Army Corps of Engineers awards $28M enterprise software agreement to Environmental Systems Research Institute, Inc

Contract Overview

Contract Amount: $28,000,976 ($28.0M)

Contractor: Environmental Systems Research Institute, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-12-01

End Date: 2026-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EO14042 - UNITED STATES ARMY CORPS OF ENGINEERS (USACE) ENTERPRISE AGREEMENT. THE PURPOSE OF THE REQUIREMENT IS TO PROVIDE SOFTWARE FOR ARMY GEOSPATIAL CENTER (AGC) (INTERNAL CONTROL# SD-22-0011 ESRI HQUSACE ENTERPRISE LIC AGREEMENT)

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. for work described as: EO14042 - UNITED STATES ARMY CORPS OF ENGINEERS (USACE) ENTERPRISE AGREEMENT. THE PURPOSE OF THE REQUIREMENT IS TO PROVIDE SOFTWARE FOR ARMY GEOSPATIAL CENTER (AGC) (INTERNAL CONTROL# SD-22-0011 ESRI HQUSACE ENTERPRISE LIC AGREEMENT) Key points: 1. The contract provides essential geospatial software for the Army Geospatial Center, supporting critical military and civilian operations. 2. A full and open competition was utilized, suggesting a robust market for these specialized software solutions. 3. The contract duration of five years allows for sustained support and potential for future upgrades. 4. The fixed-price contract type provides cost certainty for the government. 5. This agreement represents a significant investment in maintaining the Army's geospatial capabilities.

Value Assessment

Rating: good

The total contract value of $28 million over five years averages to approximately $5.6 million annually. While specific benchmarking data for enterprise geospatial software licenses is not readily available, ESRI is a dominant provider in this market. The firm-fixed-price nature of the contract helps manage cost fluctuations. Without detailed breakdowns of license types and user counts, a precise value-for-money assessment is challenging, but the duration and scope suggest a potentially competitive negotiated rate for a large enterprise.

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. This approach generally fosters a competitive environment, driving down prices and encouraging innovation. The specific number of bidders is not provided, but the designation implies a market with sufficient interest and capability to respond to the requirement.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible pricing and terms for essential software.

Public Impact

The Army Geospatial Center (AGC) is the primary beneficiary, gaining access to vital software for its operations. The software supports a wide range of functions including mapping, data analysis, and visualization for military planning and operations. Geographic impact is nationwide, supporting Army installations and operations across various theaters. Workforce implications include enabling soldiers and civilian personnel to utilize advanced geospatial tools for their missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the specialized nature of enterprise geospatial software.
Reliance on a single vendor for critical software infrastructure could pose long-term strategic risks.
The significant contract value warrants close monitoring of performance and adherence to terms.

Positive Signals

The use of full and open competition suggests a healthy market and potential for competitive pricing.
The long-term nature of the contract provides stability and predictability for the Army's geospatial needs.
Firm-fixed-price contract type offers budget certainty.

Sector Analysis

This contract falls within the Software Publishers (NAICS 511210) sector, a critical component of the broader Information Technology industry. The market for enterprise geospatial software is dominated by a few key players, with ESRI being a leading provider. Government agencies, particularly defense and intelligence, are significant consumers of these technologies due to their applications in intelligence, surveillance, reconnaissance, and operational planning. The size of this contract reflects the substantial investment required for enterprise-wide software licensing and support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. As an enterprise-level software agreement with a large incumbent provider, the direct impact on small business set-asides may be limited. However, the prime contractor may engage small businesses for support services or specialized integrations, though this is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army contracting officers and program managers within the Army Geospatial Center. The contract's duration and value suggest regular performance reviews and financial oversight. Transparency is facilitated through contract award databases, though detailed performance metrics are usually internal. The Inspector General's office could investigate any reported fraud, waste, or abuse.

Related Government Programs

Geospatial Intelligence Support Services
Enterprise Software Licensing
Defense Information Technology Contracts
Army Geospatial Center Operations
Mapping and Cartography Software

Risk Flags

Vendor Lock-in Potential
Reliance on Single Provider
Long-Term Contractual Commitment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC.. EO14042 - UNITED STATES ARMY CORPS OF ENGINEERS (USACE) ENTERPRISE AGREEMENT. THE PURPOSE OF THE REQUIREMENT IS TO PROVIDE SOFTWARE FOR ARMY GEOSPATIAL CENTER (AGC) (INTERNAL CONTROL# SD-22-0011 ESRI HQUSACE ENTERPRISE LIC AGREEMENT)

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 Army).

