v2.6 was built in November 2025 against pricing in Gord's draft. The Axon/Emeres SOW that landed in our inbox on May 22, 2026 (Daniel Freemark, "Axon/Emeres SOWs and Quotes") has different numbers. v2.7 reconciles them.
| Item | v2.6 (Nov 2025) | v2.7 / actual SOW (May 2026) | Delta |
|---|---|---|---|
| Emeres CAD PSO (Professional Services) | $200,000 (over 3 yrs) | $278,479 (one-time) | +$78,479 (+39%) FLAG |
| Emeres CAD license — Years 1–3 (first block) | $62.00 / user / mo (flat) | $62.00 / user / mo | No change |
| Emeres CAD license — Years 4–8 (escalation) | $62.00 (assumed flat) | $64.48 → $67.05 → $69.74 → $72.53 → $75.43 | ~4% compounding/yr NEW |
| Emeres CAD term | 10 years | 118 months (~9.83 yrs) | Tightened |
| Smartphone licenses | Bundled in 280 user count | 50 licenses × 98 mo × $18.75 SEPARATE LINE | ⚠️ Proposal text says 240 — Axon quote line says 50. Discrepancy. |
| Survivability hardware | Not surfaced | 5× appliances, customer-supplied, specs TBD FLAG | Capital cost not yet quantified |
| Data conversion from existing CAD | Assumed in | "Separately priced option," no price FLAG | Not in $2.45M total |
| 10-year Emeres CAD total (license + PSO) | ~$2.36M | $2,450,661 (incl. HST) | ~+$90K from escalation + PSO creep |
Recommendation unchanged from v2.6: proceed with Records + CAD + Standards. Net 10-year financial benefit still positive (~$4.3M), but Year 1–5 cash flow is higher than v2.6 modeled. The ~4% annual CAD escalation and the data-conversion line item are the two material new risks to address at the May 28 9 AM meeting.
| System | Description | Annual Cost |
|---|---|---|
| Hexagon CAD | Charges outside OPTIC | $111,000 |
| JTS | Annual CAD + Niche RMS | $277,385 |
| OPTIC | Consortium fees | $70,329 |
| Halogen (Cornerstone) | Performance evaluation, 411 users | $54,335 |
| Subtotal — External Systems | $513,049 | |
| Current Axon (Gord's quote) | OSP, Fleet, Evidence.com, Interview (avg/yr) | $548,798 |
| Redaction Assistant | 240 users, back-billed properly | $51,941 |
| Subtotal — Axon Products | $600,739 | |
| TOTAL STATUS QUO ANNUAL COST | $1,113,788 | |
Year 1–3 license cost. Years 4+ escalate ~4%/yr per the new SOW (see escalation section below).
| Cost Category | Status Quo | +Records +CAD | +Records +CAD +Standards | Everything (all-in) |
|---|---|---|---|---|
| Axon Base (OSP, Fleet, Evidence, Interview) | $548,798 | $548,798 | $548,798 | $548,798 |
| Redaction Assistant (240 users) | $51,941 | $51,941 | $51,941 | $51,941 |
| Hexagon CAD (replaced by Emeres) | $111,000 | $0 | $0 | $0 |
| JTS (CAD + Niche RMS, replaced by Records) | $277,385 | $0 | $0 | $0 |
| OPTIC fees | $70,329 | $0 | $0 | $0 |
| Halogen (replaced by Axon Standards) | $54,335 | $54,335 | $0 | $0 |
| Axon Records (365 × $56/mo) | — | $245,280 | $245,280 | $245,280 |
| Emeres CAD (280 × $62/mo, Yr 1–3) | — | $208,320 | $208,320 | $208,320 |
| Notes (240 × $10/mo) | — | — | — | $28,800 |
| Standards (245 × $15/mo, Halogen replacement) | — | — | $44,100 | $44,100 |
| TOTAL ANNUAL OPERATING (Yr 1–3) | $1,113,788 | $1,108,674 | $1,098,439 | $1,127,239 |
| Annual difference vs. status quo | — | −$5,114 | −$15,349 | +$13,451 |
v2.6 modeled flat $62/user/mo for all 10 years. The actual SOW (May 2026, Axon quote page 3) shows a 36-month block at $62, then five 12-month blocks escalating ~4% each year.
| Year | CAD unit price/mo | CAD annual (280 users) | vs Yr 1 |
|---|---|---|---|
| Years 1–3 (Mar 2028 – Feb 2031) | $62.00 | $208,320 | baseline |
| Year 4 (Mar 2031 – Feb 2032) | $64.48 | $216,653 | +$8,333 (+4.0%) |
| Year 5 (Mar 2032 – Feb 2033) | $67.05 | $225,288 | +$16,968 (+8.1%) |
| Year 6 (Mar 2033 – Feb 2034) | $69.74 | $234,326 | +$26,006 (+12.5%) |
| Year 7 (Mar 2034 – Feb 2035) | $72.53 | $243,701 | +$35,381 (+17.0%) |
| Year 8 (Mar 2035 – Feb 2036) | $75.43 | $253,445 | +$45,125 (+21.7%) |
Source: Axon Quote Q-830915-46164TD, pricing table (PDF page 3).
