GSA awards $43.6M for DHA DEOS software licenses, with Dell Marketing L.P. as the contractor
Contract Overview
Contract Amount: $43,551,893 ($43.6M)
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: $59.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DHA DEOS SUBSCRIPTION LICENSES
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
General Services Administration obligated $43.6 million to DELL MARKETING L.P. for work described as: DHA DEOS SUBSCRIPTION LICENSES Key points: 1. The contract represents a significant investment in software licensing for the Defense Health Agency. 2. Competition dynamics appear robust, suggesting potential for competitive pricing. 3. The fixed-price contract structure offers cost predictability. 4. Performance duration spans two years, indicating a medium-term need. 5. The contract falls within the software publishers sector, a critical area for government IT infrastructure.
Value Assessment
Rating: good
The total award of $43.6 million for DHA DEOS subscription licenses over two years appears reasonable given the nature of enterprise software. Benchmarking against similar large-scale software procurements for federal agencies suggests that pricing is likely competitive, especially considering the full and open competition. The firm fixed-price nature of the contract helps manage cost fluctuations. Without specific per-unit license costs or detailed feature comparisons, a precise value-for-money assessment is challenging, but the overall award size is within expected ranges for such services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the designation suggests a competitive process that likely drove pricing towards market rates. This approach is generally favored for ensuring the government receives the best value by leveraging a wide range of potential suppliers and solutions.
Taxpayer Impact: Full and open competition maximizes the chances of securing favorable pricing and innovative solutions for taxpayers, as multiple vendors vie to win the contract.
Public Impact
The primary beneficiary is the Defense Health Agency (DHA), which receives essential software licenses for its operations. The services delivered are subscription-based software licenses, crucial for IT infrastructure and data management. The contract is managed by the General Services Administration (GSA) Federal Acquisition Service, indicating a centralized procurement approach. The geographic impact is national, supporting DHA's widespread operations across the United States.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the DEOS platform becomes deeply integrated and difficult to replace.
- Reliance on a single contractor for critical software licenses could pose supply chain risks.
- Ensuring ongoing technical support and updates meet evolving DHA requirements.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market for these services.
- Firm fixed-price contract provides cost certainty for the duration of the award.
- Managed by GSA, which typically adheres to stringent procurement and oversight standards.
Sector Analysis
The software publishers sector is a vital component of the federal IT landscape, encompassing a wide array of solutions from operating systems to specialized applications. This contract for DHA DEOS subscription licenses fits within this sector, specifically addressing the need for enterprise software solutions. Comparable spending benchmarks in this area are difficult to pinpoint without more specific details on the software's function, but government-wide spending on software licenses runs into billions annually, highlighting the importance of efficient procurement.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As a large-scale software license procurement, it is possible that larger vendors were the primary focus. Further analysis would be needed to determine if small businesses had opportunities to participate either as prime contractors or subcontractors in this specific award.
Oversight & Accountability
The contract is managed by the General Services Administration (GSA) Federal Acquisition Service, which typically employs robust oversight mechanisms. GSA's procurement processes are designed to ensure fairness, transparency, and accountability. While specific oversight details for this BPA Call are not provided, GSA generally monitors contract performance and compliance. Inspector General jurisdiction would likely fall under the Department of Defense for the end-user agency (DHA).
Related Government Programs
- DHA IT Services
- GSA Software Licensing Programs
- Enterprise Software Solutions
- Defense Health Information Technology
Risk Flags
- Potential for vendor lock-in
- Cybersecurity risks associated with enterprise software
- User adoption and training needs
- Integration with existing IT infrastructure
Tags
it, software-publishing, defense, dha, gsa, federal-acquisition-service, firm-fixed-price, full-and-open-competition, bpa-call, enterprise-software, subscription-license, dell-marketing-l.p.
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $43.6 million to DELL MARKETING L.P.. DHA DEOS 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 $43.6 million.
What is the period of performance?
Start: 2021-06-01. End: 2023-05-31.
What is the specific functionality and purpose of the DHA DEOS subscription licenses?
