part I and part II DoIT B-40280 (002).pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number 24-448DOIT-INFOT-B-40280

Requesting Agency/University DoIT

Sole Source Justification Form - Part I Section I - General Information

Department/Bureau/Section: DoIT/Infrastructure Services Division

Need Identified Date: Aug 1, 2023 Supply/Service Need By Date: 12/27/2023

Project Title: ESRI GIS JPMC - Products and Maintenance

Vendor: Environmental Systems Research Institute (ESRI)

Provide a description of the supplies or services required:

Establish a three year, indefinite quantity JPMC with Environmental Systems Research Institute (ESRI) for purchase of their GIS related products and maintenance services including enterprise licensing option which can provide governmental units and non for profit entities the ability have unlimited licensing usage at reduced costs.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 4,000,000

Will this Sole Source amend a Professional or Artistic Services contract? Yes No

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Type: New Sole Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: 12/28/2023

Estimated Contract End Date: 12/27/2026

Number of Potential Renewals: 0

Length of Each Renewal in Months:

Total Value of All Renewals:

If a Term Contract, does the term, including renewals, exceed 12 months? Yes No

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

The State of Illinois has utilized ERSI GIS related proprietary products as an adopted standard for GIS for over 17 years. Multiple agencies have established critical business applications that are tightly integrated into, and dependent on, the ERSI GIS platform.

Currently there are no plans to replace ESRI GIS as the State of Illinois has standardized on this product set across the Enterprise for GIS needs. ESRI has offered DOIT special annual pricing if we do a 3 year contract. This special pricing is about 4% lower per year than what we would get compared to single year contract pricing. The additional 4% discount pricing will be good for all 3 years, even though ESRI comes out with a new pricing schedule each year. This still amounts to a 4% savings over if we were to do an annual contract. ESRI is also offering an option of entering into a multi year enterprise licensing agreement which can allow agencies to benefit from unlimited licensing usages that can significantly reduce the cost of increasing licensing usage when necessary to ESRI GIS applications.

The 3 year contract is using GSA pricing and a 1 year contract will be using ESRI normal pricing. GSA pricing gives us the 4% additional discount.

Section III - Funding Source Select the type of funding to be used (Check all that apply): State Appropriate Funds Federal Funds Other (Explain):

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Bulletin Reference Number 24-448DOIT-INFOT-B-40280

Requesting Agency/University DoIT

Section IV - Sole Source Justification

This purchase is economically only available from a single source primarily because it is: (If "Other" explain in one sentence)

Items are Copyrighted or Patented and the Items are Only Available from the Holder

Are there secondary justification(s) for this sole source? Yes No

Another justification that this purchase is only available from a sole source is because it is:

Required for current systems/applications for Software Licensing,Upgrades, and Maintenance.

Another justification that this purchase is only available from a sole source is because it is:

Compatible with existing Equipment (survey tools, and devices used by Transportation engineers, GIS systems used by Law Enforcemen

Section V - Purchase History

Has the Agency or University Purchased these supplies or services in the past? Yes No

Term Term From Term To Value Description Contract Number Type

1 Dec 28, 2020 12/27/2023 4,000,000 JPMC SS ESRI GIS FY21-23 Product & Mnt. - P-22689 CMT1018633 Sole Source

2 Sep 29, 2019 Dec 27, 2020 250,000 ESRI 90 Day Emergency B-17774 Emergency

3 Sep 29, 2019 Sep 28, 2020 1,800,000 ESRI Master - P-13130 CMT0129630 Sole Source

4 Jul 1, 2019 Sep 28, 2020 110,750 ESRI 90 Day Emergency - P-10932 CMT8P00697A Emergency

5 Feb 22, 2018 Jun 30, 2019 7,593,645 ESRI Master thru 6/30/19 - P-697 CMT8P00697 Sole Source

6 Aug 22, 2017 Feb 21, 2018 250,000 ESRI Master thru 02/21/18- PBC 105797 DIT8057970 Sole Source

7 Jul 1, 2017 Aug 21, 2017 125,000 ESRI 90 Day Emergency - PBC 107282 DIT8072820 Emergency

8 Jul 1, 2016 Jun 30, 2017 500,000 ESRI Statewide Master - PBC 97264 CMS7972640 Sole Source

9 Jul 1, 2015 Jun 30, 2016 250,000 ESRI Master Renewal - PBC 91568 CMS2587800-B Renewal

10 Jul 1, 2014 Jun 30, 2015 250,000 ESRI Master Renewal - PBC 85700 CMS2587800-A Renewal

If more than 10, or if other comments, explain:

