EPA's $7.16M ArcGIS Software ELA with ESRI for 3 Years Raises Questions on Competition
Contract Overview
Contract Amount: $7,158,629 ($7.2M)
Contractor: Environmental Systems Research Institute, Inc.
Awarding Agency: Environmental Protection Agency
Start Date: 2023-11-21
End Date: 2026-09-30
Contract Duration: 1,044 days
Daily Burn Rate: $6.9K/day
Sector: IT
Official Description: ARC GEOGRAPHIC INFORMATION SYSTEMS (ARCGIS) SOFTWARE ENTERPRISE LICENSE AGREEMENT (ELA)
Place of Performance
Location: California, 92373
Plain-Language Summary
Environmental Protection Agency obligated $7.2 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: ARC GEOGRAPHIC INFORMATION SYSTEMS (ARCGIS) SOFTWARE ENTERPRISE LICENSE AGREEMENT (ELA) Key points: 1. The Environmental Protection Agency (EPA) is spending $7.16 million on an Enterprise License Agreement (ELA) for ArcGIS software. 2. The contract is with Environmental Systems Research Institute, Inc. (ESRI), the sole provider of ArcGIS. 3. The duration of the agreement is 3 years, ending September 30, 2026. 4. The spending falls under the 'IT' sector, specifically software licensing. 5. The lack of competition is a significant factor in this procurement.
Value Assessment
Rating: fair
The $7.16 million cost for a 3-year ELA appears substantial. Benchmarking against similar large-scale GIS software licenses is difficult without more detailed scope, but the lack of competitive bidding suggests potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis because ESRI is the exclusive provider of ArcGIS software. This limits price discovery and negotiation leverage for the government.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, as the agency is locked into a single vendor.
Public Impact
Essential GIS capabilities for environmental analysis and mapping are secured for EPA operations. The ELA ensures broad access to ArcGIS tools for agency personnel, potentially improving data visualization and decision-making. Reliance on a single vendor for critical software raises concerns about long-term cost control and potential vendor lock-in.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits competition.
- Potential for higher costs due to lack of bidding.
- Vendor lock-in risk.
- Limited transparency on pricing benchmarks.
Positive Signals
- Secures critical GIS software for agency functions.
- Provides enterprise-wide access to necessary tools.
Sector Analysis
The Information Technology sector, particularly software licensing, often presents challenges with sole-source procurements due to proprietary technology. Benchmarks for enterprise GIS licenses vary widely based on user count, modules, and support levels.
Small Business Impact
This contract does not appear to involve small business participation. The sole-source nature of the award to a large established software company typically excludes opportunities for small businesses.
Oversight & Accountability
The sole-source justification needs thorough review to ensure no viable alternatives were overlooked. Ongoing monitoring of usage and renewal terms is crucial for accountability.
Related Government Programs
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Sole-source justification requires scrutiny.
- Potential for inflated pricing.
- Risk of vendor lock-in.
- Lack of transparency on usage and specific modules.
- Limited opportunities for small business participation.
Tags
environmental-protection-agency, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $7.2 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. ARC GEOGRAPHIC INFORMATION SYSTEMS (ARCGIS) SOFTWARE ENTERPRISE LICENSE AGREEMENT (ELA)
Who is the contractor on this award?
The obligated recipient is ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC..
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $7.2 million.
What is the period of performance?
Start: 2023-11-21. End: 2026-09-30.
What is the total number of users and specific ArcGIS modules included in this ELA, and how does this compare to previous agreements or industry standards for similar organizations?
The provided data does not specify the number of users or the exact ArcGIS modules covered by the Enterprise License Agreement. To assess value, a comparison with previous agreements or industry benchmarks for similar government agencies would be necessary. This would involve understanding the scope of licenses (e.g., standard, advanced, professional) and the number of concurrent or named users to determine if the $7.16 million cost is justified.
Have alternative GIS solutions or open-source options been evaluated to mitigate the risk of vendor lock-in and potentially reduce long-term costs for the EPA?
The sole-source nature of this award suggests that alternative GIS solutions, including open-source options, were likely not considered or deemed unsuitable for this specific enterprise agreement. While ESRI's ArcGIS is a dominant platform, a lack of evaluation for alternatives increases the risk of vendor lock-in and may prevent the EPA from benefiting from potentially more cost-effective or flexible solutions in the future.
What specific environmental analysis or operational tasks will this ArcGIS ELA support, and how will the effectiveness of these tasks be measured to demonstrate return on investment?
The data indicates the software is for 'ARC GEOGRAPHIC INFORMATION SYSTEMS (ARCGIS) SOFTWARE'. While essential for environmental analysis and mapping, the specific tasks and metrics for effectiveness are not detailed. To demonstrate ROI, the EPA should establish clear performance indicators tied to the software's use in areas like pollution tracking, resource management, or climate modeling, and regularly assess progress against these goals.
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