Agriculture awards $20.4M for Adobe PDF Editor software, raising questions about competition and value

Contract Overview

Contract Amount: $20,435,417 ($20.4M)

Contractor: Wolftek Mission Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-09-30

End Date: 2025-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $18.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ADOBE PDF EDITOR AND RELATED SOFTWARE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $20.4 million to WOLFTEK MISSION GROUP, LLC for work described as: ADOBE PDF EDITOR AND RELATED SOFTWARE Key points: 1. The contract's value appears high for software licensing, necessitating a benchmark against similar procurements. 2. Limited competition raises concerns about potential overpayment and reduced incentive for cost-efficiency. 3. The fixed-price contract structure shifts risk to the government, requiring careful monitoring of performance. 4. This procurement is positioned within the broader IT services sector, specifically software licensing and support. 5. The sole-source nature of this award warrants scrutiny regarding the justification for not seeking broader competition.

Value Assessment

Rating: questionable

The $20.4 million award for Adobe PDF Editor and related software over three years appears substantial. Without specific details on the scope of licenses, user count, and included support services, it is difficult to benchmark against similar contracts. The 'NOT AVAILABLE FOR COMPETITION' status suggests a lack of competitive bidding, which often leads to higher prices than if multiple vendors had vied for the contract. Further analysis would require comparing the per-user cost or feature set to industry standards and other government software agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means that only one vendor, Wolftek Mission Group, LLC, was solicited. The justification for this approach is not provided in the data, but it typically arises when a product is proprietary, a critical upgrade is needed, or there are unique circumstances. The lack of competition means there was no price discovery through bidding, potentially leading to a less favorable price for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through competitive negotiation, potentially resulting in higher costs for taxpayers.

Public Impact

Federal employees across the Department of Agriculture will benefit from access to essential PDF editing software. The contract ensures the continued availability of critical software for document management and workflow efficiency. The primary geographic impact is within the District of Columbia, where the Office of the Chief Financial Officer is located. The procurement supports the IT infrastructure and operational capabilities of the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source justification needs thorough review to ensure necessity.
Contract duration of three years without competitive re-evaluation could lock in suboptimal terms.
Reliance on a single vendor for critical software poses a potential supply chain risk.

Positive Signals

Ensures continuity of essential software for agency operations.
Firm fixed-price contract provides cost certainty for the government.
Award to Wolftek Mission Group, LLC, supports a specific contractor.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software licensing and support services. The market for enterprise software, including document management tools like Adobe PDF Editor, is substantial, with numerous vendors offering competing solutions. Government agencies often procure such software through various contract vehicles, including GSA schedules or direct solicitations. The benchmark for this type of spending would involve comparing the per-user cost and bundled services against enterprise agreements from Adobe or its authorized resellers, as well as against similar software solutions from competitors.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The award to Wolftek Mission Group, LLC, does not provide information on whether they are a small or large business, nor does it detail any subcontracting plans. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Office of the Chief Financial Officer and its contracting officers. Transparency is limited due to the sole-source nature and lack of publicly available justification. Accountability measures would be tied to the performance of Wolftek Mission Group, LLC, against the terms of the firm fixed-price contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Adobe Acrobat Software Licensing
Enterprise Software Procurement
IT Services Contracts
Department of Agriculture IT Spending
Sole-Source IT Procurements

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Scope of 'related software' is undefined, hindering value assessment.
Contractor's specific experience with Adobe software is not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.4 million to WOLFTEK MISSION GROUP, LLC. ADOBE PDF EDITOR AND RELATED SOFTWARE

Who is the contractor on this award?

The obligated recipient is WOLFTEK MISSION GROUP, LLC.

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 $20.4 million.

What is the period of performance?

Start: 2022-09-30. End: 2025-09-29.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. However, the specific justification for this determination is not included. Typically, sole-source procurements are justified when a product is uniquely available from a single source (e.g., proprietary software), when there's an urgent and compelling need that cannot be met by other sources, or when only one source is capable of meeting the requirement. Without the official justification document, it's impossible to verify the validity of the sole-source determination and assess if it was appropriate or if alternative solutions were adequately explored.

How does the per-unit cost of this Adobe PDF Editor software compare to market rates or other federal contracts?

The total contract value is $20.4 million over three years. To assess the per-unit cost, we would need to know the number of licenses or users covered by this contract. Assuming a large enterprise deployment, the average annual cost per user would be significant. Benchmarking against Adobe's commercial enterprise pricing or other federal contracts for similar software suites is crucial. For instance, if this contract covers 10,000 users, the annual cost per user would be approximately $681 ($20.4M / 3 years / 10,000 users). This figure needs to be compared against negotiated government-wide agreements or commercial enterprise licenses to determine if it represents good value for money.

What are the specific 'related software' components included in this $20.4 million award?

The contract description 'ADOBE PDF EDITOR AND RELATED SOFTWARE' is broad. The 'related software' could encompass various Adobe products such as Adobe Acrobat Pro DC, Adobe Sign for digital workflows, or other document management and creation tools. Understanding the exact suite of software and the number of licenses for each component is essential for a comprehensive value assessment. Without this detail, it's difficult to ascertain if the $20.4 million is solely for PDF editing capabilities or includes a broader, potentially more justifiable, software package.

What is Wolftek Mission Group, LLC's track record with providing Adobe software or similar IT services to the federal government?

Information regarding Wolftek Mission Group, LLC's specific track record with Adobe software or similar IT services to the federal government is not detailed in the provided data. A thorough assessment would require examining past performance evaluations, contract history, and any relevant certifications or partnerships the company holds with Adobe or other software vendors. Understanding their experience in delivering and supporting enterprise software solutions is critical to evaluating the risk associated with this significant award.

What is the historical spending pattern for Adobe PDF Editor software within the Department of Agriculture?

The provided data focuses on a single, recent contract award. To understand historical spending patterns, one would need to analyze procurement data for the Department of Agriculture over several previous fiscal years. This would involve searching for previous contracts related to Adobe PDF Editor or similar document management software, noting the award amounts, contract types, and competition levels. Such an analysis would reveal whether this $20.4 million award represents an increase, decrease, or consistent level of spending for this type of software.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13900 LINCOLN PARK DR, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,143,995

Exercised Options: $20,435,417

Current Obligation: $20,435,417

Actual Outlays: $20,435,417

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline