USAF Spends $53.4M on DEOS AADP2 Licenses from Dell, Raising Value and Competition Questions
Contract Overview
Contract Amount: $53,373,600 ($53.4M)
Contractor: Dell Marketing L.P.
Awarding Agency: General Services Administration
Start Date: 2021-06-01
End Date: 2023-02-28
Contract Duration: 637 days
Daily Burn Rate: $83.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DEFENSE ENTERPRISE OFFICE SOLUTION (DEOS) USAF AADP2 SUBSCRIPTION LICENSES
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
General Services Administration obligated $53.4 million to DELL MARKETING L.P. for work described as: DEFENSE ENTERPRISE OFFICE SOLUTION (DEOS) USAF AADP2 SUBSCRIPTION LICENSES Key points: 1. Significant expenditure on software licenses highlights the importance of enterprise solutions. 2. Dell secured the contract, indicating a competitive landscape for such services. 3. The firm fixed price contract structure aims to control costs, but value needs scrutiny. 4. Analysis of per-unit cost against benchmarks is crucial for taxpayer impact assessment.
Value Assessment
Rating: questionable
The total award of $53.4M for AADP2 subscription licenses warrants a closer look at the per-unit cost. Without specific user counts or license tiers, it's difficult to benchmark against similar government or commercial agreements. Further analysis is needed to determine if this represents a fair market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a full and open competition, suggesting multiple vendors had the opportunity to bid. However, the specific BPA call mechanism used might influence the breadth of participation and the ultimate price discovery process.
Taxpayer Impact: The substantial investment requires validation to ensure it delivers optimal value for taxpayer dollars, especially given the fixed-price nature which shifts cost risk to the government.
Public Impact
Millions spent on essential software licenses for Air Force operations. Contract awarded through a competitive process, but specific pricing details are key. Ensures access to critical software for federal employees. Potential for cost savings through optimized license management and negotiation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost data for benchmarking.
- Fixed-price contract may not fully leverage market fluctuations.
- BPA call mechanism's impact on ultimate price needs review.
Positive Signals
- Awarded under full and open competition.
- Utilizes a firm fixed price contract type.
- Supports critical enterprise software needs.
Sector Analysis
The IT sector, particularly software licensing, represents a significant portion of federal spending. Benchmarks for enterprise software subscriptions vary widely based on vendor, features, and user volume. This contract falls within the typical range for large-scale software deployments.
Small Business Impact
This contract was awarded to Dell Marketing L.P., a large business. There is no indication of small business participation in this specific award, which is common for large enterprise software procurements.
Oversight & Accountability
The General Services Administration (GSA) facilitated this procurement through its Federal Acquisition Service. Oversight would involve ensuring the BPA call was executed properly and that the pricing aligns with established government-wide software agreements.
Related Government Programs
- Software Publishers
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost inefficiency due to fixed-price structure.
- Lack of detailed unit cost data hinders value assessment.
- Need to verify actual license utilization against expenditure.
- BPA call competition effectiveness requires further review.
Tags
software-publishers, general-services-administration, tx, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $53.4 million to DELL MARKETING L.P.. DEFENSE ENTERPRISE OFFICE SOLUTION (DEOS) USAF AADP2 SUBSCRIPTION LICENSES
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 $53.4 million.
What is the period of performance?
Start: 2021-06-01. End: 2023-02-28.
What is the average per-unit cost of these AADP2 licenses compared to industry benchmarks for similar enterprise software subscriptions?
Determining the average per-unit cost requires access to the specific number of licenses procured and the total value. Without this granular data, direct comparison to industry benchmarks is challenging. However, federal IT spending often includes a premium for security, support, and compliance features not always present in commercial offerings, necessitating a nuanced evaluation.
What specific risks are associated with a firm fixed-price contract for subscription-based software, particularly concerning potential overspending or underutilization?
A firm fixed-price contract for subscriptions carries the risk of overpaying if usage declines or if better pricing becomes available mid-contract. Conversely, if usage significantly exceeds initial projections, the government might be locked into a price that becomes disadvantageous. Underutilization is a key concern, as the government pays for the full subscription regardless of actual use.
How effectively does the competitive process, specifically a BPA call, ensure optimal price discovery for enterprise software like DEOS AADP2?
While a BPA call falls under full and open competition, its effectiveness in price discovery depends on the number of participating vendors and the clarity of the requirements. A well-structured call can drive competitive pricing, but if only a few vendors respond or if the scope is too narrow, it might not yield the best possible price compared to a broader solicitation.
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: 47QFSA21Q0130
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: $194,983,200
Exercised Options: $83,872,800
Current Obligation: $53,373,600
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA21A0002
IDV Type: BPA
Timeline
Start Date: 2021-06-01
Current End Date: 2023-02-28
Potential End Date: 2023-02-28 00:00:00
Last Modified: 2025-09-11
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