DOJ Spends $50.5M on Microsoft Licensing, Awarded to CDW Government LLC via BPA Call
Contract Overview
Contract Amount: $50,461,972 ($50.5M)
Contractor: CDW Government LLC
Awarding Agency: Department of Justice
Start Date: 2019-07-01
End Date: 2020-04-30
Contract Duration: 304 days
Daily Burn Rate: $166.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ANNUAL DOJ MS LICENSING SOFTWARE ASSURANCE AND TRUE-UP
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530
Plain-Language Summary
Department of Justice obligated $50.5 million to CDW GOVERNMENT LLC for work described as: ANNUAL DOJ MS LICENSING SOFTWARE ASSURANCE AND TRUE-UP Key points: 1. Significant annual spending on essential software licensing. 2. CDW Government LLC secured the contract. 3. Contract awarded under a Blanket Purchase Agreement (BPA) Call. 4. Spending falls within the 'Computer and Software Stores' category.
Value Assessment
Rating: fair
The $50.5M annual cost for Microsoft licensing is substantial. Benchmarking against similar government-wide agreements or enterprise licenses would be necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through a full and open competition, utilizing a BPA Call. This method allows for broad participation but the specific pricing mechanisms within the BPA call need review for optimal price discovery.
Taxpayer Impact: Taxpayer funds are used for this significant software expenditure. Ensuring competitive pricing through the BPA call is crucial for maximizing value.
Public Impact
Ensures DOJ employees have access to critical Microsoft software. Supports the operational needs of various DOJ offices and divisions. Potential for cost savings if negotiated effectively within the BPA framework.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data.
- BPA Call mechanism requires careful review for cost-effectiveness.
- Short contract duration (304 days) may limit long-term negotiation benefits.
Positive Signals
- Awarded under full and open competition.
- Utilizes an existing BPA, potentially streamlining procurement.
- Supports essential government IT infrastructure.
Sector Analysis
This spending falls within the IT sector, specifically software licensing. Government spending on software is consistently high, with significant portions allocated to major vendors like Microsoft.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary awardee is CDW Government LLC, a large reseller.
Oversight & Accountability
Oversight would involve reviewing the terms of the BPA call and ensuring compliance with federal procurement regulations. The Department of Justice is responsible for managing this contract.
Related Government Programs
- Computer and Software Stores
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- High annual expenditure.
- Reliance on a single major software vendor.
- Potential for unoptimized pricing within BPA call.
- Short contract duration may indicate a temporary solution or lack of long-term planning.
Tags
computer-and-software-stores, department-of-justice, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $50.5 million to CDW GOVERNMENT LLC. ANNUAL DOJ MS LICENSING SOFTWARE ASSURANCE AND TRUE-UP
Who is the contractor on this award?
The obligated recipient is CDW GOVERNMENT LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $50.5 million.
What is the period of performance?
Start: 2019-07-01. End: 2020-04-30.
What is the specific breakdown of software licenses and associated costs within this $50.5M contract?
The provided data lacks a granular breakdown of the specific Microsoft software licenses included in the $50.5M contract. Understanding the exact products, quantities, and license types (e.g., perpetual, subscription, user-based, device-based) is crucial for a thorough value assessment. Without this detail, it's difficult to benchmark against market rates or identify potential areas for cost optimization.
How does the pricing under this BPA Call compare to other federal agencies or enterprise agreements for similar Microsoft licensing?
To assess the value, a comparison of the per-unit costs and overall pricing structure against other federal contracts or large enterprise agreements for comparable Microsoft products is essential. The BPA call mechanism, while efficient, may not always yield the absolute lowest price compared to direct agency negotiations or government-wide enterprise license agreements. A benchmark analysis would reveal if the DOJ is receiving competitive pricing.
What is the long-term strategy for Microsoft software procurement within the DOJ to ensure cost-effectiveness and manage vendor lock-in?
The current contract is a short-term (304 days) true-up and assurance purchase. A long-term strategy should address how the DOJ plans to manage its Microsoft software needs beyond this period. This includes evaluating the total cost of ownership, exploring alternative software solutions where feasible, and leveraging volume purchasing power to negotiate favorable terms and avoid vendor lock-in.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
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: CDW Corporation
Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $50,461,972
Exercised Options: $50,461,972
Current Obligation: $50,461,972
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: DJJ14F2527
IDV Type: BPA
Timeline
Start Date: 2019-07-01
Current End Date: 2020-04-30
Potential End Date: 2020-04-30 00:00:00
Last Modified: 2023-02-13
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