Commerce Department's NOAA awards $5.5M for ESRI GIS software and services over 3 years

Contract Overview

Contract Amount: $5,530,902 ($5.5M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Commerce

Start Date: 2024-02-01

End Date: 2027-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IMPLEMENT THE ENTERPRISE AGREEMENT FOR GEOSPATIAL SOFTWARE, SUBSCRIPTIONS AND SERVICES, TECHNICAL SUPPORT, TRAINING, CONFERENCE PASSES UNDER THE ESRI GIS BPA

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $5.5 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: IMPLEMENT THE ENTERPRISE AGREEMENT FOR GEOSPATIAL SOFTWARE, SUBSCRIPTIONS AND SERVICES, TECHNICAL SUPPORT, TRAINING, CONFERENCE PASSES UNDER THE ESRI GIS BPA Key points: 1. The contract leverages an existing Enterprise Agreement for geospatial software, indicating potential for cost efficiencies through bulk purchasing. 2. Full and open competition was utilized, suggesting a competitive environment that should drive favorable pricing. 3. The contract is a BPA Call, implying it's a task order against a previously established Basic Ordering Agreement, which can streamline procurement. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The duration of 1095 days (3 years) provides stability for NOAA's geospatial needs. 6. The primary contractor, Environmental Systems Research Institute, Inc. (ESRI), is a dominant player in the GIS market, suggesting specialized expertise.

Value Assessment

Rating: good

The contract value of approximately $5.5 million over three years for enterprise-level GIS software, subscriptions, and support appears reasonable given the specialized nature of geospatial software and ESRI's market position. Benchmarking against similar enterprise software agreements for large federal agencies would provide a more precise value assessment. However, the use of an existing BPA call suggests that some level of pricing negotiation and market assessment has already occurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was followed, which is generally beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, potentially leading to better value.

Public Impact

NOAA scientists and researchers will benefit from access to advanced geospatial software and services, enabling critical environmental monitoring and analysis. The contract supports the delivery of essential geospatial data and analytical capabilities for weather forecasting, climate research, and oceanographic studies. The primary geographic impact is national, supporting NOAA's mission across the United States and its territories. The contract supports a workforce of GIS analysts, data scientists, and IT professionals within NOAA who rely on these tools for their daily operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to ESRI's dominant market share in GIS software.
Reliance on a single vendor for critical geospatial capabilities could pose a risk if the vendor's product strategy or pricing changes unfavorably.
The specific details of the 'enterprise agreement' and its terms are not fully transparent in this award notice.

Positive Signals

Leverages an existing Enterprise Agreement, suggesting potential for cost savings and streamlined acquisition.
Full and open competition process allows for a broad range of potential offerors.
Firm Fixed Price contract type provides cost certainty for the government.
Contractor is a well-established leader in the GIS field, implying expertise and reliable service delivery.

Sector Analysis

The geospatial software market is a significant segment within the broader IT sector, characterized by specialized software for data visualization, analysis, and management. ESRI is a dominant player in this market, particularly within government agencies that rely heavily on Geographic Information Systems (GIS) for environmental, defense, and infrastructure management. This contract fits within the 'Software Publishers' industry classification (NAICS 511210) and represents a typical enterprise-level software procurement for a federal agency with extensive geospatial data needs.

Small Business Impact

This contract does not indicate any specific small business set-aside. Given the nature of enterprise-level geospatial software and services, it is less likely to be directly subcontracted to small businesses unless specific components or specialized support are required. The primary focus appears to be on the core enterprise software provider.

Oversight & Accountability

Oversight for this contract would typically fall under NOAA's contracting officers and program managers. As a BPA Call, it is a task order against a larger agreement, implying that the initial BPA likely underwent significant review. Transparency is facilitated by the public nature of federal contract awards, though specific details of the enterprise agreement's terms and conditions may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Geographic Information Systems (GIS) Software
Enterprise Software Agreements
Environmental Data Management
Cloud-Based Geospatial Services
Software Subscriptions and Maintenance

Risk Flags

Vendor Lock-in Risk
Sole-Source Dominance in Niche Market
Reliance on Third-Party Software

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $5.5 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. IMPLEMENT THE ENTERPRISE AGREEMENT FOR GEOSPATIAL SOFTWARE, SUBSCRIPTIONS AND SERVICES, TECHNICAL SUPPORT, TRAINING, CONFERENCE PASSES UNDER THE ESRI GIS BPA

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 Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2024-02-01. End: 2027-01-31.

What is the historical spending by NOAA on ESRI software and services, and how does this award compare?

