Interior renews ArcGIS Online licenses for $19.4M, impacting software publishers sector

Contract Overview

Contract Amount: $19,378 ($19.4K)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-09-10

End Date: 2026-09-09

Contract Duration: 364 days

Daily Burn Rate: $53/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RENEWAL OF ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. (ESRI) ARCGIS ONLINE TERM LICENSES AND ADD-ON SUBSCRIPTIONS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $19,377.91 to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: RENEWAL OF ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. (ESRI) ARCGIS ONLINE TERM LICENSES AND ADD-ON SUBSCRIPTIONS. Key points: 1. This contract represents a significant expenditure within the software licensing category. 2. The renewal indicates continued reliance on ESRI's ArcGIS platform for geospatial analysis. 3. The firm fixed-price contract type suggests predictable costs for the government. 4. The duration of one year with options for renewal allows for flexibility. 5. The contract is awarded to a single, established provider of GIS software.

Value Assessment

Rating: good

The renewal of ArcGIS Online licenses for nearly $19.4 million over one year suggests a consistent, albeit substantial, investment in essential software. While direct comparisons to similar contracts are difficult without specific service levels and user counts, ESRI's ArcGIS platform is a widely adopted industry standard for Geographic Information Systems (GIS). The firm fixed-price nature of the contract provides cost certainty. Benchmarking this specific renewal against other government GIS software procurements would require detailed analysis of the included features and user base, but the price appears aligned with the market for enterprise-level GIS solutions.

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. However, the data provided does not specify the number of bids received. The fact that it is a renewal for a specific product (ArcGIS Online) suggests that while competition was allowed, the incumbent provider, Environmental Systems Research Institute, Inc. (ESRI), likely submitted a competitive offer. The level of competition, if robust, should theoretically drive favorable pricing for the government.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from potentially lower prices and better terms due to a competitive bidding process, even if the award goes to a known provider.

Public Impact

Federal agencies utilizing geospatial data and mapping services will benefit from continued access to the ArcGIS Online platform. This contract supports critical functions such as land management, environmental monitoring, and resource planning. The services delivered are essential for data visualization, analysis, and collaboration across various government departments. The primary geographic impact is national, supporting federal operations across the United States. The contract sustains the workforce involved in GIS analysis and data management within the Department of the Interior and potentially other federal agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a single-source provider for critical GIS software.
Reliance on a specific software ecosystem may limit flexibility in adopting alternative solutions.
The substantial annual cost requires ongoing justification and efficient utilization of the software.

Positive Signals

Continued access to a widely recognized and powerful GIS platform supports mission-critical operations.
The firm fixed-price contract provides budget predictability.
Awarded through full and open competition, suggesting a competitive process.

Sector Analysis

The software publishers sector is characterized by a high degree of specialization and innovation. Companies like Environmental Systems Research Institute, Inc. (ESRI) dominate the Geographic Information Systems (GIS) market, providing essential tools for spatial analysis and data management. Government agencies are significant consumers of GIS software due to its utility in managing public lands, infrastructure, and environmental resources. Spending in this area is often characterized by long-term licensing agreements and renewals, reflecting the integrated nature of these platforms within agency workflows. Comparable spending benchmarks would involve analyzing other large-scale software licensing agreements for enterprise solutions.

Small Business Impact

This contract does not appear to involve a small business set-aside, as the award is to Environmental Systems Research Institute, Inc., a large established company. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless ESRI engages small businesses as subcontractors for services related to the ArcGIS platform, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers responsible for IT procurement and geospatial services. Accountability measures are inherent in the firm fixed-price contract terms, requiring delivery of specified software licenses and subscriptions. Transparency is facilitated by the contract's public availability through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of this contract.

Related Government Programs

Geographic Information Systems (GIS) Software Licensing
Software Subscriptions
Enterprise Software Agreements
Department of the Interior IT Procurement
Environmental Data Management Systems

Risk Flags

Potential vendor lock-in
Long-term cost sustainability
Reliance on proprietary technology

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $19,377.91 to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. RENEWAL OF ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. (ESRI) ARCGIS ONLINE TERM LICENSES AND ADD-ON SUBSCRIPTIONS.

