HHS OIG Spends $3.9M on Dell MS Software Licenses and Support Through June 2026

Contract Overview

Contract Amount: $3,937,629 ($3.9M)

Contractor: Dell Federal Systems L.P

Awarding Agency: General Services Administration

Start Date: 2025-06-30

End Date: 2026-07-21

Contract Duration: 386 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HHS OIG MS SOFTWARE LICENSE AND SUPPORT SERVICES

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 $3.9 million to DELL FEDERAL SYSTEMS L.P for work described as: HHS OIG MS SOFTWARE LICENSE AND SUPPORT SERVICES Key points: 1. Spending is for Microsoft software licenses and support, a common IT need. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The contract is a BPA Call, indicating it leverages existing GSA schedules. 4. Risk appears moderate, tied to software obsolescence and vendor lock-in.

Value Assessment

Rating: good

The $3.9M spend over approximately two years for software licenses and support is within a reasonable range for enterprise-level agreements. Benchmarking against similar GSA Schedule contracts for Microsoft products would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, likely leveraging GSA Schedules. This method generally promotes price discovery and allows multiple vendors to compete, leading to potentially better pricing.

Taxpayer Impact: Taxpayer funds are used for essential software, with competition aiming to ensure value for money.

Public Impact

Ensures HHS OIG has necessary software tools for operations. Supports ongoing IT infrastructure for a critical government function. Potential for cost savings through competitive procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Software obsolescence
Vendor lock-in

Positive Signals

Full and open competition
Use of GSA Schedule

Sector Analysis

This spending falls within the Information Technology sector, specifically for software licensing and support. Benchmarks for similar software contracts vary widely based on product, volume, and support levels, but this appears to be a standard enterprise purchase.

Small Business Impact

The data does not indicate specific set-asides for small businesses. While the contract was full and open, it's unclear if small businesses had the opportunity to participate or were prime contractors.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which provides oversight for federal IT procurements. The HHS OIG is the end-user agency, responsible for ensuring the software meets their needs.

Related Government Programs

Software Publishers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for software obsolescence over the contract term.
Risk of vendor lock-in with Microsoft products.
Dependence on GSA schedule for pricing and availability.
Lack of detailed cost breakdown between licenses and support.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.9 million to DELL FEDERAL SYSTEMS L.P. HHS OIG MS SOFTWARE LICENSE AND SUPPORT SERVICES

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 $3.9 million.

What is the period of performance?

Start: 2025-06-30. End: 2026-07-21.

What is the specific breakdown of software licenses versus support costs, and how does this align with industry standards for similar Microsoft enterprise agreements?

The provided data does not detail the cost breakdown between software licenses and support services. A comprehensive analysis would require access to the contract's line-item details. Industry standards vary, but typically, support costs are a recurring annual expense, often a percentage of the license cost, and understanding this ratio is crucial for long-term budget planning and identifying potential cost efficiencies.

What are the key performance indicators (KPIs) for the support services, and how will HHS OIG measure vendor performance and ensure service level agreements are met?

The data does not specify the KPIs or performance metrics for the support services. Effective oversight would involve defining clear SLAs, such as response times for technical issues, resolution times, and availability of support personnel. Regular performance reviews and user feedback mechanisms are essential to ensure the vendor is meeting expectations and providing adequate support for the software.

Are there plans for future software upgrades or migrations, and how will this contract accommodate evolving technological needs or potential transitions to cloud-based solutions?

This contract's duration extends to July 2026, and the data doesn't explicitly outline plans for future upgrades or migrations. Agencies should continuously assess their software needs against technological advancements. If HHS OIG anticipates a shift to cloud services or requires newer versions, they would need to consider contract modifications or new procurements to ensure alignment with their long-term IT strategy.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFDA25Q0013

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: $10,068,920

Exercised Options: $3,937,629

Current Obligation: $3,937,629

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22A0004

IDV Type: BPA

Timeline