Air Force geospatial system contract awarded to Environmental Systems Research Institute, Inc. for over $23 million

Contract Overview

Contract Amount: $23,139,399 ($23.1M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-05-01

End Date: 2021-12-31

Contract Duration: 1,705 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IFG::OT::IGF AIR FORCE GEOSPATIAL INFORMATION MANAGEMENT SYSTEM (AFGIMS) AND AF GEOBASE

Place of Performance

Location: REDLANDS, SAN BERNARDINO County, CALIFORNIA, 92373

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.1 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: IFG::OT::IGF AIR FORCE GEOSPATIAL INFORMATION MANAGEMENT SYSTEM (AFGIMS) AND AF GEOBASE Key points: 1. Contract awarded for a geospatial information management system, indicating a need for advanced mapping and data visualization capabilities. 2. The contract duration of over 4 years suggests a significant, long-term requirement for these services. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. The award was made under full and open competition, suggesting a robust market for these services. 5. The primary contractor, Environmental Systems Research Institute, Inc., is a well-established player in the GIS software market. 6. The contract's value of over $23 million highlights the significant investment in geospatial technology by the Air Force.

Value Assessment

Rating: good

The contract value of $23.1 million over approximately 4 years for a geospatial information management system appears reasonable given the specialized nature of GIS software and services. Benchmarking against similar large-scale government IT contracts for enterprise software solutions suggests this falls within a typical range. The firm fixed-price structure provides cost certainty. Without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging, but the established nature of the contractor and the competitive award process lend confidence.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of a single award for a delivery order suggests that while the initial solicitation was open, this specific order was placed with one entity. The level of competition for the initial solicitation is not detailed, but the 'full and open' designation implies a broad market approach, which generally fosters competitive pricing and innovation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of offers, potentially leading to better pricing and more innovative solutions. It ensures that the government is not limited to a single provider, promoting a more efficient use of public funds.

Public Impact

The primary beneficiaries are the United States Air Force personnel who will utilize the AFGIMS and AF GEOBASE for mission planning, intelligence analysis, and operational support. The contract delivers essential software and services for managing and analyzing geospatial data, crucial for modern military operations. The geographic impact is national, supporting Air Force operations across all its bases and deployed locations. Workforce implications include the need for skilled personnel within the Air Force to operate and maintain the system, as well as potential employment opportunities for the contractor's staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes highly customized and difficult to migrate away from.
Reliance on a single contractor for critical geospatial data management could pose risks if the contractor faces financial instability or operational issues.
The long-term sustainment costs of such a complex system may exceed initial projections if not carefully managed.

Positive Signals

Award to a leading GIS software provider suggests access to advanced, reliable technology.
The firm fixed-price contract type provides budget certainty and limits the government's exposure to cost overruns.
The use of a delivery order under a broader contract vehicle implies a structured procurement process.

Sector Analysis

The Information Technology sector, specifically within the Software Publishers industry (NAICS 511210), is characterized by rapid innovation and significant government reliance for mission-critical systems. The market for Geographic Information Systems (GIS) software and services is substantial, with major players like Environmental Systems Research Institute, Inc. (ESRI) dominating a significant share. Government spending in this area is driven by the need for advanced data analysis, mapping, and situational awareness, particularly within defense and intelligence agencies. Comparable spending benchmarks for enterprise-level software solutions can range from millions to tens of millions of dollars annually, depending on scope and user base.

Small Business Impact

This contract does not indicate any specific small business set-aside. The award was made to Environmental Systems Research Institute, Inc., a large established company. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. The absence of small business participation in prime contracts of this nature can limit opportunities for smaller innovative firms to contribute to large government IT projects.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified goods and services within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General of the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Geospatial Intelligence
Command and Control Systems
Enterprise Resource Planning (ERP) Systems
Defense Information Systems Agency (DISA) Contracts
National Geospatial-Intelligence Agency (NGA) Programs

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Risk of vendor lock-in with specialized software.
Dependence on contractor's financial stability and operational continuity.
Ensuring data security and integrity within the geospatial system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.1 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. IFG::OT::IGF AIR FORCE GEOSPATIAL INFORMATION MANAGEMENT SYSTEM (AFGIMS) AND AF GEOBASE

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 Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $23.1 million.

