ESRI_Redacted.pdf

FAR 8.405-6 Limited Sources Justification for ESRI

Limited Sources Justification Enterprise Services Office of Acquisition

1401 Constitution Avenue NW Washington, D.C. 20230

Justification Log No. FY24-30

(1) Identification of the agency and the contracting activity:

Program Office: Department of Commerce

Office of the Secretary, Office of Chief Information Officer 1401 Constitution Ave, NW Washington, D.C. 20230

Contracting Activity: Department of Commerce Enterprise Services – Acquisition 1401 Constitution Ave, NW Washington, D.C. 20230

(2) Nature and/or description of the action being approved:

The Department of Commerce (DOC), Enterprise Services intends to award a five-year Blanket Purchase Agreement (BPA) under the General Services Administration (GSA) Multiple Award Schedule (MAS) contract GS-35-F-253CA, Information Technology, under SIN 511210 Software Licenses, SIN 54151 Software Maintenance Services, SIN 54151S Information Technology Professional Services, and SIN 611420 Information Technology Training.

This is a FAR 8.4 acquisition and clauses and contract terms and conditions of the master GSA contract will apply to this BPA. Orders placed under the BPA will be Firm-Fixed-Price.

The Department of Commerce (DOC) currently consumes Environmental Systems Research Institute, Inc. (ESRI) Geographic Information System (GIS) data and has a continuous need for access to ESRI data. As a result, DOC requires a strategic source from which to procure cost effective access to ESRI GIS software (which creates, manages, analyzes, and maps all types of data) and ancillary services. GIS connects data to a map, integrating location data (where things are) with all types of descriptive information (what things are like there). This provides a foundation for mapping and analysis that is used in science and almost every industry. GIS helps users understand patterns, relationships, and geographic context. The benefits include improved communication and efficiency as well as better management and decision making.

ESRI is an international supplier of Geographic Information System software, web GIS, and geodatabase management applications. ESRI is the sole source provider of these types of products and services and carries a General Services Administration (GSA) multiple award schedule (MAS).

(3) A description of the supplies or services required to meet the agency’s needs:

The Department of Commerce (DOC) is comprised of 13 Bureaus with operations across the United States, 6 U.S. Territories, and more than 70 international offices. The DOC has a need for Enterprise-wide BPA with ESRI’s Geographic Information System (GIS). ESRI’s GIS solution is a fully integrated, lifecycle GIS solution from data collection and mobile support; to a range desktop geoprocessing and analytical functions; to server-based and portal technologies; and on through to public data dissemination, online collaboration and maintenance. A wide-ranging community of partners and users rely on this information to support their activities. The features of ESRI’s GIS solution support improved communication and efficiency as well as better management and decision making. ESRI’s suite of tools includes:

1. Unlimited Software for Mobile Devices

2. Unlimited Software for Desktop

3. Unlimited Software for Server, Portal, and Data Management

4. Software and User Accounts - Administration

5. Unlimited Basemap Software

6. Online collaborations Software as a Service (SaaS)

7. Operating Systems and Scalability

8. Maritime Charting Software

9. Standards Compliance

10. Scientific Data Formats and High-Volume Data Support

11. Customer and Technical Support

12. Premium 24x7x365 Technical Support

13. Consulting Services

14. Developer Support

15. Online/Virtual User Training

16. Instructor-Led Courses

17. Conference and Workshop Attendance

18. Maintenance

DOC seeks to continue maximizing efficiencies in acquisition, lowering total acquisition life-cycle costs, and ensuring continuity of ESRI’s GIS across DOC. The Strategic Sourcing Initiative portfolio is managed by the Department’s Enterprise Services-Acquisition contracting activity, to include this new initiative.

The total estimated value of this Award is over a five-year period of performance.

(4) Authority and supporting rationale and demonstration of proposed contractor’s unique qualifications to provide the required supply or service:

This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3), and 40 U.S.C. 501), as implemented by FAR 8.4 and substantiated by the following:

FAR 8.405-6(a)(1)(i)(B) - Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

It is necessary to limit competition described herein to only one source due to the unique nature of ESRI products and services that support DOC’s GIS requirement. ESRI provides ArcGIS software which is a complete mapping and analysis solution. ESRI is the only vendor offering full “end-to-end” support for the software deployment, maintenance, IT professional services, and training for a suite of tools that provides geospatial data storage, transformation, editing, sharing, and development in IT professional software for a distributed network of DOC’s GIS users.

