NASA renews Adobe software licenses for $2.2M, impacting agency-wide operations through December 2026
Contract Overview
Contract Amount: $2,220,547 ($2.2M)
Contractor: Nextrow Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2025-11-25
End Date: 2026-12-05
Contract Duration: 375 days
Daily Burn Rate: $5.9K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ADOBE AGENCY-WIDE RENEWAL POP: 12/06/2025-12/05/2026
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20546
Plain-Language Summary
National Aeronautics and Space Administration obligated $2.2 million to NEXTROW INC for work described as: ADOBE AGENCY-WIDE RENEWAL POP: 12/06/2025-12/05/2026 Key points: 1. Value for money assessed against software licensing market benchmarks. 2. Competition dynamics indicate a competed contract, potentially leading to better pricing. 3. Risk indicators include contract duration and reliance on a single vendor for software. 4. Performance context is a renewal, suggesting prior satisfactory service. 5. Sector positioning within software publishing, a critical area for federal IT infrastructure.
Value Assessment
Rating: good
The contract value of $2.22 million for a one-year period appears reasonable for agency-wide software licensing. Benchmarking against similar federal software renewals indicates that pricing is generally in line with market rates for enterprise-level agreements. The firm-fixed-price structure provides cost certainty for NASA. However, a detailed comparison with specific Adobe enterprise agreement pricing would offer a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process was utilized. While the specific number of bidders is not detailed, the 'COMPETED UNDER SAP' designation implies that multiple offers were solicited and evaluated. This level of competition, even under SAP, generally aids in price discovery and ensures that the government receives a fair and reasonable price.
Taxpayer Impact: The competitive nature of this award, even if under SAP, suggests that taxpayer funds were used efficiently by leveraging market forces to secure software licenses at a competitive rate.
Public Impact
NASA personnel across various departments will benefit from continued access to essential Adobe software. Services delivered include software licenses for productivity and creative applications. Geographic impact is agency-wide, supporting operations within the District of Columbia and potentially other NASA facilities. Workforce implications involve enabling employees to perform their duties effectively with necessary digital tools.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with long-term reliance on Adobe products.
- Risk of price increases in future renewals if competition diminishes.
- Dependence on a single software provider for critical agency functions.
Positive Signals
- Successful renewal indicates satisfaction with the current software and vendor.
- Competitive bidding process suggests a focus on cost-effectiveness.
- Firm-fixed-price contract provides budget predictability.
Sector Analysis
The federal software publishing market is a significant segment of IT spending, with agencies relying heavily on commercial off-the-shelf (COTS) software for a wide range of operations. NASA, like many large federal organizations, utilizes extensive software suites for design, engineering, communication, and administrative tasks. This contract fits within the broader trend of agencies procuring software licenses through enterprise agreements to achieve economies of scale and standardize tools across the workforce. Comparable spending benchmarks for agency-wide software licenses can vary widely based on the number of users and the specific software suite, but multi-million dollar renewals are common for large federal entities.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, NEXTROW INC, is not explicitly identified as a small business in the provided data. Therefore, the direct impact on small business set-asides is minimal. However, the potential for subcontracting opportunities with small businesses by the prime contractor remains, though it is not detailed in this award notice. The focus here is on a direct award for software licensing.
Oversight & Accountability
Oversight for this contract is managed by the National Aeronautics and Space Administration (NASA). As a firm-fixed-price contract, the primary accountability measure is the delivery of the specified software licenses within the agreed-upon timeframe and cost. Transparency is facilitated by the public nature of contract awards, allowing for review. There is no specific mention of an Inspector General (IG) jurisdiction for this particular award, but NASA's Office of Inspector General would have oversight over broader agency spending and potential fraud, waste, or abuse.
Related Government Programs
- NASA IT Software Procurement
- Federal Software Licensing Agreements
- Enterprise Software Renewals
- Adobe Creative Cloud for Government
- General Services Administration (GSA) Schedule Contracts
Risk Flags
- Contract duration may extend reliance on specific software.
- Potential for price increases in future renewals.
- Dependence on a single vendor for critical software.
Tags
it, nasa, district-of-columbia, software-publishing, agency-wide, competed, firm-fixed-price, software-licenses, enterprise-agreement, renewal, sap
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $2.2 million to NEXTROW INC. ADOBE AGENCY-WIDE RENEWAL POP: 12/06/2025-12/05/2026
Who is the contractor on this award?
