DOT's FAA Awards $520K for Grammarly Software, Aiming for Enhanced Communication Efficiency

Contract Overview

Contract Amount: $52,035 ($52.0K)

Contractor: CDW Government LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-09

End Date: 2027-04-28

Contract Duration: 384 days

Daily Burn Rate: $136/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GRAMMARLY SOFTWARE LICENSE FOR AVS

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73169

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $52,034.56 to CDW GOVERNMENT LLC for work described as: GRAMMARLY SOFTWARE LICENSE FOR AVS Key points: 1. The contract value of $520,345.56 for Grammarly software is a moderate investment for enhancing communication tools. 2. CDW Government LLC secured the contract, indicating a competitive landscape for software licensing and distribution. 3. Potential risks include vendor lock-in and the need for ongoing user adoption to realize full benefits. 4. The sector is IT, specifically Computer Systems Design Services, a common area for software procurement.

Value Assessment

Rating: good

The $520,345.56 award for Grammarly software appears reasonable given the scope of enterprise-wide licensing and support. Benchmarking against similar large-scale software deployments suggests this price is within expected ranges for productivity and communication tools.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This competitive process likely contributed to achieving a fair market price for the Grammarly software license.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure software at a fair price, ensuring efficient use of public funds for essential communication tools.

Public Impact

Improved written communication for Federal Aviation Administration (FAA) staff, potentially leading to clearer directives and reports. Enhanced collaboration and efficiency across teams using standardized writing and grammar tools. Potential for cost savings through reduced errors and improved clarity in official documents and communications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

User adoption and training effectiveness
Data security and privacy compliance
Long-term cost-effectiveness beyond initial license

Positive Signals

Standardization of communication tools
Potential for improved clarity and reduced errors
Leveraging commercial off-the-shelf (COTS) software

Sector Analysis

This procurement falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, with significant investment in software licenses for productivity, security, and operational efficiency.

Small Business Impact

The contract was awarded to CDW Government LLC, a large reseller. There is no explicit indication of small business participation in this specific award, which is common for large enterprise software licenses distributed through major vendors.

Oversight & Accountability

The Federal Aviation Administration (FAA) is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure compliance and effective delivery of the licensed software.

Related Government Programs

Computer Systems Design Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Potential for low user adoption if not adequately promoted and supported.
Risk of vendor lock-in for future software needs.
Ensuring ongoing compliance with evolving data privacy regulations.
Dependency on vendor for updates and technical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $52,034.56 to CDW GOVERNMENT LLC. GRAMMARLY SOFTWARE LICENSE FOR AVS

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 $52,034.56.

What is the period of performance?

Start: 2026-04-09. End: 2027-04-28.

What is the projected return on investment for Grammarly software in terms of time saved or error reduction for FAA personnel?

Quantifying the precise ROI for Grammarly software can be challenging. However, potential benefits include reduced time spent on editing, fewer miscommunications due to grammatical errors, and improved professionalism in official documents. The FAA will likely track user engagement and feedback to gauge effectiveness, with indirect benefits potentially realized through enhanced operational clarity and efficiency.

What specific data security measures are in place to protect sensitive FAA information processed by Grammarly?

Given the sensitive nature of government data, the contract likely includes specific clauses addressing data security and privacy. This would involve ensuring Grammarly's compliance with federal standards like FedRAMP, data encryption protocols, and restrictions on how user data is stored and processed. Regular audits and adherence to the FAA's cybersecurity policies are crucial.

How will the FAA measure the effectiveness of Grammarly in improving communication quality and efficiency across its workforce?

Effectiveness will likely be measured through a combination of user surveys, adoption rates, and potentially qualitative assessments of communication improvements. The FAA may establish key performance indicators (KPIs) related to user satisfaction, the frequency of use, and feedback on perceived improvements in writing clarity and accuracy. Benchmarking against pre-implementation communication metrics could also provide insights.

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: $52,035

Exercised Options: $52,035

Current Obligation: $52,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 697DCK22D00001

IDV Type: IDC

Timeline