DoD's $30.6M Software Contract with ESRI: Full & Open Competition, Firm Fixed Price

Contract Overview

Contract Amount: $30,599,024 ($30.6M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-07-31

End Date: 2024-05-04

Contract Duration: 1,373 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SINS132-33&12-33CATEGORY A - UNLIMITED U

Place of Performance

Location: REDLANDS, SAN BERNARDINO County, CALIFORNIA, 92373

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $30.6 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: SINS132-33&12-33CATEGORY A - UNLIMITED U Key points: 1. Significant contract value of $30.6 million over its duration. 2. Awarded under full and open competition, suggesting market availability. 3. Firm Fixed Price contract type aims to control costs. 4. The sector is Software Publishers, a key area for government operations.

Value Assessment

Rating: good

The contract's firm fixed price structure is a positive sign for cost control. Benchmarking against similar software licenses and support contracts would be necessary for a definitive value assessment, but the competitive award suggests a reasonable price discovery process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Ensures access to essential software for Department of Defense operations. Supports a major software provider, potentially impacting the broader tech industry. Firm fixed price limits potential cost overruns for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is substantial (1373 days).
No explicit mention of small business participation.

Positive Signals

Full and open competition.
Firm fixed price contract.
Clear NAICS code (511210) for software publishers.

Sector Analysis

The Software Publishers sector (NAICS 511210) is critical for government IT infrastructure. Spending in this sector is consistently high, with agencies relying on a wide range of software for operations, data management, and security.

Small Business Impact

The data indicates the contractor is ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC., a large entity. There is no specific information provided regarding small business subcontracting goals or participation in this particular award.

Oversight & Accountability

The award was made under a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the terms of the base IDIQ and the justification for this specific order.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration.
No explicit small business participation noted.
Potential for vendor lock-in with specialized software.
Need for detailed product/service clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. SINS132-33&12-33CATEGORY A - UNLIMITED U

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 Navy).

What is the total obligated amount?

The obligated amount is $30.6 million.

What is the period of performance?

Start: 2020-07-31. End: 2024-05-04.

What specific software products or services are covered under this contract, and how critical are they to the Department of the Navy's mission?

The contract details do not specify the exact software products or services. Understanding the nature of the software (e.g., GIS, operating systems, specialized applications) and its criticality is essential for assessing its true value and the potential impact of any disruptions. This information would inform whether the $30.6M represents a fair price for essential capabilities.

Given the firm fixed price, what mechanisms are in place to ensure the software remains up-to-date and secure throughout the contract's duration?

Firm fixed price contracts typically lock in the price, but often include provisions for software updates, patches, and technical support. The contract's terms and conditions would detail these obligations. Effective oversight would ensure the contractor is meeting these requirements to maintain the software's functionality and security posture.

How does the $30.6 million expenditure compare to industry benchmarks for similar software licenses and support over a 1373-day period?

Without knowing the specific software, a direct benchmark is difficult. However, for enterprise-level software suites and comprehensive support, $30.6 million over nearly four years can be within a reasonable range, especially if it includes significant customization or specialized support. A detailed comparison with commercial offerings and other government contracts for comparable solutions is needed.

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

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: $39,289,004

Exercised Options: $30,599,024

Current Obligation: $30,599,024

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F253CA

IDV Type: FSS

Timeline