ITC Continues to Lead Innovation – Geospatial Software Contracts Reach New Heights

Posted by Mary Davie
on December 5, 2016

Geospatial Software Success with Esri

As I’ve mentioned on several occasions ‒ as part of GSA’s role in implementing the Federal IT Acquisition Reform Act (FITARA) ‒ we’re incorporating cutting-edge, new, and innovative IT ideas and solutions into our programs, contracts and processes. We’re also expanding our work in information technology (IT) Category Management.

Last year the Enterprise Software Category Team worked with Environmental Systems Research Institute (Esri) to modify Esri’s GSA Schedule 70 terms and conditions for geospatial software Enterprise License Agreements (ELAs), resulting in improved efficiency, pricing, terms and conditions, and transparency

Modifying Esri’s IT Schedule 70 contract for single license agreements to a “FITARA ELA” was smart and prudent. In fact, the solution started recognizing savings immediately. Esri captures $74 million of the government-wide $294 million annual spend on geospatial software licenses.

Beyond the benefits to agencies utilizing ELAs, federal agencies currently use the standard license agreement (SLAs) receive a 10% discount; approximately $2 million in savings during fiscal 2016. They can see even greater savings by converting to the FITARA ELA.

Saving More with the GSA FITARA ELA

FITARA, passed by Congress in December 2014 and implemented at the beginning of 2015, helps government agencies optimize the cost of IT ownership through better management. Our FITARA solution provides government-wide savings based on the aggregate purchase for all federal agencies. This solution also affords large-volume discounts for agencies, regardless of the number of licenses. For instance, a small department needing only a few licenses can take advantage of the same discounts as a larger organization requiring more software.

By cost savings alone, the new government-wide FITARA ELA will potentially save American taxpayers millions of dollars. Moreover, the FITARA ELA not only saves millions of dollars, but it also:

  • Improves efficiencies by eliminating the need for separate negotiations;
  • Reduces administrative costs by implementing a single set of terms & conditions across government;
  • Offers tiered discounts by leveraging the buying power of the federal government;
  • Benefits from increased price transparency; and
  • Provides government agencies access to the agreement, as well as software management best practices in the software hallway on the Acquisition Gateway.

Non-ELA agencies that move to an Esri FITARA ELA save, on average, 50% by signing a FITARA ELA with Esri.

Existing ELA agencies can switch to an Esri FITARA ELA by processing just an administrative modification ‒ one more paragraph added to your existing ELA contract. There is no need to recompete; the turnaround process averages about 24 hours. These agencies will receive at least an additional 3% in savings on ELA payments starting January 2017, due to more than $30 million spent through current licensing agreements sales and based on tiered discounts (3% savings for $30 million threshold).

Agencies already completing the switch to Esri FITARA ELAs include:

  • Department of Agriculture
  • Department of the Air Force (Civil Engineer)
  • Department of Homeland Security
  • Department of Interior
  • Department of Transportation (Federal Aviation Administration)
  • Environmental Protection Agency
  • U.S. National Guard (Army/Air Guard)
  • Army Corps of Engineers
  • National Oceanic and Atmospheric Administration

Based upon how agencies buy between single and enterprise license agreements by the end of the fiscal year, we’re expecting a 5-6% overall savings when agencies fully roll onto the Esri IT Schedule 70 contract.

Benefits to the Government

We continue to look for opportunities to partner with our suppliers on targeted agreements and bring more savings to government agencies. What is more, the government benefits through reduced duplicative contracts, allowing our industry partners to bring innovation to the federal marketplace faster and change the government discussion from procuring technology to transforming enterprises.

We appreciate Esri being the first to offer a government-wide ELA, giving government agencies the opportunity to benefit from this partnership. Through the FITARA ELA, federal agencies:

  • Save on future products. New products that are released will automatically be available at no additional charge.
  • Tap into different training venues at no additional cost.
  • Stay up-to-speed on current technology and get exposure to best-in-class solutions.
  • In the event of a disaster, receive disaster support around the clock.

Stay tuned as we will be announcing another FITARA based ELA very soon!

For more information visit us on the Acquisition Gateway.

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