Commerce Dept. Spends $1.15M on Microsoft Licenses via BPA Call with Dell Federal
Contract Overview
Contract Amount: $114,696 ($114.7K)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Commerce
Start Date: 2023-09-01
End Date: 2024-05-31
Contract Duration: 273 days
Daily Burn Rate: $420/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT LICENSES
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $114,695.5 to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT LICENSES Key points: 1. Spending on Microsoft licenses totals $1.15M. 2. Competition was full and open, awarded via BPA Call. 3. Risk appears low due to established software and competitive award. 4. IT sector spending, specifically software licensing, is common.
Value Assessment
Rating: fair
The contract value of $1.15M for Microsoft licenses is substantial. Without specific per-unit pricing or comparison to other government Microsoft license agreements, it's difficult to definitively assess value. However, given the volume and nature of software licensing, this amount is not inherently unreasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition through a Blanket Purchase Agreement (BPA) Call. This method generally promotes price discovery and allows multiple vendors to compete, which should lead to more competitive pricing.
Taxpayer Impact: Taxpayer funds are used for essential software. The competitive nature of the award aims to ensure efficient use of these funds.
Public Impact
Ensures continued access to critical Microsoft software for Department of Commerce operations. Supports federal IT infrastructure and employee productivity. The use of a BPA Call streamlines procurement for commonly purchased items like software licenses.
Waste & Efficiency Indicators
Waste Risk Score: 42 / 10
Warning Flags
- Lack of specific per-unit cost data for detailed value analysis.
- Potential for vendor lock-in with Microsoft software over time.
- Reliance on a single software vendor can pose security risks if not managed properly.
Positive Signals
- Awarded through full and open competition.
- Utilizes an existing BPA, indicating established procurement channels.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls within the Information Technology sector, specifically software licensing. Government spending on software licenses is a significant and ongoing expenditure, often benchmarked against commercial pricing and other government-wide contracts.
Small Business Impact
While Dell Federal Systems L.P. is the awardee, the data does not indicate whether small businesses were involved as subcontractors or if this contract specifically aimed to support small business participation. Further analysis would be needed to determine the small business impact.
Oversight & Accountability
The use of a BPA Call suggests that the procurement process has likely undergone some level of review and is part of an established framework. However, ongoing oversight would be necessary to ensure continued value and compliance throughout the contract period.
Related Government Programs
- Other Computer Related Services
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Lack of detailed product/quantity breakdown.
- Absence of direct per-unit cost benchmarking data.
- Potential for price increases in future renewals.
- Dependence on a single software vendor.
Tags
other-computer-related-services, department-of-commerce, md, bpa-call, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $114,695.5 to DELL FEDERAL SYSTEMS L.P. MICROSOFT LICENSES
Who is the contractor on this award?
The obligated recipient is DELL FEDERAL SYSTEMS L.P.
Which agency awarded this contract?
Awarding agency: Department of Commerce (Office of the Secretary).
What is the total obligated amount?
The obligated amount is $114,695.5.
What is the period of performance?
Start: 2023-09-01. End: 2024-05-31.
What is the specific breakdown of Microsoft products and quantities purchased under this contract?
The provided data lacks a detailed breakdown of the specific Microsoft products and their quantities. Understanding this would allow for a more precise assessment of value for money and whether the spending aligns with the agency's actual software needs. This information is crucial for benchmarking against similar government or commercial agreements.
How does the per-unit cost of these Microsoft licenses compare to other federal agencies or commercial entities?
A direct per-unit cost comparison is not possible with the current data. Benchmarking against other federal contracts (e.g., NASA SEWP, GSA Schedules) or commercial price lists would be necessary to determine if the pricing is competitive. The 'fair' rating reflects this lack of comparative data for a definitive value assessment.
What is the process for ensuring the continued need and optimal utilization of these Microsoft licenses throughout the contract duration?
The contract duration is 273 days. The Department of Commerce's Office of the Secretary would typically have internal asset management and IT governance processes to track license usage, ensure continued need, and prevent over-licensing. Regular reviews and audits would be part of effective oversight to maximize the value derived from these licenses.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Francisco Partners Management, L.P.
Address: 1 DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $114,696
Exercised Options: $114,696
Current Obligation: $114,696
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 1331L518A13ES0010
IDV Type: BPA
Timeline
Start Date: 2023-09-01
Current End Date: 2024-05-31
Potential End Date: 2024-05-31 00:00:00
Last Modified: 2026-04-08
More Contracts from Dell Federal Systems L.P
- THE Purpose of This Acquisition IS to Provide the Department of Veterans Affairs With an Enterprise Agreement for Brand Name Microsoft Software Products and Services. This Enterprise Agreement Will Provide 1) Support Services 2) Operational Support and 3) Additional Licenses of Microsoft Products, Current and Planned, to Support the VA Enterprise. Subject Procurement WAS Competed Among Microsoft's Eight Authorized Federal Government License Solution Providers. Igf::ot::igf — $1.7B (Department of Veterans Affairs)
- VA Microsoft Enterprise License Agreement — $1.6B (Department of Veterans Affairs)
- Microsoft Enterprise Agreement — $602.2M (Department of Veterans Affairs)
- Cloud Hosted Enterprise Services (ches) — $369.2M (General Services Administration)
- Microsoft Jela III AF Enterprise Licenses SA — $282.3M (Department of Defense)
Other Department of Commerce Contracts
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (L3harris Technologies, Inc.)
- Engineering Services and Development Leading to the Delivery of the Jpss Common Ground System Instrument and Support — $1.6B (Raytheon Company)
- Enterprise Solutions Framework (ESF) for Multi-Tiered Acquisition Framework for Systems Engineering and Integration - Program Tier Work Order 003 - 2020 Census Technical Integrator — $1.5B (T-Rex Solutions LLC)
- THE Goal of the Decennial Response Integration System (dris) Contract IS to Obtain a Practical Solution to Providing Respondent Assistance and Data Capture for the 2010 Census — $930.7M (Lockheed Martin Services, LLC)
- 2020 Census Questionnaire Assistance (2020 CQA) — $918.3M (Maximus Federal Services, Inc.)