VA Awards $6.28M GIS Enterprise Agreement to ESRI for Software Publishing

Contract Overview

Contract Amount: $6,279,070 ($6.3M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-12-20

End Date: 2026-12-19

Contract Duration: 729 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BRAND NAME ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. ARCGEOGRAPHIC INFORMATION SYSTEM ENTERPRISE AGREEMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.3 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: BRAND NAME ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. ARCGEOGRAPHIC INFORMATION SYSTEM ENTERPRISE AGREEMENT Key points: 1. The Department of Veterans Affairs (VA) has entered into a significant enterprise agreement for Geographic Information System (GIS) software. 2. The contract is with Environmental Systems Research Institute, Inc. (ESRI), a dominant player in the GIS market. 3. The agreement is structured as a Firm Fixed Price contract, providing cost certainty for the VA. 4. This spending falls under the Software Publishers NAICS code (511210).

Value Assessment

Rating: good

The $6.28 million award for a 2-year agreement appears reasonable given ESRI's market position and the enterprise-wide nature of GIS software. Benchmarking against similar large-scale software enterprise 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, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The firm fixed price contract provides budget predictability, and the competitive award process aims to ensure taxpayer funds are used efficiently for essential GIS capabilities.

Public Impact

Veterans will benefit from improved access to geographic data and analysis for services and resource allocation. The VA's ability to manage facilities, healthcare access, and outreach programs will be enhanced. This investment supports data-driven decision-making across various VA departments. The use of enterprise-level GIS software can lead to greater operational efficiency and cost savings in the long run.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a dominant software provider.
Need for ongoing training and support costs associated with specialized GIS software.

Positive Signals

Leverages a leading GIS platform for critical government functions.
Full and open competition ensures a fair market approach.
Firm fixed price provides budget certainty.

Sector Analysis

This spending is within the IT sector, specifically software licensing and enterprise agreements. Benchmarks for similar large-scale software agreements vary widely based on scope, but $6.28M for a 2-year enterprise GIS solution is substantial.

Small Business Impact

The awardee, Environmental Systems Research Institute, Inc., is a large business. There is no indication of small business participation in this specific contract award, which is common for specialized enterprise software agreements.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The firm fixed price and defined delivery period offer clear accountability metrics. Regular performance reviews will be crucial.

Related Government Programs

Software Publishers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in
High cost of specialized enterprise software
Dependence on a single provider for critical GIS functions
Need for ongoing specialized training and support

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.3 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. BRAND NAME ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. ARCGEOGRAPHIC INFORMATION SYSTEM ENTERPRISE AGREEMENT

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 Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2024-12-20. End: 2026-12-19.

What is the projected return on investment for this GIS enterprise agreement, considering potential efficiency gains and improved service delivery?

The projected ROI is difficult to quantify precisely without specific metrics from the VA. However, enhanced data analysis capabilities can lead to better resource allocation, improved healthcare access for veterans, and more efficient facility management. These improvements, while not directly monetary, translate to significant value in service delivery and operational effectiveness, justifying the investment.

What are the key risks associated with relying on a single vendor for enterprise GIS solutions, and how are they being mitigated?

The primary risk is vendor lock-in, leading to potential price increases or limited flexibility in future technology adoption. Mitigation strategies include negotiating favorable contract terms, ensuring data interoperability, and maintaining internal expertise to manage the system effectively. The VA should also explore alternative solutions during the contract period to stay informed about market developments.

How will the effectiveness of this GIS enterprise agreement be measured to ensure it meets the VA's strategic objectives?

Effectiveness will be measured through key performance indicators (KPIs) tied to specific VA objectives, such as improved veteran service accessibility, optimized resource deployment, and enhanced data-driven decision-making. Regular performance reviews, user feedback mechanisms, and analysis of system utilization rates will be employed to track progress and ensure alignment with strategic goals.

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

Solicitation ID: 36C1025Q0011

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: $11,546,297

Exercised Options: $6,279,070

Current Obligation: $6,279,070

Actual Outlays: $741,127

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F253CA

IDV Type: FSS

Timeline