SSA's $45.5M Microsoft EA BPA Call Order for Software Renewal awarded to Dell Marketing L.P
Contract Overview
Contract Amount: $45,537,333 ($45.5M)
Contractor: Dell Marketing L.P.
Awarding Agency: Social Security Administration
Start Date: 2026-01-06
End Date: 2026-10-22
Contract Duration: 289 days
Daily Burn Rate: $157.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ENTERPRISE AGREEMENT (EA) BPA -- CALL ORDER FOR MICROSOFT RENEWAL QUANTITIES OF SUBSCRIPTION AND MAINTENANCE.
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Social Security Administration obligated $45.5 million to DELL MARKETING L.P. for work described as: MICROSOFT ENTERPRISE AGREEMENT (EA) BPA -- CALL ORDER FOR MICROSOFT RENEWAL QUANTITIES OF SUBSCRIPTION AND MAINTENANCE. Key points: 1. Value-for-money assessment pending detailed cost breakdown and comparison to market rates. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing. 3. Risk indicators include contract duration and reliance on a single vendor for essential software. 4. Performance context relies on successful delivery of subscription and maintenance services. 5. Sector positioning within IT services, specifically software licensing and maintenance.
Value Assessment
Rating: fair
The total value of $45.5 million for a 289-day period for Microsoft software renewal appears substantial. A direct comparison to similar enterprise agreements for Microsoft products is necessary to benchmark value. Without a detailed breakdown of specific licenses and maintenance levels, assessing the per-unit cost or overall pricing competitiveness is challenging. The firm fixed-price nature provides cost certainty but may not reflect potential savings if market prices decrease.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, suggesting multiple vendors had the opportunity to bid. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, are not provided. A competitive bidding process is generally expected to drive down prices and ensure fair market value for the government.
Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining the best possible price for the required Microsoft software subscriptions and maintenance.
Public Impact
Federal employees within the Social Security Administration will benefit from continued access to essential Microsoft software. The contract ensures the delivery of subscription and maintenance services for critical software, supporting daily operations. The geographic impact is primarily within Texas, where the contract is managed. Workforce implications include ensuring federal employees have the necessary tools to perform their duties effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft products, limiting future flexibility.
- Reliance on a single awardee (Dell) for a large volume of Microsoft software could create supply chain risks.
- The firm fixed-price contract may not capture potential cost savings if Microsoft's pricing changes significantly during the period.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The contract duration is relatively short (289 days), allowing for re-evaluation of needs and competition.
- The use of a BPA Call Order suggests an existing framework is in place, potentially streamlining the acquisition process.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software licensing and maintenance. The market for enterprise software agreements, particularly for major vendors like Microsoft, is characterized by large, long-term contracts. Benchmarking this spending would involve comparing it to other federal or large enterprise agreements for similar Microsoft product suites and support levels, considering factors like user count and service tiers.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. The award to Dell Marketing L.P., a large corporation, suggests that small business participation may be limited unless Dell engages in subcontracting. Further analysis would be needed to determine if small businesses are involved in the supply chain or support for this agreement.
Oversight & Accountability
Oversight for this contract would typically fall under the Social Security Administration's contracting and procurement offices. Accountability measures are inherent in the firm fixed-price contract type, requiring Dell to deliver specified software and maintenance. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics and internal oversight processes are not publicly disclosed.
Related Government Programs
- Microsoft Enterprise Agreements
- Software Licensing and Maintenance Contracts
- IT Services for Federal Agencies
- General Services Administration (GSA) Schedules (if applicable to BPA)
Risk Flags
- Potential for price increases in future renewals due to vendor concentration.
- Reliance on a single awardee for critical software licenses.
- Lack of detailed cost breakdown makes value assessment difficult.
Tags
it, software, microsoft, dell, social-security-administration, bpa-call-order, firm-fixed-price, full-and-open-competition, texas, enterprise-agreement, subscription, maintenance
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $45.5 million to DELL MARKETING L.P.. MICROSOFT ENTERPRISE AGREEMENT (EA) BPA -- CALL ORDER FOR MICROSOFT RENEWAL QUANTITIES OF SUBSCRIPTION AND MAINTENANCE.