ESRI is renowned for its unparalleled expertise and innovation in GIS technology. Their software solutions are highly specialized, offering unique capabilities not replicated by any other vendor in the market. The proprietary algorithms and methodologies developed by ESRI provide critical functionalities for DOC’s organizational specific needs, which cannot be adequately fulfilled by alternative providers.

DOC has invested significantly in existing GIS infrastructure tailored to ESRI's software ecosystem.

Transitioning to a different vendor would incur substantial costs associated with retraining staff, migrating data, and reconfiguring systems.

ESRI's solutions seamlessly integrate with current workflows, ensuring continuity and efficiency in DOC operations without the disruptions that would arise from adopting alternative platforms.

ESRI has a long-standing reputation for delivering reliable, high-performance software solutions to the DOC. Their track record of success in providing robust GIS technology demonstrates a level of reliability and stability that is crucial for DOC's mission-critical operations.

ESRI offers comprehensive support and maintenance services that are tailored to the specific needs of their clients. This includes timely updates, patches, and technical assistance to ensure optimal performance and security of their software.

By engaging with ESRI as the sole-source provider, DOC can leverage their expertise and resources to address any issues promptly, minimizing downtime and maximizing the return on our investment.

ESRI's software solutions adhere to industry standards and regulatory requirements, ensuring compliance with data protection regulations and security protocols.

Trust and security are paramount considerations for DOC, and ESRI's commitment to maintaining the highest standards of data integrity and confidentiality aligns with DOC’s strategic objectives and risk management policies.

By standardizing on ESRI's platform, DOC can achieve economies of scale, streamline operations, and avoid the hidden costs associated with interoperability issues and vendor lock-in that may arise from using multiple GIS solutions.

In conclusion, the acquisition of ESRI's software solutions through a sole-source procurement is justified based on their unique product offering, proprietary expertise, seamless integration with existing infrastructure, proven reliability, comprehensive support services, regulatory compliance, and long-term cost-effectiveness. By maintaining continuity in use of the ESRI product DOC can enhance capabilities and achieve strategic objectives more efficiently and effectively.

The table below provides a summary of DOC baseline requirements for GIS software and services and a list of alternate GIS products and the extent to which they meet those baseline requirements.

Only the ESRI product line meets all DOC baseline requirements.

Source

Desktop Software to meet a range of data management, geoprocessing, analytical and visualization GIS tasks for both vector and raster data sources

Server software to host, map, image and support geoprocessing services with capabilities equivalent or superior to those found in ESRI's ArcGIS product and able to run on Linux or Windows OS

Basemap software to include streets, political boundaries, oceans, and satellite imagery without advertisemen ts, and must support on average 25+ title requests per day

Online Collabora-tion (SaaS) with FedRAMP certification

Enterprise License Agreement to capitalize on volume discounts

Maintenance and Technical Support of software products

ESRI

Yes. Contains most extensive and comprehensive suite of desktop software and extensions to meet DOC's requirements.

Yes. ArcGIS provides a server side solution that includes secure deployment, mapping, visualization data management, analysis and discovery of data that can be deployed on-prem or in the cloud and integrates with existing security and authentication infrastructure including LDAP, Active Directory, and SAML 2.0 on both Linux and Windows.

Yes.

Unlimited map loads at no cost.

Yes. ArcGIS Online has FedRAMP Low and Moderate Certification.

Yes.

Unlimited Category A software and volume discounts on Categories B and C.

Yes. ESRI as owner and manufacturer are the sole source providers of all U.S.

domestic Enterprise Agreements retaining ownership rights to its maintenance which includes technical support and software fixes, updates and upgrades.

GeoServer

No. Does not provide desktop software.

Yes. Provides free open source server software.

No. Does not provide basemap services.

No. Does not provide SaaS.

No. Does not provide an EA.

No. Does not provide ESRI software maintenance.

Mapbox

No. Does not provide desktop software.

No. Does not provide server software.

Yes, however customers must pay for each map load.

No. Does not provide SaaS.

No. Does not provide an EA.

No. Does not provide ESRI software maintenance.

Google Earth/ Maps

Yes, however does not provide full GIS functionality required.

No. Does not provide server software.

Yes, however customers must pay for each map load.

No. Does not provide SaaS.

Google Maps provides DaaS.

