GSA's $46.5M DEOS contract with Dell awarded under full and open competition

Contract Overview

Contract Amount: $46,562,920 ($46.6M)

Contractor: Dell Marketing L.P.

Awarding Agency: General Services Administration

Start Date: 2021-04-21

End Date: 2022-04-20

Contract Duration: 364 days

Daily Burn Rate: $127.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEFENSE ENTERPRISE OFFICE SOLUTIONS (DEOS)

Place of Performance

Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $46.6 million to DELL MARKETING L.P. for work described as: DEFENSE ENTERPRISE OFFICE SOLUTIONS (DEOS) Key points: 1. Contract awarded for software licensing and support, indicating a need for standardized enterprise solutions. 2. The contract value suggests a significant investment in IT infrastructure for federal agencies. 3. Dell's selection implies a competitive bidding process that favored their offerings. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The relatively short duration of one year may indicate a need for frequent re-evaluation of IT needs or market conditions.

Value Assessment

Rating: good

The contract value of $46.5 million for a one-year term appears reasonable for enterprise-wide software licensing and support, especially considering the scope of federal agencies that could utilize such a solution. Benchmarking against similar large-scale IT procurements for software licenses and support services suggests this falls within expected spending ranges. The firm-fixed-price structure provides cost predictability, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters robust competition, leading to potentially better pricing and innovative solutions. The government's ability to select from a wide pool of qualified vendors is a strong indicator of a fair and competitive process.

Taxpayer Impact: Full and open competition maximizes the potential for the government to secure the best possible value for taxpayer dollars by encouraging a wide range of offers and driving down prices through market forces.

Public Impact

Federal agencies requiring enterprise software licenses and support services will benefit from this contract. The contract facilitates the procurement of essential software, supporting daily operations and mission critical functions across government. The geographic impact is nationwide, as federal agencies operate across the United States. The contract supports the IT workforce by providing access to necessary software tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The one-year duration might necessitate frequent re-competition, potentially increasing administrative burden and market uncertainty.

Positive Signals

Awarded under full and open competition, maximizing potential for best value.
Firm-fixed-price contract type provides cost certainty.
Dell is a well-established IT vendor with a proven track record.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and support. The market for enterprise software solutions for government is substantial, with agencies constantly seeking to modernize their IT infrastructure and improve operational efficiency. This contract with GSA, a major procurement agency, positions Dell to serve a broad range of federal clients, reflecting the ongoing trend of consolidating IT procurements for better economies of scale and standardization.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. While this contract itself may not directly benefit small businesses through set-asides, the prime contractor, Dell, may engage small businesses as subcontractors for specialized services or support, depending on their internal subcontracting plans and GSA's overall small business utilization goals for the program.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Federal Acquisition Service. GSA is responsible for ensuring contract compliance, performance, and adherence to terms and conditions. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) IT Schedule Programs
Enterprise Software Licensing Agreements
Cloud Computing Services (if applicable to DEOS scope)
IT Modernization Initiatives

Risk Flags

Potential for vendor lock-in
Reliance on a single vendor's technology roadmap
Future price increase risk upon renewal

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $46.6 million to DELL MARKETING L.P.. DEFENSE ENTERPRISE OFFICE SOLUTIONS (DEOS)

Who is the contractor on this award?

The obligated recipient is DELL MARKETING 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 $46.6 million.

What is the period of performance?

Start: 2021-04-21. End: 2022-04-20.

What specific software products and services are covered under this $46.5M DEOS contract with Dell?

The provided data does not specify the exact software products or services included under the Defense Enterprise Office Solutions (DEOS) contract awarded to Dell Marketing L.P. However, given the contract name and the NAICS code (511210 - Software Publishers), it is highly probable that the contract covers a range of enterprise software licenses, including operating systems, productivity suites (like Microsoft Office or Google Workspace equivalents), collaboration tools, and potentially associated maintenance and support services. The DEOS program itself aims to provide a unified, modern, and secure cloud-based productivity and collaboration solution for the Department of Defense, suggesting the scope is broad and foundational for office functions.

How does the $46.5M contract value compare to historical spending on similar enterprise software solutions by the federal government?

The $46.5 million contract value for a one-year term is a significant but not extraordinary amount for enterprise-wide software licensing and support for a federal agency or program. Large federal IT procurements, especially for foundational software like operating systems, office productivity suites, and collaboration tools, often run into tens or hundreds of millions of dollars annually. For context, other large federal agencies have awarded similar or larger contracts for enterprise software. For example, the Department of Defense itself has had multi-billion dollar contracts for software and IT services over several years. This $46.5M figure for Dell's DEOS contract appears to be a component or specific award within a larger IT modernization effort, fitting within the expected spending patterns for such critical infrastructure.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this Dell DEOS contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this Dell DEOS contract. However, for enterprise software licensing and support contracts of this nature, typical KPIs and SLAs would likely focus on software availability and uptime (e.g., 99.9% availability), response times for technical support requests, resolution times for reported issues, security compliance adherence, and timely delivery of software updates and patches. The General Services Administration (GSA), as the awarding agency, typically mandates robust performance standards to ensure agencies receive reliable and effective IT services, and these would be detailed within the full contract documentation.

What is Dell's track record with the federal government, particularly in large enterprise IT solution contracts?

Dell has a long-standing and extensive track record of providing IT hardware, software, and services to the federal government. They are a frequent awardee of large-scale contracts across various agencies, including through GSA schedules and direct solicitations. Dell has been a key player in providing laptops, desktops, servers, storage solutions, and enterprise software licenses. Their participation in programs like DEOS, which aims to modernize federal IT infrastructure, underscores their capability and established presence. While specific performance metrics for every contract are not publicly detailed, Dell's consistent presence in federal IT procurement suggests a generally positive track record and ability to meet government requirements.

What are the potential risks associated with relying on a single vendor like Dell for enterprise office solutions, even under full and open competition?

Even with full and open competition, relying heavily on a single vendor like Dell for enterprise office solutions presents potential risks. Vendor lock-in is a primary concern, where switching to another provider in the future could be costly and complex due to proprietary technologies or integrated systems. Price increases upon contract renewal are also a risk, as the vendor may have significant leverage. Furthermore, dependence on a single vendor can limit access to the latest innovations from the broader market, potentially slowing down modernization efforts if the vendor's roadmap doesn't align with evolving government needs. Security vulnerabilities specific to the vendor's platform could also pose a systemic risk across multiple agencies.

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: 47QFSA21K0053

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dell Technologies Inc.

Address: ONE DELL WAY, ROUND ROCK, TX, 78682

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $95,649,418

Exercised Options: $92,986,646

Current Obligation: $46,562,920

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: 47QTCA21A0002

IDV Type: BPA

Timeline