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $45.5 million.
What is the period of performance?
Start: 2026-01-06. End: 2026-10-22.
What is the specific breakdown of software licenses and maintenance services included in this $45.5 million call order?
The provided data does not specify the exact breakdown of software licenses (e.g., Windows, Office 365, server licenses) or the precise nature of the maintenance services covered under this $45.5 million call order. This information is crucial for a detailed value assessment, as different software products and support levels have vastly different market prices. Understanding the quantity of each license type and the service level agreements (SLAs) for maintenance would allow for a more accurate comparison against industry benchmarks and potentially identify areas of overspending or cost savings.
How does the per-unit cost of these Microsoft licenses and maintenance compare to other federal agencies or large commercial enterprises?
Benchmarking the per-unit cost is challenging without the specific license and maintenance details. However, federal agencies often leverage bulk purchasing power through agreements like BPA call orders. If the Social Security Administration (SSA) secured favorable pricing through Dell, it would align with the goal of competitive procurement. Comparing this to publicly available data on Microsoft Enterprise Agreements from other agencies or industry reports on average per-user costs for similar Microsoft products could reveal if SSA is receiving a competitive rate. Factors like the specific version of software, the number of users, and the duration of the subscription significantly influence per-unit costs.
What is Dell Marketing L.P.'s track record in fulfilling large federal IT contracts, particularly for Microsoft software?
Dell Marketing L.P. is a major federal contractor with a significant history of providing IT hardware, software, and services to government agencies. Their experience with large-scale Microsoft Enterprise Agreements is extensive, given their partnership with Microsoft. While specific performance data for this particular BPA call order is not yet available as it is a recent award, Dell's overall track record suggests a capability to manage complex software licensing and delivery. Past performance evaluations and contract award histories for Dell with agencies like the SSA or other large federal entities would provide further insight into their reliability and effectiveness in similar procurements.
What are the potential risks associated with relying on a single vendor (Dell) for a large volume of essential Microsoft software renewals?
The primary risks associated with relying on a single vendor like Dell for a large volume of essential Microsoft software renewals include potential vendor lock-in, limited negotiation leverage in future renewals, and supply chain disruptions. If Dell faces issues fulfilling the order, it could directly impact the SSA's operations. Furthermore, a lack of direct competition in subsequent renewals could lead to price increases. While Dell is a reputable company, concentrating such a significant procurement through one intermediary necessitates robust contract management and continuous monitoring of market alternatives to mitigate these risks.
How does this contract align with the SSA's overall IT modernization and software management strategy?
This contract represents a continuation of the SSA's reliance on Microsoft software, a common practice across many federal agencies. Its alignment with IT modernization depends on whether these specific software renewals support broader strategic goals, such as cloud migration, enhanced cybersecurity, or improved user productivity. If the renewed subscriptions include updated versions or cloud-based services that facilitate modernization efforts, then it aligns well. Conversely, if it merely maintains existing on-premise software without strategic upgrades, its contribution to modernization might be limited. The relatively short duration (289 days) suggests the SSA may be evaluating its long-term software strategy.
What is the historical spending pattern for Microsoft software and maintenance by the Social Security Administration?
Analyzing historical spending patterns for Microsoft software and maintenance by the SSA is crucial for context. This $45.5 million call order represents a significant, albeit short-term, expenditure. Understanding previous contract values, durations, and awardees for similar Microsoft EA renewals would reveal trends in SSA's software procurement. For instance, has the SSA consistently used BPA call orders? Has spending increased or decreased over time? Are there patterns in the types of Microsoft products procured? This historical data provides a baseline against which the current contract's value and necessity can be more effectively assessed.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
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: ONE 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: $45,537,333
Exercised Options: $45,537,333
Current Obligation: $45,537,333
Actual Outlays: $45,537,333
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 28321322A00040001
IDV Type: BPA
Timeline
Start Date: 2026-01-06
Current End Date: 2026-10-22
Potential End Date: 2026-10-22 00:00:00
Last Modified: 2026-01-06
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