Title
Pioneer Licensing Contract - RFA-26-0333 - Request for Award (Ordinance S-53074) - Citywide
Description
Request to authorize the City Manager, or the City Manager's designee, to enter into a contract with SewerAI Corporation to provide cloud-based inspection, analytics, and data-management software solutions to support the Water Services Department (WSD). This request also seeks an exception pursuant to Phoenix City Code 42-20 to authorize inclusion in the documents pertaining to limitation of liability provisions that otherwise would be prohibited by City Code Section 42-18. Further request to authorize the City Controller to disburse all funds related to this item. The total value of the contract will not exceed $5,000,000.
Report
Summary
This contract will provide the Water Services Department with access to proprietary Pioneer Software Licenses, enabling the use of AI models to identify and classify pipe and manhole defects in accordance with NASSCO PACP/MACP and WSD requirements. The Pioneer Software will enhance inspection accuracy, reduce manual review time, and support timely wastewater infrastructure assessments, while WSD staff continue to review AI generated results for accuracy and completeness.
The requested exception would permit the inclusion of a limitation of liability clause in this contract, which is otherwise prohibited under Section 42-18. The proposed clause would cap the Contractor's total liability at the greater of:
- Five times the fees paid for services in the past 12 months, or
- Five million dollars ($5,000,000).
This liability cap does not apply in situations involving fraud, intentional misconduct, or when the law or professional standards do not allow such limit.
This item has been reviewed and approved by the Information Technology Services Department.
Procurement Information
In accordance with Administrative Regulation 3.10, standard competition was waived as a result of an approved Determination Memo based on the following reason: Special Circumstances Without Competition as Pioneer License is proprietary software to SewerAI Corporation.
Contract Term
The contract will begin on or about July 1, 2026, for a five-year term with two one-year options to extend.
Financial Impact
The aggregate contract value will not exceed $5,000,000 for the seven-year aggregate term.
Funding is available in the Water Services Department Operating budget.
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer and the Water Services Department.