VA awards $3.26M for Adobe Creative Cloud licenses, with Redhawk IT Solutions as prime

Contract Overview

Contract Amount: $3,258,567 ($3.3M)

Contractor: Redhawk IT Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-01

End Date: 2027-01-31

Contract Duration: 364 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADOBE CREATIVE CLOUD

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78244

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to REDHAWK IT SOLUTIONS, LLC for work described as: ADOBE CREATIVE CLOUD Key points: 1. Contract value represents a significant investment in essential creative software for the VA. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract extends over a year, ensuring continuity of service. 5. The North American Industry Classification System (NAICS) code 541519 indicates a broad range of IT services. 6. The contract's performance is located in Texas, potentially impacting local IT support needs.

Value Assessment

Rating: good

The total award amount of $3.26 million for Adobe Creative Cloud licenses appears reasonable given the scale of a federal agency like the Department of Veterans Affairs. Benchmarking against similar enterprise software license agreements for large organizations would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests that the pricing was determined upfront and is intended to remain stable throughout the contract period, which is a positive indicator for cost control.

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 sought proposals from all responsible sources after initially considering other options. While the specific number of bidders is not provided, the 'full and open' designation generally implies a competitive environment. This approach is designed to ensure the government receives the best possible pricing and services by allowing a wide range of potential contractors to participate.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by driving down costs and encouraging innovation among contractors vying for the award.

Public Impact

Veterans Affairs employees across various departments will benefit from access to Adobe Creative Cloud for their work. Essential creative software services will be delivered, supporting graphic design, video editing, and digital content creation. The geographic impact is primarily within the Department of Veterans Affairs' operational footprint, with performance noted in Texas. The contract supports the IT services sector, potentially involving personnel for software deployment and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Adobe Creative Cloud becomes the sole standard without regular re-evaluation of alternatives.
Reliance on a single software suite may limit flexibility if specific project needs evolve beyond the suite's capabilities.
Ensuring adequate training and support for VA staff to maximize the utility of the software licenses.

Positive Signals

Awarding to a single vendor for a widely used software suite can streamline procurement and management.
The firm fixed-price contract provides budget certainty for the VA.
The contract duration allows for stable access to critical creative tools.

Sector Analysis

The market for enterprise software licenses, particularly for creative suites like Adobe Creative Cloud, is dominated by a few major players. Federal agencies represent a significant customer base, often procuring these licenses through large, multi-year contracts. Spending in this area is driven by the need for digital content creation, marketing, and internal communications across various government functions. Comparable spending benchmarks would involve analyzing other large federal agencies' investments in similar software solutions.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Redhawk IT Solutions, LLC, is a small business, which is a positive signal for small business participation. However, the extent of subcontracting opportunities for other small businesses is not detailed in the provided data. Further analysis would be needed to determine if this contract contributes to the broader small business ecosystem through subcontracting.

Oversight & Accountability

The Department of Veterans Affairs, as the contracting agency, is responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, monitoring of deliverables, and adherence to contract terms. Accountability is ensured through the firm fixed-price structure, which incentivizes the contractor to meet obligations within the agreed budget. Transparency is generally maintained through contract databases and reporting requirements, though specific IG jurisdiction would depend on the nature of any potential issues.

Related Government Programs

Adobe Software Licenses
Enterprise Software Procurement
IT Services Contracts
Department of Veterans Affairs IT Spending

Risk Flags

Potential data security concerns with cloud-based creative tools.
Risk of vendor lock-in with proprietary software.
Need for robust license management to ensure cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to REDHAWK IT SOLUTIONS, LLC. ADOBE CREATIVE CLOUD

Who is the contractor on this award?

The obligated recipient is REDHAWK IT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2026-02-01. End: 2027-01-31.

What is the historical spending by the Department of Veterans Affairs on Adobe Creative Cloud licenses?