Jul 1, 2011 - Jun 30, 2014 - 750000 - ESRI Master - PBC 58780 - CMS2587800 - Sole Source 07/1/10 - 06/30/11 - $400,000 ESRI Master Renewal - PBC52004 - CMS042750 - Renewal 07/1/09 - 06/30/10 - $5,000,000 ESRI Master - PBC 42750 - CMS042750 - Sole Source 07/1/08 - 06/30/09 - $2,500,000 ESRI Master Renewal - PBC 32894 CMS826273A 07/1/07 - 06/30/08 $400,000 ESRI Sole Source P-697 CMS8262730 07/1/06 - 06/30/07 $150,000 ESRI Master Renewal - PBC 16912 CMS5009100A Renewal 06/27/06 - 06/27/06 $0 ESRI Master Amendment - PBC 16938 CMS6009100A Amendment 07/1/05 - 06/30/06 $200,000 ESRI Master PBC 910 CMS5009100 Sole Source State of Illinois has procured contracts for the ESRI sole source products for over 17 years in support of required licenses, upgrades and maintenance.

Section VI - Business Rationale

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Bulletin Reference Number 24-448DOIT-INFOT-B-40280

Requesting Agency/University DoIT

1. Provide a detailed explanation of the need for the supplies or services:

DoIT desires to establish a JPMC Master Contract with Environmental Systems Research (ESRI) for the purchase of their sole source GIS products and maintenance. Multiple State agencies and municipalities have the need for on going maintenance, support and additional licensing for growth beyond the current contract end date of 12/27/23. It is in the best interest to the State of Illinois to enter into a multi year agreement that will allow for the option of Enterprise Licensing that will give the agencies the ability to increase usage of ESRI GIS products at a reduced cost.

ESRI GIS licenses are used by a variety of agencies to capture, manage, analyze, and display all forms of geographically referenced information. Agencies perform resource management, logistics, planning, transport, surveying and demographic studies. IDOT utilizes it for road and highway planning and surveying. DNR utilizes it to survey and analyze lakes, rivers and waterways. Law enforcement use it for geographical location information. Licenses and maintenance are required to ensure the GIS software applications continue working properly and provide the needed information for all end users of these products.

2. Provide a list and describe in detail the specifications required to satisfy the need:

Statewide Master contract with ERSI for proprietary GIS related products, which include software licenses, maintenance and support.

Agencies may purchase any items listed on the attached SRI MPA Price List provided by ESRI.

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

The proprietary ESRI GIS related products utilized by numerous state agencies are only available through ESRI. In addition the State of Illinois DoIT has standardized on the ESRI GIS product for enterprise use by all DoIT Managed agencies, boards and commissions throughout the state and there are currently no plans to replace and/or to make significant costly changes (both time and money) to multiple agency critical applications (96+ in total) to integrate with another GIS vendor. There are other GIS vendors in the marketplace, but the cost of converting all current user platforms to a new GIS product would be extremely cost prohibitive. DoIT estimates that it would take years to migrate to a new product and an additional amount estimated at 8 - 10 Million in contractual services and FTE costs to perform the work in addition to the new product license and maintenance costs.

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

The GIS related products currently utilized by the state are only available through ESRI direct (no resellers). The ESRI product line has been the State standard for GIS mapping software since 2005. Converting to a different vendors' GIS solution will require a substantial investment of time and money to convert the state's systems. In addition to the cost of conversion there will be a significant increase in existing costs for some years with overlap of paying for two separate GIS infrastructures (existing and new vendor) until all applications are converted. At this point the State has no immediate plans for converting the 96+ existing applications away from the ESRI GIS products.