What is the period of performance?

Start: 2017-05-01. End: 2021-12-31.

What specific functionalities does the Air Force Geospatial Information Management System (AFGIMS) provide?

The Air Force Geospatial Information Management System (AFGIMS) and AF GEOBASE are designed to provide comprehensive capabilities for managing, analyzing, and visualizing geospatial data. This includes functionalities such as map creation and editing, spatial analysis, data integration from various sources, and the dissemination of geographic information to support Air Force operations. These systems are critical for mission planning, intelligence, surveillance, reconnaissance (ISR), logistics, and base operations by providing commanders and analysts with accurate and timely location-based intelligence and situational awareness.

How does the $23.1 million contract value compare to other similar geospatial software contracts awarded by the government?

The $23.1 million contract value for the AFGIMS and AF GEOBASE, awarded over approximately four years, appears to be within the expected range for enterprise-level geospatial software and services provided by a leading vendor like ESRI. Government contracts for similar large-scale IT solutions, especially those involving specialized software licenses, customization, training, and ongoing support, often reach tens of millions of dollars. For instance, contracts with the National Geospatial-Intelligence Agency (NGA) or other branches of the military for advanced GIS capabilities can be of similar or even greater magnitude, reflecting the critical nature and complexity of geospatial data management in defense.

What are the primary risks associated with a firm fixed-price contract for complex IT systems like AFGIMS?

While firm fixed-price (FFP) contracts are designed to provide cost certainty, they carry specific risks for complex IT systems. For the government, the primary risk is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen technical challenges arise, potentially leading to a system that does not fully meet requirements. For the contractor, the risk is absorbing unexpected cost increases due to scope creep, technical difficulties, or inaccurate initial cost estimations. In the case of AFGIMS, if the requirements are not perfectly defined upfront, the FFP nature could lead to disputes or a less-than-optimal final product if the contractor is unwilling to incur additional costs beyond the fixed price.

What is Environmental Systems Research Institute, Inc.'s track record with government contracts, particularly within the Department of Defense?

Environmental Systems Research Institute, Inc. (ESRI) is a globally recognized leader in Geographic Information System (GIS) software and has a long and extensive track record of providing solutions to government agencies, including the Department of Defense (DoD) and various branches of the military. ESRI's software is widely used across federal agencies for a multitude of applications, from environmental management and urban planning to defense and intelligence. Their history with government contracts is extensive, often involving large-scale deployments, data management, and analytical support, indicating a strong familiarity with government procurement processes and requirements.

What are the potential performance implications if the AFGIMS system experiences significant downtime or data integrity issues?

Significant downtime or data integrity issues with the AFGIMS system could have severe performance implications for the Air Force. Geospatial data and the systems that manage it are fundamental to numerous operational functions, including mission planning, intelligence analysis, logistics, and real-time situational awareness. Downtime could directly impede the ability of Air Force personnel to execute critical missions, potentially leading to delays, increased risk to personnel, and compromised operational effectiveness. Data integrity issues could result in flawed analysis, incorrect decision-making, and a loss of confidence in the system's outputs, undermining its intended value.

How has Air Force spending on geospatial information systems evolved over the past five years?

While specific year-over-year spending data for the AFGIMS and AF GEOBASE program is not detailed in the provided information, the Air Force's overall investment in geospatial information systems has likely seen a steady or increasing trend over the past five years. This reflects the growing importance of data analytics, artificial intelligence, and advanced visualization tools in modern military operations. Agencies like the National Geospatial-Intelligence Agency (NGA) and various military branches continue to prioritize investments in technologies that enhance situational awareness and decision-making capabilities, suggesting sustained or growing budgets for programs like AFGIMS.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA877117Q0025

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 380 NEW YORK ST, 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: $23,139,399

Exercised Options: $23,139,399

Current Obligation: $23,139,399

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F253CA

IDV Type: FSS

Timeline