DHS awarded $21.5M to ESRI for IT services under a BPA, with a firm fixed price contract

Contract Overview

Contract Amount: $21,449,187 ($21.4M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2011-09-30

End Date: 2016-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ESRI TASK ORDER AGAINST BPA

Place of Performance

Location: REDLANDS, SAN BERNARDINO County, CALIFORNIA, 92373

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.4 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: ESRI TASK ORDER AGAINST BPA Key points: 1. The contract value of $21.5M over five years suggests a significant investment in IT services. 2. Competition was full and open, indicating a potentially competitive bidding process. 3. The firm fixed price contract type generally transfers risk to the contractor. 4. The contract duration of 1826 days (5 years) is substantial, allowing for long-term service delivery. 5. The NAICS code 541519 points to 'Other Computer Related Services', a broad category. 6. The award was a BPA Call, implying it was part of a larger pre-negotiated agreement.

Value Assessment

Rating: good

The contract value of $21.5M over five years averages to approximately $4.3M annually. Without specific service details or benchmarks for 'Other Computer Related Services' within DHS, a precise value-for-money assessment is challenging. However, the firm fixed price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. Comparing this to similar large-scale IT service contracts within DHS or other agencies would provide a more robust benchmark.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', suggesting that all responsible sources were permitted to submit a bid. The number of bidders is not specified in the provided data, which limits the assessment of the intensity of competition. However, the designation implies a deliberate effort to solicit a wide range of offers, which typically leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, receiving IT services. The services delivered fall under 'Other Computer Related Services', likely supporting various operational and administrative functions within DHS. The geographic impact is primarily within California, where the contractor is located, but the services likely support national-level DHS operations. The contract supports the IT infrastructure and service needs of a major federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the services rendered makes it difficult to fully assess performance.
The broad NAICS code (541519) could encompass a wide range of services, making direct comparisons challenging.
The absence of the number of bidders limits the ability to gauge the true level of competition.

Positive Signals

Awarded under a BPA Call, suggesting efficiency in procurement through a pre-established framework.
Firm Fixed Price contract type shifts cost risk to the contractor.
Full and Open Competition indicates an effort to maximize the vendor pool.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services'. The IT services market is vast and highly competitive, with numerous firms offering a wide array of solutions. Contracts of this size ($21.5M) are common for federal agencies requiring ongoing IT support. Benchmarking this spending would require comparing it to similar IT service contracts awarded by DHS or other large federal entities for comparable services, considering the specific nature of the 'Other Computer Related Services' provided.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Environmental Systems Research Institute, Inc. (ESRI), is a large, well-established company, suggesting that subcontracting opportunities for small businesses would depend on ESRI's own procurement practices rather than contractual mandates.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Homeland Security's Office of Procurement Operations and the relevant program offices utilizing the services. As a BPA Call, oversight might also be influenced by the terms and oversight mechanisms of the parent BPA. Accountability measures would be tied to the performance metrics and deliverables outlined in the task order. Transparency is facilitated by the contract award notice, but further details on performance and spending would require access to more granular reporting or Freedom of Information Act requests.

Related Government Programs

Department of Homeland Security IT Services Contracts
IT Services BPA Awards
Firm Fixed Price IT Contracts
Computer Related Services Contracts

Risk Flags

Contract Duration
Scope Definition
Service Specificity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.4 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. ESRI TASK ORDER AGAINST BPA

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 $21.4 million.

What is the period of performance?

Start: 2011-09-30. End: 2016-09-29.

What specific 'Other Computer Related Services' were provided under this contract?

The provided data identifies the NAICS code as 541519, 'Other Computer Related Services,' and the contractor as Environmental Systems Research Institute, Inc. (ESRI). ESRI is widely known for its Geographic Information System (GIS) software and services. Therefore, it is highly probable that the services rendered under this contract involved GIS software, data management, analysis, implementation, training, or support related to ESRI's technology. These services could have been crucial for DHS's mission-critical functions, such as border security, emergency management, intelligence analysis, or infrastructure protection, where geospatial data and analysis are vital. Without the specific task order details, the exact nature of the services remains inferred based on the contractor's specialization.

How does the $21.5M contract value compare to similar IT service contracts at DHS?

The $21.5M contract value awarded to ESRI over five years equates to an average annual spend of approximately $4.3M. This figure is substantial but falls within the typical range for large federal IT service contracts, especially those supporting critical functions of a major agency like DHS. DHS procures a vast array of IT services, with many contracts exceeding this value, particularly for enterprise-wide solutions, cybersecurity, or large-scale system development. To provide a precise comparison, one would need to benchmark against contracts with similar scopes (e.g., GIS services, data analytics, IT support) awarded by DHS or other agencies of comparable size and mission complexity during the same period (2011-2016). However, as a five-year BPA call for specialized IT services, the value appears reasonable within the federal contracting landscape.

What is the track record of Environmental Systems Research Institute, Inc. (ESRI) as a federal contractor?

Environmental Systems Research Institute, Inc. (ESRI) has a long and established track record as a significant federal contractor, particularly within agencies that rely heavily on geospatial information systems (GIS). Their primary offering is GIS software and related services, which are critical for a wide range of government functions, including defense, intelligence, environmental management, emergency response, and urban planning. ESRI has consistently secured contracts across various federal agencies, including the Department of the Interior, Department of Defense, NASA, and, as seen here, the Department of Homeland Security. Their sustained presence and contract awards indicate a strong performance history and a recognized capability in providing essential GIS technology and support to the federal government. The firm fixed price nature of this particular award suggests a level of confidence in scope definition and cost estimation.

What are the potential risks associated with a firm fixed price contract of this duration?

While firm fixed price (FFP) contracts are generally favored for transferring cost risk to the contractor, a five-year duration (1826 days) for such a contract can introduce specific risks. If the scope of work is not meticulously defined and remains static over five years, the contractor might face challenges in adapting to evolving technological requirements or unforeseen complexities, potentially leading to scope creep disputes or requests for equitable adjustments. Conversely, if the government's needs change significantly, the FFP nature might make it difficult or costly to modify the contract to incorporate new requirements. For the contractor, underestimating costs or encountering unexpected technical hurdles over such a long period could lead to financial losses. Effective contract management, clear communication, and potentially incorporating mechanisms for change management are crucial to mitigate these risks for both parties.

How does the 'BPA Call' award type impact procurement efficiency and cost?

Awarding this contract as a 'BPA Call' (Task Order against a Blanket Purchase Agreement) generally enhances procurement efficiency and can lead to cost savings. A BPA is a simplified acquisition vehicle allowing federal agencies to fill anticipated repetitive needs for supplies or services by establishing charge accounts with qualified sources. Once a BPA is in place, individual task orders (like this one) can be issued more rapidly than through traditional competitive procurement processes, as many terms and conditions have already been negotiated. This reduces administrative burden and lead times. For cost, the pre-negotiated rates within the BPA are often competitively established, potentially offering better pricing than individual, ad-hoc procurements. This method streamlines the acquisition process for recurring needs, allowing agencies to respond more quickly to requirements while leveraging pre-negotiated terms.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,535,922

Exercised Options: $23,535,922

Current Obligation: $21,449,187

Parent Contract

Parent Award PIID: HSHQDC11A00026

IDV Type: BPA

Timeline