What is the total obligated amount?

The obligated amount is $28.0 million.

What is the period of performance?

Start: 2021-12-01. End: 2026-11-30.

What is the historical spending pattern for geospatial software by the Army Geospatial Center?

Analyzing historical spending for the Army Geospatial Center (AGC) on geospatial software requires access to detailed procurement data beyond this single award. Typically, agencies like the AGC would have recurring needs for software licenses, maintenance, and support. Previous contracts might have been with the same vendor or competitors, potentially on different contract vehicles or with varying scopes. Understanding historical spending would involve looking at prior years' budgets allocated to software acquisition, the types of software procured (e.g., GIS, remote sensing, data management), and the vendors involved. This context helps determine if the current $28 million award represents an increase, decrease, or stable level of investment in geospatial capabilities, and whether it aligns with evolving technological needs and strategic priorities.

How does the pricing of this ESRI enterprise agreement compare to similar government or commercial contracts?

Benchmarking the pricing of this $28 million ESRI enterprise agreement against similar contracts is challenging without access to detailed pricing structures and specific license entitlements. ESRI is a market leader, and enterprise-wide agreements often involve volume discounts negotiated over extended periods. Comparisons would ideally be made with other large federal or state/local government GIS enterprise licenses, or large commercial deployments. Factors influencing price include the number and type of licenses (e.g., ArcGIS Desktop, ArcGIS Pro, ArcGIS Enterprise), user levels, maintenance and support inclusions, and the duration of the agreement. Given the firm-fixed-price nature and full and open competition, it suggests a negotiated price intended to be competitive for the scope and term, but a direct per-unit cost comparison is difficult without more granular data.

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

Key Performance Indicators (KPIs) for an enterprise software agreement like this typically focus on software availability, performance, user support, and adherence to licensing terms. For the Army Geospatial Center (AGC), KPIs might include uptime percentages for critical geospatial services, response times for technical support requests, successful deployment of new software versions or features, and user satisfaction surveys. Additionally, metrics related to the software's contribution to mission objectives, such as the speed of map production or the accuracy of geospatial analysis, could be tracked. The contract itself would likely outline specific Service Level Agreements (SLAs) and performance standards that the vendor must meet, with potential penalties or incentives tied to KPI achievement.

What is the track record of Environmental Systems Research Institute, Inc. (ESRI) in fulfilling large government software contracts?

Environmental Systems Research Institute, Inc. (ESRI) has a long and extensive track record of providing geospatial software solutions to government agencies at all levels, including significant contracts with the Department of Defense and other federal entities. They are widely recognized as a leading provider of Geographic Information System (GIS) software. Their experience includes managing large-scale enterprise agreements, providing comprehensive training, and offering ongoing technical support. Government agencies often rely on ESRI due to the maturity of their product suite, extensive documentation, and established community of users and developers. While specific contract performance details are often proprietary, ESRI's continued success in securing and fulfilling major government contracts indicates a generally strong performance history in meeting the complex needs of public sector clients.

What are the potential risks associated with relying on a single vendor for enterprise geospatial software?

Relying on a single vendor, such as ESRI, for enterprise geospatial software presents several potential risks. Vendor lock-in is a primary concern, where the cost and complexity of switching to a different platform become prohibitively high, reducing future negotiating leverage. Dependence on a single vendor's technology roadmap can also be a risk; if the vendor shifts strategic direction, discontinues certain products, or experiences financial instability, it could negatively impact the agency's capabilities. Furthermore, a single point of failure exists if the vendor experiences significant service disruptions or security breaches. While competition was used for this initial award, the long-term nature of enterprise agreements can limit future competitive opportunities if alternatives are not actively explored or developed.

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

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: $28,000,976

Exercised Options: $28,000,976

Current Obligation: $28,000,976

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W5J9CQ19A0001

IDV Type: BPA

Timeline