Commerce Dept. Spends $10.3M on Dell/Microsoft Licenses for Other Computer Services
Contract Overview
Contract Amount: $10,316,006 ($10.3M)
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: $14.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DELL MICROSOFT LICENSES
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Commerce obligated $10.3 million to DELL FEDERAL SYSTEMS L.P for work described as: DELL MICROSOFT LICENSES Key points: 1. Significant expenditure on software licenses from major vendors. 2. Competition method was 'Full and Open', suggesting potential for price discovery. 3. Contract duration is 2 years, with a moderate value. 4. No explicit small business participation noted.
Value Assessment
Rating: fair
The $10.3M contract for Dell and Microsoft licenses appears to be a standard procurement for IT services. Benchmarking against similar large-scale software license agreements would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the specific nature of the licenses and the vendor landscape could still influence the final negotiated price.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure. The competitive award process aims to ensure reasonable pricing, but ongoing monitoring is crucial.
Public Impact
Supports critical IT functions within the Department of Commerce. Ensures access to necessary software for government operations. Potential for future contract renewals or expansions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in with major software providers.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls under the 'Other Computer Related Services' category, which is a broad area encompassing various IT support and licensing. Spending in this sector is consistently high across federal agencies.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were available or pursued.
Oversight & Accountability
The contract was awarded by the Department of Commerce, Office of the Secretary. Standard procurement oversight processes would apply, focusing on compliance and adherence to contract terms.
Related Government Programs
- Other Computer Related Services
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Potential for overspending on software licenses without detailed benchmarking.
- Lack of transparency on specific license types and quantities.
- Risk of vendor lock-in impacting future procurement flexibility.
- Absence of defined performance metrics for value assessment.
Tags
other-computer-related-services, department-of-commerce, tx, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $10.3 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 $10.3 million.
What is the period of performance?
Start: 2024-06-01. End: 2026-05-31.
What is the specific breakdown of costs between Dell and Microsoft licenses, and how does this align with market rates for these products?
The provided data does not specify the cost allocation between Dell and Microsoft licenses. A detailed breakdown is essential for accurate market rate comparison. Without this, it's difficult to ascertain if the $10.3M represents a competitive price for the bundled or individual software components.
What are the key performance indicators (KPIs) for these licenses, and how is their effectiveness being measured by the Department of Commerce?
The provided data lacks information on specific Key Performance Indicators (KPIs) for these software licenses. Effective contract management requires defined metrics to assess software performance, user adoption, and overall value realization against the $10.3M investment.
Given the 'Full and Open Competition' award, what was the competitive landscape, and were there any significant price deviations from initial bids?
While 'Full and Open Competition' was utilized, the data doesn't detail the competitive landscape or price deviations. Understanding the number of bidders and the range of bids would clarify the effectiveness of the competition in driving down costs for the $10.3M expenditure.
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 - END USER
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: $24,755,298
Exercised Options: $10,316,006
Current Obligation: $10,316,006
Actual Outlays: $4,662,731
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: 2026-05-31
Potential End Date: 2029-05-31 00:00:00
Last Modified: 2026-03-03
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