DHS awards $25.25M geospatial software license to ESRI, Inc. for enterprise-wide use

Contract Overview

Contract Amount: $25,250,334 ($25.3M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2016-09-29

End Date: 2021-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF GEOSPATIAL ENTERPRISE LICENSE AGREEMENT (ELA)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.3 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: IGF::OT::IGF GEOSPATIAL ENTERPRISE LICENSE AGREEMENT (ELA) Key points: 1. Contract provides broad access to critical geospatial software, potentially improving data analysis and decision-making across DHS. 2. The firm-fixed-price structure offers cost predictability for the agency. 3. A single award for an enterprise license suggests a strategic decision to standardize on a specific platform. 4. The duration of the contract (5 years) indicates a long-term need for these services. 5. The award was made under full and open competition, suggesting a competitive process was undertaken.

Value Assessment

Rating: good

The contract value of $25.25 million over five years for an enterprise-wide geospatial software license appears reasonable given the scope. While direct comparisons are difficult without specific feature sets and user counts, ESRI is a dominant player in the GIS market, and enterprise agreements often represent a cost-effective way to procure widespread software access compared to individual licenses. The firm-fixed-price nature helps manage budget expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment was sought. This approach generally leads to better price discovery and ensures the government receives offers from a wide range of qualified sources.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible pricing and terms for essential software, preventing potential overcharges associated with sole-source or limited competition awards.

Public Impact

Benefits agencies within the Department of Homeland Security by providing access to advanced geospatial analysis tools. Supports various functions including border security, emergency management, infrastructure protection, and intelligence analysis. Geographic impact is nationwide, enabling data-driven decisions across all DHS operational areas. Workforce implications include enabling analysts, planners, and decision-makers with enhanced mapping and spatial data capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the enterprise-wide nature of the license.
Reliance on a single vendor for critical geospatial capabilities could pose a risk if the vendor's technology or business strategy changes.
Ensuring adequate training and adoption across all relevant DHS components will be crucial for realizing full value.

Positive Signals

Provides a standardized, enterprise-wide platform for geospatial data, fostering consistency and interoperability.
The firm-fixed-price contract offers budget certainty for the duration of the agreement.
Awarded through full and open competition, suggesting a competitive market was leveraged.

Sector Analysis

This contract falls within the Software Publishers industry, a segment of the broader IT sector. The market for Geographic Information System (GIS) software is dominated by a few key players, with Environmental Systems Research Institute (ESRI) being a leading provider. Enterprise license agreements are common for large organizations seeking to deploy software across numerous users and departments, often representing significant investments in the IT infrastructure of federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As an enterprise license for a major software provider, it is unlikely that small businesses would be primary awardees for the core license itself. However, opportunities may exist for small businesses to provide subcontracting services related to implementation, training, or customization, depending on the specific terms negotiated by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically reside within the contracting office of the Department of Homeland Security (Office of Procurement Operations). Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of the licensed software and associated support. Transparency is generally maintained through contract award databases, though specific performance metrics and usage data may not be publicly disclosed.

Related Government Programs

Geospatial Intelligence
Enterprise Software Licensing
Department of Homeland Security IT Procurement
GIS Software Market

Risk Flags

Single Vendor Dependence
Potential for Vendor Lock-in
Long-term Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.3 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. IGF::OT::IGF GEOSPATIAL ENTERPRISE LICENSE AGREEMENT (ELA)

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 $25.3 million.

What is the period of performance?

Start: 2016-09-29. End: 2021-09-29.

What is the historical spending trend for geospatial software licenses at DHS?

Analyzing historical spending on geospatial software at DHS requires access to detailed procurement data beyond this single award. However, the trend for federal agencies, in general, has been towards consolidating software licenses to achieve economies of scale and improve management. Agencies often move from numerous individual licenses to enterprise agreements or blanket purchase agreements (BPAs) to reduce administrative overhead and gain better volume discounts. The $25.25 million award to ESRI suggests a significant, ongoing investment in GIS capabilities, potentially indicating an increase or sustained high level of spending in this area compared to previous periods, especially if it represents a renewal or expansion of prior agreements.

How does the per-user cost of this ESRI ELA compare to industry benchmarks?

Determining the precise per-user cost for this ESRI Enterprise License Agreement (ELA) is challenging without knowing the exact number of users or specific software modules included. ESRI's pricing models can vary significantly based on the level of the ELA (e.g., number of users, types of software like ArcGIS Desktop, ArcGIS Pro, ArcGIS Enterprise, and extensions). However, ELAs are generally structured to offer a lower per-user cost than purchasing individual licenses, especially for large organizations. Industry benchmarks for GIS software can range widely, but for large enterprise deployments, per-user costs might fall into the hundreds of dollars annually, depending on the software suite. This contract's total value of $25.25M over 5 years ($5.05M annually) suggests a substantial user base or a comprehensive software package.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Specific Key Performance Indicators (KPIs) for this ESRI ELA are not detailed in the provided data. However, typical KPIs for such software licenses would likely focus on software uptime and availability, responsiveness of technical support, successful deployment across intended user groups, and potentially metrics related to user adoption or satisfaction. For DHS, success might also be measured by the extent to which the software facilitates improved operational outcomes in areas like border security, disaster response, or intelligence analysis. The agency would likely track metrics related to the number of active users, the utilization of advanced features, and the integration of the GIS platform with other agency systems.

What is ESRI's track record with federal government contracts, particularly with DHS?

Environmental Systems Research Institute (ESRI) has a long and extensive track record of providing Geographic Information System (GIS) software and services to the U.S. federal government, including the Department of Homeland Security (DHS). They are a dominant vendor in the GIS market, and their software is widely used across numerous federal agencies for a variety of mission-critical applications, including defense, intelligence, environmental management, emergency response, and infrastructure planning. DHS, in particular, relies heavily on geospatial data and analysis for its core missions, making ESRI a strategic partner. ESRI has historically secured numerous large contracts and enterprise agreements with federal entities, indicating a strong performance history and established relationship.

Are there any identified risks associated with relying on a single vendor for enterprise-wide geospatial software?

Yes, there are inherent risks associated with relying on a single vendor for enterprise-wide geospatial software. The primary risk is vendor lock-in, where the agency becomes heavily dependent on the vendor's technology, pricing structure, and future development roadmap. This dependence can limit flexibility and bargaining power in future contract negotiations. Another risk is the potential for obsolescence if the vendor fails to innovate or adapt to new technologies, or if the agency's needs evolve beyond the vendor's offerings. Furthermore, a significant disruption to the vendor's business (e.g., financial instability, acquisition, or changes in strategic direction) could impact the agency's access to critical software and support. Mitigating these risks often involves careful contract management, exploring interoperability options, and maintaining awareness of alternative solutions in the market.

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

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: $25,250,334

Exercised Options: $25,250,334

Current Obligation: $25,250,334

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HSHQDC16A00017

IDV Type: BPA

Timeline