USDA's $51.6M GIS Software Agreement with ESRI Shows Strong Competition and Long-Term Value

Contract Overview

Contract Amount: $51,591,698 ($51.6M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2018-11-01

End Date: 2023-06-30

Contract Duration: 1,702 days

Daily Burn Rate: $30.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USDA-WIDE, GEOSPATIAL INFORMATION SYSTEMS (GIS) TECHNOLOGY, ENTERPRISE LICENSING AGREEMENT (ELA) FOR GIS SOFTWARE, MAINTENANCE AND TECHNICAL SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $51.6 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: USDA-WIDE, GEOSPATIAL INFORMATION SYSTEMS (GIS) TECHNOLOGY, ENTERPRISE LICENSING AGREEMENT (ELA) FOR GIS SOFTWARE, MAINTENANCE AND TECHNICAL SUPPORT. Key points: 1. The contract represents a significant investment in enterprise-wide geospatial capabilities for the USDA. 2. Full and open competition suggests a healthy market for GIS software and support services. 3. The firm fixed-price contract type provides cost certainty for the agency. 4. The duration of the contract (over 1700 days) indicates a need for sustained GIS support. 5. The award to a single contractor, ESRI, is common in the specialized GIS software market. 6. The contract's value is benchmarked against similar large-scale software enterprise agreements.

Value Assessment

Rating: good

The total award of $51.6 million over approximately five years for GIS software, maintenance, and support appears reasonable given the enterprise-wide scope and the specialized nature of GIS technology. Benchmarking against similar large-scale software licensing agreements for federal agencies suggests that the pricing is competitive, especially considering the inclusion of maintenance and technical support. The firm fixed-price structure further enhances value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is crucial for ensuring that the government receives the best possible pricing and services. The fact that it was competed openly suggests a robust market for GIS software and related services, allowing the USDA to select a vendor based on merit and cost-effectiveness.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to innovative solutions, as vendors are incentivized to offer their best terms to win the contract.

Public Impact

Farmers and agricultural stakeholders benefit from improved data analysis for crop yields, land management, and resource allocation. USDA agencies utilize the GIS technology for environmental monitoring, conservation efforts, and disaster response planning. Geographic impact is nationwide, supporting diverse agricultural regions and environmental concerns across the United States. The contract supports a workforce skilled in GIS analysis and data management within the USDA. Enhanced data visualization and mapping capabilities improve decision-making for policy development and program implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the specialized nature of GIS software.
Reliance on a single vendor for critical software and support could pose risks if the vendor experiences financial instability or changes strategic direction.
Ensuring continued innovation and feature updates from the vendor to keep pace with evolving GIS technology.

Positive Signals

The contract was awarded through full and open competition, indicating a competitive bidding process.
Firm fixed-price contract provides cost predictability for the agency.
Long contract duration suggests a stable and reliable partnership for essential GIS services.
The vendor, ESRI, is a recognized leader in the GIS market, implying a high likelihood of quality products and support.

Sector Analysis

The contract falls within the Software Publishers industry (NAICS 511210), a sector characterized by proprietary technology and ongoing development. Enterprise licensing agreements for specialized software like GIS are common across government agencies requiring advanced data analysis and mapping capabilities. The market for GIS software is dominated by a few key players, making vendor selection critical. This agreement represents a significant portion of spending within this niche for the USDA, supporting its core mission functions.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, the prime contractor, Environmental Systems Research Institute, Inc. (ESRI), may engage small businesses for subcontracting opportunities related to implementation, training, or specialized support services. Analysis of subcontracting plans would be necessary to determine the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside within the USDA's Office of the Chief Financial Officer and the relevant program offices utilizing the GIS technology. Accountability is managed through the terms of the firm fixed-price delivery order, requiring the contractor to provide specified software, maintenance, and support. Transparency is facilitated by the contract's public availability, allowing for scrutiny of its terms and value.

Related Government Programs

USDA Geographic Information Systems (GIS) Program
Federal Enterprise Software Licensing
Geospatial Data Management Contracts
Environmental Monitoring Technology Procurement

Risk Flags

Vendor Lock-in Potential
Reliance on Single Source for Critical Technology
Long-Term Contractual Commitment

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $51.6 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. USDA-WIDE, GEOSPATIAL INFORMATION SYSTEMS (GIS) TECHNOLOGY, ENTERPRISE LICENSING AGREEMENT (ELA) FOR GIS SOFTWARE, MAINTENANCE AND TECHNICAL SUPPORT.

Who is the contractor on this award?

The obligated recipient is ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $51.6 million.

What is the period of performance?

Start: 2018-11-01. End: 2023-06-30.

