SSA awards $33.3M for Microsoft software assurance and support, with Dell as the sole contractor
Contract Overview
Contract Amount: $33,321,504 ($33.3M)
Contractor: Dell Marketing L.P.
Awarding Agency: Social Security Administration
Start Date: 2015-10-23
End Date: 2016-10-22
Contract Duration: 365 days
Daily Burn Rate: $91.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: EXERCISE OPTION YEAR 2 - BPA CALL ORDER FOR MICROSOFT SOFTWARE ASSURANCE, PREMIER SUPPORT, AND SQL SERVER LICENSE CONVERSION AND SYSTEMS CENTER DATA CENTER STEP-UP.
Place of Performance
Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235
State: Maryland Government Spending
Plain-Language Summary
Social Security Administration obligated $33.3 million to DELL MARKETING L.P. for work described as: EXERCISE OPTION YEAR 2 - BPA CALL ORDER FOR MICROSOFT SOFTWARE ASSURANCE, PREMIER SUPPORT, AND SQL SERVER LICENSE CONVERSION AND SYSTEMS CENTER DATA CENTER STEP-UP. Key points: 1. The contract represents a significant investment in essential software and support services for the agency. 2. Sole-source award to Dell for this specific call order warrants scrutiny of pricing and alternatives. 3. The duration of the contract (one year) suggests a need for ongoing, critical IT infrastructure. 4. Focus on software assurance and premier support indicates a strategy to maintain system stability and security. 5. The contract falls under the Electronic Computer Manufacturing NAICS code, highlighting its IT infrastructure focus.
Value Assessment
Rating: fair
This contract for Microsoft software assurance and support was awarded to Dell Marketing L.P. for approximately $33.3 million. Benchmarking this specific call order against similar sole-source or limited-competition contracts for Microsoft Premier Support can be challenging due to proprietary pricing structures and negotiated terms. However, the price appears to be within a reasonable range for comprehensive software assurance and support for a large federal agency like the Social Security Administration (SSA). Further analysis would require access to detailed pricing breakdowns and comparisons with other government-wide agreements or agency-specific renewals.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source call order under a larger Blanket Purchase Agreement (BPA). While the BPA itself may have been competed, this specific call order was not subject to full and open competition. This approach is often used for specialized services or when a single vendor is uniquely capable of meeting the requirement. The lack of direct competition for this call order means that price discovery through bidding was limited, potentially leading to higher costs than if multiple vendors had vied for the contract.
Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding for this specific call order. Without multiple offers, the agency has less leverage to negotiate the lowest possible price.
Public Impact
The Social Security Administration (SSA) benefits directly through continued access to critical Microsoft software assurance, premier support, and SQL Server license conversions. This contract ensures the operational continuity and security of essential IT systems that support SSA's mission delivery. The services provided are vital for maintaining the agency's vast data processing and citizen service infrastructure. Workforce implications include ensuring IT staff have the necessary tools and support to manage and maintain these software systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Reliance on a single vendor for critical software support can create vendor lock-in.
- Lack of transparency in sole-source justifications can obscure potential inefficiencies.
Positive Signals
- Ensures continuity of essential IT services for a critical federal agency.
- Focus on software assurance and support can enhance system stability and security.
- BPA structure may have allowed for streamlined procurement of necessary services.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software licensing, maintenance, and support. The market for enterprise software and support services is dominated by a few large vendors, including Microsoft. Federal agencies often rely on these vendors for their core IT infrastructure. The total federal spending on IT services is in the hundreds of billions annually, with a significant portion dedicated to software maintenance and support contracts. This specific contract with Dell for Microsoft products is a component of that larger IT spending landscape.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Dell Marketing L.P., a large corporation, suggests that the primary focus was on fulfilling the agency's need for Microsoft software and support directly from a major vendor or its authorized reseller. The impact on the small business ecosystem is likely minimal for this specific call order, as it does not appear to leverage small business capabilities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Social Security Administration. The contract's performance would be monitored against the terms and conditions outlined in the BPA call order. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. However, detailed oversight of pricing and value for sole-source awards often requires internal agency review and justification processes.
Related Government Programs
- Microsoft Software Licensing
- IT Premier Support Services
- BPA Call Orders
- Social Security Administration IT Modernization
- Enterprise Software Maintenance
Risk Flags
- Sole-source justification requires careful review.
- Potential for higher costs without competition.
- Vendor lock-in risk.
Tags
it, social-security-administration, maryland, sole-source, large-contract, software-licensing, it-support, microsoft, dell, firm-fixed-price, bpa-call-order
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $33.3 million to DELL MARKETING L.P.. EXERCISE OPTION YEAR 2 - BPA CALL ORDER FOR MICROSOFT SOFTWARE ASSURANCE, PREMIER SUPPORT, AND SQL SERVER LICENSE CONVERSION AND SYSTEMS CENTER DATA CENTER STEP-UP.
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $33.3 million.
What is the period of performance?
Start: 2015-10-23. End: 2016-10-22.
What is the track record of Dell Marketing L.P. in fulfilling similar sole-source Microsoft support contracts for federal agencies?
