Army's $146M O365 Subscription Licenses via Dell BPA Call Raise Value and Competition Questions
Contract Overview
Contract Amount: $145,874,196 ($145.9M)
Contractor: Dell Marketing L.P.
Awarding Agency: General Services Administration
Start Date: 2021-11-01
End Date: 2022-10-31
Contract Duration: 364 days
Daily Burn Rate: $400.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ARMY O365 SUBSCRIPTION LICENSES DELL
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $145.9 million to DELL MARKETING L.P. for work described as: ARMY O365 SUBSCRIPTION LICENSES DELL Key points: 1. Spending on O365 licenses for the Army reached $145.8M. 2. Dell Marketing L.P. was the sole awardee through a GSA BPA Call. 3. The contract was awarded under full and open competition, but the specific mechanism warrants review. 4. The PSC code is missing, hindering sector-specific benchmarking. 5. The contract duration is 364 days, suggesting a tactical rather than strategic procurement.
Value Assessment
Rating: questionable
The contract value of $145.8M for O365 licenses is substantial. Without a clear PSC code or detailed breakdown, it's difficult to benchmark against similar government-wide agreements or direct Microsoft purchases, raising questions about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded via a GSA BPA Call, the competition method is listed as full and open. However, the specific mechanism and whether multiple vendors on the BPA were solicited needs clarification to ensure optimal price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for O365 licenses. The efficiency of the procurement process and the final price paid will determine the overall taxpayer impact.
Public Impact
Ensures Army personnel have access to essential O365 productivity tools. Supports the modernization of Army IT infrastructure. Potential for cost savings if competitive pricing was achieved through the BPA. Reliance on a single vendor for a critical software suite could pose future risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific PSC code
- Potential for better pricing through direct Microsoft agreements or other GWACs
- Limited visibility into the specific competition within the BPA call
Positive Signals
- Leverages existing GSA contract vehicles
- Provides necessary software licenses to a large government agency
- Firm Fixed Price contract type offers budget certainty
Sector Analysis
The procurement falls under software licensing, a common IT expenditure. Benchmarking against other agency O365 procurements or Microsoft Enterprise Agreements is crucial to assess value for money, especially given the significant dollar amount.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this procurement.
Oversight & Accountability
Oversight is provided by the General Services Administration (GSA) through the Federal Acquisition Service. The BPA Call mechanism implies some level of pre-competed framework, but the specific call's execution requires scrutiny.
Related Government Programs
- Software Publishers
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Lack of detailed pricing breakdown
- Missing specific Product Service Code (PSC)
- Potential for better pricing through direct Microsoft agreements
- Limited visibility into competition within the BPA call
- Contract duration of 364 days suggests a tactical, not strategic, approach
Tags
software-publishers, general-services-administration, va, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $145.9 million to DELL MARKETING L.P.. ARMY O365 SUBSCRIPTION LICENSES DELL
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 $145.9 million.
What is the period of performance?
Start: 2021-11-01. End: 2022-10-31.
What was the specific competition process within the GSA BPA call for these O365 licenses, and were multiple vendors solicited?
The award was made via a BPA Call under full and open competition. However, the details of the solicitation within the BPA are not provided. It's crucial to understand if multiple vendors on the BPA were actively solicited and competed to ensure the best possible pricing and terms were secured for the Army.
How does the per-unit cost of these O365 licenses compare to other federal agencies or direct purchases from Microsoft?
Without a specific PSC code or a breakdown of license types and quantities, a direct per-unit cost comparison is challenging. The contract value of $145.8M suggests a significant volume, and benchmarking against other agency O365 agreements or Microsoft's Enterprise Agreements is essential to determine if the government achieved favorable pricing.
What is the potential risk of vendor lock-in or future price increases given the reliance on Dell for these O365 subscriptions?
While O365 is a Microsoft product, relying on Dell as the intermediary for a large subscription could lead to vendor lock-in if not managed carefully. Future price increases from Microsoft could be passed on, and the BPA call mechanism might limit renegotiation flexibility compared to direct agreements.
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: 47QFSA22Q0012
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: $468,216,036
Exercised Options: $145,874,196
Current Obligation: $145,874,196
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: 47QTCA21A0002
IDV Type: BPA
Timeline
Start Date: 2021-11-01
Current End Date: 2022-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2025-09-11
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)