information Technology Services Department’s (ITSD) request to suspend the competitive bidding process is consistent with AP 34 as Esri is the only vendor with a single software solution, ArGIS, that meets the needs of user departments countywide. The General Services Department - Purchasing Division (Purchasing) reviewed and concurs with the Department’s assessment that this satisfies the exception to the competitive bidding process required by AP 34.
RETROACTIVE AGREEMENT:
The recommended Agreement is retroactive due to delayed contract negotiations.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum compensation under the recommended Agreement is $2,582,200. Costs associated with the recommended Agreement are recovered through chargebacks to user departments. Sufficient appropriations and estimated revenues are included in the ITSD Org 8905 FY 2026-27 Adopted Budget and will be included in future ITSD Budget requests for the duration of the Agreement term.
DISCUSSION:
On September 12, 2017, the Board approved Agreement No. A-17-458 with Esri for ArcGIS software licensing, maintenance, and support services, effective September 13, 2017, through September 12, 2021, with a maximum compensation not to exceed $1,010,000.
On September 7, 2021, the Board approved the First Amendment to Agreement No. A-17-458 (A-17-458-1) with Esri to extend the term by five years from September 13, 2021, though September 12, 2026, and increase the maximum compensation by $2,500,000 to a total of $3,510,000.
ArcGIS is used to create, manage, analyze, and share spatial data for mapping and location-based decision making. ArcGIS provides tools for mapping, spatial analytics, real-time monitoring, imagery processing, and data management across desktop, mobile, and cloud environments. While other geospatial engineering software solution vendors have emerged, Esri remains a pioneer in this industry and the manufacturer of the only comprehensive geographic information system software solution, ArcGIS, that is capable of meeting the various needs of user departments countywide.
Continued use of ArcGIS is vital to ensure countywide operations are maintained. County departments and public safety agencies use ArcGIS to support emergency response and ambulance dispatch. ArcGIS is used by the Department of Public Health to map outbreaks of illnesses and medical conditions, by the Assessor to locate properties, and by County Clerk-Elections to determine precincts and polling places. ITSD supports the County’s ArcGIS platform by managing the full enterprise environment, including server maintenance, security patching, database administration, and technical troubleshooting. ITSD also develops and maintains production applications built within ArcGIS, ensures the integrity of their associated datasets, and provides end-user assistance and specialized guidance for advanced ArcGIS tools. ArcGIS is the system of record for the County’s regional geodatabase, a shared resource utilized by County departments and allied agencies, including special districts and city jurisdictions. As ArcGIS is fully ingrained in various departmental business processes, it supports critical production workflows for both County staff and allied agencies throughout the region.
The recommended Agreement deviates from the County standard agreement language in that it contains a limitation of liability to fees paid in the last 12-month period. ITSD consulted with the Human Resources - Risk Management Division regarding this deviation and was advised that accepting it would be a departmental business decision. The recommended Agreement also deviates from the County’s standard term length and does not include the two optional extensions as Esri was unable to estimate and hold pricing for five years. These types of provisions are common in software agreements and ITSD has determined that accepting these deviations are in the County’s best interest.
The first and second recommended actions will approve the recommended Agreement with Esri for ArcGIS licensing, maintenance, and support services for a three-year term and a total maximum compensation of $2,582,200. The third recommended action authorizes the CIO, or their designee, to add and remove products and services as requested by user departments, not to exceed the $100,000 total included specifically to fund any future requests. This will ensure that the County’s future needs that fit within the scope of the Agreement can be addressed expeditiously.
REFERENCE MATERIAL:
BAI #42, September 7, 2021
BAI #50, September 12, 2017
ATTACHMENTS INCLUDED AND/OR ON FILE:
Suspension of Competition
On file with Clerk - Agreement with Esri
CAO ANALYST:
Amy Ryals