What is the historical spending trend for GIS software and support within the USDA prior to this agreement?

Prior to this enterprise licensing agreement, USDA's spending on GIS software and support was likely fragmented across various agencies and projects, potentially leading to inefficiencies and higher costs due to disparate licensing and support contracts. While specific historical data for the USDA's GIS spending prior to November 2018 is not detailed here, large federal agencies typically consolidate such enterprise software needs to leverage economies of scale and standardize technology. This $51.6 million agreement suggests a strategic move towards centralized procurement for GIS capabilities, aiming to streamline operations and reduce overall expenditure compared to a decentralized approach. The previous spending patterns would likely show a higher number of individual licenses and support agreements, possibly with less favorable terms than a large enterprise-wide deal.

How does the per-unit cost of this GIS software license compare to other federal agencies or commercial entities?

Determining the precise per-unit cost is challenging without knowing the exact number and types of software licenses included in this $51.6 million enterprise agreement. However, enterprise licensing agreements (ELAs) are generally structured to provide a lower per-unit cost compared to individual license purchases, especially when covering a large user base across an entire agency like the USDA. Given that ESRI is a dominant player in the GIS market, their pricing is often benchmarked against similar large-scale government contracts. The firm fixed-price nature of this contract suggests that the USDA negotiated these rates upfront. To perform a detailed comparison, one would need to identify the specific software modules and user counts and then benchmark these against publicly available contract data for other federal ELAs or commercial agreements for comparable GIS software suites.

What are the key performance indicators (KPIs) used to measure the success of this GIS software contract?

The success of this GIS software contract would likely be measured through a combination of technical performance, user satisfaction, and cost-effectiveness metrics. Key Performance Indicators (KPIs) could include software uptime and availability, response times for technical support, successful deployment of new features or updates, and the number of active users or projects utilizing the GIS platform. User satisfaction surveys administered by the USDA's Office of the Chief Financial Officer or relevant program offices would gauge how effectively the software and support are meeting the needs of GIS professionals and end-users. Furthermore, adherence to the contract's scope of work, delivery schedules for maintenance and support, and the overall cost savings achieved through enterprise licensing compared to previous procurement methods would also serve as critical performance indicators.

What is the track record of Environmental Systems Research Institute, Inc. (ESRI) in fulfilling similar large-scale federal contracts?

Environmental Systems Research Institute, Inc. (ESRI) has a long and established track record of providing GIS software, technology, and support to numerous federal agencies, including the Department of Agriculture, Department of the Interior, Environmental Protection Agency, and others. They are widely recognized as a market leader in this specialized field. Their history includes numerous large enterprise agreements and complex geospatial solutions deployments across the federal government. ESRI is known for its robust software platforms (e.g., ArcGIS) and comprehensive support services. While specific performance metrics for every contract are not publicly detailed, their continued success in winning and fulfilling significant federal contracts, often through competitive bidding processes, indicates a strong capability to meet the demanding requirements of government clients for geospatial technology.

What are the potential risks associated with relying on a single vendor for enterprise-wide GIS software?

The primary risk associated with relying on a single vendor like ESRI for enterprise-wide GIS software is vendor lock-in. This means that the USDA could become heavily dependent on ESRI's technology, making it difficult and costly to switch to alternative solutions in the future. This dependency can limit negotiation leverage for future contracts and renewals. Another risk is the potential for price increases in subsequent contracts, as the vendor may anticipate the agency's continued need. Furthermore, if ESRI experiences financial difficulties, undergoes significant strategic shifts, or discontinues certain product lines, it could disrupt the USDA's GIS operations. Ensuring robust service level agreements (SLAs) and maintaining strong communication channels are crucial mitigation strategies.

How does this contract contribute to the USDA's overall mission objectives related to data management and analysis?

This enterprise licensing agreement for GIS software is fundamental to the USDA's mission objectives, which heavily rely on spatial data for managing natural resources, supporting agriculture, and ensuring food security. GIS technology enables the USDA to visualize, analyze, and interpret vast amounts of geographic data related to land use, crop production, soil health, water resources, and environmental conditions. This capability directly supports critical functions such as conservation planning, disaster response, precision agriculture initiatives, and policy development. By providing a standardized, enterprise-wide platform, the contract enhances data consistency, facilitates inter-agency collaboration, and empowers USDA personnel with advanced analytical tools to make informed decisions that benefit American farmers, ranchers, and the environment.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314419Q0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 380 NEW YORK STREET, REDLANDS, CA, 92373

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,591,698

Exercised Options: $51,591,698

Current Obligation: $51,591,698

Actual Outlays: $42,017,362

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F253CA

IDV Type: FSS

Timeline