GSA awards $52.8M for Dell software licenses to USCG, with a 364-day term

Contract Overview

Contract Amount: $52,813,126 ($52.8M)

Contractor: Dell Marketing L.P.

Awarding Agency: General Services Administration

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $145.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USCG SUBSCRIPTION LICENSES DELL

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $52.8 million to DELL MARKETING L.P. for work described as: USCG SUBSCRIPTION LICENSES DELL Key points: 1. The contract value represents a significant investment in software licensing for the USCG. 2. Competition dynamics for this BPA call are not detailed, impacting price discovery. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is tied to a 364-day period, suggesting a need for ongoing software support. 5. This contract falls within the software publishers sector, a critical area for government IT infrastructure. 6. The reliance on a single vendor for these licenses warrants scrutiny of long-term cost-effectiveness.

Value Assessment

Rating: fair

Benchmarking the value of this $52.8 million contract for Dell software licenses is challenging without specific details on the software suite and user count. However, the duration of 364 days suggests a standard annual licensing agreement. Comparing this to similar large-scale software procurements by agencies like the Department of Defense or other components of Homeland Security would provide better context. The firm fixed-price nature offers cost certainty, but the overall value depends heavily on the negotiated unit prices and the necessity of these specific licenses for the USCG's operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a BPA Call, indicating it was likely competed among pre-qualified vendors on an existing Blanket Purchase Agreement. While the initial BPA may have undergone full and open competition, the specific call's competition level is not detailed. The number of bidders for this specific call is unknown, which limits the assessment of price discovery. A full and open competition for the BPA itself suggests a competitive environment was established at a higher level.

Taxpayer Impact: A full and open competition for the underlying BPA is generally favorable for taxpayers, as it aims to secure competitive pricing. However, the lack of specific competition details for this call means it's difficult to definitively state if taxpayers received the best possible price.

Public Impact

The United States Coast Guard (USCG) is the primary beneficiary, receiving essential software licenses. These licenses are crucial for supporting the USCG's operational and administrative functions. The geographic impact is nationwide, supporting USCG operations across all its bases and units. Workforce implications include enabling USCG personnel to perform their duties effectively with necessary software tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if these licenses are highly specialized or integrated.
Risk of over-licensing or purchasing unnecessary features without detailed usage analysis.
Dependence on a single vendor can limit flexibility in adopting alternative solutions.

Positive Signals

Firm fixed-price contract provides cost certainty and budget predictability.
Awarded through GSA, suggesting adherence to established procurement processes.
BPA call mechanism can streamline procurement for recurring needs.

Sector Analysis

This contract falls within the Software Publishers (NAICS 511210) sector, a vital component of the IT industry. The market for enterprise software licenses is substantial, with major players like Dell providing a wide range of solutions. Government spending in this area is consistently high, driven by the need for modern IT infrastructure, cybersecurity tools, and operational software. Comparable spending benchmarks would involve looking at other large federal agencies' software license procurements, particularly those for operating systems, productivity suites, or specialized mission-critical applications.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Dell Marketing L.P., is a large business, and any subcontracting would be at their discretion, not mandated by a small business set-aside.

Oversight & Accountability

Oversight for this contract is primarily managed by the General Services Administration (GSA) through its Federal Acquisition Service. As a BPA Call, it leverages the existing oversight framework of the parent BPA. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified licenses. Transparency is generally facilitated by GSA's contract vehicles, though specific details of the call competition are limited. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA Federal Supply Schedule
IT Software Licensing
Department of Homeland Security Contracts
USCG IT Modernization

Risk Flags

Potential vendor lock-in
Limited competition details for BPA call
Lack of specific software product information

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $52.8 million to DELL MARKETING L.P.. USCG 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 $52.8 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What specific Dell software products and versions are included in this $52.8 million award?

The provided data does not specify the exact Dell software products or versions covered by this $52.8 million contract. This information is critical for a comprehensive value assessment, as different software suites (e.g., operating systems, security software, productivity tools, specialized applications) have vastly different price points and functionalities. Understanding the specific offerings would allow for a more accurate comparison against market rates and an evaluation of whether the USCG is acquiring the most cost-effective solutions for its needs. Without this detail, the analysis is limited to the overall contract value and duration.

How does the per-unit cost of these Dell software licenses compare to similar government or commercial procurements?

A direct per-unit cost comparison is not possible with the current data. The contract value of $52.8 million is for a 364-day period, but the number of units (licenses) is not specified. To benchmark effectively, we would need to know the quantity of licenses purchased and the specific software titles. For instance, comparing the cost per seat for operating system licenses or productivity software licenses against other large federal agency procurements (e.g., from DoD or other DHS components) or against commercial list prices (adjusted for government volume discounts) would be necessary. The absence of this granular data prevents a definitive value-for-money assessment based on unit pricing.

What was the competitive landscape for this specific BPA Call, and how many bids were received?

The data indicates the contract was awarded under a 'BPA CALL' with 'FULL AND OPEN COMPETITION' for the overall BPA. However, the specific competition level and number of bids received for this particular call are not provided. While the initial BPA likely underwent a competitive process, individual calls against it can vary. If only a few vendors participated in this specific call, or if it was effectively a directed buy among pre-approved BPA holders without robust price competition, it could impact the final price achieved. A more detailed competition analysis would require knowing the number of proposals submitted and the evaluation process for this specific call.

What is the track record of Dell Marketing L.P. in fulfilling similar large-scale software licensing contracts for federal agencies?

Dell Marketing L.P. is a major technology vendor with extensive experience in providing software licenses and IT solutions to federal agencies. They are a frequent awardee on GSA schedules and other government contracts, including Blanket Purchase Agreements. Their track record generally involves supplying a wide array of software, hardware, and related services. While specific performance metrics for this exact contract are not yet available due to its future start date, Dell's established presence in the federal market suggests a capacity to handle large procurements. However, past performance on similar contracts, including adherence to delivery schedules and quality of support, would be a key factor in assessing risk.

How does the $52.8 million spending on these Dell licenses compare to historical USCG spending on similar software categories?

Historical spending data for the USCG on similar software categories is not provided in the current dataset. To assess this $52.8 million award in context, one would need to analyze past USCG budgets and contract awards for software licenses, particularly those from Dell or comparable vendors, over several fiscal years. This would reveal trends in spending, identify potential increases or decreases, and highlight any shifts in technology adoption. Understanding historical patterns is crucial for determining if this award represents a significant change, an increase in demand, or a continuation of established procurement practices for essential software.

Are there any identified risks associated with this contract, such as potential vendor lock-in or unmet performance requirements?

Potential risks associated with this contract include vendor lock-in, especially if the acquired software is deeply integrated into USCG systems or if alternative solutions are costly to implement. The firm fixed-price nature mitigates direct cost overrun risks, but performance risks remain. These could involve the software not meeting all functional requirements, issues with deployment or integration, or inadequate vendor support. The 364-day duration suggests a need for ongoing support and potential renewals, which could perpetuate vendor dependency. A thorough risk assessment would also consider cybersecurity implications of the software and the vendor's security posture.

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: 47QFSA25Q0011

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: $325,292,554

Exercised Options: $52,813,126

Current Obligation: $52,813,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA21A0002

IDV Type: BPA

Timeline