SSA Renews Microsoft Support for $26.7M, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $26,654,372 ($26.7M)
Contractor: Dell Marketing L.P.
Awarding Agency: Social Security Administration
Start Date: 2011-10-23
End Date: 2013-10-22
Contract Duration: 730 days
Daily Burn Rate: $36.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SS00-09-40002 MICROSOFT SW MAINTENANCE/PREMIER SUPPORT. RENEWAL OF MICROSOFT SOFTWARE ASSURANCE AND PREMIER SUPPORT FOR SSA'S INVENTORY OF MICRSOFT SOFTWARE INVENTORY.
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Social Security Administration obligated $26.7 million to DELL MARKETING L.P. for work described as: SS00-09-40002 MICROSOFT SW MAINTENANCE/PREMIER SUPPORT. RENEWAL OF MICROSOFT SOFTWARE ASSURANCE AND PREMIER SUPPORT FOR SSA'S INVENTORY OF MICRSOFT SOFTWARE INVENTORY. Key points: 1. Significant expenditure on software maintenance and support for a large government agency. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk of vendor lock-in and escalating costs for essential software. 4. IT sector spending, specifically on software and support services.
Value Assessment
Rating: fair
The contract value of $26.7M for two years of Microsoft support appears high. Benchmarking against similar government contracts for Premier Support and Software Assurance is needed to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making it difficult to assess the effectiveness of the competition.
Taxpayer Impact: Taxpayer funds are being used for this renewal. While competition was sought, the overall cost and necessity of such extensive support should be continually evaluated to ensure value for money.
Public Impact
Ensures continued operation of critical Microsoft software for the Social Security Administration. Potential for cost savings if competitive bids were significantly lower than previous agreements. Impacts agencies relying on Microsoft products for their IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High renewal cost for software support.
- Potential for price increases in future renewals.
- Dependence on a single software vendor.
Positive Signals
- Awarded through full and open competition.
- Supports critical government operations.
Sector Analysis
This contract falls within the Information Technology sector, specifically for software maintenance and support. Government spending on IT, particularly for enterprise software licenses and support, is substantial and ongoing.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this contract award. The focus appears to be on large-scale enterprise support.
Oversight & Accountability
The Social Security Administration is responsible for this contract. Oversight would involve monitoring contract performance, ensuring compliance with terms, and evaluating the ongoing need and cost-effectiveness of the support.
Related Government Programs
- Computer and Software Stores
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- High contract value.
- Potential for price creep in future renewals.
- Vendor lock-in with Microsoft software.
- Dependence on a single software provider for critical functions.
Tags
computer-and-software-stores, social-security-administration, tx, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $26.7 million to DELL MARKETING L.P.. SS00-09-40002 MICROSOFT SW MAINTENANCE/PREMIER SUPPORT. RENEWAL OF MICROSOFT SOFTWARE ASSURANCE AND PREMIER SUPPORT FOR SSA'S INVENTORY OF MICRSOFT SOFTWARE INVENTORY.
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 $26.7 million.
What is the period of performance?
Start: 2011-10-23. End: 2013-10-22.
What is the historical cost trend for this Microsoft support contract, and how does the current renewal compare?
Analyzing historical spending on this specific Microsoft support contract is crucial. Without prior data, it's difficult to ascertain if the $26.7M renewal represents an increase, decrease, or stable cost. Understanding this trend helps assess long-term value and identify potential cost escalation patterns, informing future negotiation strategies and budget planning for the SSA.
Were there alternative software solutions or support providers considered during the full and open competition?
During a full and open competition, agencies should ideally evaluate a range of solutions. The effectiveness of this competition hinges on whether viable alternatives to Microsoft's Premier Support were genuinely considered and bid upon. If the competition was limited to variations of Microsoft support or if competitors lacked comparable offerings, the price discovery might be constrained, potentially impacting the final negotiated price.
What is the SSA's strategy for managing its Microsoft software inventory and support costs beyond this renewal?
The SSA's long-term strategy for managing its Microsoft software and support is key to controlling costs and mitigating risks. This includes evaluating software utilization, exploring enterprise license agreements, considering open-source alternatives where feasible, and planning for potential vendor transitions. Proactive management can lead to significant savings and reduce reliance on expensive, long-term support contracts.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
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 Computer Corporation (UEI: 114315195)
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,654,372
Exercised Options: $26,654,372
Current Obligation: $26,654,372
Parent Contract
Parent Award PIID: SS000940002
IDV Type: BPA
Timeline
Start Date: 2011-10-23
Current End Date: 2013-10-22
Potential End Date: 2013-10-22 00:00:00
Last Modified: 2012-01-24
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