SSA renews Microsoft software support for $26.7M, continuing a long-standing relationship with Dell Marketing L.P
Contract Overview
Contract Amount: $26,654,372 ($26.7M)
Contractor: Dell Marketing L.P.
Awarding Agency: Social Security Administration
Start Date: 2012-10-23
End Date: 2013-10-22
Contract Duration: 364 days
Daily Burn Rate: $73.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SS00-09-40002 OPTION YEAR-4 RENEWAL FOR MICROSOFT SW MAINTENANCE/PREMIER SUPPORT. RENEWAL OF MICROSOFT SOFTWARE ASSURANCE AND PREMIER SUPPORT FOR SSA'S INVENTORY OF MICROSOFT 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 OPTION YEAR-4 RENEWAL FOR MICROSOFT SW MAINTENANCE/PREMIER SUPPORT. RENEWAL OF MICROSOFT SOFTWARE ASSURANCE AND PREMIER SUPPORT FOR SSA'S INVENTORY OF MICROSOFT SOFTWARE INVENTORY. Key points: 1. This contract represents a renewal of essential software maintenance and support, crucial for the agency's IT infrastructure. 2. The renewal indicates a stable, ongoing need for Microsoft products and services within the Social Security Administration. 3. As a renewal, it suggests a predictable cost structure, though year-over-year price changes should be monitored. 4. The use of a Blanket Purchase Agreement (BPA) suggests a streamlined procurement process for recurring needs. 5. The contract's duration of one year with a firm-fixed-price structure provides cost certainty for the current period. 6. The specific value suggests a significant portion of the agency's software support budget is allocated to this vendor.
Value Assessment
Rating: good
The contract value of approximately $26.7 million for a one-year renewal of Microsoft software assurance and premier support appears reasonable given the scope. Benchmarking against similar large-scale enterprise software support contracts for federal agencies suggests that costs are generally in line with market expectations for comprehensive support from major vendors like Microsoft, especially when procured through established channels like a BPA. The firm-fixed-price nature provides budget predictability. However, a detailed year-over-year cost analysis would be necessary to confirm consistent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. While the specific number of bidders is not detailed, the full and open competition process generally fosters a competitive environment, which can lead to more favorable pricing and terms for the government. The use of a BPA, often established through prior competition, further supports the idea that competitive principles were applied.
Taxpayer Impact: Full and open competition ensures that taxpayers benefit from potentially lower prices and better service offerings due to vendor rivalry, preventing any single vendor from having undue pricing power.
Public Impact
The primary beneficiaries are the Social Security Administration's IT operations, ensuring the continuity of critical software services. This contract directly supports the agency's ability to maintain and operate its extensive inventory of Microsoft software. The services delivered include software assurance, providing access to updates and new versions, and premier support for technical issues. The geographic impact is national, supporting the SSA's nationwide operations and its ability to serve beneficiaries across the United States. Workforce implications include ensuring IT staff have the necessary tools and support to manage the agency's software environment effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft software, making future transitions costly.
- Reliance on a single vendor for critical software support could pose risks if the vendor's service levels decline.
- The long-term cost of enterprise software licenses and support can escalate significantly over time.
Positive Signals
- Renewal indicates satisfaction with current support levels and vendor performance.
- Full and open competition suggests a competitive pricing structure was achieved.
- Firm-fixed-price contract provides cost certainty for the current performance period.
- BPA mechanism streamlines procurement for essential, recurring services.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software maintenance and support. The market for enterprise software licenses and support is dominated by a few major players, including Microsoft. Federal spending on IT, particularly software and related services, represents a significant portion of the government's overall budget. Comparable spending benchmarks for similar enterprise-level support contracts often run into tens of millions of dollars annually for large agencies, making the SSA's expenditure consistent with its scale and needs.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While Dell Marketing L.P. is a large business, the contract does not preclude subcontracting opportunities for small businesses. However, the primary focus of this renewal is on enterprise-level software support, which typically involves direct services from the software vendor or its authorized large partners. The impact on the small business ecosystem is likely minimal unless specific subcontracting plans are mandated or pursued.
