Treasury's OCC renews Adobe licenses for $2.79M, highlighting ongoing software needs

Contract Overview

Contract Amount: $2,792,029 ($2.8M)

Contractor: Bahfed Corp

Awarding Agency: Department of the Treasury

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ADOBE ENTERPRISE PRODUCTS, LICENSES AND MAINTENANCE RENEWAL

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.8 million to BAHFED CORP for work described as: ADOBE ENTERPRISE PRODUCTS, LICENSES AND MAINTENANCE RENEWAL Key points: 1. Value for money hinges on comparing this renewal price to market rates for similar enterprise software agreements. 2. Competition dynamics show a full and open competition after exclusion of sources, suggesting a deliberate process to ensure fair pricing. 3. Risk indicators include potential vendor lock-in and the need for continuous monitoring of software usage and licensing compliance. 4. Performance context is tied to the uninterrupted delivery of essential digital services reliant on Adobe products. 5. Sector positioning places this contract within the broader IT services market, specifically software licensing and maintenance.

Value Assessment

Rating: good

The contract value of $2.79 million for a two-year renewal of Adobe enterprise products, licenses, and maintenance appears reasonable given the scope of enterprise-level software. Benchmarking against similar government-wide enterprise license agreements (GWELA) or large-scale commercial renewals would provide a clearer picture of value. Without specific details on the exact Adobe products and user counts, a precise per-unit cost comparison is difficult, but the overall expenditure aligns with typical costs for comprehensive software suites in large organizations.

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.' This indicates that while the initial solicitation might have had some exclusions, the final award was made through a competitive process open to all eligible offerors. The fact that it was competed suggests that multiple vendors had the opportunity to bid, which is generally conducive to achieving competitive pricing and ensuring the government receives the best value.

Taxpayer Impact: A competitive process, even with prior exclusions, helps ensure that taxpayer dollars are not unnecessarily inflated due to a lack of market pressure. It provides a mechanism for price discovery and encourages vendors to offer their most competitive terms.

Public Impact

The primary beneficiaries are the employees of the Office of the Comptroller of the Currency (OCC) who rely on Adobe software for daily operations. Services delivered include access to essential Adobe enterprise products, licenses, and ongoing maintenance and support. The geographic impact is concentrated in the District of Columbia, where the OCC is headquartered. Workforce implications involve ensuring that the OCC's staff has the necessary tools to perform their financial oversight and regulatory functions effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future renewals if competition diminishes.
Reliance on a single vendor for critical software can create dependencies.
Ensuring full utilization of licensed software to avoid overspending.

Positive Signals

Awarded through a competitive process, indicating efforts to secure fair pricing.
Includes maintenance and support, ensuring operational continuity.
Long-term renewal suggests a stable and predictable software environment for users.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and maintenance. The market for enterprise software, particularly from major vendors like Adobe, is characterized by high demand from government agencies and large corporations. Spending benchmarks for similar enterprise software renewals can vary significantly based on the specific products, number of users, and contract terms, but agencies often seek to consolidate licenses through enterprise agreements to achieve economies of scale and streamline procurement.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a renewal of enterprise software licenses, it is likely that the primary awardee is a large software vendor or a prime contractor holding a significant enterprise agreement. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this renewal, particularly for support or implementation services.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Office of the Comptroller of the Currency. Accountability measures are embedded in the contract terms, including delivery schedules and service level agreements for maintenance and support. Transparency is facilitated through contract award databases, although detailed usage reports and internal justifications for the renewal may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

General Services Administration (GSA) Schedules
Enterprise Software Licensing Agreements
IT Modernization Initiatives
Digital Transformation Programs

Risk Flags

Potential for price creep in future renewals.
Dependency on a single vendor for critical software.
Need to ensure full utilization of licenses.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.8 million to BAHFED CORP. ADOBE ENTERPRISE PRODUCTS, LICENSES AND MAINTENANCE RENEWAL

Who is the contractor on this award?

The obligated recipient is BAHFED CORP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What specific Adobe products and user counts are covered under this $2.79 million renewal?

The provided data does not specify the exact Adobe products (e.g., Creative Cloud, Document Cloud, Experience Cloud) or the number of user licenses included in this $2.79 million renewal. This information is crucial for a detailed value assessment. Enterprise agreements often cover a broad suite of products for a defined user base. Without this granularity, it's challenging to benchmark per-unit costs accurately or assess if the agency is licensing only what is needed. Future analysis should seek to obtain a breakdown of products and user counts to ensure optimal resource allocation and cost-effectiveness.

How does the pricing of this renewal compare to previous Adobe contracts awarded by the OCC or similar agencies?

Comparing the pricing of this $2.79 million renewal to previous contracts is essential for identifying potential cost escalations or savings. The data indicates a renewal, suggesting a continuation of services. To assess value, one would need to analyze the year-over-year price changes, considering factors like inflation, increased user counts, or expanded product offerings. Benchmarking against similar enterprise software renewals from agencies of comparable size and IT needs would also provide valuable context. A significant deviation from historical pricing or market benchmarks could signal a need for renegotiation or a deeper dive into the procurement process.

What is the track record of BAHFED CORP as a contractor for the Department of the Treasury, specifically the OCC?

The provided data lists BAHFED CORP as the contractor. To assess their track record, one would need to examine their past performance on federal contracts, particularly with the Department of the Treasury and the Office of the Comptroller of the Currency. This includes reviewing past performance evaluations, on-time delivery rates, adherence to contract terms, and any history of disputes or contract terminations. A strong performance history suggests reliability and competence, while a pattern of issues might indicate higher risk for this renewal. Information on their specific experience with Adobe enterprise products would also be relevant.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with the maintenance and support included in this contract?

The contract includes maintenance and support for Adobe enterprise products, but the specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are not detailed in the provided summary. Typically, such agreements would outline response times for technical support, resolution times for issues, uptime guarantees for cloud-based services, and procedures for software updates and patches. Robust SLAs are critical for ensuring the continuity and reliability of essential IT services. The effectiveness of the oversight mechanism would involve monitoring BAHFED CORP's adherence to these KPIs and SLAs throughout the contract period.

What is the historical spending trend for Adobe products and similar software licenses at the OCC?

The provided data represents a single contract action for a renewal. To understand the historical spending trend for Adobe products at the OCC, one would need to aggregate data from multiple contract awards over several fiscal years. This would involve searching contract databases for all previous awards related to Adobe software, licenses, and maintenance, not just those awarded to BAHFED CORP. Analyzing this trend would reveal whether spending on these products has been increasing, decreasing, or remaining stable, and whether this renewal represents a significant change in the agency's investment in Adobe solutions.

Are there any alternative software solutions that were considered or could be considered in the future to reduce reliance on Adobe?

The data does not indicate whether alternative software solutions were considered prior to this renewal. However, given the nature of enterprise software and potential vendor lock-in, it is a prudent question for federal agencies to ask. Exploring alternative solutions, even if not immediately adopted, can inform future procurement strategies and potentially lead to cost savings or better functionality. The 'Full and Open Competition After Exclusion of Sources' suggests a competitive process for this specific award, but a broader market analysis for alternatives might be beneficial for long-term IT planning.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW24Q00133

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1000 SW BROADWAY STE 1110, PORTLAND, OR, 97205

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,264,272

Exercised Options: $2,792,029

Current Obligation: $2,792,029

Actual Outlays: $2,792,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD09B

IDV Type: GWAC

Timeline