| PSO Item | Total | Spread Over | Annual | Notes |
|---|---|---|---|---|
| Records Professional Services | $250,000 | 5 years | $50,000 | Unchanged |
| Emeres CAD Implementation | $278,479 | ~3 years | ~$92,826 | +$78,479 vs v2.6 FLAG |
| Technical Account Manager (TAM) | $250,000 | 5 years | $50,000 | Unchanged |
| Notes deployment (optional) | $10,000 | 5 years | $2,000 | Unchanged |
| Standards implementation (optional) | $40,000 | 5 years | $8,000 | Unchanged |
| TOTAL PSO | $828,479 | — | — | +$78,479 vs v2.6 |
Emeres PSO payment timing: Per the new SOW (page 16), 33.3% is due at contract signing, 33.3% at year-1 anniversary, remainder at year-2 anniversary. That means ~$185K of the $278K is due before any go-live (implementation is a 24-month effort per SOW page 15). Confirm this matches our cash-flow expectations.
| Year | Status Quo | Old Systems Running | New Axon + Emeres Operating | PSO | Total New Annual | vs Status Quo |
|---|---|---|---|---|---|---|
| Year 1 (2026) | $1,113,788 | $513,049 | $600,739 | $192,826 | $1,306,614 | +$192,826 |
| Year 2 (2027) | $1,113,788 | $458,714 | $673,639 | $192,826 | $1,325,179 | +$211,391 |
| Year 3 (2028) | $1,113,788 | $0 | $1,098,439 | $192,826 | $1,291,265 | +$177,477 |
| Year 4 (2029) | $1,113,788 | $0 | $1,106,772 | $110,000 | $1,216,772 | +$102,984 |
| Year 5 (2030) | $1,113,788 | $0 | $1,115,407 | $110,000 | $1,225,407 | +$111,619 |
| Year 6 (2031) | $1,113,788 | $0 | $1,124,445 | $0 | $1,124,445 | +$10,657 |
| Year 7 (2032) | $1,113,788 | $0 | $1,133,820 | $0 | $1,133,820 | +$20,032 |
| Year 8 (2033) | $1,113,788 | $0 | $1,143,564 | $0 | $1,143,564 | +$29,776 |
| Year 9 (2034) | $1,113,788 | $0 | $1,143,564 | $0 | $1,143,564 | +$29,776 |
| Year 10 (2035) | $1,113,788 | $0 | $1,143,564 | $0 | $1,143,564 | +$29,776 |
| 10-YEAR TOTAL | $11,137,880 | $971,763 | $10,283,952 | $828,479 | $12,054,193 | +$916,313 |
Year 4+ "New Axon + Emeres Operating" reflects the ~4% CAD escalation. All other prices held flat (Records $56/user, TAM/Standards/Notes flat per existing terms).
| 10-Year additional investment (vs status quo) | +$916,313 |
| Axon-negotiated PSO savings (Records: $250K vs typical $1.1M) | −$850,000 |
| 5-Year CAD bundling savings (Emeres-via-Axon vs Cirrus standalone) | −$4,448,780 |
| NET 10-YEAR BENEFIT | $4,382,467 |
v2.6 number was $4,422,607. The ~$40K reduction is the new SOW's PSO creep + CAD escalation eating into the bundled savings.
SOW page 14: "If selected as a separately priced option, this proposal will include the following assumptions for historic data migration." Scope is "mutually agreed after EMERES reviews sample data." No price quoted. Up to 7 years event history + premise hazards. Ask Daniel for a firm number.
SOW pages 12–14: 5× Local Survivability Appliances + CPIC server are "customer-purchased," with specs "provided separately" by EMERES. No virtualization story. No database/OS licensing called out. Page 14 calls the survivability appliances "optional" but page 12 lists them as part of the Production Environment — contradiction.
Emeres proposal page 11 says 240 smartphone users; Axon quote page 3 line shows only 50 licenses. Fix in writing. Could be a $200K+ delta.
SOW page 15. Combined with the 24-month implementation, officers don't get smartphone Mobile CAD for potentially 3 years from contract signing.
Standard EMERES T&Cs / EULA / SLA / M&S Guidelines are incorporated by reference (SOW page 16) but not attached to the package. Same for Axon's MSA (page 65 references axon.com URL). No uptime %, no severity definitions, no Ontario privacy language, no termination/exit-assistance clauses. Demand the referenced documents in writing before signature.
v2.6 used $200K Emeres PSO. New SOW shows $278,479. Ask Daniel: what changed? Either scope was added, or the price crept. Either way it should be itemized.