DHS Secret Service Awards $9.8M GIS Support Contract to Esri, Raising Value Concerns

Contract Overview

Contract Amount: $9,839,985 ($9.8M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-14

End Date: 2026-07-03

Contract Duration: 1,388 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: GIS TECHNICAL SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20223

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.8 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: GIS TECHNICAL SUPPORT Key points: 1. Contract value of $9.8M for GIS technical support. 2. Sole incumbent provider, raising potential competition concerns. 3. Risk of overpayment due to limited competition and lack of clear benchmarks. 4. IT sector spending, with a focus on software publishers.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without clear benchmarks for GIS technical support. The lack of competitive pricing information makes it challenging to determine if the $9.8M is a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although listed as full and open competition, the award was a delivery order, suggesting a pre-existing contract vehicle. The specific pricing mechanisms and the impact of limited vendor engagement on price discovery need further examination.

Taxpayer Impact: Taxpayer funds may be at risk if the pricing is not optimized due to limited competition or insufficient market research.

Public Impact

Essential technical support for the U.S. Secret Service's geospatial operations. Potential for increased efficiency and effectiveness in law enforcement and security through advanced GIS capabilities. Impact on data security and privacy given the sensitive nature of Secret Service operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clear per-unit cost benchmarks.
Potential for price creep in follow-on orders.
Limited visibility into the competitive landscape for this specific service.

Positive Signals

Provides critical GIS support to a key agency.
Long-term contract allows for stable service delivery.
Potential for leveraging advanced geospatial technologies.

Sector Analysis

This contract falls within the IT sector, specifically software publishing and technical support services. Benchmarks for similar GIS technical support contracts are often difficult to obtain due to the specialized nature of the services and varying contract scopes.

Small Business Impact

The contract was not awarded to a small business. Analysis of opportunities for small business participation in subcontracting or future set-aside contracts is recommended.

Oversight & Accountability

Oversight should focus on ensuring the delivery order represents fair value and that the contracting agency has robust mechanisms to monitor performance and costs throughout the contract duration.

Related Government Programs

Software Publishers
Department of Homeland Security Contracting
U.S. Secret Service Programs

Risk Flags

Lack of detailed pricing justification.
Potential for over-reliance on a single vendor.
Limited transparency in the competitive bidding process for delivery orders.
Absence of clear performance metrics tied to value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.8 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. GIS TECHNICAL SUPPORT

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 (U.S. Secret Service).

What is the total obligated amount?

The obligated amount is $9.8 million.

What is the period of performance?

Start: 2022-09-14. End: 2026-07-03.

What specific GIS technical support services are included, and how do they align with industry best practices and pricing?

The contract details are limited, but GIS technical support typically includes software maintenance, data management, system administration, and user support. Without specific service level agreements and detailed pricing breakdowns, it's difficult to assess alignment with industry best practices or benchmark pricing effectively. Further inquiry into the SOW and pricing structure is warranted.

What is the risk of vendor lock-in and inflated costs given Esri's dominant market position in GIS software?

Esri holds a significant market share in GIS software, which can lead to vendor lock-in. This dominance, coupled with the nature of technical support tied to their proprietary software, presents a risk of inflated costs if competition is not actively fostered or if pricing is not rigorously scrutinized against available alternatives or internal capabilities.

How effectively will this contract support the Secret Service's evolving mission requirements in a dynamic threat environment?

The contract's effectiveness hinges on the flexibility and responsiveness of the GIS technical support to adapt to the Secret Service's evolving needs. Continuous assessment of service delivery against mission objectives, including the integration of new geospatial technologies and data sources, will be crucial to ensure it remains a valuable asset in a dynamic threat environment.

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

Solicitation ID: 70US0922R70090065

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $10,722,577

Exercised Options: $10,722,577

Current Obligation: $9,839,985

Actual Outlays: $6,964,928

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F253CA

IDV Type: FSS

Timeline