Agriculture Dept Awards $5.68M for Totara LMS, Sole Source Contract

Contract Overview

Contract Amount: $5,683,560 ($5.7M)

Contractor: Totara Learning, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TOTARA LEARNING MANAGEMENT SYSTEM FOR AGLEARN

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64114

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.7 million to TOTARA LEARNING, INC. for work described as: TOTARA LEARNING MANAGEMENT SYSTEM FOR AGLEARN Key points: 1. Significant investment in learning management system technology. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration of 364 days with a firm fixed price. 4. Focus on software publishers sector for IT infrastructure.

Value Assessment

Rating: questionable

The contract value of $5.68M for a 364-day duration for a learning management system appears high without competitive benchmarking. The lack of competition makes it difficult to assess if this price is fair and reasonable compared to market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating no other vendors were considered. This limits price discovery and may prevent the government from obtaining the best possible value through competitive bidding.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be benefiting from the cost efficiencies that competition typically drives.

Public Impact

Federal employees will utilize the Totara LMS for training and development. Potential for enhanced workforce skills and knowledge management within the USDA. The specific functionalities and benefits for the agency are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competitive bidding
High contract value for duration

Positive Signals

Addresses agency need for learning management system
Firm fixed price contract

Sector Analysis

The Department of Agriculture's investment in a learning management system falls within the broader IT sector, specifically software publishers. Benchmarking against similar government LMS contracts is crucial, especially given the sole-source nature of this award.

Small Business Impact

The contract was awarded to Totara Learning, Inc., a single entity. There is no indication that small businesses were involved in the procurement process or will benefit from subcontracting opportunities.

Oversight & Accountability

Oversight is needed to ensure the agency effectively utilizes the Totara LMS and that the sole-source justification remains valid. Future procurements should explore competitive options to ensure best value.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for overpayment due to lack of competitive pricing.
Contract duration is close to one year, requiring re-evaluation soon.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.7 million to TOTARA LEARNING, INC.. TOTARA LEARNING MANAGEMENT SYSTEM FOR AGLEARN

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 $5.7 million.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The provided data indicates a sole-source award, meaning competition was not sought. A thorough review of the justification for this approach is essential. Agencies typically sole-source when only one vendor can meet specific, unique requirements, or in emergency situations. Without this justification, it's difficult to assess if the government is receiving fair value or if competitive options were overlooked.

How does the per-unit cost or user cost of this Totara LMS contract compare to industry benchmarks for similar government or commercial solutions?

Benchmarking the per-unit or per-user cost is critical for assessing value, especially in sole-source awards. Without access to specific user counts or feature tiers, a direct comparison is challenging. However, the total contract value of $5.68M for a 364-day term suggests a potentially high cost per user, warranting further investigation against market rates for comparable LMS platforms.

What specific performance metrics or KPIs will be used to measure the effectiveness and value of the Totara LMS for the Office of the Chief Financial Officer?

The effectiveness of the Totara LMS hinges on clearly defined performance metrics. While the contract is for a learning management system, specific KPIs related to employee training completion rates, skill development, knowledge retention, and overall impact on financial operations efficiency are not detailed. Establishing and tracking these metrics is vital for demonstrating return on investment.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 473 PEREGRINE DR, INDIALANTIC, FL, 32903

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,101,915

Exercised Options: $5,683,560

Current Obligation: $5,683,560

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline