Commerce Department's $4.8M Dell/Microsoft License Contract Awarded to Dell Federal Systems L.P

Contract Overview

Contract Amount: $4,805,793 ($4.8M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Commerce

Start Date: 2024-06-01

End Date: 2026-05-31

Contract Duration: 729 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DELL MICROSOFT LICENSES

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75267

State: Texas Government Spending

Plain-Language Summary

Department of Commerce obligated $4.8 million to DELL FEDERAL SYSTEMS L.P for work described as: DELL MICROSOFT LICENSES Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, suggesting pre-negotiated terms. 2. Firm Fixed Price contract type aims to control costs and provide budget certainty. 3. Duration of 729 days indicates a medium-term need for these software licenses. 4. No small business set-aside, potentially limiting opportunities for smaller vendors. 5. The contract falls under 'Other Computer Related Services', a broad category. 6. Awarded to a single vendor, Dell Federal Systems L.P., for specific license needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific license details and usage metrics. The total award amount of $4.8 million over two years for software licenses is not inherently high or low without context. However, the firm fixed-price nature provides cost predictability. Comparison to similar BPA calls for enterprise software licenses from other agencies could offer more insight into whether the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'FULL AND OPEN COMPETITION' via a BPA Call. This implies that the underlying BPA was competed, allowing multiple vendors to bid. However, the specific call was likely placed against an existing BPA, which may limit the number of direct bidders for this particular task order. The level of competition for the original BPA would be the primary indicator of price discovery.

Taxpayer Impact: A full and open competition for the BPA generally benefits taxpayers by encouraging competitive pricing and a wider range of solutions. However, the specific call's competition level is less clear without knowing how many vendors could respond to the BPA call.

Public Impact

Federal employees within the Department of Commerce will benefit from access to necessary software licenses. Ensures continued operation and productivity for various departmental functions reliant on Dell and Microsoft software. The geographic impact is primarily within the Department of Commerce's operational locations, likely nationwide. Supports the IT workforce by providing them with the tools needed to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on license types and quantities makes it difficult to assess true value for money.
Potential for vendor lock-in if the BPA terms are not regularly re-evaluated for competitive pricing.
Reliance on a single vendor for a significant software suite could pose risks if that vendor's offerings change unfavorably.

Positive Signals

Firm Fixed Price contract provides budget certainty and protects against cost overruns.
Awarded under a BPA Call, suggesting a streamlined procurement process for established needs.
The contract duration allows for stable access to essential software over a defined period.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically under 'Other Computer Related Services'. The market for enterprise software licenses, particularly for major vendors like Microsoft and hardware providers like Dell, is substantial and highly competitive. Agencies frequently procure these types of licenses through various contract vehicles, including BPAs, to streamline acquisition. Benchmarking would involve comparing this award to other similar BPA calls or IT service contracts for software licensing.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). This means that large businesses like Dell Federal Systems L.P. were eligible to compete and win. There is no explicit information provided regarding subcontracting plans for small businesses. Without a set-aside, the direct impact on the small business ecosystem for this specific award is likely minimal, though the prime contractor may engage small businesses in other capacities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce's contracting officers and program managers. The firm fixed-price nature simplifies some aspects of financial oversight. Transparency is facilitated by public contract databases, but detailed usage and performance metrics may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Schedules
IT Enterprise Software Licenses
Department of Commerce IT Procurement
Blanket Purchase Agreements (BPAs)

Risk Flags

Lack of specific license details
Potential for vendor lock-in
Cybersecurity compliance verification needed

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $4.8 million to DELL FEDERAL SYSTEMS L.P. DELL 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 $4.8 million.

What is the period of performance?

Start: 2024-06-01. End: 2026-05-31.

What specific Dell and Microsoft software licenses are covered under this contract, and what are their intended uses within the Department of Commerce?

The provided data does not specify the exact Dell and Microsoft software licenses included in this $4.8 million contract. These could range from operating system licenses (e.g., Windows), productivity suites (e.g., Microsoft 365), server software, or specialized applications. The 'Other Computer Related Services' NAICS code (541519) suggests a broad scope. The intended uses are likely to support the daily operations, data processing, communication, and administrative functions of the Department of Commerce's various offices and personnel across the nation. Without a detailed Statement of Work (SOW) or license breakdown, the precise applications and their departmental functions remain unspecified.

How does the $4.8 million award amount compare to historical spending on similar software licenses by the Department of Commerce or other federal agencies?

Direct comparison of the $4.8 million award to historical spending is difficult without knowing the specific licenses and quantities. However, enterprise software licenses for major vendors like Microsoft and hardware support from companies like Dell represent significant, recurring costs for federal agencies. The Department of Commerce, like many large federal entities, likely spends millions annually on such IT infrastructure. This $4.8 million contract, spanning two years, suggests a substantial but potentially standard investment for a department of its size. Benchmarking against similar BPA calls or agency-wide IT procurements would be necessary for a more precise value assessment.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure performance and value?

The provided data does not detail specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a firm fixed-price contract involving software licenses, typical performance expectations would revolve around timely delivery of licenses, access to support services (if included), and ensuring the software functions as intended. The 'Other Computer Related Services' category might imply some level of technical support or maintenance. The contracting officer and program managers within the Department of Commerce would be responsible for monitoring vendor performance against the terms outlined in the BPA call and the underlying BPA.

What is the track record of Dell Federal Systems L.P. in fulfilling similar federal contracts for software licenses?

Dell Federal Systems L.P. is a well-established government contractor with a significant history of providing IT hardware, software, and related services to federal agencies. They are a primary vendor for Dell products and often hold numerous Blanket Purchase Agreements (BPAs) and task orders across various government departments. Their track record generally includes fulfilling large-scale IT requirements. Specific performance on similar software license contracts would be detailed in past performance evaluations during competitive procurements, but as a major player, they are expected to have substantial experience in this domain.

Are there any identified risks associated with this contract, such as vendor lock-in, cybersecurity vulnerabilities, or potential for cost overruns despite the fixed price?

Potential risks include vendor lock-in if the contract terms are not regularly reviewed for competitive pricing and if switching vendors for similar licenses would be prohibitively complex or costly. Cybersecurity is an inherent risk with any software; the Department of Commerce would rely on Dell to provide secure, up-to-date software and adhere to federal cybersecurity standards. While the contract is Firm Fixed Price, risks could emerge if the scope of work changes significantly, potentially requiring modifications or new contracts. Ensuring the licenses procured meet evolving security requirements is crucial.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

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, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,192,162

Exercised Options: $4,805,793

Current Obligation: $4,805,793

Actual Outlays: $4,690,652

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L524A13ES0005

IDV Type: BPA

Timeline