State Department Awards $1.5M ArcGIS Contract to Esri for Software and Labor
Contract Overview
Contract Amount: $1,544,622 ($1.5M)
Contractor: Environmental Systems Research Institute, Inc.
Awarding Agency: Department of State
Start Date: 2025-03-30
End Date: 2026-04-11
Contract Duration: 377 days
Daily Burn Rate: $4.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ARCGIS LABOR AND SOFTWARE
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $1.5 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: ARCGIS LABOR AND SOFTWARE Key points: 1. Contract awarded to sole incumbent provider, Environmental Systems Research Institute, Inc. (Esri). 2. Focus on ArcGIS software and labor suggests critical operational needs. 3. Fixed-price contract aims to control costs for a defined scope. 4. Potential for vendor lock-in due to reliance on a single software provider.
Value Assessment
Rating: fair
The contract's fixed-price structure provides cost certainty. However, without a competitive benchmark, it's difficult to definitively assess if the $1.54M price is optimal for the specified ArcGIS software and labor over 377 days.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors could have bid. The specific pricing outcomes and discovery process are not detailed, but the method suggests an effort to achieve fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential software and labor to support departmental operations. The fixed-price nature helps manage budget expectations.
Public Impact
Ensures continued access to critical geospatial analysis tools for the Department of State. Supports ongoing projects and daily operations requiring mapping and data visualization. Potential impact on inter-agency data sharing and collaboration if ArcGIS is a common platform.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for software vs. labor.
- Potential for price increases in future renewals if competition is not re-established.
- Dependence on a single vendor for critical software.
Positive Signals
- Fixed-price contract provides budget predictability.
- Awarded under full and open competition.
- Clear end date for the contract period.
Sector Analysis
The IT sector, particularly software licensing and support, represents a significant portion of government spending. Benchmarks for similar ArcGIS contracts would typically consider user count, module access, and support levels.
Small Business Impact
This contract was awarded to Environmental Systems Research Institute, Inc., a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract falls under the Department of State's purview. Standard oversight mechanisms for contract performance and financial management would apply.
Related Government Programs
- Software Publishers
- Department of State Contracting
- Department of State Programs
Risk Flags
- Vendor lock-in risk
- Lack of cost transparency (software vs. labor)
- Potential for price escalation in future contracts
- Limited insight into specific performance metrics for labor
Tags
software-publishers, department-of-state, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $1.5 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. ARCGIS LABOR AND SOFTWARE
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 State (Department of State).
What is the total obligated amount?
The obligated amount is $1.5 million.
What is the period of performance?
Start: 2025-03-30. End: 2026-04-11.
What is the specific breakdown of costs between ArcGIS software licensing and labor services within this $1.54M award?
The provided data does not specify the cost allocation between ArcGIS software licensing and labor. A detailed breakdown would be necessary to assess the value of each component and identify potential areas for cost optimization or negotiation in future procurements.
What are the key performance indicators (KPIs) for the labor services being procured under this contract?
The data does not outline specific KPIs for the labor services. Understanding these metrics is crucial for evaluating the effectiveness of the contracted personnel and ensuring that the services delivered meet the Department of State's operational requirements and objectives.
How will the Department of State ensure continued competitive pricing for ArcGIS software and related services beyond this contract period?
While awarded under full and open competition, the long-term strategy for maintaining competitive pricing isn't detailed. The Department should consider market research, exploring alternative solutions, and potentially re-competing the requirement to foster ongoing price pressure and innovation.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 19AQMM25Q0136
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: $1,552,342
Exercised Options: $1,552,342
Current Obligation: $1,544,622
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F253CA
IDV Type: FSS
Timeline
Start Date: 2025-03-30
Current End Date: 2026-04-11
Potential End Date: 2026-04-11 00:00:00
Last Modified: 2026-04-07
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