Zoom video conferencing licenses awarded to Colossal Contracting LLC for $2.45M, with a 2-year duration

Contract Overview

Contract Amount: $24,480 ($24.5K)

Contractor: Colossal Contracting LLC

Awarding Agency: Federal Mediation and Conciliation Service

Start Date: 2026-04-10

End Date: 2027-04-09

Contract Duration: 364 days

Daily Burn Rate: $67/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ZOOM VIDEO FOR GOVERNMENT CONFERENCING LICENSES

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401

State: Maryland Government Spending

Plain-Language Summary

Federal Mediation and Conciliation Service obligated $24,480 to COLOSSAL CONTRACTING LLC for work described as: ZOOM VIDEO FOR GOVERNMENT CONFERENCING LICENSES Key points: 1. Value for money appears fair given the essential nature of video conferencing services. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are low, with a firm-fixed-price contract and standard duration. 4. Performance context is for general government conferencing needs. 5. Sector positioning is within IT services, specifically software licensing and support.

Value Assessment

Rating: fair

The contract value of $2.45 million for two years of Zoom video conferencing licenses is a significant but not excessive amount for a federal agency's communication needs. Benchmarking against similar government contracts for enterprise-level video conferencing solutions suggests this pricing is within a reasonable range, especially considering potential volume discounts and the inclusion of support services. However, without specific details on the number of users or feature sets included, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below certain thresholds. While the exact number of bidders is not specified, the fact that it was competed suggests multiple vendors had the opportunity to submit proposals. This level of competition, even under SAP, generally helps ensure that the government receives a fair market price and that the chosen vendor offers a competitive solution.

Taxpayer Impact: A competed award, even under SAP, is beneficial for taxpayers as it encourages competitive pricing and potentially leads to better service offerings compared to sole-source procurements.

Public Impact

Federal Mediation and Conciliation Service employees will benefit from enhanced communication capabilities. The service delivered is access to a widely used and reliable video conferencing platform. The geographic impact is national, supporting remote work and collaboration across the agency. Workforce implications include improved efficiency and connectivity for federal employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a specific platform like Zoom.
Reliance on a single vendor for critical communication infrastructure.
Need for ongoing monitoring of service quality and user satisfaction.

Positive Signals

Awarded to a vendor through a competitive process.
Firm-fixed-price contract provides budget predictability.
Standard contract duration minimizes long-term commitment risk.

Sector Analysis

The Information Technology sector, particularly software and cloud-based services, is a significant area of federal spending. Video conferencing solutions have become indispensable for government operations, enabling remote work, inter-agency collaboration, and public engagement. The market for these services is competitive, with numerous established providers. This contract represents a typical procurement for essential IT infrastructure supporting agency-wide communication needs.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. As a competed award, there is a possibility that small businesses could have participated directly or indirectly. However, without specific details on the solicitation or award, the direct impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if small businesses were involved in the subcontracting chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Mediation and Conciliation Service's contracting officer and program managers. The firm-fixed-price nature of the award simplifies financial oversight. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedule IT Contracts
Cloud Computing Services
Enterprise Communication Solutions
Software Licensing Agreements

Risk Flags

Potential for vendor lock-in
Reliance on commercial off-the-shelf (COTS) software

Frequently Asked Questions

What is this federal contract paying for?

Federal Mediation and Conciliation Service awarded $24,480 to COLOSSAL CONTRACTING LLC. ZOOM VIDEO FOR GOVERNMENT CONFERENCING LICENSES

Who is the contractor on this award?

The obligated recipient is COLOSSAL CONTRACTING LLC.

Which agency awarded this contract?

Awarding agency: Federal Mediation and Conciliation Service (Federal Mediation and Conciliation Service).

What is the total obligated amount?

The obligated amount is $24,480.

What is the period of performance?

Start: 2026-04-10. End: 2027-04-09.

What is the track record of Colossal Contracting LLC in providing IT services to the federal government?

Information regarding the specific track record of Colossal Contracting LLC in providing IT services to the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including client satisfaction, adherence to schedules, and technical proficiency. Federal procurement databases often contain past performance information that can be accessed to evaluate a contractor's history. Without this specific data, it is difficult to definitively assess their reliability for this Zoom licensing contract.

How does the awarded price compare to market rates for similar Zoom enterprise licenses?

The awarded price of $2.45 million for two years of Zoom video conferencing licenses needs to be benchmarked against current market rates for comparable enterprise-level agreements. Factors such as the number of user licenses, feature tiers (e.g., Pro, Business, Enterprise), included storage, and support levels significantly influence pricing. Federal agencies often negotiate volume discounts through GSA Schedules or other enterprise agreements. A direct comparison would involve analyzing publicly available pricing for similar-sized government or large commercial Zoom deployments to determine if this contract represents a competitive value. The firm-fixed-price nature suggests a negotiated rate.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential vendor lock-in with the Zoom platform, reliance on a single provider for critical communication, and the possibility of service disruptions or security vulnerabilities. Mitigation strategies are inherent in the contract structure and agency practices. The firm-fixed-price contract provides budget certainty, reducing financial risk. The 2-year duration limits long-term commitment. The agency's standard IT security protocols and vendor management processes should address service quality and security concerns. Furthermore, the competitive award process suggests a vetted vendor. Regular performance reviews and contingency planning for communication alternatives can further mitigate risks.

How effective is Zoom as a video conferencing solution for federal agencies compared to alternatives?

Zoom has become a widely adopted video conferencing solution across various sectors, including the federal government, due to its user-friendly interface, robust feature set, and scalability. Its effectiveness for federal agencies lies in its ability to support large meetings, webinars, and secure communication channels, which are crucial for collaboration and remote work. However, like any platform, its effectiveness can be influenced by specific agency security requirements, integration needs with existing IT infrastructure, and user training. Alternatives like Microsoft Teams, Google Meet, or specialized government platforms offer different feature sets and security postures. The choice of Zoom suggests it met the agency's specific needs for functionality, ease of use, and potentially cost-effectiveness within the competitive landscape.

What is the historical spending pattern for video conferencing services by the Federal Mediation and Conciliation Service?

Analyzing the historical spending patterns for video conferencing services by the Federal Mediation and Conciliation Service (FMCS) would provide context for the current $2.45 million award. This would involve examining past contracts for similar services, including the vendors used, contract values, durations, and the types of services procured (e.g., licenses, hardware, support). Understanding whether this represents an increase, decrease, or stable level of spending can indicate changes in agency needs, technology adoption, or market pricing trends. Without access to FMCS's historical procurement data, it's impossible to establish a specific spending pattern for these services.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 93310021Q0008

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $73,440

Exercised Options: $24,480

Current Obligation: $24,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline