HHS awards $43.1M for Adobe software to New Tech Solutions Inc. via full and open competition
Contract Overview
Contract Amount: $43,150,419 ($43.2M)
Contractor: NEW Tech Solutions, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2019-08-28
End Date: 2025-05-15
Contract Duration: 2,087 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NEW TECH SOLUTIONS INC:1110203 [19-001361] THIS AWARD IS ISSUED TO NEW TECH SOLUTIONS INC. IN ACCORDANCE WITH FAR 16.505 TO PURCHASE ADOBE SOFTWARE. THE AWARD FEATURES ONE (1) BASE YEAR AND FOUR (4) OPTION YEARS AS SEEN BELOW: BASE YEAR: 09/01
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $43.2 million to NEW TECH SOLUTIONS, INC. for work described as: NEW TECH SOLUTIONS INC:1110203 [19-001361] THIS AWARD IS ISSUED TO NEW TECH SOLUTIONS INC. IN ACCORDANCE WITH FAR 16.505 TO PURCHASE ADOBE SOFTWARE. THE AWARD FEATURES ONE (1) BASE YEAR AND FOUR (4) OPTION YEARS AS SEEN BELOW: BASE YEAR: 09/01 Key points: 1. Significant contract value for essential software. 2. Competition was full and open, suggesting market availability. 3. Risk appears moderate given software nature and fixed-price contract. 4. IT services sector, specifically software licensing.
Value Assessment
Rating: good
The contract value of $43.15M over five years for Adobe software appears reasonable given the extensive licensing and support typically involved. Benchmarking against similar large-scale software procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process for essential software.
Public Impact
Ensures continued access to critical Adobe software for government operations. Supports agency productivity and digital workflow capabilities. Potential for cost savings through competitive bidding on software licenses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with long-term software agreements.
- Need for ongoing monitoring of software usage and license compliance.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract limits cost overrun risk.
- Long-term contract provides budget stability.
Sector Analysis
This award falls within the Information Technology sector, specifically focusing on software licensing and related services. Spending benchmarks for enterprise software licenses vary widely but are substantial for large federal agencies.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were excluded or if the contract scope inherently favored larger entities.
Oversight & Accountability
The award is a delivery order under an existing contract vehicle, suggesting prior oversight. Continued oversight will be crucial to ensure proper software utilization and adherence to licensing terms.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for vendor lock-in
- Reliance on a single software vendor
- Need for ongoing license management
- Software obsolescence risk over time
Tags
other-computer-related-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $43.2 million to NEW TECH SOLUTIONS, INC.. NEW TECH SOLUTIONS INC:1110203 [19-001361] THIS AWARD IS ISSUED TO NEW TECH SOLUTIONS INC. IN ACCORDANCE WITH FAR 16.505 TO PURCHASE ADOBE SOFTWARE. THE AWARD FEATURES ONE (1) BASE YEAR AND FOUR (4) OPTION YEARS AS SEEN BELOW: BASE YEAR: 09/01
Who is the contractor on this award?
The obligated recipient is NEW TECH SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $43.2 million.
What is the period of performance?
Start: 2019-08-28. End: 2025-05-15.
What is the total cost per user or per agency over the contract's life?
The provided data does not detail the number of users or specific Adobe products licensed. To calculate a per-user cost, information on the total number of licenses and the specific Adobe Creative Cloud or Document Cloud plans would be required. Without this, a precise per-user cost benchmark is not feasible.
Are there any identified risks associated with vendor lock-in or future price increases?
While a firm fixed-price contract mitigates immediate price increase risk, long-term software agreements can lead to vendor lock-in. Agencies should actively manage license utilization and explore competitive re-procurement options at the end of the term to avoid being tied to a single vendor indefinitely.
How does this software procurement align with the agency's overall IT modernization strategy?
This award ensures continued access to essential Adobe tools, supporting current operational needs. Its alignment with IT modernization depends on whether Adobe software is part of the agency's long-term strategy or a temporary solution. Evaluating its role in digital transformation efforts is key.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: NIHJT2014002
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,150,419
Exercised Options: $43,150,419
Current Obligation: $43,150,419
Actual Outlays: $30,125,805
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSN316201500040W
IDV Type: GWAC
Timeline
Start Date: 2019-08-28
Current End Date: 2025-05-15
Potential End Date: 2025-05-15 00:00:00
Last Modified: 2024-09-24
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