Commerce Dept. Spends $2.08M on Dell/Microsoft Licenses via BPA Call
Contract Overview
Contract Amount: $2,082,628 ($2.1M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Commerce
Start Date: 2024-06-01
End Date: 2025-05-31
Contract Duration: 364 days
Daily Burn Rate: $5.7K/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 $2.1 million to DELL FEDERAL SYSTEMS L.P for work described as: DELL MICROSOFT LICENSES Key points: 1. Spending is concentrated on Dell and Microsoft software licenses. 2. The contract was awarded under full and open competition. 3. The primary risk is potential vendor lock-in and license management. 4. This falls under IT services, specifically computer-related services.
Value Assessment
Rating: fair
The contract value of $2.08M for one year of licenses appears reasonable given the vendors involved. Benchmarking against similar large-scale enterprise license agreements would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded via a BPA Call under full and open competition, suggesting multiple vendors had the opportunity to bid. The BPA mechanism likely facilitated efficient procurement, but specific price discovery details are not provided.
Taxpayer Impact: Taxpayer funds are used for essential software licenses supporting agency operations. The competitive award process aims to ensure fair pricing.
Public Impact
Ensures access to critical software for Department of Commerce operations. Supports agency productivity through licensed software from major vendors. Potential for cost savings through competitive bidding on the BPA call.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- License management and potential for over-licensing.
- Dependence on specific vendors (Dell/Microsoft).
- Ensuring competitive pricing within the BPA call.
Positive Signals
- Awarded under full and open competition.
- Utilizes a Blanket Purchase Agreement (BPA) for efficiency.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This spending falls within the Information Technology sector, specifically related to software licensing and computer-related services. Benchmarks for similar enterprise software license agreements can vary widely based on scope and user count.
Small Business Impact
The data does not indicate specific participation or set-asides for small businesses in this particular BPA call. Larger contracts for enterprise software often involve major vendors, potentially limiting direct small business involvement unless they are subcontractors.
Oversight & Accountability
The use of a BPA call suggests established oversight mechanisms for the underlying BPA. Accountability for license utilization and cost-effectiveness rests with the Office of the Secretary within the Department of Commerce.
Related Government Programs
- Other Computer Related Services
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Potential for vendor lock-in with Dell/Microsoft.
- Risk of over-licensing or underutilization.
- Ensuring competitive pricing within the BPA call.
- Dependence on specific software versions and support.
Tags
other-computer-related-services, department-of-commerce, tx, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $2.1 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 $2.1 million.
What is the period of performance?
Start: 2024-06-01. End: 2025-05-31.
What is the specific breakdown of licenses and associated costs for Dell and Microsoft products?
The provided data aggregates the total cost without detailing the specific licenses or their individual prices from Dell and Microsoft. A full accounting would require a breakdown of each software product, version, user count, and associated license fees to understand the value proposition and identify potential areas for cost optimization or negotiation.
How does the $2.08M annual cost compare to industry benchmarks for similar enterprise software license agreements?
Benchmarking this $2.08M annual spend requires detailed comparison against similar-sized government or commercial entities procuring comparable software suites (e.g., Microsoft 365 E5, Dell software bundles). Factors like user count, specific software modules, support levels, and negotiated discounts significantly influence pricing, making direct comparisons challenging without more granular data.
What mechanisms are in place to ensure ongoing cost-effectiveness and prevent license creep over the contract period?
While the contract is Firm Fixed Price, ongoing cost-effectiveness relies on diligent license management by the agency. This includes regular audits of usage, de-provisioning unused licenses, and negotiating favorable terms for renewals or upgrades. The agency must actively monitor software utilization to prevent unnecessary expenditures and ensure alignment with actual needs.
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: $3,785,861
Exercised Options: $2,082,628
Current Obligation: $2,082,628
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 1331L524A13ES0005
IDV Type: BPA
Timeline
Start Date: 2024-06-01
Current End Date: 2025-05-31
Potential End Date: 2029-05-31 00:00:00
Last Modified: 2026-04-07
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