The DHA DEOS (Defense Enterprise Office Solutions) subscription licenses are intended to provide a standardized suite of collaboration and productivity tools for the Defense Health Agency. This typically includes applications such as email, document management, calendaring, and potentially other office productivity software, aiming to enhance communication and streamline workflows across the agency. The goal is to consolidate various disparate systems into a unified platform, improving interoperability and reducing IT complexity and costs. The specific features and capabilities would be detailed in the Statement of Work (SOW) associated with the contract.
How does the $43.6 million award compare to historical spending on similar software licenses by the DHA or other federal health agencies?
Comparing the $43.6 million award requires understanding the scope and duration of the licenses. If this represents a two-year enterprise-wide deployment of core productivity and collaboration software for the entire DHA, it could be considered a reasonable investment. Historical data from agencies like the Veterans Health Administration (VHA) or other large federal health entities procuring similar enterprise software suites (e.g., Microsoft 365, Google Workspace) would provide a benchmark. Without access to that specific comparative data, it's difficult to definitively state if this is high or low, but the full and open competition suggests an effort to achieve market-competitive pricing.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for enterprise software licenses, typical KPIs and SLAs would likely focus on system availability (uptime), performance metrics (e.g., response times for applications), security compliance, and the timeliness and effectiveness of technical support and software updates. The Statement of Work (SOW) and contract clauses would detail these requirements, and performance would be monitored by the contracting officer's representative (COR) to ensure the DHA receives the expected value and functionality.
What is Dell Marketing L.P.'s track record in providing similar enterprise software solutions to large federal agencies?
Dell Marketing L.P. is a major technology provider with a significant presence in the federal government market. They offer a broad range of IT hardware, software, and services. Their track record in providing enterprise software solutions, including collaboration suites and operating systems, to large federal agencies is extensive. While this specific contract is for DEOS subscription licenses, Dell has historically been a key supplier for various software needs across defense and civilian agencies, often through large indefinite-delivery, indefinite-quantity (IDIQ) contracts or other competitive vehicles. Their ability to secure this contract suggests they met the technical and performance requirements outlined by GSA and DHA.
Are there any identified risks associated with the implementation or ongoing use of the DHA DEOS software?
Potential risks associated with the implementation and ongoing use of the DHA DEOS software could include user adoption challenges, data migration complexities from legacy systems, cybersecurity vulnerabilities inherent in any software platform, and the potential for vendor lock-in. Ensuring seamless integration with existing DHA IT infrastructure and maintaining compliance with stringent defense security standards are also critical. Furthermore, the reliance on subscription-based licensing means that future cost increases or changes in service offerings by the vendor could impact long-term budget planning. Proactive risk management strategies, including robust training, security protocols, and contingency planning, would be essential.
What is the total federal spending on software publishers (NAICS 511210) over the last five fiscal years, and how does this contract fit into that trend?
Federal spending on software publishers (NAICS 511210) has been substantial and generally increasing over the last five fiscal years, reflecting the government's growing reliance on digital solutions. While precise aggregate figures require accessing detailed federal procurement databases (like FPDS or SAM.gov), it's understood that billions are spent annually on software licenses, subscriptions, and related services across all agencies. This $43.6 million contract, spread over two years, represents a specific investment within this broader category. It signifies a commitment to a particular enterprise software solution for a critical agency (DHA), contributing to the overall spending trend in this sector.
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: 47QFSA21Q0108
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Francisco Partners Management, L.P.
Address: ONE 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: $138,424,999
Exercised Options: $44,090,685
Current Obligation: $43,551,893
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: 2023-05-31
Potential End Date: 2025-10-31 00:00:00
Last Modified: 2025-08-21
More Contracts from Dell Marketing L.P.
- Microsoft ESA Agreement — $1.3B (Department of Defense)
- Microsoft Products — $508.0M (Department of Defense)
- Microsoft M365 E5 — $477.2M (Department of Defense)
- 200410!000781!5700!GV90 !ssg/Pk !gs35f4076d !C!N! !n!fa877104f8320! !20040630!20040709!114315195!114315195!114315195!n!dell Marketing L P !ONE Dell WAY !round Rock !tx!78682!63500!491!48!round Rock !williamson !texas !+000012313462!n!n!000000000000!7030!adp Software !A7 !electronics and Communication Equip !000 !* !511210!E! !6! ! ! ! ! !99990909!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! ! — $471.3M (Department of Defense)
- Microsoft Enterprise Products — $354.9M (Department of Defense)
Other General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)