Interior Department Renews ESRI Software Contract for $28M Over Three Years

Contract Overview

Contract Amount: $28,035,739 ($28.0M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-02-01

End Date: 2027-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 2024 ESRI ELA RENEWAL/BASE YEAR

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $28.0 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: 2024 ESRI ELA RENEWAL/BASE YEAR Key points: 1. The contract is a renewal for ESRI's software, a dominant player in GIS. 2. Full and open competition was used, suggesting a competitive pricing process. 3. The contract value is significant, requiring scrutiny for value for money. 4. The sector is Software Publishers, with potential for ongoing needs. 5. The award is a BPA Call, indicating a pre-competed framework.

Value Assessment

Rating: good

The contract value of $28M over three years appears reasonable given ESRI's market position and the nature of enterprise software licenses. Benchmarking against similar large-scale GIS software agreements would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition via a BPA Call. This method typically allows for multiple vendors to compete, fostering price discovery and potentially leading to more favorable pricing for the government.

Taxpayer Impact: The $28M expenditure represents taxpayer funds allocated for essential software. The competitive process aims to ensure this spending provides good value and supports the Department of the Interior's mission effectively.

Public Impact

Essential software for environmental analysis and mapping will continue to be available to DOI. Users across various DOI bureaus will maintain access to critical GIS tools. The renewal ensures continuity of operations for data-driven decision-making. Potential for future enhancements or new modules within the ESRI ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized GIS software.
Ensuring adequate utilization and cost-effectiveness of the license across all bureaus.

Positive Signals

Awarded under full and open competition.
Renewal of a critical software capability.
Firm fixed price contract limits cost uncertainty.

Sector Analysis

The Department of the Interior's reliance on ESRI software places it within the Software Publishers sector. This contract represents a significant investment in Geographic Information Systems (GIS) technology, a critical tool for managing natural resources, land use, and environmental monitoring.

Small Business Impact

This contract was awarded to a large, established software vendor (ESRI) and does not appear to have specific provisions for small business participation. The nature of enterprise GIS software often favors large, specialized providers.

Oversight & Accountability

The contract was awarded via a BPA Call, suggesting it was competed under an existing agreement. Oversight will involve monitoring contract performance, ensuring adherence to the firm fixed price, and verifying that the software meets the Department's evolving needs.

Related Government Programs

Software Publishers
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for vendor lock-in
Ensuring full utilization of licensed software
Long-term cost trends for enterprise software renewals
Dependency on a single software provider for critical functions

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $28.0 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. 2024 ESRI ELA RENEWAL/BASE YEAR

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 the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $28.0 million.

What is the period of performance?

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

Is the $28M expenditure for this ESRI renewal a competitive price compared to similar government-wide or agency-specific GIS software licenses?

Benchmarking against similar large-scale GIS software licenses is crucial. While ESRI holds a dominant market share, the 'full and open competition' via a BPA Call suggests a degree of price discovery. However, without specific comparative data on per-user costs or feature sets from other vendors, definitively stating it's competitive is difficult. The firm fixed price offers cost certainty, but ongoing review of utilization rates is key to ensuring value.

What are the primary risks associated with renewing a sole-source-like contract for essential GIS software, even if initially competed?

The primary risk is vendor lock-in, where the specialized nature of ESRI's platform makes switching to a competitor prohibitively expensive and complex, even if other options exist. This can reduce future negotiating leverage. Another risk is the potential for escalating costs over time if the government becomes overly reliant and less sensitive to price increases, despite the firm fixed price for this period.

How effectively does this ESRI software renewal support the Department of the Interior's core mission objectives related to environmental stewardship and resource management?

This renewal is likely highly effective, as ESRI's GIS software is foundational for many DOI functions, including mapping natural resources, analyzing environmental impacts, managing land use, and responding to disasters. Continued access to these tools enables data-driven decision-making critical for environmental stewardship. The effectiveness hinges on the software's utilization across bureaus and its ability to integrate with other data systems.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

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: $47,434,127

Exercised Options: $28,035,739

Current Obligation: $28,035,739

Actual Outlays: $18,539,727

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140D0424A0010

IDV Type: BPA

Timeline