DoD Spends $21M on Adobe Products via Dell, Full Competition

Contract Overview

Contract Amount: $20,991,707 ($21.0M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Defense

Start Date: 2025-03-30

End Date: 2026-03-29

Contract Duration: 364 days

Daily Burn Rate: $57.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ADOBE PRODUCTS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to DELL FEDERAL SYSTEMS L.P for work described as: ADOBE PRODUCTS Key points: 1. Significant contract value of $20.99 million for Adobe software. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to software licensing and vendor lock-in. 4. Sector is IT, specifically software publishing.

Value Assessment

Rating: good

The $20.99 million award for Adobe products appears reasonable given the scope of enterprise software licensing. Benchmarking against similar large-scale software procurements would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are utilized efficiently through a competitive process, aiming to secure favorable pricing for essential software.

Public Impact

Ensures access to critical Adobe software for Department of Defense operations. Supports IT infrastructure and digital workflows within the agency. Potential for cost savings through competitive bidding on software licenses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Software obsolescence risk
Vendor lock-in potential
Cybersecurity vulnerabilities in software

Positive Signals

Competitive award process
Clear delivery end date
Firm fixed price contract

Sector Analysis

This contract falls within the IT sector, specifically software publishing. Spending benchmarks for enterprise software licenses vary widely, but this amount is substantial for a single agency's needs.

Small Business Impact

While the prime contractor is Dell Federal Systems L.P., the data does not indicate the extent of small business participation in this specific delivery order.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The use of a delivery order under a larger contract framework implies prior vetting and compliance checks.

Related Government Programs

Software Publishers
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Potential for vendor lock-in
Risk of software obsolescence
Cybersecurity vulnerabilities associated with software
Dependence on a single software vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to DELL FEDERAL SYSTEMS L.P. ADOBE PRODUCTS

Who is the contractor on this award?

The obligated recipient is DELL FEDERAL SYSTEMS L.P.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2025-03-30. End: 2026-03-29.

What is the total cost of ownership for these Adobe products over their lifecycle, including maintenance and support?

The total cost of ownership is not fully detailed in this award notice. It primarily reflects the acquisition cost for the specified period. A comprehensive lifecycle cost analysis would need to incorporate ongoing subscription fees, potential upgrade costs, training, and support services, which could significantly increase the overall expenditure beyond the initial $20.99 million.

How does the pricing compare to commercial enterprise agreements for similar Adobe product suites?

Direct comparison to commercial enterprise agreements is challenging without specific details on the Adobe products and user counts. However, federal procurement regulations and competitive bidding processes aim to achieve pricing at least equivalent to, if not better than, commercial rates, especially for large volumes. Further analysis would require comparing specific SKUs and volume discounts.

What measures are in place to mitigate the risk of vendor lock-in with Adobe software?

Mitigation strategies for vendor lock-in typically involve periodic contract reviews, exploring alternative software solutions during re-competition, and negotiating flexible licensing terms. The agency should actively assess the market for competing software and ensure contract clauses allow for easier transition if necessary to maintain leverage and avoid excessive price increases.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC108424R0012

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Francisco Partners Management, L.P.

Address: 1 DELL WAY, ROUND ROCK, TX, 78682

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,991,707

Exercised Options: $20,991,707

Current Obligation: $20,991,707

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC108424D0003

IDV Type: IDC

Timeline