State Dept. awards $210K for COTS software maintenance under full and open competition
Contract Overview
Contract Amount: $210,766 ($210.8K)
Contractor: Environmental Systems Research Institute, Inc.
Awarding Agency: Department of State
Start Date: 2026-04-12
End Date: 2027-04-11
Contract Duration: 364 days
Daily Burn Rate: $579/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS ACQUISITION IS FOR SOFTWARE AND SOFTWARE MAINTENANCE SERVICES, CONSISTING PRIMARILY OF NON-COMPLEX, COMMERCIAL-OFF-THE-SHELF (COTS) SOFTWARE MAINTENANCE AND SUPPORT. THE ESTIMATED VALUE IS BELOW THE SIMPLIFIED ACQUISITION THRESHOLD (SAT).
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $210,765.67 to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: THIS ACQUISITION IS FOR SOFTWARE AND SOFTWARE MAINTENANCE SERVICES, CONSISTING PRIMARILY OF NON-COMPLEX, COMMERCIAL-OFF-THE-SHELF (COTS) SOFTWARE MAINTENANCE AND SUPPORT. THE ESTIMATED VALUE IS BELOW THE SIMPLIFIED ACQUISITION THRESHOLD (SAT). Key points: 1. Spending is below the Simplified Acquisition Threshold (SAT), indicating a focus on smaller procurements. 2. The contract is for Commercial-Off-The-Shelf (COTS) software maintenance, suggesting standard commercial products. 3. Full and open competition was utilized, promoting a competitive bidding process. 4. The primary vendor is Environmental Systems Research Institute, Inc. (ESRI).
Value Assessment
Rating: good
The estimated value of $210,765.67 is typical for COTS software maintenance contracts of this duration. Benchmarking against similar contracts for ESRI software maintenance would provide further pricing context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests that multiple vendors were able to bid on this requirement. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The relatively low value of this contract limits the direct taxpayer impact, but the competitive process ensures value for money.
Public Impact
Ensures continued access to essential software for government operations. Supports the use of widely available commercial software, reducing custom development needs. Promotes fair market competition among software vendors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if maintenance is tied to specific versions or support levels.
- Reliance on a single vendor for critical software support.
Positive Signals
- Use of COTS software reduces development costs and time.
- Competitive award process maximizes value for taxpayer dollars.
- Clear contract end date ensures re-evaluation of needs.
Sector Analysis
This contract falls under the Software Publishers (NAICS 511210) sector, specifically for maintenance of Commercial-Off-The-Shelf (COTS) software. Spending in this sector is substantial, with agencies often relying on established vendors for ongoing support of critical IT infrastructure.
Small Business Impact
The contract was awarded under full and open competition, which does not preclude small businesses from participating. However, the specific vendor listed is Environmental Systems Research Institute, Inc., a large business. Further analysis would be needed to determine if small businesses were subcontractors.
Oversight & Accountability
The Department of State's acquisition process, including the use of full and open competition for this contract, is subject to standard federal procurement regulations and oversight. The award notice provides transparency on the vendor and contract terms.
Related Government Programs
- Software Publishers
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for vendor lock-in with specialized software.
- Reliance on a single vendor for critical support.
- Future renewal costs may increase.
- Limited visibility into subcontractor participation.
Tags
software-publishers, department-of-state, va, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $210,765.67 to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. THIS ACQUISITION IS FOR SOFTWARE AND SOFTWARE MAINTENANCE SERVICES, CONSISTING PRIMARILY OF NON-COMPLEX, COMMERCIAL-OFF-THE-SHELF (COTS) SOFTWARE MAINTENANCE AND SUPPORT. THE ESTIMATED VALUE IS BELOW THE SIMPLIFIED ACQUISITION THRESHOLD (SAT).
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 $210,765.67.
What is the period of performance?
Start: 2026-04-12. End: 2027-04-11.
What specific software product is being maintained, and are there alternative vendors for support?
The data indicates the vendor is Environmental Systems Research Institute, Inc. (ESRI), a prominent provider of Geographic Information System (GIS) software. While ESRI is the primary source, the extent to which third-party support or alternative GIS solutions exist and were considered during the competition would impact the assessment of value and potential risks.
What is the risk of cost escalation for software maintenance over time?
The risk of cost escalation for software maintenance can be moderate. While this contract is firm-fixed-price, future renewals or renegotiations could see price increases, especially if the software becomes more critical or if competitive options diminish. Monitoring market trends and vendor pricing strategies is crucial.
How effectively does this contract support the agency's mission objectives?
This contract likely supports the Department of State's mission by ensuring the continued functionality and support of essential GIS software. Effective support is crucial for data analysis, mapping, and operational planning. The competitive award suggests the agency sought value, implying an effort to align spending with mission needs.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: 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: $210,766
Exercised Options: $210,766
Current Obligation: $210,766
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F253CA
IDV Type: FSS
Timeline
Start Date: 2026-04-12
Current End Date: 2027-04-11
Potential End Date: 2027-04-11 00:00:00
Last Modified: 2026-04-11
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