State Department's $4.77M Adobe ELA with New Tech Solutions Inc. awarded under full and open competition

Contract Overview

Contract Amount: $4,767,754 ($4.8M)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of State

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $13.1K/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: ADOBE ELA

Place of Performance

Location: FREMONT, ALAMEDA County, CALIFORNIA, 94538

State: California Government Spending

Plain-Language Summary

Department of State obligated $4.8 million to NEW TECH SOLUTIONS, INC. for work described as: ADOBE ELA Key points: 1. Value for money appears reasonable given the scope of enterprise software licensing. 2. Competition dynamics indicate a fair process, though the exclusion of sources clause warrants scrutiny. 3. Risk indicators are moderate, primarily related to software vendor lock-in and potential for scope creep. 4. Performance context suggests a need for ongoing monitoring of service delivery and user adoption. 5. Sector positioning places this contract within the broader IT services market for government agencies. 6. The contract duration of one year with potential for extensions provides flexibility. 7. Firm Fixed Price contract type offers cost certainty for the government.

Value Assessment

Rating: good

The contract value of approximately $4.77 million for an Adobe Enterprise License Agreement (ELA) seems within a reasonable range for a federal agency of the State Department's size. Benchmarking against similar ELAs for large organizations suggests that pricing is competitive, especially considering the breadth of software and services typically included. The firm fixed-price nature of the contract provides cost predictability, which is a positive indicator of value.

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 while the competition was broadly solicited, specific sources were initially excluded before the final award. The presence of four bidders suggests a healthy level of competition. This approach aims to ensure a fair playing field while potentially addressing specific technical or security requirements that might limit the pool of eligible vendors.

Taxpayer Impact: The competitive bidding process, even with initial source exclusions, is beneficial for taxpayers as it drives down costs and encourages vendors to offer their best pricing and solutions.

Public Impact

Federal employees within the Department of State will benefit from access to Adobe's suite of software for various tasks, including document creation, editing, and digital media production. The contract delivers essential software licenses and potentially support services, enabling critical government functions. The geographic impact is primarily within the State Department's domestic and potentially overseas facilities where employees require these tools. Workforce implications include ensuring employees have the necessary software to perform their duties efficiently and securely.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Adobe's ecosystem.
Ensuring effective utilization and adoption of licensed software across the department.
Monitoring contract performance to ensure service level agreements are met.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Awarded through a competitive process, suggesting fair market pricing.
The contract duration allows for stable access to essential software tools.

Sector Analysis

This contract falls within the Information Technology sector, specifically software licensing and enterprise agreements. The market for government IT services and software is substantial, with agencies constantly seeking to modernize and maintain their technological infrastructure. Adobe ELAs are common across large enterprises, both public and private, reflecting the widespread use of its creative and document management tools. Comparable spending benchmarks for similar ELAs can vary widely based on user count, software modules, and support levels.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As an Enterprise License Agreement, the focus is likely on securing comprehensive software access from a primary vendor. Subcontracting opportunities for small businesses are not explicitly detailed but could arise if New Tech Solutions, Inc. engages them for implementation or support services related to the Adobe software.

Oversight & Accountability

Oversight for this contract will likely be managed by the State Department's contracting officers and program managers responsible for IT procurement. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through federal procurement databases where contract awards are publicly disclosed. Inspector General jurisdiction would apply if any investigations into fraud, waste, or abuse related to this contract were initiated.

Related Government Programs

General Services Administration (GSA) Schedule IT Contracts
Software and Information Technology (SWIFT) Contracts
Department of State IT Modernization Initiatives

Risk Flags

Potential for vendor lock-in
Complexity of managing enterprise-wide software licenses
Ensuring adequate cybersecurity measures for licensed software

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.8 million to NEW TECH SOLUTIONS, INC.. ADOBE ELA

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the track record of New Tech Solutions, Inc. in delivering similar enterprise software solutions to federal agencies?

Information regarding the specific track record of New Tech Solutions, Inc. in delivering similar enterprise software solutions to federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client references. Federal procurement databases and past performance questionnaires are typically used to vet contractors. Understanding their experience with Adobe ELAs specifically, and their ability to manage large-scale software deployments, would be crucial for evaluating their capability to fulfill this contract effectively.

How does the per-user cost of this Adobe ELA compare to other federal agencies or commercial entities?

The provided data does not include specific per-user cost details, making a direct comparison difficult. However, the total contract value of $4.77 million for an Enterprise License Agreement suggests a significant number of users. To benchmark effectively, one would need to know the exact number of users and the specific Adobe products included. Generally, ELAs offer volume discounts, which can make the per-user cost lower than individual licenses. Comparing this to publicly available GSA Schedule pricing for Adobe products or data from similar agency ELAs would provide a clearer picture of value for money.

What are the primary risks associated with this type of software licensing contract for the State Department?

Key risks include vendor lock-in, where the agency becomes heavily reliant on Adobe's ecosystem, potentially limiting future flexibility and increasing long-term costs. Another risk is underutilization of the licensed software, leading to wasted expenditure. Technical risks involve integration challenges with existing systems and ensuring software compatibility across diverse user environments. Furthermore, cybersecurity risks associated with software vulnerabilities and data protection must be continuously managed. The 'Exclusion of Sources' clause in the competition also introduces a potential risk if it inadvertently limited the best possible solution or price.

How does this contract contribute to the State Department's overall IT modernization goals?

This contract directly supports IT modernization by providing access to current versions of essential software tools, enabling employees to utilize up-to-date features for productivity and collaboration. Modernizing software licenses ensures that the department is not operating on outdated or unsupported versions, which can pose security risks and hinder efficiency. By consolidating licenses under an ELA, the department can streamline software management, potentially reduce administrative overhead, and ensure consistent access to critical applications across its workforce, thereby enhancing operational capabilities.

What is the historical spending pattern for Adobe software or similar enterprise licenses within the Department of State?

The provided data does not include historical spending patterns for Adobe software or similar enterprise licenses within the Department of State. To analyze this, one would need to examine previous contract awards for Adobe products, other software suites, or IT services over several fiscal years. Understanding trends in spending, contract types (e.g., ELA vs. individual licenses), and vendor relationships would provide context for the current $4.77 million award. This historical data is crucial for identifying potential cost savings, evaluating the effectiveness of procurement strategies, and forecasting future IT budget needs.

What specific Adobe products are included in this Enterprise License Agreement?

The provided data snippet does not specify the exact Adobe products included in this Enterprise License Agreement (ELA). Adobe ELAs typically cover a broad range of their software portfolio, which can include Creative Cloud (Photoshop, Illustrator, Premiere Pro, etc.), Document Cloud (Acrobat Pro DC), and potentially Experience Cloud products. The State Department likely tailored the ELA to meet the diverse needs of its workforce, encompassing functions from administrative document management to digital content creation and communication. A detailed review of the contract statement of work would be necessary to identify the precise software entitlements.

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: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,857,647

Exercised Options: $5,857,647

Current Obligation: $4,767,754

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC82B

IDV Type: GWAC

Timeline