Oversight & Accountability
Oversight for this contract would typically reside with the contracting officer and program managers within the Social Security Administration. The firm-fixed-price nature simplifies financial oversight by providing a clear ceiling. Transparency is generally maintained through contract databases like FPDS. Accountability is tied to the vendor's adherence to the terms of service, including response times and resolution of issues outlined in the premier support agreement. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Microsoft Software Assurance
- Premier Support Contracts
- Enterprise Software Licensing
- IT Maintenance and Support Services
- Blanket Purchase Agreements (BPAs)
Risk Flags
- Vendor Lock-in
- Long-term Cost Escalation
- Service Level Agreement Compliance
- Reliance on Single Software Ecosystem
Tags
it, software-maintenance, microsoft, premier-support, social-security-administration, dell-marketing-l.p., full-and-open-competition, bpa, firm-fixed-price, renewal, texas, enterprise-it
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 OPTION YEAR-4 RENEWAL FOR MICROSOFT SW MAINTENANCE/PREMIER SUPPORT. RENEWAL OF MICROSOFT SOFTWARE ASSURANCE AND PREMIER SUPPORT FOR SSA'S INVENTORY OF MICROSOFT 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: 2012-10-23. End: 2013-10-22.
What is the historical spending trend for this specific Microsoft software support contract with Dell Marketing L.P. over the past five years?
Analyzing historical spending data for this contract reveals a consistent pattern of renewal, indicating a stable and ongoing requirement for Microsoft software assurance and premier support. While the exact figures for each year are not provided in the summary data, the contract's duration and the nature of software support renewals suggest that the annual cost has likely remained within a predictable range, potentially with modest increases due to inflation or expanded software inventory. A deeper dive into contract modification history and annual spending reports would be necessary to quantify year-over-year fluctuations and identify any significant deviations from the average annual cost of approximately $26.7 million.
How does the per-unit cost of this support contract compare to similar federal contracts for Microsoft Premier Support?
Direct per-unit cost comparison is challenging without knowing the exact number and type of software licenses covered and the specific service levels included in the 'Premier Support.' However, the total contract value of $26.7 million for a one-year renewal for the SSA's inventory suggests a substantial investment. Federal agencies often negotiate enterprise-wide agreements that may offer volume discounts. Benchmarking against other large agencies' Microsoft support contracts would be the most effective way to assess if the SSA is receiving competitive pricing. Factors like the specific support plan (e.g., Premier vs. Signature Support) and the scope of services (e.g., 24/7 response, dedicated account management) significantly influence cost.
What are the key performance indicators (KPIs) used to measure the performance of Dell Marketing L.P. under this contract?
Key performance indicators for a Microsoft Premier Support contract typically revolve around service level agreements (SLAs) related to issue response times, resolution times, and availability of support resources. For the SSA, critical KPIs would likely include the percentage of critical incidents resolved within defined timeframes, the availability of technical account managers, and the successful delivery of proactive services such as health checks or training. Performance is often monitored through regular reports provided by the vendor and feedback from the agency's IT staff who utilize the support services. Contractual remedies may be in place for failure to meet these KPIs.
What is the risk associated with the SSA's reliance on a single vendor, Dell Marketing L.P., for its comprehensive Microsoft software support?
The primary risk associated with relying on a single vendor for comprehensive software support is vendor lock-in and potential disruptions if the vendor's performance declines or if their business strategy changes. For the SSA, this means a dependence on Dell Marketing L.P. (and by extension, Microsoft) for critical updates, security patches, and technical assistance. If Dell were to significantly increase prices upon renewal, or if their support quality degraded, the SSA could face substantial challenges in switching to an alternative vendor due to the deep integration of Microsoft products within its IT infrastructure. This necessitates careful contract management and ongoing evaluation of vendor performance.
Has the SSA explored alternative software solutions or support vendors to mitigate risks and potentially reduce costs?
The provided data focuses on the renewal of an existing contract and does not detail the SSA's strategic sourcing or exploration of alternatives. However, given the nature of enterprise software and the long-standing relationship, a complete transition to a different software ecosystem (e.g., from Microsoft to open-source or another commercial vendor) would be a complex, multi-year undertaking with significant costs and risks. It is plausible that the SSA periodically reviews its software portfolio and support arrangements, but the renewal of this contract suggests that, for the current period, continuing with Microsoft support through Dell Marketing L.P. was deemed the most practical and cost-effective solution, likely after some form of market assessment or internal evaluation.
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: 2012-10-23
Current End Date: 2013-10-22
Potential End Date: 2013-10-22 00:00:00
Last Modified: 2013-10-16
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