5. Has the Agency or University considered alternative supplies or services to satisfy their need? Yes No

5a. If no, why weren't alternatives evaluated?

At this time DoIT and customer agencies are not prepared to incur the cost of replacing the existing ESRI GIS standard. However DoIT continues with the Application Rationalization initiative which is mapping the importance of applications to the business as well as the future disposition (replacement, enhancements, replacement and retirement). This initiative should give better clarity in terms of defining the road map for these types of applications that could allow alignment with more competitive procurements in the future.

6. Are there resellers or distributors?

Yes No N/A

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Bulletin Reference Number 24-448DOIT-INFOT-B-40280

Requesting Agency/University DoIT

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

The state has utilized this software for 17 years and seen very modest increases. In addition ESRI is extending GSA pricing if awarded a 3 year contract. Prices are in line with past contracts. This amounts to a 4% savings per year beyond the single year pricing table annual costs. With the 3 year agreement, the better discount pricing is locked in for all 3 years. The additional 4% discount pricing will be good for all 3 years, even though ESRI comes out with a new pricing schedule each year. This still amounts to a 4% savings over if we were to do an annual contract. There is also opportunity for entities to leverage the enterprise agreement option which can save significant dollars and provide the ability for unlimited licensing. Since the ESRI products we need are sole source we are unable to attain these specific products via resellers. Only core products will be in BidBuy, DoIT will provide the price list for the initial year as an attachment in BidBuy.

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

Yes No

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

The impact of switching to another vendors' GIS product would be monumental, both in terms of time and money. In addition to possible new investments in another vendor product, there would be significant impact to re-writing applications and interfaces that currently exist from State Agencies critical business systems. In a survey from a couple years ago of 5 agencies (DOT, DNR, EPA, DPH and ISP), that have 96+ applications dependent on ESRI GIS; 59 of those applications have been estimated to cost approximately $8,300,000 for conversion (these costs do not include the costs of the possible replacement GIS platform which would be both software and hardware components); 37 of those agencies applications have stated that it is not possible to either calculate the cost to convert or that converting may not be feasible based on integration into federal systems built on the ESRI GIS platform. These lists are not all inclusive of all the GIS usage agencies but it gives a fairly good example as to how large the impact of switching off of the ESRI products could be to the State of Illinois.

10. Is there any additional information you would like to add to justify this sole source?

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Bulletin Reference Number 24-448DOIT-INFOT-B-40280

Requesting Agency/University DoIT

Section VII

Requesting Department Representative

Requesting Department Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

Date 12/12/2023

Printed Name Chris Brinkemeyer E-mail Address christopher.brinkmeyer@illinois.gov

Phone Number 217-524-7057

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed)

E-mail Address VAn.Austin@Illinois.Gov

Phone Number 217-524-2733 Date Dec 12, 2023

Printed Name Van Austin

Agency Bureau/Division Head or University Purchasing Director and Not a Designee

SPO Approval and Signature Required

I have reviewed and understand the contents of this Sole Source Justification and agree with the State Agency or University determination.

I have reviewed and understand the contents of this Sole Source Justification and do not agree with the State Agency or University determination. As a result, the State Agency or University must explore other sourcing methods to satisfy their need.

State Purchasing Officer Signature Phone Number 217-685-9312 Date Dec 12, 2023

Printed Name Joshua Sergent E-mail Address joshua.sergent@illinois.gov

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Bulletin Reference Number 24-448DOIT-INFOT-B-40280

Requesting Agency/University DoIT

Sole Source Justification Form - Part II Section I - General Information

Project Title ESRI GIS JPMC - Products and Maintenance

Vendor Environmental Systems Research Institute (ESRI)

Initial Date of Procurement Bulletin Posting Dec 13, 2023

Was a Sole Source hearing held per 30 ILCS 500/20-25?

Yes - Complete Section II and III below (Section II will only be visible when this option is selected)

No - Section II not required, go to Section III below Section III - CPO Approval and Signature Required

Based on my review, I authorize the Agency/University to proceed in accordance with the published Notice referenced above.

