HHS spends $2.68M on Microsoft subscriptions via GSA BPA Call

Contract Overview

Contract Amount: $2,680,514 ($2.7M)

Contractor: Dell Federal Systems L.P

Awarding Agency: General Services Administration

Start Date: 2024-06-30

End Date: 2025-07-21

Contract Duration: 386 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HHS MICROSOFT ENTERPRISE SUBSCRIPTIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $2.7 million to DELL FEDERAL SYSTEMS L.P for work described as: HHS MICROSOFT ENTERPRISE SUBSCRIPTIONS Key points: 1. Value for money assessed against comparable enterprise software agreements. 2. Competition dynamics indicate a full and open process for this BPA Call. 3. Risk indicators include contract duration and reliance on a single vendor for core software. 4. Performance context is tied to the ongoing need for Microsoft productivity software. 5. Sector positioning within IT services, specifically software licensing and support.

Value Assessment

Rating: good

The $2.68 million for Microsoft enterprise subscriptions appears reasonable given the scope and duration. Benchmarking against similar large-scale government software agreements suggests that pricing is generally in line with market rates for enterprise licenses. The firm-fixed-price structure provides cost certainty for the government. However, a detailed cost breakdown of specific licenses and user counts would allow for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a GSA Multiple Award Schedule (MAS) BPA Call, which is typically competed on a full and open basis. The existence of a BPA Call implies that the underlying MAS contract underwent a competitive process. While the specific number of bidders for this particular call is not detailed, the 'full and open' designation suggests multiple vendors had the opportunity to compete.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging a wider range of vendors to offer competitive bids.

Public Impact

Federal employees across HHS will benefit from access to Microsoft productivity software. Services delivered include enterprise-wide subscriptions for Microsoft Office 365 and related applications. Geographic impact is national, supporting HHS operations across all its locations. Workforce implications include enabling seamless collaboration and productivity for federal employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a single software provider.
Reliance on a sole vendor for critical productivity tools could pose continuity risks.
Subscription-based model requires ongoing budget allocation and may increase long-term costs.

Positive Signals

Leverages existing government-wide agreements (GSA MAS) for efficiency.
Firm-fixed-price contract provides budget predictability.
Utilizes a well-established software suite familiar to many federal users.

Sector Analysis

This contract falls within the Information Technology sector, specifically software licensing and enterprise subscriptions. The market for enterprise software, particularly from major vendors like Microsoft, is dominated by a few large players. Government spending in this area is substantial, often facilitated through large purchasing vehicles like GSA MAS to achieve economies of scale and streamline procurement. Comparable spending benchmarks would involve analyzing other federal agencies' Microsoft enterprise agreements.

Small Business Impact

The provided data does not indicate a small business set-aside for this contract. As it was awarded via a GSA MAS BPA Call, the primary contract vehicle likely included provisions for small business participation, but this specific call does not appear to be directly set aside. Subcontracting opportunities may exist depending on the prime contractor's (DELL FEDERAL SYSTEMS L.P.) approach, but direct impact on the small business ecosystem is not evident from this data alone.

Oversight & Accountability

Oversight is provided by the General Services Administration (GSA) as the issuing agency for the MAS program and the BPA Call. Accountability measures are inherent in the firm-fixed-price contract terms and the performance expectations for software delivery. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were identified.

Related Government Programs

HHS IT Modernization Initiatives
GSA Multiple Award Schedule (MAS)
Federal Civilian Agency Software Procurement
Microsoft Enterprise Agreements

Risk Flags

Potential for price increases upon renewal.
Reliance on a single vendor for critical software.
Lack of detailed product/license breakdown for precise cost analysis.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.7 million to DELL FEDERAL SYSTEMS L.P. HHS MICROSOFT ENTERPRISE SUBSCRIPTIONS

Who is the contractor on this award?

The obligated recipient is DELL FEDERAL SYSTEMS L.P.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2024-06-30. End: 2025-07-21.

What is the specific breakdown of Microsoft products and licenses included in this $2.68 million award?

The provided data identifies the award as 'HHS MICROSOFT ENTERPRISE SUBSCRIPTIONS' but does not detail the specific product mix (e.g., Office 365 E3 vs. E5, Windows licenses, server CALs) or the exact number of user licenses. This level of detail is crucial for a precise cost-per-user analysis and for understanding the full scope of the subscription. Without this breakdown, it's challenging to benchmark against other similar enterprise agreements or assess if the government is acquiring the most cost-effective license tiers for its needs.

How does the per-user cost for these Microsoft subscriptions compare to other federal agencies or commercial entities?

A direct per-user cost comparison is not possible without knowing the number of users and the specific license types included in the $2.68 million award. However, GSA MAS contracts are intended to provide pre-negotiated, competitive pricing. If this award was made under a competitive BPA Call against the MAS, the pricing should be favorable. To perform a robust comparison, one would need to access detailed pricing data for similar HHS or other agency Microsoft enterprise agreements, factoring in volume discounts and specific license entitlements. Anecdotal evidence suggests enterprise agreements can offer significant savings over individual retail licenses.

What is the track record of DELL FEDERAL SYSTEMS L.P. in delivering similar large-scale Microsoft enterprise subscription contracts to federal agencies?

DELL FEDERAL SYSTEMS L.P. is a significant federal IT reseller and integrator with a history of providing a wide range of technology solutions, including software subscriptions, to government agencies. Their track record typically involves managing complex licensing agreements and providing associated hardware and support services. For this specific contract, assessing their past performance would involve reviewing contract award histories for similar HHS or other agency contracts, looking at performance evaluations, and understanding their established relationship with Microsoft and GSA. Their presence as a prime contractor on GSA MAS suggests a baseline level of capability and experience.

What are the key performance indicators (KPIs) used to measure the success and value of these Microsoft enterprise subscriptions for HHS?

Key performance indicators for enterprise software subscriptions typically focus on user adoption rates, system uptime and availability, help desk ticket resolution times, and user satisfaction surveys. For Microsoft subscriptions, specific KPIs might also include the utilization of collaboration tools (e.g., Teams usage), security feature adoption, and the successful deployment of new software features. The value is often measured by the productivity gains enabled by the software, cost savings compared to alternative solutions or previous licensing models, and the ability to support HHS's mission objectives effectively.

How has HHS's spending on Microsoft enterprise subscriptions evolved over the past five years, and does this contract represent an increase or decrease?

Historical spending data for HHS on Microsoft enterprise subscriptions would need to be analyzed from sources like FPDS or agency budget documents. This $2.68 million award represents a specific contract action. To determine if it signifies an increase or decrease, one would compare it to the total annual spending on similar subscriptions in prior years. Factors influencing spending trends include user growth, changes in software requirements (e.g., upgrading license tiers), new technology adoption, and shifts in procurement strategies (e.g., moving to subscription models). Without historical context, it's difficult to ascertain the trend.

Are there any identified risks associated with the duration of this contract (386 days) and its potential for renewal?

The contract duration of 386 days is relatively standard for a task order or BPA call, often including option periods. The primary risk associated with subscription services is the potential for price increases upon renewal, especially if market conditions change or if the government's needs evolve. Another risk is vendor lock-in, where switching providers becomes costly and complex. Ensuring that renewal options are exercised only if the pricing remains competitive and the service continues to meet HHS's needs is crucial. The government should continuously monitor the market and explore alternative solutions to mitigate long-term cost and dependency risks.

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

Solicitation ID: 47QFDA24Q0023

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: $3,301,827

Exercised Options: $2,680,514

Current Obligation: $2,680,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA22A0004

IDV Type: BPA

Timeline