EPA Renews Microsoft Enterprise License for $17.2M, Extending Through April 2026
Contract Overview
Contract Amount: $17,203,734 ($17.2M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Environmental Protection Agency
Start Date: 2025-04-30
End Date: 2026-04-30
Contract Duration: 365 days
Daily Burn Rate: $47.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOFTWARE: EPA MICROSOFT ENTERPRISE LICENSE AGREEMENT RENEWAL ORDER FOR OPTION PERIOD 2 OF BPA 68HERD23A000
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Environmental Protection Agency obligated $17.2 million to DELL FEDERAL SYSTEMS L.P for work described as: SOFTWARE: EPA MICROSOFT ENTERPRISE LICENSE AGREEMENT RENEWAL ORDER FOR OPTION PERIOD 2 OF BPA 68HERD23A000 Key points: 1. Spending on software licenses continues to be a significant operational cost for federal agencies. 2. Dell Federal Systems is the contractor, indicating a reliance on established vendors for enterprise software. 3. The renewal carries a risk of vendor lock-in and potential price increases in future renewals. 4. This spending falls under the 'Software Publishers' sector, a common area for federal IT investment.
Value Assessment
Rating: fair
The $17.2M cost for a one-year renewal appears within the expected range for large enterprise Microsoft agreements. However, without specific details on user counts or included services, a precise benchmark is difficult. The price per user or device would be a more informative metric.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a BPA Call with full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing, but the specific pricing outcomes are not detailed.
Taxpayer Impact: Taxpayers are funding essential software for the EPA's operations. The cost is managed through a competitive process, aiming for reasonable value.
Public Impact
Ensures continued access to critical Microsoft software for EPA operations. Supports agency-wide productivity and data management capabilities. Potential for cost savings if competitive bidding was effective. The renewal impacts thousands of EPA employees relying on these tools.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation in future renewals.
- Risk of vendor lock-in with Microsoft products.
- Lack of detailed per-unit cost data for precise value assessment.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract limits cost uncertainty.
- BPA Call mechanism can streamline procurement.
Sector Analysis
This spending is within the Information Technology sector, specifically for software licensing. Federal IT spending benchmarks often show significant investment in enterprise software agreements, with costs varying based on vendor, scope, and user base.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Large enterprise software agreements like this are typically awarded to major vendors or their prime contractors, with limited direct participation from small businesses in the prime contract.
Oversight & Accountability
The contract was awarded via a BPA Call, which is a pre-competed agreement. Oversight would focus on ensuring the call-out aligns with the BPA's terms and that the renewal represents fair value for the services provided.
Related Government Programs
- Software Publishers
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Potential for price increases in future renewals.
- Risk of vendor lock-in.
- Lack of detailed cost breakdown for granular analysis.
- Dependence on a single software vendor.
Tags
software-publishers, environmental-protection-agency, tx, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $17.2 million to DELL FEDERAL SYSTEMS L.P. SOFTWARE: EPA MICROSOFT ENTERPRISE LICENSE AGREEMENT RENEWAL ORDER FOR OPTION PERIOD 2 OF BPA 68HERD23A000
Who is the contractor on this award?
The obligated recipient is DELL FEDERAL SYSTEMS L.P.
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $17.2 million.
What is the period of performance?
Start: 2025-04-30. End: 2026-04-30.
What is the specific breakdown of software included in this enterprise agreement and the number of users or devices covered?
The provided data lacks specifics on the exact Microsoft software suite and the number of users or devices. This information is crucial for a granular value assessment, as costs are typically driven by user count, feature sets, and support levels. Without this, it's challenging to compare pricing against industry standards or identify potential overspending.
How does the per-unit cost of this renewal compare to previous years or similar agency agreements?
A direct per-unit cost comparison is not possible with the current data. The total cost is provided, but not the quantity of licenses or users. Benchmarking would require knowing the specific Microsoft products (e.g., Office 365 E3 vs. E5) and the number of seats. This comparison is vital for identifying potential price increases or negotiating leverage.
What is the EPA's strategy for managing long-term software licensing costs and mitigating vendor lock-in?
The EPA's long-term strategy for software costs and vendor lock-in is not detailed here. Agencies typically aim to periodically re-evaluate their software needs, explore alternative solutions, and leverage competitive bidding during renewal periods. Proactive planning and negotiation are key to controlling costs and maintaining flexibility with enterprise software.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Francisco Partners Management, L.P.
Address: 1 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: $17,203,734
Exercised Options: $17,203,734
Current Obligation: $17,203,734
Actual Outlays: $17,203,734
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 68HERD23A0001
IDV Type: BPA
Timeline
Start Date: 2025-04-30
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-03-25
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