Based upon my review, I authorize the Agency/University to proceed with the following Changes.

Based on my review, the Agency/University is not authorized to proceed with this sole source as presented and my recommendation is that it be cancelled.

Other

CPO Signature CPO Phone 217-558-2331

Printed Name Ellen H. Daley Date

CPO E-mail Ellen.H.Daley@illinois.gov

Version 7.01 Page of Sole Source Justification Form - Part I Section I - General Information Will this Sole Source amend a Professional or Artistic Services contract?

If yes, what was the original contract value?

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Section II - Proposed Term If a Term Contract, does the term, including renewals, exceed 12 months?

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

Section III - Funding Source Select the type of funding to be used (Check all that apply):

Section IV - Sole Source Justification Are there secondary justification(s) for this sole source?

Section V - Purchase History Has the Agency or University Purchased these supplies or services in the past?

Term Term From Term To Value Description Contract Number Type Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

2. Provide a list and describe in detail the specifications required to satisfy the need:

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

5. Has the Agency or University considered alternative supplies or services to satisfy their need?

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:

5c. Explain how the market evaluation was conducted?

*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).

5a. If no, why weren't alternatives evaluated?

6. Are there resellers or distributors?

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

8a. If yes, please provide details regarding future obligations and/or needs:

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

10. Is there any additional information you would like to add to justify this sole source?

Section VII Requesting Department Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed) SPO Approval and Signature Required Sole Source Justification Form - Part II Section I - General Information Was a Sole Source hearing held per 30 ILCS 500/20-25?

Section II - Sole Source Hearing Details The State posted to the Illinois Procurement Bulletin a description of the State's need, the justification for the sole source decision, and information regarding the opportunity to submit comments and testify at a public hearing. Notice of the hearing was also posted outside of the hearing room 48 hours prior to the hearing.

The public hearing was conducted for the purpose of receiving testimony regarding the sole source determination. The Hearing Officer recommends the following:

The following relevant documents are attached:

Section III - CPO Approval and Signature Required 9.0.0.2.20101008.1.734229 Ellen.H.Daley@illinois.gov

07/1/10 - 06/30/11 - $400,000 ESRI Master Renewal - PBC52004 - CMS042750 - Renewal 07/1/09 - 06/30/10 - $5,000,000 ESRI Master - PBC 42750 - CMS042750 - Sole Source 07/1/08 - 06/30/09 - $2,500,000 ESRI Master Renewal - PBC 32894 CMS826273A 07/1/07 - 06/30/08 $400,000 ESRI Sole Source P-697 CMS8262730 07/1/06 - 06/30/07 $150,000 ESRI Master Renewal - PBC 16912 CMS5009100A Renewal 06/27/06 - 06/27/06 $0 ESRI Master Amendment - PBC 16938 CMS6009100A Amendment 07/1/05 - 06/30/06 $200,000 ESRI Master PBC 910 CMS5009100 Sole Source State of Illinois has procured contracts for the ESRI sole source products for over 17 years in support of required licenses, upgrades and maintenance.

Q1Answer: DoIT desires to establish a JPMC Master Contract with Environmental Systems Research (ESRI) for the purchase of their sole source GIS products and maintenance. Multiple State agencies and municipalities have the need for on going maintenance, support and additional licensing for growth beyond the current contract end date of 12/27/23. It is in the best interest to the State of Illinois to enter into a multi year agreement that will allow for the option of Enterprise Licensing that will give the agencies the ability to increase usage of ESRI GIS products at a reduced cost.

ESRI GIS licenses are used by a variety of agencies to capture, manage, analyze, and display all forms of geographically referenced information. Agencies perform resource management, logistics, planning, transport, surveying and demographic studies. IDOT utilizes it for road and highway planning and surveying. DNR utilizes it to survey and analyze lakes, rivers and waterways. Law enforcement use it for geographical location information. Licenses and maintenance are required to ensure the GIS software applications continue working properly and provide the needed information for all end users of these products.