Title
Online Mobile Geo-Location Intelligence Services Contract with Placer Labs, Inc. (Ordinance S-48020)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Placer Labs, Inc. (Placer.ai) for online mobile geo-location intelligence services to provide economic impact data. Further request to authorize the City Controller to disburse all funds related to this item. The agreement value will not exceed $175,000, plus applicable taxes, over five years. Funding is available in the Downtown Community Reinvestment Fund (DCRF).
Report
Summary
Placer.ai technology utilizes location-based analytics to determine real time foot traffic throughout a city, region and nationally. Obtaining this service will allow Community and Economic Development Department (CEDD) to capture and better understand in depth information related to economic impact, community/tourist visitation trends, commercial visitation trends and retail leakage. If approved, this contract will allow staff to:
- Monitor and determine the economic impact of major events in Phoenix, such as the 2021 Phoenix Suns playoff games and Super Bowl LVII in 2023.
- Identify retail leakage to attract and develop a more robust retail portfolio for under served markets in Phoenix.
- Monitor and analyze shopping center performance and foot traffic patterns to determine the health of micro and macro retail environments to expand and revitalize Phoenix’s existing retail destinations.
- Create specialized marketing strategies to attract regional retail stores and centers and support Phoenix’s unique retail corridors and locally owned businesses.
- Use Placer.ai as a tool to determine visitation patterns and quantify the economic impact of tourism dollars within the City.
- Identify missed opportunities through the discovery of points of interest within the City of Phoenix.
- Use Placer.ai as a tool to aid in the continuation of strategic efforts as they relate to the revitalization of struggling shopping centers and retail spaces.
- Assist in the search of creative retail solutions to fill vacant space.
- Gather information to determine and alleviate the impacts of the COVID-19 pandemic on commercial spaces.
- Understand the impacts online shopping on brick and mortar space.
The service includes historical data from 2017 through three days before the current date for any venue/intersection/point of interest in the U.S. Placer.ai is currently the most accurate in the marketplace with a 5-8 percent margin of error with aggregate data for 30 million mobile devices. The service includes 24/7 online access to CEDD staff. This item has been reviewed and approved by the Information Technology Services Department.
The vendor's service agreement requires an exception to Phoenix City Code Section 42-18 to limit the vendor's indemnification of, and liability to, the City at the value of the agreement.
Procurement Information
In compliance with Administrative Regulation 3.10, an exception to the procurement process was approved to select this vendor. A direct selection was made because there is only one known capable supplier due to the proprietary technology used to provide these services.
Contract Term
If approved the contract term will begin or about Nov. 1, 2021, for a one-year term with four one-year renewal options.
Financial Impact
The service is $35,000 per year, not to exceed a total of $175,000, plus applicable taxes. DCRF funds are available and will be programmed for this commitment. The General Fund will not be impacted by this action.
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.