USDA awards $2.4M for Autodesk licenses, with 4 bidders competing for a firm-fixed-price contract

Contract Overview

Contract Amount: $2,397,254 ($2.4M)

Contractor: Four LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-07-15

End Date: 2025-06-14

Contract Duration: 1,065 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 22IT54-CIO-001 AUTODESK LICENSES FOR USDA

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.4 million to FOUR LLC for work described as: 22IT54-CIO-001 AUTODESK LICENSES FOR USDA Key points: 1. The contract value represents a moderate investment in essential software for the agency. 2. A competitive bidding process suggests potential for reasonable pricing, though specific benchmarks are needed. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. This software acquisition supports ongoing IT operations within the Department of Agriculture. 5. The contract duration of over two years allows for sustained access to critical tools.

Value Assessment

Rating: good

The contract value of approximately $2.4 million for Autodesk licenses appears reasonable given the duration and the nature of software procurement. Benchmarking against similar government-wide agreements or commercial price lists for Autodesk products would provide a more precise assessment of value. The firm-fixed-price structure is generally favorable for the government when scope is well-defined, as it caps the government's financial exposure. However, without detailed usage metrics or comparison to alternative software solutions, a definitive value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the agency initially considered excluding certain sources but ultimately opened the competition. With four bidders participating, the level of competition appears adequate, suggesting that multiple vendors had the opportunity to propose their best pricing and technical solutions. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The presence of four bidders suggests that taxpayers benefit from a more competitive pricing environment, potentially leading to cost savings compared to a sole-source or limited competition scenario.

Public Impact

Federal employees within the Department of Agriculture will benefit from access to essential design and engineering software. The services delivered include the provision of software licenses, ensuring operational continuity for IT-dependent functions. The geographic impact is primarily within the agency's operational locations across the United States. Workforce implications include enabling employees to perform design, modeling, and documentation tasks efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative software solutions are not explored in future procurements.
Reliance on a single software suite may limit flexibility if agency needs evolve significantly.

Positive Signals

Competitive bidding process helps ensure fair market pricing.
Firm-fixed-price contract provides cost certainty for the agency.
Adequate duration allows for stable access to necessary tools.

Sector Analysis

The market for design and engineering software, including products like Autodesk, is a significant segment within the broader IT sector. Government agencies are major consumers of such software for various functions, from infrastructure design to data visualization. Spending benchmarks for software licenses can vary widely based on the specific products, user counts, and licensing models. This contract fits within the category of IT software procurement, supporting the agency's operational needs.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting plans. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the presence of four bidders suggests that both large and small businesses may have had the opportunity to compete, depending on their qualifications and the specific solicitation requirements.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm-fixed-price contract type provides a degree of accountability by fixing the cost. Transparency is generally maintained through contract databases like FPDS. The Department of Agriculture's Office of Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

General Services Administration (GSA) Schedule IT contracts
Software and Information Technology (SWIFT) Enterprise contracts
Department of Defense (DoD) Enterprise Software Agreements

Risk Flags

Potential for price creep if usage increases significantly beyond initial estimates.
Reliance on a single vendor's software ecosystem may limit future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.4 million to FOUR LLC. 22IT54-CIO-001 AUTODESK LICENSES FOR USDA

Who is the contractor on this award?

The obligated recipient is FOUR 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 $2.4 million.

What is the period of performance?

Start: 2022-07-15. End: 2025-06-14.

What is the historical spending pattern for Autodesk licenses at the Department of Agriculture?

Analyzing historical spending data for Autodesk licenses at the Department of Agriculture (USDA) is crucial for understanding trends and identifying potential cost efficiencies. Without access to specific historical contract data for USDA's Autodesk procurements, a precise analysis is not possible. However, generally, federal agencies procure software licenses through various channels, including GSA Schedules, direct solicitations, or enterprise agreements. Spending can fluctuate based on agency-wide software refresh cycles, new project requirements, and changes in licensing models (e.g., perpetual vs. subscription). A review of past contracts would reveal the frequency of renewals, average contract values, and the number of bidders over time, providing context for the current $2.4 million award.

How does the per-unit cost of these Autodesk licenses compare to commercial market rates or other federal agencies?

Benchmarking the per-unit cost of these Autodesk licenses against commercial market rates and other federal agencies is essential for assessing value for money. The provided data does not include the number of licenses or the specific Autodesk products procured, making a direct per-unit cost calculation impossible. However, the 'full and open competition after exclusion of sources' with four bidders suggests a competitive pricing environment. To perform a robust comparison, one would need to identify the specific Autodesk software suite (e.g., AutoCAD, Revit, Maya), the number of user licenses (named or concurrent), and the contract type (e.g., subscription, perpetual). Comparing these details to publicly available commercial price lists or data from similar federal procurements (e.g., through GSA Advantage or FPDS reports) would reveal if the USDA secured favorable pricing.

What is the track record of FOUR LLC as a federal contractor, particularly in software licensing?

Evaluating the track record of FOUR LLC as a federal contractor is important for assessing performance risk. The provided data indicates FOUR LLC is the awardee for this $2.4 million Autodesk license contract. To assess their track record, one would need to examine their past performance on federal contracts, specifically looking for experience with software licensing, IT services, and similar contract values. A review of the Federal Procurement Data System (FPDS) or other contract databases would reveal the number of previous contracts awarded to FOUR LLC, their performance ratings (if available), any past performance issues or disputes, and their success rate in competitive bidding. A history of successful, on-time, and within-budget contract completions would indicate a lower performance risk.

What are the specific risks associated with this firm-fixed-price contract for Autodesk licenses?

Firm-fixed-price (FFP) contracts, while offering cost certainty, do carry specific risks, particularly for software licensing. One primary risk is that if the scope of work or the number of licenses required changes significantly after the contract award, the government may need to issue modifications, potentially at a higher cost if not managed carefully. Another risk is that the contractor, FOUR LLC, might prioritize cost-saving measures that could impact the quality or timeliness of support or delivery, although this is less common with established software vendors. For the government, the risk lies in potentially overpaying if the initial price was not adequately benchmarked against market rates, or if the agency's actual usage is lower than anticipated. Ensuring clear contract terms regarding license management, support levels, and upgrade rights is crucial to mitigate these risks.

How does this contract align with the Department of Agriculture's overall IT modernization or digital transformation goals?

The procurement of Autodesk licenses, valued at $2.4 million over approximately two years, likely supports the Department of Agriculture's (USDA) ongoing IT operations and potentially contributes to modernization efforts. Autodesk software is widely used in design, engineering, and data management, which are critical functions for various USDA missions, such as infrastructure planning, land management, and agricultural research. To assess alignment with IT modernization goals, one would need to understand the specific applications of these licenses within USDA. If the software is being used for new digital workflows, enhancing data visualization capabilities, or enabling more efficient design processes for agency projects, it directly supports modernization. Conversely, if it's merely a routine renewal for legacy systems without strategic application, its contribution to modernization might be limited. Further insight into USDA's IT strategic plan would clarify this alignment.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2303 DULLES STATION BLVD STE 105, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,397,254

Exercised Options: $2,397,254

Current Obligation: $2,397,254

Actual Outlays: $2,397,254

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC73B

IDV Type: GWAC

Timeline