Commerce Buys $24M in Microsoft Licenses and Support from Dell Federal
Contract Overview
Contract Amount: $24,126,877 ($24.1M)
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: $33.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT LICENSES AND UNIFIED SUPPORT PROCUREMENT
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78664
State: Texas Government Spending
Plain-Language Summary
Department of Commerce obligated $24.1 million to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT LICENSES AND UNIFIED SUPPORT PROCUREMENT Key points: 1. Significant spending on essential software and support services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to vendor lock-in and evolving software needs. 4. IT sector spending, with a focus on software licensing and support.
Value Assessment
Rating: good
The contract value of $24.1M over two years for Microsoft licenses and unified support appears reasonable given the scale of enterprise software and support. Benchmarking against similar large-scale government software procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement utilized full and open competition, allowing multiple vendors to bid. This method is expected to drive competitive pricing and ensure the government receives fair market value for the Microsoft licenses and support.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure, with competition aiming to optimize value for money.
Public Impact
Ensures USPTO employees have access to necessary software tools. Supports critical patent and trademark operations through reliable vendor support. Potential for cost savings through competitive bidding on enterprise software.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases upon contract renewal.
- Dependence on a single software ecosystem (Microsoft).
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
Sector Analysis
This procurement falls within the IT sector, specifically focusing on software licensing and support services. Government spending on enterprise software and related support is substantial, often driven by the need for standardized tools and vendor-provided maintenance.
Small Business Impact
While Dell Federal Systems L.P. is the awardee, the data does not indicate specific set-asides for small businesses in this particular BPA Call. Further analysis would be needed to determine the extent of small business participation in the overall BPA.
Oversight & Accountability
The contract is managed by the Department of Commerce for the U.S. Patent and Trademark Office. Oversight would involve ensuring adherence to contract terms, performance standards, and fair pricing throughout the contract period.
Related Government Programs
- Other Computer Related Services
- Department of Commerce Contracting
- U.S. Patent and Trademark Office Programs
Risk Flags
- Vendor lock-in risk with Microsoft ecosystem.
- Potential for price escalation upon renewal.
- Reliance on a single support provider.
- Evolving technology landscape may render current licenses obsolete.
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 $24.1 million to DELL FEDERAL SYSTEMS L.P. MICROSOFT LICENSES AND UNIFIED SUPPORT PROCUREMENT
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 (U.S. Patent and Trademark Office).
What is the total obligated amount?
The obligated amount is $24.1 million.
What is the period of performance?
Start: 2024-06-01. End: 2026-05-31.
What is the specific breakdown of costs between Microsoft licenses and unified support?
The provided data aggregates the total contract value but does not specify the cost allocation between Microsoft licenses and the unified support services. A detailed breakdown would be beneficial for understanding the value proposition of each component and for future procurement planning.
How does the unified support offering compare to alternative support models or direct vendor support?
The effectiveness of unified support hinges on its ability to provide comprehensive, proactive, and responsive assistance across the Microsoft ecosystem. Benchmarking its service level agreements (SLAs), response times, and proactive support features against alternative support models or direct vendor engagement is crucial for assessing its value.
What is the strategy for managing software license compliance and potential future upgrades?
Effective management of software licenses involves regular audits and clear understanding of usage rights to avoid non-compliance penalties. The strategy for future upgrades should be considered within the contract's scope or planned for subsequent procurements to ensure continuous access to the latest features and security patches.
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
Solicitation ID: 1333BJ24Q00280060
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: $57,871,481
Exercised Options: $24,126,877
Current Obligation: $24,126,877
Actual Outlays: $-3,904
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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