USDA awards $1.9M for Atlassian software, with 2 bidders competing for a firm-fixed-price contract

Contract Overview

Contract Amount: $1,898,514 ($1.9M)

Contractor: Kunz Leigh & Associates Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-05-23

End Date: 2027-05-22

Contract Duration: 364 days

Daily Burn Rate: $5.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USDA DIGITAL SERVICES CENTER (DSC) ATLASSIAN SOFTWARE

Place of Performance

Location: LATHRUP VILLAGE, OAKLAND County, MICHIGAN, 48076

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $1.9 million to KUNZ LEIGH & ASSOCIATES INC for work described as: USDA DIGITAL SERVICES CENTER (DSC) ATLASSIAN SOFTWARE Key points: 1. The contract value of $1.9M appears reasonable for specialized software services, pending further benchmarking. 2. Competition was present with two bidders, suggesting some level of market engagement. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. This award falls under Other Computer Related Services, a broad category within IT. 5. The contract duration of one year with a potential for extension warrants monitoring for long-term value. 6. The award was made under the Simplified Acquisition Procedures (SAP), indicating a focus on efficiency for smaller procurements.

Value Assessment

Rating: good

The contract value of approximately $1.9 million for Atlassian software and related services is within a typical range for such specialized IT procurements. Benchmarking against similar contracts for enterprise software licenses and support would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests a clear understanding of scope and cost expectations by both parties, which generally leads to predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for procurements under the simplified acquisition threshold. Two bidders participated in this competition, indicating a moderate level of interest and engagement from the market. While not a large number, the presence of multiple bidders suggests that price discovery occurred, and the government likely received competitive offers.

Taxpayer Impact: The competition level, while not extensive, suggests that taxpayers benefited from a degree of price negotiation and selection from multiple qualified vendors, rather than a sole-source award.

Public Impact

The primary beneficiaries are the USDA's Office of the Chief Financial Officer, who will utilize the Atlassian software for various operational needs. The services delivered include software licensing, maintenance, and potentially support for Atlassian products, crucial for project management and collaboration. The geographic impact is primarily within the USDA's operational footprint, likely supporting federal employees across various locations. Workforce implications include enabling USDA staff with tools for enhanced productivity and project tracking.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Reliance on a single software suite may create vendor lock-in risks.
Ensuring adequate technical expertise within the agency to manage and leverage the software effectively.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Competition, even with two bidders, offers a degree of market validation.
Awarding to a single vendor for software can streamline support and maintenance.

Sector Analysis

The contract falls within the broader Information Technology sector, specifically focusing on software and related services. The market for enterprise collaboration and project management software, such as Atlassian's suite, is robust and competitive, with numerous vendors offering solutions. Spending in this category is consistent with government-wide efforts to modernize IT infrastructure and improve operational efficiency through digital tools. Comparable spending benchmarks would typically look at annual software maintenance and licensing costs for similar-sized government agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award was made to KUNZ LEIGH & ASSOCIATES INC, and further analysis would be needed to determine if they are a small business themselves. The absence of a small business set-aside means opportunities for small business participation are not explicitly mandated within this specific contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the USDA's Office of the Chief Financial Officer. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified software and services. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

USDA IT Modernization Initiatives
Federal Enterprise Software Licensing
Project Management Software Procurement
Digital Services Contracts

Risk Flags

Potential for vendor lock-in with specialized software.
Need for clear scope definition in FFP contracts.
Reliance on contractor's technical expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.9 million to KUNZ LEIGH & ASSOCIATES INC. USDA DIGITAL SERVICES CENTER (DSC) ATLASSIAN SOFTWARE

Who is the contractor on this award?

The obligated recipient is KUNZ LEIGH & ASSOCIATES 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 $1.9 million.

What is the period of performance?

Start: 2026-05-23. End: 2027-05-22.

What is the track record of KUNZ LEIGH & ASSOCIATES INC with federal contracts, particularly for Atlassian software?

A review of federal procurement data indicates that KUNZ LEIGH & ASSOCIATES INC has a history of receiving federal contracts. However, specific details regarding their performance on previous Atlassian software contracts, including the number and value of such awards, would require a deeper dive into contract databases. It is important to assess if they have a proven track record of successful delivery, timely performance, and adherence to contract terms for similar IT services. Past performance evaluations, if available, would provide crucial insights into their reliability and capability to fulfill the current USDA requirement effectively.

How does the awarded price compare to market rates for similar Atlassian software and support services?

To assess the value for money, the awarded price of approximately $1.9 million needs to be benchmarked against prevailing market rates for comparable Atlassian software licenses, maintenance, and support. This involves researching pricing from other government agencies or commercial entities that have recently procured similar solutions. Factors such as the specific Atlassian products, the number of users, the level of support required, and the contract duration all influence pricing. Without direct comparable data, it's challenging to definitively state if the price is optimal, but the presence of competition suggests it is likely within a reasonable range.

What are the key risks associated with this firm-fixed-price contract for Atlassian software?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor may face financial strain if their costs exceed the fixed price, potentially leading to reduced quality or performance if not managed carefully. For the government, the risk lies in ensuring the scope is precisely defined to avoid contractor claims for additional work. In the context of software, risks include potential vendor lock-in if the agency becomes heavily reliant on a specific Atlassian ecosystem, and the need for robust internal IT expertise to manage the software effectively. Ensuring the contractor has the financial stability and technical capability to deliver under the fixed price is crucial.

How effective is the competition level (2 bidders) in ensuring optimal price discovery for taxpayers?

A competition involving two bidders provides a moderate level of price discovery for taxpayers. While it is better than a sole-source award, it may not achieve the same level of aggressive pricing as a procurement with numerous bidders. The government likely received competitive offers, but the potential for even lower prices might have existed with a larger pool of interested vendors. The effectiveness also depends on the qualifications and bidding strategies of the two participants. Further analysis could explore if the limited competition was due to market size, specific technical requirements, or other factors.

What is the historical spending pattern for Atlassian software or similar services within the USDA?

Analyzing historical spending patterns for Atlassian software or comparable project management and collaboration tools within the USDA is essential for context. Understanding previous contract values, durations, and competition levels for similar services can reveal trends in IT investment and procurement strategies. If historical data shows significantly higher or lower spending for comparable needs, it could indicate whether this $1.9 million award represents an increase, decrease, or stable investment. This historical perspective helps in assessing the current contract's financial prudence and alignment with long-term IT budgeting.

What are the implications of the 'Other Computer Related Services' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services beyond custom software development or IT system design. For this contract, it suggests the services procured likely involve a mix of activities such as IT support, network management, data processing, or specialized IT consulting related to the Atlassian software. This broad classification means the specific deliverables should be clearly defined in the contract's statement of work to ensure alignment between the government's needs and the contractor's capabilities, and to avoid ambiguity in performance expectations.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 28081 SOUTHFIELD RD, LATHRUP VILLAGE, MI, 48076

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

Financial Breakdown

Contract Ceiling: $1,898,514

Exercised Options: $1,898,514

Current Obligation: $1,898,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12314424G0058

IDV Type: BOA

Timeline