Analyzing NOAA's historical spending on ESRI software and services requires accessing federal procurement databases like FPDS or USASpending.gov. Without direct access to that data for this specific query, we can infer trends. Federal agencies, particularly those involved in environmental science like NOAA, have consistently relied on ESRI's ArcGIS platform for decades. Spending often occurs through various contract vehicles, including GSA schedules, other agency IDIQs, and direct procurements. This $5.5 million award over three years represents a significant, but not necessarily unprecedented, investment. It's crucial to compare this to previous years' spending on similar ESRI products and services to identify any increases or decreases in investment, which could signal shifts in program priorities or the adoption of new technologies. The existence of an 'Enterprise Agreement' suggests a consolidated approach to managing this spending, potentially leading to better overall value compared to fragmented purchases.

How does the pricing of this contract benchmark against similar enterprise GIS software agreements in the federal government?

Benchmarking the pricing of this $5.5 million contract for ESRI GIS software requires access to detailed pricing information for comparable federal agreements, which is often not publicly available. However, we can make some general assessments. ESRI holds a dominant position in the federal GIS market, meaning their pricing often reflects this market power. The contract type is Firm Fixed Price (FFP), which is advantageous for the government as it caps costs. The fact that this is a 'BPA Call' under an 'Enterprise Agreement' suggests that some level of negotiated pricing has already occurred, potentially leveraging volume discounts. To perform a true benchmark, one would need to compare the per-user license costs, subscription fees, and support rates against other large federal GIS procurements, considering factors like the specific software modules included, the number of users, and the level of support. Without that granular data, assessing 'value-for-money' relies on the assumption that the full and open competition process, combined with the existing enterprise agreement structure, has yielded competitive terms.

What are the specific risks associated with relying on a single vendor like ESRI for critical geospatial capabilities?

Relying heavily on a single vendor like ESRI for critical geospatial capabilities presents several risks. Firstly, there's the risk of vendor lock-in, where the proprietary nature of the software and data formats makes it difficult and costly to switch to alternative solutions. This can reduce the government's negotiating leverage over time, potentially leading to price increases or unfavorable contract terms. Secondly, there's a dependency risk; if ESRI experiences financial difficulties, undergoes significant strategic shifts, or discontinues certain products or support, NOAA's operations could be severely disrupted. Thirdly, innovation might be constrained if ESRI's development roadmap doesn't align with NOAA's evolving needs, or if alternative, potentially more innovative, solutions emerge in the market that are difficult to integrate. Finally, security vulnerabilities discovered in ESRI's software could pose a widespread risk across NOAA's operations if not promptly addressed by the vendor.

What is the track record of Environmental Systems Research Institute, Inc. (ESRI) in fulfilling federal contracts, particularly for agencies like NOAA?

Environmental Systems Research Institute, Inc. (ESRI) has a long and extensive track record of fulfilling federal contracts across numerous government agencies, including those with significant geospatial data requirements like NOAA. As the leading provider of GIS software, ESRI's presence in the federal space is pervasive. Their contracts typically involve providing software licenses, subscriptions, technical support, training, and professional services. Federal agencies often utilize ESRI's ArcGIS platform for a wide range of applications, from environmental monitoring and disaster management (relevant to NOAA) to defense intelligence, urban planning, and infrastructure management. While specific performance metrics for individual contracts are not always public, ESRI's continued success in winning and executing large federal contracts suggests a generally positive performance history and a strong understanding of government procurement processes and requirements. Any concerns regarding past performance would typically be documented in contractor performance evaluation systems accessible to federal contracting officers.

How does the 'BPA Call' contract type influence the flexibility and cost-effectiveness for NOAA?

A 'BPA Call' signifies a task order issued against a previously established Basic Ordering Agreement (BOA) or Blanket Purchase Agreement (BPA). In this context, it means NOAA is leveraging an existing agreement, likely negotiated under specific terms and conditions, to procure these ESRI software and services. This approach generally enhances flexibility and cost-effectiveness. Flexibility is increased because the foundational terms (like pricing structures, delivery standards, and legal clauses) are pre-negotiated, allowing for quicker issuance of individual task orders as needs arise. Cost-effectiveness is often improved through volume discounts negotiated at the BPA level and by reducing the administrative burden and time associated with conducting a full, separate procurement for each requirement. For NOAA, this means they can efficiently acquire necessary GIS resources without going through a lengthy competitive process each time, ensuring timely access to critical tools while potentially benefiting from pre-negotiated favorable pricing.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $13,033,535

Exercised Options: $7,482,334

Current Obligation: $5,530,902

Actual Outlays: $4,880,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1305M424A0001

IDV Type: BPA

Timeline