Interior's $70M Software Purchase for BIA/BIE: Sole-Source Award to Cengage Learning

Contract Overview

Contract Amount: $70,000 ($70.0K)

Contractor: Cengage Learning, Inc.

Awarding Agency: Department of the Interior

Start Date: 2026-04-02

End Date: 2027-03-31

Contract Duration: 363 days

Daily Burn Rate: $193/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CENGAGE LEARNING, INC.

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87120

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $70,000 to CENGAGE LEARNING, INC. for work described as: CENGAGE LEARNING, INC. Key points: 1. Significant contract value of $70 million for software. 2. Sole-source award raises questions about competition and potential overpricing. 3. Risk of limited vendor options and potential lack of innovation. 4. IT sector spending, specifically software publishing.

Value Assessment

Rating: questionable

The contract value of $70 million for a 363-day duration is substantial. Without competitive bidding, it's difficult to assess if this price is fair compared to similar software licensing agreements in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating no competition was sought. This limits price discovery and may result in a higher cost to taxpayers than a competitively bid contract.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for the software, as competitive pressures to lower costs were absent.

Public Impact

Students and educators relying on BIA/BIE educational resources may experience service disruptions if the software is critical. Taxpayers bear the full cost of this $70 million award, with no assurance of the best value. The lack of competition could stifle innovation in educational software for these specific student populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Lack of competition

Positive Signals

Specific software need addressed
Defined contract duration

Sector Analysis

This contract falls within the IT sector, specifically software publishing (NAICS 513210). Federal spending on software has been steadily increasing, with a significant portion allocated to enterprise solutions and educational platforms.

Small Business Impact

The award to Cengage Learning, Inc. does not indicate any specific provisions or set-asides for small businesses. The sole-source nature further suggests that small businesses were not considered as potential prime contractors.

Oversight & Accountability

The sole-source justification for this significant contract award warrants close scrutiny by oversight bodies to ensure proper procedures were followed and that taxpayer funds are being used efficiently.

Related Government Programs

Software Publishers
Department of the Interior Contracting
Bureau of Indian Affairs and Bureau of Indian Education Programs

Risk Flags

Sole-source award lacks competition
Potential for overpricing
Risk of vendor lock-in
Limited transparency on software specifics
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $70,000 to CENGAGE LEARNING, INC.. CENGAGE LEARNING, INC.

Who is the contractor on this award?

The obligated recipient is CENGAGE LEARNING, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $70,000.

What is the period of performance?

Start: 2026-04-02. End: 2027-03-31.

What is the specific software being procured and why is Cengage Learning the only viable source?

The specific software is not detailed in the provided data. However, a sole-source justification typically implies that the software is proprietary, highly specialized, or that only one vendor possesses the necessary expertise or licensing rights to fulfill the requirement. Further investigation into the justification documentation is needed to understand the rationale.

What is the risk of vendor lock-in and future cost escalations with this sole-source award?

There is a significant risk of vendor lock-in, as the government has committed a substantial amount to a single provider without exploring alternatives. This could lead to inflated prices in future renewals or modifications, as Cengage Learning may face little pressure to offer competitive rates.

How will the effectiveness and value of this software be measured given the lack of competitive benchmarking?

Measuring effectiveness and value will be challenging without competitive benchmarks. The Bureau of Indian Affairs and Bureau of Indian Education will need to establish clear performance metrics and conduct rigorous internal assessments to determine if the software meets its intended educational and operational goals within the allocated budget.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cengage Learning Holdings II, Inc.

Address: 5191 NATORP BLVD, MASON, OH, 45040

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $70,000

Exercised Options: $70,000

Current Obligation: $70,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline