DOT's FAA Renews Atlassian License for $42.7M via CDW-G, Ending April 2027
Contract Overview
Contract Amount: $42,678 ($42.7K)
Contractor: CDW Government LLC
Awarding Agency: Department of Transportation
Start Date: 2026-04-01
End Date: 2027-10-17
Contract Duration: 564 days
Daily Burn Rate: $76/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ASIAS RAISE ATLASSIAN LICENSE RENEWAL, CDW-G, 3/19/2026
Place of Performance
Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405
Plain-Language Summary
Department of Transportation obligated $42,678.12 to CDW GOVERNMENT LLC for work described as: ASIAS RAISE ATLASSIAN LICENSE RENEWAL, CDW-G, 3/19/2026 Key points: 1. Significant contract value of $42.7M for software licensing. 2. CDW Government LLC is the sole awardee, raising questions about competition. 3. Risk of vendor lock-in and potential overpayment due to limited competition. 4. IT sector spending on software and IT services is substantial government-wide.
Value Assessment
Rating: questionable
The contract value of $42.7M for Atlassian licenses over 17 months appears high. Benchmarking against similar enterprise software renewals is needed to assess if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded to CDW Government LLC, the contract was listed under full and open competition. However, the specific award mechanism (Delivery Order) and the single awardee suggest limited actual market participation.
Taxpayer Impact: Taxpayer funds are being spent on software licenses. Without robust competition, there's a risk of paying a premium, impacting the overall value for money.
Public Impact
Pilots and air traffic controllers rely on systems supported by this software. Efficiency of FAA operations could be impacted by software availability and performance. Potential for cost savings if competitive pricing was achieved or can be renegotiated.
Waste & Efficiency Indicators
Waste Risk Score: 76 / 10
Warning Flags
- Limited competition despite 'full and open' designation
- High contract value for software renewal
- Potential for vendor lock-in with Atlassian products
Positive Signals
- Clear contract end date
- Specific software identified
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Government spending on IT, including software licenses and maintenance, is a significant portion of the federal budget, often driven by the need for specialized solutions.
Small Business Impact
The awardee, CDW Government LLC, is a large reseller. There is no indication that small businesses were involved in this specific renewal, which is common for large enterprise software contracts.
Oversight & Accountability
The Federal Aviation Administration (FAA) is responsible for this contract. Oversight should focus on ensuring the renewal provides value for money and that future procurements explore broader competitive avenues.
Related Government Programs
- Computer Systems Design Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Potential for overpayment due to limited competition
- Lack of transparency in the competitive process
- Risk of vendor lock-in
- High dollar value for a software renewal
Tags
computer-systems-design-services, department-of-transportation, nj, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $42,678.12 to CDW GOVERNMENT LLC. ASIAS RAISE ATLASSIAN LICENSE RENEWAL, CDW-G, 3/19/2026
Who is the contractor on this award?
The obligated recipient is CDW GOVERNMENT LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $42,678.12.
What is the period of performance?
Start: 2026-04-01. End: 2027-10-17.
What is the benchmark pricing for similar enterprise software licenses in the federal market?
Benchmarking enterprise software licenses requires access to detailed pricing data from comparable government contracts. Factors like user count, feature sets, and support levels significantly influence cost. Without specific data, it's difficult to provide an exact benchmark, but agencies often leverage GSA schedules or conduct market research to ensure competitive pricing.
What are the risks associated with renewing a sole-source or limited-competition software license?
Renewing sole-source or limited-competition software licenses carries risks of inflated pricing due to lack of market pressure. It can also lead to vendor lock-in, making future transitions to alternative solutions difficult and costly. Furthermore, agencies may miss out on innovative features or better support offered by competitors.
How does this contract contribute to the FAA's mission effectiveness?
This contract supports critical FAA operations by ensuring access to essential Atlassian software, likely used for project management, collaboration, and IT service management. Reliable access to these tools is crucial for maintaining air traffic control systems, managing aviation infrastructure projects, and ensuring overall aviation safety and efficiency.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,678
Exercised Options: $42,678
Current Obligation: $42,678
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 697DCK22D00001
IDV Type: IDC
Timeline
Start Date: 2026-04-01
Current End Date: 2027-10-17
Potential End Date: 2027-10-17 00:00:00
Last Modified: 2026-04-01
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