Dell Marketing L.P. has a significant history of contracting with the federal government, including providing IT hardware, software, and support services. For sole-source Microsoft support contracts, Dell often acts as an authorized reseller or partner. Their track record generally involves fulfilling contractual obligations for software assurance, licensing, and technical support. However, the specific performance metrics and customer satisfaction for sole-source awards can be less publicly scrutinized than for competitively bid contracts. Agencies typically rely on past performance evaluations and existing relationships when issuing sole-source call orders under established BPAs, assuming a baseline level of competence and reliability from the vendor.
How does the $33.3 million cost compare to similar Microsoft Premier Support contracts awarded by other federal agencies?
Directly comparing the $33.3 million cost of this specific SSA contract to similar Microsoft Premier Support contracts across other federal agencies is challenging without detailed pricing breakdowns and contract terms. Microsoft's Premier Support pricing is often proprietary and can vary based on the scope of services, number of users/devices, and negotiated discounts. However, for a large agency like the SSA, this figure appears to be within the expected range for comprehensive, year-long support covering a wide array of Microsoft products and services. Agencies often leverage government-wide acquisition contracts (GWACs) or other large-scale agreements to benchmark pricing, but sole-source call orders may deviate from these benchmarks due to specific agency needs or existing vendor relationships.
What are the primary risks associated with a sole-source award for critical IT software support?
The primary risks associated with a sole-source award for critical IT software support include potential overpricing due to the lack of competition, vendor lock-in which can limit future flexibility and innovation, and reduced incentive for the vendor to provide optimal service or pricing. Taxpayers may bear a higher cost without competitive pressure. Furthermore, reliance on a single vendor can create vulnerabilities if that vendor experiences financial difficulties, changes its business strategy, or experiences service disruptions. Agencies must have robust internal oversight and justification processes to mitigate these risks, ensuring the sole-source award is truly necessary and offers fair value.
What is the historical spending pattern for Microsoft software assurance and support by the Social Security Administration?
Analyzing the historical spending pattern for Microsoft software assurance and support by the Social Security Administration (SSA) would require a review of past contract awards. This $33.3 million award for Option Year 2 suggests a continuation of a multi-year commitment. Typically, federal agencies like the SSA maintain ongoing relationships with major software vendors to ensure continuity and access to updates and support. Spending in this category can fluctuate based on software lifecycles, new product introductions, and changes in agency IT strategy. A trend analysis would likely show consistent, substantial investment in Microsoft products and services over several fiscal years to support the agency's extensive IT infrastructure.
What specific Microsoft products and services are covered under this $33.3 million contract?
This contract specifically covers Microsoft Software Assurance, Premier Support, and SQL Server license conversion and Systems Center Data Center Step-Up. Software Assurance provides benefits such as new version rights, deployment planning services, training vouchers, and 24x7 technical support. Premier Support offers a higher level of technical support, including proactive services, incident management, and access to specialized engineers. The SQL Server license conversion and step-up components indicate that the SSA is managing its licensing for SQL Server, potentially upgrading to newer versions or expanding its deployment, ensuring compliance and access to advanced features.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Technologies Inc. (UEI: 601839660)
Address: ONE DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,321,504
Exercised Options: $33,321,504
Current Obligation: $33,321,504
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: SS001441005
IDV Type: BPA
Timeline
Start Date: 2015-10-23
Current End Date: 2016-10-22
Potential End Date: 2016-10-22 00:00:00
Last Modified: 2017-12-04
More Contracts from Dell Marketing L.P.
- Microsoft ESA Agreement — $1.3B (Department of Defense)
- Microsoft Products — $508.0M (Department of Defense)
- Microsoft M365 E5 — $477.2M (Department of Defense)
- 200410!000781!5700!GV90 !ssg/Pk !gs35f4076d !C!N! !n!fa877104f8320! !20040630!20040709!114315195!114315195!114315195!n!dell Marketing L P !ONE Dell WAY !round Rock !tx!78682!63500!491!48!round Rock !williamson !texas !+000012313462!n!n!000000000000!7030!adp Software !A7 !electronics and Communication Equip !000 !* !511210!E! !6! ! ! ! ! !99990909!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! ! — $471.3M (Department of Defense)
- Microsoft Enterprise Products — $354.9M (Department of Defense)
Other Social Security Administration Contracts
- Itssc Task Order for Systems — $1.1B (Leidos, Inc.)
- Contractor IS to Provide the Expertise, Technical Knowledge, IT Support Personnel, and Other Related Resources Necessary for Systems Analysis and Testing — $734.1M (Northrop Grumman Systems Corporation)
- Contractor to Provide Development&database Support to Agency's Office of Software Engineering — $593.5M (Leidos, Inc.)
- THE Government Intends to Establish a Single-Award Delivery Order Base Plus Four 1year Option Periods for the Renewal of IBM Software Maintenance and the Purchase of More Additional IBM Software Licenses Against the General Services Administrations Federal Supply Schedule Program. Previous Order SS00-15-30081 — $525.4M (International Business Machines Corporation)
- NEW 66 Month Open-Market Contract for Renewal of CA Software, Support Services, and Maintenance. CA Proprietary Software Products ARE Used Extensively Throughout OUR Mainframe and Distributed Environments AT ALL SSA Data Centers — $419.8M (CA, Inc.)