DHS awarded $25.6M for ESRI software, a sole-source contract for geographic information systems

Contract Overview

Contract Amount: $25,581,263 ($25.6M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-07-26

End Date: 2011-10-24

Contract Duration: 1,916 days

Daily Burn Rate: $13.4K/day

Competition Type: NOT COMPETED

Sector: Other

Official Description: ESRI SOFTWARE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.6 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: ESRI SOFTWARE Key points: 1. The contract represents a significant investment in geographic information systems (GIS) capabilities. 2. Sole-source awards can limit price competition and potentially lead to higher costs. 3. The duration of the contract (over 5 years) suggests a long-term need for these services. 4. The specific NAICS code (541519) indicates a broad range of 'Other Computer Related Services'. 5. The lack of competition raises questions about whether alternative solutions were considered. 6. The contract's value is substantial, requiring careful oversight to ensure value for money.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable sole-source awards. However, the $25.6 million expenditure over nearly five years for software and related services indicates a significant investment. Given the sole-source nature, it's difficult to assess if competitive pricing was achieved. The value proposition hinges on the criticality and uniqueness of ESRI's software to DHS operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific product or service is deemed essential and only one vendor can provide it. The lack of competition means that DHS did not benefit from the price discovery and innovation that typically arises from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competition, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, utilizing the software for its operational needs. The services likely support critical functions such as emergency management, border security, and infrastructure protection through geospatial analysis. The geographic impact is national, as DHS operates across the United States. Workforce implications include the need for personnel trained in using ESRI software and GIS technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Long contract duration without clear performance metrics could lead to complacency.
Dependence on a single vendor for critical software creates potential supply chain risks.
Lack of transparency in the sole-source justification process.

Positive Signals

ESRI software is a widely recognized leader in GIS, suggesting a high-quality, established solution.
The contract duration implies a stable and predictable operational requirement for DHS.
The award is for a specific, likely essential, software platform.

Sector Analysis

The Geographic Information Systems (GIS) software market is dominated by a few key players, with ESRI being a significant leader. This contract falls within the broader IT services sector, specifically focusing on specialized software solutions. Comparable spending benchmarks would involve looking at other large federal agencies' investments in GIS platforms, which can range from millions to tens of millions annually depending on scope and scale.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. The award to a large, established software provider like ESRI suggests that small businesses are unlikely to be direct beneficiaries of this specific contract, though they may participate in the broader GIS ecosystem through complementary services or data provision.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's procurement and program management offices. Accountability measures would be tied to the terms and conditions of the Blanket Purchase Agreement (BPA) Call. Transparency is limited due to the sole-source nature, but contract details should be publicly available through federal procurement databases.

Related Government Programs

Geographic Information Systems (GIS) Software
IT Services
Department of Homeland Security IT Procurement
Software Licensing and Maintenance

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.6 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. ESRI SOFTWARE

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 $25.6 million.

What is the period of performance?

Start: 2006-07-26. End: 2011-10-24.

What specific ESRI software products and services are covered under this $25.6 million contract?

The provided data does not specify the exact ESRI software products or services included in this $25.6 million contract. However, ESRI is known for its comprehensive suite of GIS software, including ArcGIS Desktop, ArcGIS Enterprise, ArcGIS Online, and various extensions for spatial analysis, data management, and visualization. The contract likely covers software licenses, maintenance, technical support, and potentially professional services for implementation and customization to meet the Department of Homeland Security's specific geospatial intelligence and operational needs.

Why was this contract awarded on a sole-source basis, and what was the justification?

The data indicates the contract was awarded as 'NOT COMPETED,' which typically signifies a sole-source or limited-source justification. For a sole-source award, the government must demonstrate that only one responsible source can provide the required supplies or services. Common justifications include proprietary software, unique capabilities, or urgent and compelling needs where competition is not feasible. Without the specific justification document, it's presumed that DHS determined ESRI's software was uniquely suited to their requirements, or that transitioning to another vendor was impractical or prohibitively expensive.

How does the $25.6 million expenditure compare to historical DHS spending on GIS software?

The provided data only includes details for this specific contract awarded in 2006 with an end date in 2011. To compare this $25.6 million expenditure to historical DHS spending on GIS software, one would need access to broader historical contract data for DHS. This would involve searching federal procurement databases for all contracts related to GIS software, particularly those from ESRI, awarded to DHS across different fiscal years. Without this broader dataset, a direct comparison of this contract's value against DHS's overall GIS software budget or past spending trends cannot be made.

What are the potential risks associated with a sole-source award for critical software like ESRI's?

Sole-source awards for critical software like ESRI's present several risks. Firstly, the absence of competition can lead to higher prices than might be achieved in a competitive environment, potentially resulting in less value for taxpayer money. Secondly, it creates vendor lock-in, making it difficult and costly to switch to alternative solutions in the future, even if better or more cost-effective options emerge. Thirdly, the government may have less leverage in negotiating terms, support levels, and future upgrades. Finally, reliance on a single vendor can pose supply chain risks if that vendor experiences financial difficulties or changes its product strategy.

What performance metrics or oversight mechanisms were likely in place for this contract?

While specific performance metrics are not detailed in the provided data, contracts of this magnitude typically include Service Level Agreements (SLAs) and performance standards outlined in the Blanket Purchase Agreement (BPA) Call document. Oversight would involve regular reviews by DHS contracting officers and program managers to ensure deliverables meet requirements, software functions as expected, and support is adequate. Periodic reporting from the contractor on usage, performance, and any issues encountered would also be expected. The effectiveness of oversight depends on the diligence of the contracting agency in monitoring compliance and addressing any deviations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Evaluated Preference: NONE

Contractor Details

Address: 380 NEW YORK ST, REDLANDS, CA, 92373

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,581,263

Exercised Options: $25,581,263

Current Obligation: $25,581,263

Parent Contract

Parent Award PIID: HSHQPA06A00070

IDV Type: BPA

Timeline