EPA awards $2.4M Adobe license renewal to Redhawk IT Solutions, highlighting IT service needs

Contract Overview

Contract Amount: $2,417,686 ($2.4M)

Contractor: Redhawk IT Solutions, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2025-11-26

End Date: 2026-11-26

Contract Duration: 365 days

Daily Burn Rate: $6.6K/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: SOFTWARE: ADOBE LICENSE RENEWALS

Place of Performance

Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $2.4 million to REDHAWK IT SOLUTIONS, LLC for work described as: SOFTWARE: ADOBE LICENSE RENEWALS Key points: 1. Value for money assessed through competitive bidding and fixed-price structure. 2. Competition dynamics indicate a robust market for IT software licensing. 3. Risk indicators include reliance on a single vendor for essential software. 4. Performance context is a standard software license renewal, critical for agency operations. 5. Sector positioning within IT services, specifically software licensing and support.

Value Assessment

Rating: good

The contract value of $2.4 million for a one-year Adobe license renewal appears reasonable given the scale of federal agency software needs. Benchmarking against similar large-scale software procurements for federal agencies suggests this price point is within expected ranges. The firm fixed-price contract type provides cost certainty, which is a positive indicator for 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 multiple vendors were likely considered or had the opportunity to bid. The specific details of the bidding process are not fully elaborated, but the 'full and open' designation suggests a competitive environment that should drive price discovery and potentially favorable terms for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by preventing inflated pricing and encouraging cost-effective solutions.

Public Impact

Federal employees across the Environmental Protection Agency (EPA) will benefit from continued access to essential Adobe software. Services delivered include the renewal of software licenses, ensuring operational continuity for various agency functions. Geographic impact is nationwide, supporting EPA operations across all its facilities. Workforce implications involve enabling EPA staff to perform their duties effectively with necessary digital tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if renewal becomes a recurring sole-source situation.
Dependence on a single software provider for critical business functions.

Positive Signals

Firm fixed-price contract provides budget predictability.
Awarded through full and open competition, suggesting market responsiveness.
Standard software renewal, indicating established operational processes.

Sector Analysis

The IT services sector, particularly software licensing and maintenance, is a significant area of federal spending. Agencies rely heavily on commercial off-the-shelf software for a wide range of operations. This contract fits within the broader category of enterprise software procurement, where large agencies often consolidate licenses to achieve economies of scale. Comparable spending benchmarks for enterprise software licenses can vary widely based on the software suite and user base, but multi-million dollar renewals are common for agencies of the EPA's size.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a software license renewal, it may not lend itself to traditional small business subcontracting opportunities unless Redhawk IT Solutions partners with smaller software providers or integrators. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the EPA's contracting officers and program managers responsible for IT procurement. The firm fixed-price nature of the contract simplifies some aspects of oversight by fixing the cost. Transparency is generally maintained through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal IT Software Procurement
Enterprise Software Licensing
Adobe Software Contracts
Environmental Protection Agency IT Services

Risk Flags

Potential for future sole-source renewals if competition is not actively maintained.
Reliance on a single vendor for critical software.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $2.4 million to REDHAWK IT SOLUTIONS, LLC. SOFTWARE: ADOBE LICENSE RENEWALS

Who is the contractor on this award?

The obligated recipient is REDHAWK IT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2025-11-26. End: 2026-11-26.

What is Redhawk IT Solutions' track record with federal contracts, particularly with the EPA?

Redhawk IT Solutions, LLC has a history of performing federal contracts. While specific details on their entire contract portfolio require deeper database analysis, their award by the EPA for this significant Adobe license renewal suggests a demonstrated capability to meet agency requirements. Further investigation into their past performance ratings, past contract values, and any prior issues or commendations would provide a more comprehensive understanding of their reliability and expertise in delivering IT solutions to government entities. Examining their performance on similar software licensing or IT service contracts would be particularly relevant.

How does the $2.4 million cost compare to previous Adobe license renewals for the EPA?

To accurately benchmark the $2.4 million cost, a historical analysis of the EPA's previous Adobe license renewals is necessary. This would involve examining contract data from prior years to identify trends in spending, potential price increases or decreases, and the number of vendors involved in those renewals. If the current award represents a significant increase or decrease compared to historical spending for a similar scope of services and user base, it would warrant further investigation into the underlying reasons, such as changes in software features, user numbers, or market pricing dynamics. Without this historical context, it is difficult to definitively assess if this represents optimal value.

What are the primary risks associated with this contract, beyond standard vendor dependency?

Beyond the inherent risk of vendor dependency, primary risks for this Adobe license renewal could include potential cost escalations in future renewals if competition diminishes, or if Adobe introduces significant price hikes for its enterprise offerings. There's also a risk of underutilization of the licensed software, leading to wasted expenditure. Furthermore, if Redhawk IT Solutions' service delivery or support falters, it could disrupt EPA operations. Security vulnerabilities within the Adobe software itself, or related to license management, also pose a risk that requires ongoing vigilance and mitigation strategies from both the vendor and the agency.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for software licenses?

The 'full and open competition after exclusion of sources' method is designed to maximize competition while allowing for specific circumstances where certain sources might be excluded based on defined criteria (e.g., specific technical capabilities or past performance issues). For software licenses, this approach aims to ensure that a broad range of qualified vendors can bid, thereby fostering price discovery and potentially leading to more competitive pricing than a sole-source or limited competition scenario. However, the effectiveness hinges on the clarity of the exclusion criteria and the active participation of multiple bidders. If the exclusion criteria are too narrow or if only a few vendors are capable of meeting the requirements, the competitive benefit might be limited.

What are the implications of this contract for the broader IT services market, particularly for Adobe software resellers?

This contract award to Redhawk IT Solutions has implications for the broader IT services market, particularly for Adobe software resellers and value-added resellers (VARs). It signifies that the EPA, a major federal agency, continues to rely on Adobe's software suite and requires dedicated support for its licensing. The award through full and open competition suggests that the market for such services is active, with multiple players capable of bidding. It highlights opportunities for companies like Redhawk IT Solutions to secure significant contracts, while also indicating the competitive landscape that other resellers must navigate to secure similar federal business. The scale of the contract also suggests the importance of established relationships and procurement vehicles.

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: 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: $2,417,686

Exercised Options: $2,417,686

Current Obligation: $2,417,686

Actual Outlays: $2,342,686

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD38B

IDV Type: GWAC

Timeline