USDA's $25.3M Totara Cloud Contract for AgLearn LMS Lacks Competition, Raises Cost Concerns

Contract Overview

Contract Amount: $25,265,420 ($25.3M)

Contractor: Totara Learning, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2020-10-01

End Date: 2026-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $12.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TOTARA PLATINUM CLOUD SOFTWARE SUITE FOR AGLEARN LMS HOSTING AND SUPPORT

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80521

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $25.3 million to TOTARA LEARNING, INC. for work described as: TOTARA PLATINUM CLOUD SOFTWARE SUITE FOR AGLEARN LMS HOSTING AND SUPPORT Key points: 1. Significant spending on a single-source software suite for a critical learning management system. 2. Lack of competition suggests potential for inflated pricing and limited innovation. 3. The contract's duration and value warrant close scrutiny for taxpayer value. 4. Sector context indicates a common reliance on proprietary LMS solutions, but competition is key.

Value Assessment

Rating: questionable

The contract's price of $25.3M over approximately 5.5 years for LMS hosting and support appears high given the lack of competitive bidding. Benchmarking against similar government or commercial LMS contracts would be necessary to definitively assess value, but the sole-source nature raises red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and negotiation leverage, potentially leading to higher costs for the government compared to a competitive procurement process.

Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for this software suite, as there was no market pressure to drive down costs.

Public Impact

Farmers and agricultural professionals rely on AgLearn for essential training and resources. The continuity of this platform is crucial for USDA's operational effectiveness. Potential cost overruns could divert funds from other vital agricultural programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Long contract duration
Lack of demonstrated competition

Positive Signals

Provides essential training platform
Firm fixed price contract type

Sector Analysis

The IT sector, particularly software licensing and cloud services, often sees significant government spending. Benchmarks for LMS solutions vary widely based on features, user count, and support levels. However, the $25.3M price tag for a sole-source acquisition warrants careful review against industry standards.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract. Future procurements should explore opportunities for small business participation, especially in areas like cloud support or complementary services.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the government is receiving fair value and that the vendor is meeting all contractual obligations. Regular performance reviews and cost analysis are critical.

Related Government Programs

Software Publishers
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Lack of competition
Potential for overpricing
Long-term vendor dependency
Limited innovation opportunities
High contract value

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $25.3 million to TOTARA LEARNING, INC.. TOTARA PLATINUM CLOUD SOFTWARE SUITE FOR AGLEARN LMS HOSTING AND SUPPORT

Who is the contractor on this award?

The obligated recipient is TOTARA LEARNING, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2020-10-01. End: 2026-03-31.

What was the justification for awarding this contract sole-source, and were alternative solutions or competitive approaches considered?

The justification for a sole-source award is critical for understanding the procurement's integrity. Agencies typically must demonstrate that only one responsible source can provide the required supplies or services. Without this justification, it's difficult to assess if the government missed opportunities for better pricing or innovative solutions through competition.

How does the per-unit cost or total cost compare to similar government or commercial LMS platforms, considering the features and user base?

A comprehensive cost-benefit analysis is needed. Comparing the $25.3M expenditure against the number of users and the specific functionalities offered by Totara Platinum Cloud is essential. Benchmarking against other government-wide contracts (GWACs) or commercial off-the-shelf (COTS) LMS solutions could reveal significant cost discrepancies, highlighting potential overspending.

What are the risks associated with vendor lock-in and the long-term sustainability of this sole-source solution for the USDA?

Vendor lock-in is a significant risk with sole-source contracts, potentially limiting future flexibility and increasing long-term costs. If Totara Learning, Inc. is the only provider, the USDA may face challenges if the vendor increases prices significantly or if their technology becomes outdated. Transitioning away could also be costly and disruptive.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1011591

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1900 S HARBOR CITY BLVD STE 328, MELBOURNE, FL, 32901

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $26,182,510

Exercised Options: $26,182,510

Current Obligation: $25,265,420

Actual Outlays: $25,082,002

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline