HHS awards $1.06M for ESRI software and support under full and open competition

Contract Overview

Contract Amount: $1,061,208 ($1.1M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-08

End Date: 2026-09-25

Contract Duration: 382 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE (ESRI) SOFTWARE LICENSE AND TECHNICAL SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $1.1 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE (ESRI) SOFTWARE LICENSE AND TECHNICAL SUPPORT SERVICES Key points: 1. The contract is for essential ESRI software licenses and technical support, crucial for data analysis and mapping within the Indian Health Service. 2. Competition was full and open, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract value is relatively modest for software licensing and support, indicating potential for good value. 4. The sector is software publishing, a common area for government IT procurement.

Value Assessment

Rating: good

The contract value of $1.06M for a duration of 382 days appears reasonable for enterprise software licensing and technical support. Benchmarking against similar large-scale software agreements would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and fosters price discovery through multiple offers. This method is expected to yield competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving fair market value for the software and support services procured.

Public Impact

Ensures continued access to critical geospatial software for public health initiatives. Supports data-driven decision-making in areas like disease tracking and resource allocation. Potential for enhanced public health outcomes through improved data visualization and analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.
Essential software for agency operations.

Sector Analysis

This contract falls within the IT sector, specifically software licensing and support. Government spending on software is substantial, and ESRI products are widely used for geographic information systems (GIS) and data analysis across various agencies.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The use of full and open competition and a firm fixed price contract type are positive indicators of accountability.

Related Government Programs

Software Publishers
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Potential for vendor lock-in with proprietary software.
Dependence on a single vendor for critical technical support.
Need for ongoing monitoring of software updates and security patches.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $1.1 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE (ESRI) SOFTWARE LICENSE AND TECHNICAL SUPPORT SERVICES

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 Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2025-09-08. End: 2026-09-25.

What is the specific impact of this ESRI software on the Indian Health Service's operational efficiency and public health outcomes?

ESRI software is vital for the Indian Health Service's ability to manage and analyze geographic health data. This includes mapping disease outbreaks, identifying health disparities in specific regions, optimizing resource allocation for healthcare facilities, and planning emergency responses. Its effective use can lead to more targeted interventions and improved health outcomes for Native American communities.

Are there any potential risks associated with relying on a single vendor like ESRI for critical software licenses and support?

While this contract was competitively awarded, long-term reliance on a single vendor like ESRI can pose risks. These include potential price increases in future renewals, vendor lock-in limiting flexibility, and dependence on the vendor's product roadmap and support quality. Mitigation strategies might involve exploring open-source alternatives or negotiating multi-year agreements with price caps.

How does the pricing of this contract compare to industry benchmarks for similar software and support services?

Without specific details on the exact ESRI products and support levels included, a precise benchmark is difficult. However, the $1.06M award for 382 days under full and open competition suggests a potentially competitive price. A thorough analysis would involve comparing the per-unit costs of licenses and support hours against publicly available pricing or data from similar government contracts.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $1,061,208

Exercised Options: $1,061,208

Current Obligation: $1,061,208

Actual Outlays: $379,707

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F253CA

IDV Type: FSS

Timeline