Army's DEOS AADP software licenses cost $56.6M over two years, awarded to Dell

Contract Overview

Contract Amount: $56,587,000 ($56.6M)

Contractor: Dell Marketing L.P.

Awarding Agency: General Services Administration

Start Date: 2021-06-01

End Date: 2023-05-31

Contract Duration: 729 days

Daily Burn Rate: $77.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEOS ARMY AADP 2 SUBSCRIPTION LICENSES

Place of Performance

Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $56.6 million to DELL MARKETING L.P. for work described as: DEOS ARMY AADP 2 SUBSCRIPTION LICENSES Key points: 1. Value for money appears fair given the two-year duration and firm-fixed-price nature. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk indicators are low with a firm-fixed-price contract and established vendor. 4. Performance context is a two-year subscription for essential software licenses. 5. Sector positioning is within the software publishers industry, supporting federal IT infrastructure.

Value Assessment

Rating: fair

The contract's total value of $56.6 million over two years for software licenses suggests a moderate annual spend. Benchmarking against similar large-scale software subscription contracts is difficult without more specific details on the software's functionality and user base. However, the firm-fixed-price structure provides cost certainty for the government. The price per year is approximately $28.3 million, which needs to be evaluated against the criticality and market price of the specific DEOS AADP software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation generally implies a competitive process. This approach is intended to foster price discovery and ensure the government receives competitive pricing by allowing multiple vendors to vie for the contract.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding, ensuring that the government is not overpaying for the required software licenses.

Public Impact

The U.S. Army benefits from access to essential software licenses for its operations. Services delivered include subscription licenses for the DEOS Army AADP. Geographic impact is nationwide, supporting Army personnel across various locations. Workforce implications include enabling Army personnel to utilize necessary software tools for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
Per-unit cost analysis is not possible without detailed software usage metrics.
Potential for vendor lock-in if this is a proprietary solution with limited alternatives.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Full and open competition suggests a robust bidding process.
Award to a known entity like Dell Marketing L.P. may indicate reliability.

Sector Analysis

This contract falls within the Software Publishers industry, a critical component of the broader IT sector. The federal government is a significant consumer of software licenses, with spending often concentrated on enterprise-wide solutions for productivity, security, and specialized mission functions. The market for such licenses is competitive, but often dominated by a few large players for specific enterprise needs. The annual spend of approximately $28.3 million places this contract within the mid-to-large tier for federal software procurements.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss) for this contract. This suggests that the procurement was not specifically targeted towards small businesses. While this contract may not directly benefit small businesses through set-asides, large prime contractors like Dell are often required to have subcontracting plans that include goals for utilizing small businesses. The impact on the small business ecosystem would depend on Dell's subcontracting activities related to this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration (GSA) and the U.S. Army. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified software licenses within the agreed-upon budget. Transparency is facilitated by the public nature of federal contract awards, allowing for post-award analysis. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Federal Acquisition Service
Department of Defense Enterprise Software Solutions (DOD EES)
Army IT Procurement
Software Licensing Agreements

Risk Flags

Potential for vendor lock-in with proprietary software.
Dependence on contractor for timely updates and security patches.
Integration complexity with existing Army IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $56.6 million to DELL MARKETING L.P.. DEOS ARMY AADP 2 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 $56.6 million.

What is the period of performance?

Start: 2021-06-01. End: 2023-05-31.

What is the specific software product being licensed under DEOS ARMY AADP?

The specific software product licensed under the DEOS ARMY AADP (Army Analytics Data Platform) contract is not explicitly detailed in the provided data. DEOS typically refers to the Department of Defense Enterprise Office Software initiative, which aims to provide a standardized suite of software applications and services to DoD components. AADP likely refers to a platform or suite of tools related to data analytics and management. Without further information, it's presumed to be a critical component for Army data processing and analysis, potentially including data visualization, storage, and analytical tools. The exact nature of the software is crucial for understanding its value and comparing its cost to market alternatives.

How does the $56.6 million cost compare to previous Army spending on similar analytics platforms?

Comparing the $56.6 million cost to previous Army spending on similar analytics platforms requires historical data that is not provided. However, the duration of the contract is 729 days (approximately two years), making the annual spend around $28.3 million. To assess value, this figure should be benchmarked against prior contracts for the same or comparable analytics software, considering factors like inflation, increased user base, and enhanced software features. If the Army previously spent a similar or higher amount for less capability or a shorter duration, this contract might represent reasonable value. Conversely, if previous spending was significantly lower for comparable services, it could indicate a price increase that warrants further investigation into market trends and vendor pricing strategies.

What are the key performance indicators (KPIs) for this DEOS ARMY AADP subscription?

Key Performance Indicators (KPIs) for a software subscription contract like the DEOS ARMY AADP are typically focused on service availability, performance, and support. While not explicitly stated in the provided data, common KPIs would likely include software uptime (e.g., 99.9% availability), response times for critical functions, data processing speeds, and the timeliness and effectiveness of technical support provided by Dell Marketing L.P. Contractual obligations would define these metrics, and failure to meet them could result in penalties or remedies. The Army's program office would monitor these KPIs to ensure the software is meeting operational needs and delivering the expected value.

What is the potential for cost savings or overruns with this firm-fixed-price contract?

With a firm-fixed-price (FFP) contract, the potential for cost overruns on the government's side is minimal, as the price is set and agreed upon upfront. The total cost to the government is capped at $56.6 million. Potential cost savings for the government could arise if the contractor, Dell Marketing L.P., can deliver the software licenses and associated services more efficiently than anticipated, though the FFP structure means these savings do not directly flow back to the government unless specific incentive clauses are included. Conversely, if Dell incurs higher-than-expected costs to fulfill the contract, they bear that risk, which could potentially impact their future bidding strategies or the quality of service if not managed carefully. The primary benefit of FFP here is budget certainty for the Army.

What is Dell Marketing L.P.'s track record with similar large-scale federal software contracts?

Dell Marketing L.P. has a significant track record of securing and performing on large-scale federal software and IT services contracts. As a major technology vendor, Dell frequently engages with government agencies through various procurement vehicles, including GSA schedules and direct awards. Their experience typically encompasses providing a wide range of hardware, software, and related support services. While specific performance details for this particular DEOS ARMY AADP contract are not detailed here, Dell's established presence in the federal market suggests they possess the infrastructure and expertise to manage such agreements. Federal procurement databases and past performance reviews would offer more granular insights into their specific performance history on comparable contracts.

Are there any known risks associated with the DEOS program or its implementation by the Army?

Risks associated with the DEOS program and its implementation by the Army can be varied. Common risks in large enterprise software initiatives include integration challenges with existing legacy systems, user adoption hurdles due to the need for training and change management, cybersecurity vulnerabilities inherent in any software platform, and potential vendor lock-in if the chosen solutions are proprietary. For DEOS specifically, ensuring consistent deployment and support across diverse Army units and locations presents logistical challenges. Furthermore, the continuous evolution of technology requires ongoing updates and potential re-procurement, posing a long-term risk to budget and operational continuity. The success of the DEOS ARMY AADP subscription hinges on effective management of these technical, operational, and strategic risks.

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: 47QFSA21Q0151

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: $189,594,460

Exercised Options: $79,519,420

Current Obligation: $56,587,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA21A0002

IDV Type: BPA

Timeline