No. Does not provide an EA.

No. Does not provide ESRI software maintenance.

Q-GIS

Yes. Provides open source desktop software.

No. Does not provide server software.

No. Does not provide basemap services.

No. Does not provide SaaS.

No. Does not provide an EA.

No. Does not provide ESRI software maintenance.

AppGeo No. Does not provide desktop software.

No. Does not provide server software.

No. Does not provide basemap services.

No. Does not provide SaaS.

No. Does not provide an EA.

No. Does not provide ESRI software maintenance.

CARTO

No. Does not provide desktop software.

No. Does not provide server software.

No. Does not provide basemap services.

No. Does not provide SaaS.

No. Does not provide an EA.

No. Does not provide ESRI software maintenance.

Geo Cortex

No. Does not provide desktop software.

No. Does not provide server software.

No. Does not provide basemap services.

No. Does not provide SaaS.

No. Does not provide an EA.

No. Does not provide ESRI software maintenance.

Blue Marble

GEO

Yes. Provides desktop software.

No. Does not provide server software.

No. Does not provide basemap services.

No. Does not provide SaaS.

No. Does not provide an EA.

No. Does not provide ESRI software maintenance.

ERG

No. Does not provide desktop software.

No. Does not provide server software.

No. Does not provide basemap services.

No. Does not provide SaaS.

No. Does not provide an EA.

No. Does not provide ESRI software maintenance

(5) A determination that the order represents a best value consistent with FAR 8.404(d):

The Contracting Officer has determined that the BPA prices will be fair and reasonable based on previously negotiated fixed prices and fixed hourly rates for the vendor’s software and services under their GSA MAS Contract that were determined to be fair and reasonable at the time of award. When soliciting for this BPA and subsequent task orders, the Contracting Officer will request additional discounts or price reductions consistent with FAR 8.405-4.

(6) A description of the market research conducted among Schedule holders and the results, or a statement of the reason market research was not conducted:

Market research was conducted through internet searches for GIS solutions and reseller sources including vendor websites, GSA Advantage, NASA SEPV, the FedRamp Market and ESRI’s partner list. Additionally, a Sources Sought was posted on SAM.gov on January 23, 2024 and closed on January 30, 2024. One response received from Environment Research Group, LLC (ERG). ERG capabilities were reviewed and it was determined that ERG is simply an integrator of ESRI products.

In addition, DOC consulted with NOAA, on their market research findings on past procurements for GIS software, including results of requests for information (RFIs) for GIS requirements previously published on SAM.gov. The market research NOAA conducted found that no other vendors were capable of providing full “end-to-end” functionality compared to the existing application and that to migrate to a new GIS solution would be cost prohibitive. Additionally, the market research team’s analysis of alternatives did not yield another GIS software that could meet all requirements without significant re-engineering of current systems and tools, which are currently developed upon ESRI proprietary technology software.

Additionally, although vendors other than ESRI offer certain GIS software products (including resellers of ESRI software) these vendor’s GIS software products focus on limited applications that do not include the specific functionalities required relative to data manipulation and visualization.

In this regard, vendors other than ESRI such as Quantum Geographic Information Systems (Q-GIS) do not offer a full suite of GIS software capabilities such as integration with ArcGIS Online, the Software as a Service ESRI cloud product that holds mission critical base map data, and other ESRI-based created spiral data critical to DOC and its customers, required from the ESRI Category A software.

(7) Any other facts supporting the justification:

ESRI is the OEM that provides ArcGIS proprietary products and services. ESRI provided a Sole Source letter regarding their Enterprise Agreement (EA) which is a bundled package for licensing software, maintenance, and online services for redistribution within the organization. ESRI offers a full “end-to-end” support for the software deployment, maintenance, IT professional services, and training for a suite of tools that provides geospatial data storage, transformation, editing, sharing, and development in IT professional software. ESRI stated that they retain ownership rights to its maintenance which includes technical support and software fixes, updates, and upgrades.

Lastly, ESRI a single software publisher, ensures that functional capabilities are compatible with dependent server operating systems and relational database management software necessary to operate the geospatial components. Further, using multiple software solutions from multiple vendors risks the overall system cybersecurity accreditation due to varying software lifecycle maintenance timelines.

(8) A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services is made:

The agency will continue to intermittently conduct market research for GIS products and services that may meet the requirements, monitor and evaluate new technologies.