To provide a comprehensive answer on historical spending, access to historical contract data for the Department of Veterans Affairs (VA) specifically for Adobe Creative Cloud licenses would be required. This would involve querying federal procurement databases (like FPDS-NG or SAM.gov) for all previous awards related to 'Adobe Creative Cloud' or similar terms, issued by the VA, and summing their values over several fiscal years. Without this specific historical data, it's impossible to quantify past expenditures. However, it is reasonable to assume that as a large federal agency with diverse communication and design needs, the VA has likely had recurring expenditures on such software, potentially through various contract vehicles or task orders over time. Understanding this history would help contextualize the current $3.26 million award and identify trends in spending, potential increases or decreases, and the evolution of contract types used.

How does the per-user cost of this Adobe Creative Cloud contract compare to commercial enterprise pricing?

Determining the precise per-user cost requires knowing the number of licenses being procured under this $3.26 million contract, which is not explicitly provided in the data. However, we can make an estimation. If we assume a typical enterprise license count for an agency of the VA's size, the per-user cost can be calculated. For instance, if this contract covers 10,000 users, the annual cost per user would be approximately $326 ($3.26M / 10,000 users / 1 year). Commercial enterprise pricing for Adobe Creative Cloud All Apps plans typically ranges from $30-$55 per user per month, depending on the volume and specific plan. This translates to $360-$660 per user annually. Therefore, if the estimated per-user cost falls within or below this range, it suggests competitive pricing for the government. Factors like negotiated volume discounts, specific included applications, and support levels can influence the final per-user rate compared to standard commercial offerings.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific contract. However, for a software license agreement of this nature, typical KPIs would likely focus on aspects such as: timely delivery and availability of licenses, uptime and accessibility of the Adobe Creative Cloud services (if cloud-hosted), adherence to the agreed-upon software versions and features, and potentially response times for technical support if included. Performance measurement would likely involve periodic reviews by the VA's contracting officer's representative (COR) to ensure compliance with the contract's terms and conditions. This could include verifying license activation, confirming access for authorized users, and ensuring the software functions as specified. The firm fixed-price nature of the contract implies that meeting these performance standards is a condition for full payment.

What is the track record of Redhawk IT Solutions, LLC in delivering similar IT services to federal agencies?

To assess the track record of Redhawk IT Solutions, LLC, a review of their past performance on federal contracts would be necessary. This would involve searching federal procurement databases (such as SAM.gov, FPDS-NG) for previous awards and contract performance evaluations associated with Redhawk IT Solutions. Key areas to examine would include their history with software licensing, IT services delivery, contract completion timeliness, and any reported issues or successes. Information on past performance, including past performance questionnaires (PPQs) submitted by previous government clients, would provide valuable insights into their reliability, technical capabilities, and overall customer satisfaction. Without access to this specific performance history, it's difficult to definitively gauge their experience and success rate in fulfilling similar federal IT requirements.

Are there any known risks associated with the use of Adobe Creative Cloud within a federal agency context?

Yes, there are potential risks associated with using Adobe Creative Cloud within a federal agency. One significant risk is data security and privacy, particularly concerning any sensitive government data processed or stored using the software, especially if cloud-based components are involved. Ensuring compliance with federal data handling regulations (e.g., FISMA, FedRAMP) is crucial. Another risk is vendor lock-in, where the agency becomes heavily reliant on Adobe's ecosystem, making it difficult and costly to switch to alternative solutions in the future. Software compatibility and integration with existing agency IT infrastructure can also pose risks, potentially requiring significant IT resources for deployment and maintenance. Finally, the cost management of licenses, ensuring that only necessary licenses are procured and actively used, is an ongoing challenge to prevent budget overruns.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2689 MAPLE RIDGE DR, WOODBRIDGE, VA, 22192

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,109,789

Exercised Options: $3,258,567

Current Obligation: $3,258,567

Actual Outlays: $3,258,567

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD38B

IDV Type: GWAC

Timeline