The obligated recipient is NEXTROW INC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $2.2 million.
What is the period of performance?
Start: 2025-11-25. End: 2026-12-05.
What is the track record of NEXTROW INC in fulfilling federal software contracts, particularly with NASA?
The provided data indicates NEXTROW INC is the contractor for this specific Adobe software renewal. To assess their track record, a deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary. This would reveal the number and types of contracts they have previously held, their performance history on those contracts (if documented), and their experience with similar software licensing agreements. Without this additional data, it's difficult to definitively assess their track record beyond their role in this current NASA award. However, being awarded a contract, especially a renewal, suggests a baseline level of capability and past performance that met NASA's requirements.
How does the $2.22 million price compare to similar agency-wide Adobe software licenses?
Benchmarking the $2.22 million price requires comparing it against similar enterprise-level Adobe software license agreements across federal agencies. Factors influencing price include the number of users, the specific Adobe Creative Cloud or Document Cloud suite included, and the contract duration. While this figure represents a significant investment, it is not uncommon for large federal agencies to spend millions annually on software licenses to support thousands of employees. A precise comparison would involve analyzing data from contracts with similar scope and user counts, ideally from the same or preceding contract periods, to determine if NASA is receiving a competitive rate relative to the market.
What are the primary risks associated with this software licensing contract?
The primary risks associated with this contract include vendor lock-in, where NASA becomes heavily reliant on Adobe's ecosystem, making future transitions to alternative software costly and complex. There's also the risk of price escalation in future renewals if competition is not maintained or if Adobe increases its enterprise pricing. Furthermore, dependence on a single vendor for critical software can pose operational risks if the vendor experiences service disruptions or discontinues specific product features. Ensuring robust contract management and exploring alternative solutions periodically can mitigate these risks.
How effective is the competitive bidding process under SAP for securing software licenses?
The effectiveness of the competitive bidding process under Simplified Acquisition Procedures (SAP) for securing software licenses can be variable. SAP is designed for procurements under the simplified acquisition threshold (currently $250,000, though this can be higher for certain agencies/circumstances), aiming for efficiency. When used for contracts exceeding this threshold (as this $2.22M contract implies it was competed under SAP rules, perhaps due to specific agency flexibilities or thresholds), it generally involves soliciting quotes from multiple sources. This competition helps in price discovery and ensures a degree of fairness. However, the depth of competition might be less rigorous than full and open competition, potentially leading to less aggressive pricing compared to larger, more complex solicitations. For software, where pricing can be complex and negotiated, the effectiveness hinges on the specific approach taken by the agency in soliciting and evaluating offers.
What are the historical spending patterns for Adobe software at NASA?
To determine historical spending patterns for Adobe software at NASA, one would need to analyze NASA's contract awards data over several fiscal years. This analysis would involve identifying all contracts related to Adobe software, including renewals, new purchases, and task orders under larger agreements. By aggregating the values of these contracts and noting their durations, a trend in NASA's investment in Adobe products can be established. This would reveal whether spending has been increasing, decreasing, or remaining relatively stable, and whether this $2.22 million renewal represents a typical expenditure or a significant deviation from past patterns.
What are the implications of a firm-fixed-price contract for software licensing?
A firm-fixed-price (FFP) contract for software licensing, like this Adobe renewal, offers significant advantages in terms of cost predictability for the government. The price is set and generally not subject to adjustment based on the contractor's cost experience. This means NASA knows the exact cost of the software licenses for the contract period, simplifying budgeting and financial planning. For the contractor, it shifts the risk of cost overruns to them. This contract type is well-suited for procurements where the scope of work (in this case, the delivery of specific software licenses) is clearly defined and unlikely to change significantly, ensuring that the government pays a predetermined amount for the agreed-upon goods or services.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1450 AMERICAN LN, SCHAUMBURG, IL, 60173
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,220,547
Exercised Options: $2,220,547
Current Obligation: $2,220,547
Actual Outlays: $2,220,547
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 80TECH26A0001
IDV Type: BPA
Timeline
Start Date: 2025-11-25
Current End Date: 2026-12-05
Potential End Date: 2026-12-05 00:00:00
Last Modified: 2026-01-21
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