Air Force Renews ESRI ELA for $24.9M, Securing Geospatial Data Management Tools

Contract Overview

Contract Amount: $24,919,999 ($24.9M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-01-01

End Date: 2027-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AIR FORCE GEOSPATIAL INFORMATION MANAGEMENT SYSTEM (AFGIMS) ENTERPRISE SYSTEMS RESEARCH INSTITUTE (ESRI) ENTERPRISE LICENSE AGREEMENT (ELA) RENEWAL.

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36104

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: AIR FORCE GEOSPATIAL INFORMATION MANAGEMENT SYSTEM (AFGIMS) ENTERPRISE SYSTEMS RESEARCH INSTITUTE (ESRI) ENTERPRISE LICENSE AGREEMENT (ELA) RENEWAL. Key points: 1. The renewal ensures continued access to critical geospatial information management systems for the Air Force. 2. Environmental Systems Research Institute, Inc. (ESRI) is the sole provider of this specialized software. 3. The firm fixed-price contract mitigates cost uncertainty over the 5-year period. 4. This spending falls within the Software Publishers sector, with potential for significant IT infrastructure investment.

Value Assessment

Rating: good

The $24.9 million cost over five years for the ESRI ELA appears reasonable given the specialized nature of geospatial software and the enterprise-wide licensing. Benchmarking against similar large-scale government software licenses would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is expected to have driven a fair market price for the ESRI enterprise license agreement.

Taxpayer Impact: Taxpayers benefit from the competitive process ensuring a fair price for essential geospatial software, supporting critical Air Force operations.

Public Impact

Ensures continued operational capability for Air Force units relying on geospatial data. Supports intelligence, surveillance, and reconnaissance (ISR) missions through advanced mapping and analysis. Facilitates infrastructure planning and management across Air Force installations. Provides a standardized platform for data sharing and collaboration among geospatial professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized software.
Reliance on a single vendor for critical system updates and support.

Positive Signals

Long-term contract provides budget stability.
Firm fixed-price contract protects against cost overruns.
Full and open competition ensures fair pricing.

Sector Analysis

This spending is within the Software Publishers sector, specifically for enterprise license agreements (ELAs) of specialized geospatial software. Government spending on such platforms is common for defense and intelligence agencies requiring advanced mapping and data analysis capabilities.

Small Business Impact

The data indicates this is an enterprise license agreement with a large software provider, Environmental Systems Research Institute, Inc. There is no specific indication of small business participation in this particular contract award.

Oversight & Accountability

The Department of the Air Force is responsible for the oversight of this contract. Standard procurement regulations and contract management practices would apply to ensure proper execution and accountability.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Vendor lock-in
Reliance on single-source provider for critical updates
Potential for future price increases upon contract expiration
Need for ongoing training to maximize software utilization

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. AIR FORCE GEOSPATIAL INFORMATION MANAGEMENT SYSTEM (AFGIMS) ENTERPRISE SYSTEMS RESEARCH INSTITUTE (ESRI) ENTERPRISE LICENSE AGREEMENT (ELA) RENEWAL.

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 $24.9 million.

What is the period of performance?

Start: 2023-01-01. End: 2027-12-31.

What is the total cost of ownership for the AFGIMS system over its lifecycle, including maintenance, training, and potential future upgrades?

The provided data only covers the enterprise license agreement renewal cost of $24.9 million over five years. A comprehensive total cost of ownership analysis would require additional data on implementation, ongoing maintenance fees, user training programs, and the anticipated costs of future software versions or upgrades. This broader view is crucial for understanding the full financial commitment.

Are there any viable open-source or alternative commercial geospatial software solutions that could meet the Air Force's needs at a lower cost?

While the contract was awarded under full and open competition, the specific requirements of the Air Force Geospatial Information Management System (AFGIMS) may necessitate specialized functionalities only offered by ESRI. A thorough market analysis prior to the competition would have explored alternatives. However, the long-standing use and integration of ESRI software suggest a high switching cost and potential compatibility issues with alternatives.

How does the performance and capability of the ESRI software compare to other leading geospatial platforms in terms of meeting the Air Force's evolving mission requirements?

The renewal suggests that ESRI's platform continues to meet the Air Force's core geospatial needs effectively. However, continuous evaluation against evolving mission requirements and emerging technologies is essential. Benchmarking against competitor offerings and conducting periodic capability assessments would ensure the Air Force maintains access to the most advanced and suitable geospatial tools available.

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

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: $31,860,999

Exercised Options: $24,919,999

Current Obligation: $24,919,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: GS35F253CA

IDV Type: FSS

Timeline