Consideration and Approval of Sole Source Purchase: Solid Waste Route Management and Logistics Software offered by WM Logistics, LLC (Approve purchase of solid waste route management and logistics software).

The Solid Waste Section has researched industry specific software for route management, collections and logistics for approximately six (6) years. After reviewing products offered by all vendors with industry specific software, it has been determined that WM Logistics is the only (Sole Source) vendor who has a complete package that can meet all of the Solid Waste Section's needs and requirements.

Subsidiary Decisions Points:
 
1.  WM Logistics provides five (5) different modules specific to solid waste collection vs. other companies who only have two to three standard modules.  No other company had developed their system fully and relied on other logistic software companies to provide different aspects to complete the software system.

2.  WM Logistics is the only company with an automated route logistics known as a "One-Touch" intuitive system. 

3.  WM Logistics is the only company that did not need company-specific proprietary hardware in the trucks.  This will allow the City to purchase tablets for their software system from any local store and likely save money from hardware-specific equipment.

4.  WM Logistics can utilize the cloud, with an Oracle database, which they maintain. This saves the City money from having to purchase an additional server and staff time to maintain and back up an operating system that Information Technology (IT) staff is trying to phase out.

The purchase and implementation of this software will produce significant savings in operational and capital costs. These savings will pay for the cost of acquiring and using this software, as well as future savings by reducing the need to purchase and replace as many collection vehicles. Productivity and efficiency increases will allow for reductions of fleet and related fleet capital costs as well.

11. Effective governance

No.  To date, there has not been any previous Council presentation or discussion.

1. Purchase the software from WM Logistics for the specified time period at the price offered.
2. Do not purchase any routing / logistics software at this time.

The Solid Waste Section has been researching and reviewing software products designed for solid waste collection for about six (6) years. The use of such an "industry specific" product would increase current productivity and operational efficiency while producing significant savings. Additionally, it would allow for a reduction of fleet vehicles (collections equipment) producing immediate savings as well as future cost reductions in fleet replacement.

After researching and viewing demonstrations of every major manufacturer of route management/ logistics software, Solid Waste staff determined that WM Logistics is a sole source provider of a product that meets the City's Solid Waste section needs and requirements. The product would have value for other Sections or Divisions as well, as there are modules available for street sweeping, plowing operations and other relevant route functions that would be supported by this technology interface. The Vendor (WM Logistics) will host, install, set up, maintain and back up the system, eliminating the need for the City's own IT Section to purchase and maintain a new server.

The Solid Waste section has had $134,000 budgeted for technology to improve productivity and operational efficiency. The software offered by WM Logistics, LLC will cost $120,090 over the next three (3) years. At the end of the 3 year contract, options are as follows: 1. Continue with the contract and negotiate future years costs. 2. Purchase server(s)- 3 @ $6,000- $8,000 each, host internally. WM Logistics still maintains Oracle/ 3rd party software, but the City of Flagstaff IT Section backs up system data weekly. Typical cost for this method is 20% of software package costs ($150,000), or $30,000 annually. Per Don Rothwell @ WM Logistics, COF's costs would likely be lower than the estimated $30,000 per year, due to being an existing customer. 3. Discontinue use of product and end relationship with vendor; look for other industry specific software and vendor.

The benefit to the community is improved efficiency of the Solid Waste Collection system, keeping ongoing costs to provide services lower by using technology to enhance operational capacity and planning that benefits the City's Solid Waste taxpaying customers.

Inform

1. Purchase the software offered by WM Logistics, LLC
2. Do not purchase any route management/ logistics software at this time.