DHS awards $31.8M BPA Call for GIS software, with 5 years of service

Contract Overview

Contract Amount: $31,875,233 ($31.9M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-30

End Date: 2026-05-29

Contract Duration: 1,702 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GEOSPATIAL INFORMATION SERVICES (GIS) BLANKET PURCHASE AGREEMENT (BPA) ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.9 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: GEOSPATIAL INFORMATION SERVICES (GIS) BLANKET PURCHASE AGREEMENT (BPA) ORDER Key points: 1. Value for money assessed through comparison with similar software licensing agreements. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are moderate, given the established nature of the software and vendor. 4. Performance context relies on the vendor's track record in providing GIS solutions. 5. Sector positioning places this contract within the broader software publishing and geospatial services market.

Value Assessment

Rating: good

The total value of $31.8 million over approximately 5 years suggests a significant investment in geospatial information services. Benchmarking against similar large-scale software licensing agreements for enterprise-level GIS solutions indicates that this pricing is within a reasonable range, especially considering the comprehensive nature of the services and support typically included. The firm-fixed-price structure provides cost certainty for the Department of Homeland Security.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a Blanket Purchase Agreement (BPA) Call, which itself was established through full and open competition. This indicates that multiple vendors had the opportunity to bid on the underlying BPA, and subsequently, this call order likely benefited from that competitive foundation. The specific number of bidders for this particular call order is not detailed, but the initial competition for the BPA suggests a robust marketplace for these services.

Taxpayer Impact: A full and open competition process generally leads to more favorable pricing for taxpayers by encouraging multiple vendors to offer their best terms and pricing to secure the contract.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, gaining access to critical geospatial information services. Services delivered include software licenses, maintenance, and support for Geographic Information Systems (GIS). The geographic impact is national, supporting DHS operations across the United States. Workforce implications include enabling DHS personnel to utilize advanced mapping and data analysis tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not explored in future procurements.
Reliance on a single vendor for critical GIS software could pose a risk if the vendor's business strategy changes.

Positive Signals

The use of a BPA Call leverages pre-competed pricing and terms, potentially streamlining acquisition.
The vendor, Environmental Systems Research Institute, Inc. (ESRI), is a well-established leader in the GIS market, suggesting reliability and expertise.
The long-term nature of the contract (nearly 5 years) provides stability for DHS's GIS capabilities.

Sector Analysis

This contract falls within the Software Publishers industry, specifically focusing on Geographic Information Systems (GIS) software. The GIS market is a significant segment of the broader software industry, driven by demand for data visualization, spatial analysis, and location-based services across various sectors, including government, defense, and commercial enterprises. Spending in this area is often characterized by high initial licensing costs and ongoing maintenance and support fees, with established vendors like ESRI holding substantial market share.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large BPA Call order likely dominated by a major software provider, the direct impact on the small business ecosystem may be limited unless the primary contractor actively engages small businesses for support services not covered by the core software agreement.

Oversight & Accountability

Oversight for this contract would typically reside within the Office of Procurement Operations at DHS, with program-level oversight from the end-user components utilizing the GIS software. Accountability is managed through contract performance metrics and adherence to the terms and conditions of the BPA Call. Transparency is facilitated by public contract databases, though specific performance details may be internal.

Related Government Programs

Geospatial Intelligence Services
Software Licensing and Maintenance
Enterprise Resource Planning Software
Cloud-Based Data Services

Risk Flags

Vendor Lock-in Potential
Reliance on Single Source for Critical Software

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.9 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. GEOSPATIAL INFORMATION SERVICES (GIS) BLANKET PURCHASE AGREEMENT (BPA) ORDER

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 Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $31.9 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-05-29.

What is the historical spending pattern for GIS software at DHS?

Analyzing historical spending at DHS for GIS software requires accessing detailed procurement data over several fiscal years. Typically, agencies like DHS rely heavily on GIS for a multitude of functions, including border security, emergency management, infrastructure protection, and intelligence analysis. Spending often involves significant upfront costs for licenses, followed by recurring annual expenditures for maintenance, support, and upgrades. The trend is generally towards increasing reliance on sophisticated geospatial tools, potentially leading to year-over-year growth in spending, especially as new capabilities like real-time data integration and advanced analytics become more prevalent. Without specific historical data for DHS, it's difficult to provide exact figures, but the consistent need for such services suggests a sustained and potentially growing budget allocation in this area.

How does the pricing of this BPA Call compare to other federal GIS software contracts?

Benchmarking the pricing of this $31.8 million BPA Call against other federal GIS software contracts is complex without direct comparative data. However, Environmental Systems Research Institute, Inc. (ESRI) is the dominant provider in the federal GIS market, meaning many agencies utilize their software. Pricing is often influenced by the specific software modules licensed, the number of users or seats, the level of support required, and the duration of the contract. Large, enterprise-wide agreements like this one, spanning multiple years, can offer economies of scale compared to smaller, agency-specific purchases. Factors such as whether the contract includes advanced analytics, cloud hosting, or specialized extensions would also impact the overall cost. Generally, federal agencies aim to negotiate favorable terms through competitive processes or existing enterprise agreements to manage these significant software expenditures.

What are the key performance indicators (KPIs) for this contract?

Key Performance Indicators (KPIs) for a contract like this typically focus on the reliability, availability, and performance of the GIS software and associated support services. Specific KPIs might include software uptime percentages, response times for technical support requests, resolution times for reported issues, and the successful delivery of software updates and patches. For a Blanket Purchase Agreement (BPA) Call, adherence to the pre-negotiated terms and conditions of the underlying BPA is also crucial. The agency would likely track metrics related to user satisfaction and the successful integration of the GIS capabilities into DHS's operational workflows. Failure to meet these KPIs could trigger contractual remedies or discussions with the vendor.

What is ESRI's track record with federal agencies, particularly DHS?

Environmental Systems Research Institute, Inc. (ESRI) has a long-standing and extensive track record of providing Geographic Information System (GIS) software and services to federal government agencies, including the Department of Homeland Security (DHS). ESRI's ArcGIS platform is widely considered the industry standard for GIS, and it is utilized by numerous federal entities for a broad range of applications, from national mapping and environmental analysis to emergency response and security operations. DHS, in particular, relies on GIS for critical functions such as border management, disaster preparedness, critical infrastructure protection, and intelligence analysis. ESRI's consistent presence and significant market share within the federal space suggest a strong performance history and established relationships, though specific contract performance details are often proprietary.

Are there any known risks associated with relying on a single vendor for core GIS capabilities?

Relying on a single vendor, such as ESRI, for core GIS capabilities presents several potential risks. One primary concern is vendor lock-in, where the cost and complexity of migrating to an alternative system become prohibitively high, reducing the agency's leverage in future negotiations. Another risk involves the vendor's strategic direction; if ESRI shifts its focus, alters its product roadmap, or changes its pricing models significantly, it could negatively impact DHS's long-term access to necessary functionalities or increase costs unexpectedly. Furthermore, dependence on a single vendor can limit innovation if the vendor's offerings do not keep pace with emerging technologies or specific agency needs. Disaster recovery and business continuity planning also need to account for the vendor's own operational resilience.

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

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: $31,875,233

Exercised Options: $31,875,233

Current Obligation: $31,875,233

Actual Outlays: $20,190,306

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70RTAC21A00000010

IDV Type: BPA

Timeline