DHS awards $36.6M for Microsoft licenses to Dell Federal Systems, highlighting software procurement trends

Contract Overview

Contract Amount: $36,662,901 ($36.7M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Homeland Security

Start Date: 2024-03-27

End Date: 2025-03-26

Contract Duration: 364 days

Daily Burn Rate: $100.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT LICENSES

Place of Performance

Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $36.7 million to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT LICENSES Key points: 1. Value for money assessed through firm-fixed-price contract structure. 2. Competition dynamics indicate a full and open process. 3. Risk indicators appear low given established software and vendor. 4. Performance context relies on vendor's ability to deliver Microsoft software. 5. Sector positioning within IT services, specifically software licensing.

Value Assessment

Rating: good

The contract value of $36.6 million for Microsoft licenses appears reasonable given the scope of software procurement for a large agency like DHS. Benchmarking against similar large-scale software license agreements would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the ultimate value depends on the specific Microsoft products and quantities procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This competitive process is expected to drive favorable pricing and ensure the government receives competitive offers. The specific number of bidders is not provided, but the designation implies a robust bidding environment.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive marketplace that can lead to lower prices and better terms for government software procurements.

Public Impact

U.S. Customs and Border Protection personnel benefit from access to necessary Microsoft software. Essential software services are delivered to support border security and immigration operations. Geographic impact is nationwide, supporting CBP operations across all locations. Workforce implications include enabling employees with productivity tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type helps manage cost certainty.
Contract duration of one year with potential for renewal aligns with typical software licensing cycles.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software publishers and licensing. The market for enterprise software licenses is substantial, with government agencies being significant consumers. This procurement is a standard component of IT infrastructure management for federal agencies, ensuring operational continuity and employee productivity.

Small Business Impact

The contract does not indicate a small business set-aside, and the prime contractor, Dell Federal Systems L.P., is a large business. There is no explicit information on subcontracting plans for small businesses within this award. Further review of the contract details would be needed to assess potential small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Customs and Border Protection's contracting officers and program managers. Transparency is facilitated through public contract databases. Inspector General oversight may be involved if specific concerns or irregularities arise regarding the procurement or performance.

Related Government Programs

Microsoft Software Licensing
Enterprise Software Agreements
Department of Homeland Security IT Procurement
Customs and Border Protection Technology

Risk Flags

Potential for vendor lock-in with Microsoft software.
Need for ongoing management of software licenses and compliance.
Cybersecurity posture dependent on proper software configuration and patching.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $36.7 million to DELL FEDERAL SYSTEMS L.P. MICROSOFT LICENSES

Who is the contractor on this award?

The obligated recipient is DELL FEDERAL SYSTEMS L.P.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $36.7 million.

What is the period of performance?

Start: 2024-03-27. End: 2025-03-26.

What specific Microsoft products and quantities are included in this $36.6 million award?

The provided data does not specify the exact Microsoft products (e.g., Windows, Office 365, server licenses) or the precise quantities covered by this $36.6 million contract. This level of detail is crucial for a comprehensive value assessment. Without this information, it's difficult to benchmark the per-unit cost against market rates or determine if the agency is procuring the most cost-effective licensing options. Further analysis would require access to the contract's statement of work or detailed line-item breakdown.

How does the $36.6 million award compare to previous years' spending on Microsoft licenses by CBP or DHS?

To assess historical spending patterns, we would need access to prior contract awards for Microsoft licenses by U.S. Customs and Border Protection (CBP) or the broader Department of Homeland Security (DHS). Comparing this $36.6 million award to previous fiscal years would reveal trends in software licensing costs, volume, and potential changes in procurement strategies. For instance, an increase might indicate expanded user base or new software adoption, while a decrease could suggest cost-saving measures or shifts to alternative solutions. Without historical data, it's challenging to contextualize the current expenditure.

What is Dell Federal Systems L.P.'s track record with similar large-scale Microsoft software license contracts for federal agencies?

Dell Federal Systems L.P. has a significant presence in federal IT contracting, often acting as a reseller and integrator for major software vendors, including Microsoft. Their track record with large-scale Microsoft license contracts would typically be evaluated based on past performance reviews, delivery history, and any documented issues on previous government contracts. Agencies often rely on established vendors with proven experience to ensure smooth procurement and delivery of critical software. A review of past performance information (PPI) and contract data would provide insight into their reliability and expertise in this area.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not detail the specific Key Performance Indicators (KPIs) or the performance measurement framework for this contract. Typically, for software licensing agreements, KPIs might include timely delivery of licenses, adherence to software usage rights, and support responsiveness if support is included. The contracting officer's representative (COR) would be responsible for monitoring performance against contract requirements. Without explicit KPIs, assessing the contractor's performance and ensuring optimal value for the government is more challenging.

Are there any identified risks associated with this contract, such as vendor lock-in or cybersecurity vulnerabilities related to the software?

Potential risks for this contract could include vendor lock-in, where the agency becomes heavily reliant on specific Microsoft products and licensing terms, making future transitions difficult or costly. Cybersecurity is another consideration; while Microsoft invests heavily in security, the agency must ensure proper configuration and patching of the licensed software to mitigate vulnerabilities. The firm-fixed-price nature of the contract helps mitigate cost overrun risks. However, risks related to software obsolescence or the need for future upgrades would need ongoing management.

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

Solicitation ID: 70B04C24Q00000121

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: $36,662,901

Exercised Options: $36,662,901

Current Obligation: $36,662,901

Actual Outlays: $36,662,901

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RTAC24A00000001

IDV Type: BPA

Timeline