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 $19,377.91.

What is the period of performance?

Start: 2025-09-10. End: 2026-09-09.

What is the historical spending trend for ArcGIS Online licenses by the Department of the Interior?

Analyzing the historical spending trend for ArcGIS Online licenses by the Department of the Interior requires access to past contract awards. Without specific historical data, it's challenging to provide precise figures. However, renewals of this nature typically indicate a consistent or increasing demand for the service. If this is a multi-year renewal or a continuation of previous agreements, it suggests that the Department has found value in the platform and plans to continue its use. A comprehensive review would involve examining contract databases for previous awards to ESRI for similar services, noting any fluctuations in price or scope over time to identify trends in investment.

How does the per-user cost of this ArcGIS Online renewal compare to industry benchmarks for similar government or enterprise licenses?

Determining the precise per-user cost requires knowing the number of users or licenses included in this $19.4 million renewal, which is not explicitly provided. However, ESRI's ArcGIS Online is a leading platform, and its enterprise licensing can be substantial. Industry benchmarks for similar government or enterprise GIS software licenses vary widely based on the specific features, user tiers (e.g., creator, viewer, editor), and support levels included. Generally, government entities may negotiate volume discounts. To benchmark effectively, one would need to compare the specific license types and quantities against publicly available ESRI enterprise pricing or data from similar federal GIS procurements to assess if the cost is competitive for the services rendered.

What are the specific functionalities and add-on subscriptions included in this renewal, and how do they align with the Department of the Interior's mission needs?

The provided data indicates a renewal for 'ArcGIS Online Term Licenses and Add-On Subscriptions.' Specific functionalities and add-on details are not itemized in the abstract. However, ArcGIS Online typically offers capabilities for web mapping, data visualization, spatial analysis, collaborative platform features, and mobile data collection. Add-on subscriptions could include advanced capabilities like ArcGIS GeoAnalytics Server, ArcGIS Image Analyst, or specialized data services. The alignment with the Department of the Interior's mission needs would depend on how these tools are applied to tasks such as managing natural resources, tracking land use, monitoring environmental changes, planning infrastructure projects, and supporting emergency response efforts. A detailed review of the contract's statement of work would be necessary to confirm specific alignments.

What is the track record of Environmental Systems Research Institute, Inc. (ESRI) in fulfilling federal government contracts for GIS software?

Environmental Systems Research Institute, Inc. (ESRI) has a long-standing and extensive track record of fulfilling federal government contracts for GIS software. As the dominant provider in this space, ESRI's ArcGIS platform is utilized by nearly every federal agency involved in geospatial activities, including the Department of the Interior, Department of Defense, NASA, and NOAA. Their history includes numerous large-scale awards for software licenses, maintenance, and support. Government agencies generally rely on ESRI due to the platform's maturity, comprehensive feature set, and established user base. While specific contract performance metrics are not detailed here, ESRI's continued success in securing federal contracts suggests a generally positive performance history in delivering reliable GIS solutions.

Are there any identified risks associated with the continued reliance on ESRI's ArcGIS platform for critical federal operations?

Key risks associated with continued reliance on ESRI's ArcGIS platform include potential vendor lock-in, where switching to alternative solutions becomes technically difficult and costly due to data formats, established workflows, and user expertise. There's also a risk related to the long-term cost of licensing, as software subscription models can increase over time. Furthermore, reliance on a single vendor's technology stack can pose security risks if vulnerabilities are discovered within the platform. Dependence on specific add-on modules or versions could also create challenges if ESRI discontinues support or significantly alters features in future releases. Ensuring robust data management practices and exploring interoperability options can help mitigate some of these risks.

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

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: $25,181

Exercised Options: $19,378

Current Obligation: $19,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F253CA

IDV Type: FSS

Timeline