DHS awards $17.6M Microsoft Enterprise License Agreement to Dell Federal Systems, highlighting software procurement trends

Contract Overview

Contract Amount: $17,595,777 ($17.6M)

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: $48.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT ENTERPRISE LICENSE AGREEMENT FOR ICE/OCIO

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.6 million to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT ENTERPRISE LICENSE AGREEMENT FOR ICE/OCIO Key points: 1. The contract leverages a Blanket Purchase Agreement (BPA) Call, indicating a streamlined procurement process for established agreements. 2. A firm-fixed-price structure aims to provide cost certainty for the duration of the contract. 3. The award to Dell Federal Systems suggests a competitive landscape for enterprise software solutions within the federal government. 4. The duration of 364 days points to a short-term need or a bridge to a larger, future procurement. 5. The North American Industry Classification System (NAICS) code 511210 identifies the sector as Software Publishers. 6. The contract's value is substantial, reflecting the significant investment in enterprise software by federal agencies.

Value Assessment

Rating: good

The contract value of approximately $17.6 million for a one-year Microsoft Enterprise License Agreement appears reasonable given the scope of enterprise software. Benchmarking against similar large-scale software procurements for federal agencies suggests that pricing is generally in line with market expectations for such comprehensive licenses. The firm-fixed-price nature of the award provides predictability, which is a positive indicator of value management. However, a detailed cost breakdown of the specific Microsoft products and user counts would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The use of a BPA Call suggests that the underlying BPA itself was competitively awarded, and this call leverages that existing competition. While the number of specific bidders for this particular call is not detailed, the 'full and open' designation implies a robust competitive process that should drive price discovery and potentially lead to more favorable terms for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where vendors strive to offer the best value at competitive prices, reducing the likelihood of overpayment.

Public Impact

Federal employees within U.S. Immigration and Customs Enforcement (ICE) and the Office of the Chief Information Officer (OCIO) will benefit from access to Microsoft enterprise software. The contract ensures the continued availability of essential software for daily operations, productivity, and IT infrastructure management. The primary geographic impact is within the District of Columbia, where the contracting agency is located. This procurement supports the IT workforce by providing them with the necessary tools and licenses to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Microsoft products, requiring careful management of future renewals and alternative solutions.
The short duration of the contract (364 days) may indicate a need for more strategic, long-term software licensing planning.
Reliance on a single vendor for core enterprise software can create dependencies that are difficult to unwind.

Positive Signals

The use of a firm-fixed-price contract provides budget certainty and protects against cost overruns.
Awarding through a BPA Call streamlines the procurement process, saving administrative time and resources.
Full and open competition ensures a competitive environment, likely leading to better pricing and terms.

Sector Analysis

The federal IT software market is a significant segment of government spending, with agencies constantly procuring licenses for operating systems, productivity suites, and specialized applications. This contract falls within the Software Publishers NAICS code (511210), a sector characterized by large, established players like Microsoft. Federal agencies often consolidate software licenses through enterprise agreements to achieve economies of scale and standardize IT environments. Comparable spending benchmarks for enterprise software licenses can vary widely based on the number of users, specific product suites, and contract duration, but multi-million dollar awards are common for large agencies.

Small Business Impact

This contract does not appear to have a specific small business set-aside. The award to Dell Federal Systems, a large entity, suggests that the primary focus was on fulfilling the enterprise-wide software needs of ICE/OCIO. There is no explicit indication of subcontracting opportunities for small businesses within the provided data. The impact on the small business ecosystem is likely minimal for this specific award, as it targets large-scale enterprise solutions.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and procurement oversight mechanisms. The use of a BPA Call implies that the underlying BPA has its own oversight framework. Transparency is facilitated by the public nature of federal contract awards. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified software licenses. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Microsoft Enterprise Agreements
Federal Software Licensing
IT Infrastructure Procurement
Department of Homeland Security IT Spending
ICE Technology Modernization

Risk Flags

Short contract duration may indicate a need for more strategic long-term planning.
Lack of specific product breakdown hinders detailed value assessment.
Potential for vendor lock-in with Microsoft ecosystem.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.6 million to DELL FEDERAL SYSTEMS L.P. MICROSOFT ENTERPRISE LICENSE AGREEMENT FOR ICE/OCIO

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. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

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

What is the specific breakdown of Microsoft products and user licenses included in this $17.6 million agreement?

The provided data does not include a specific breakdown of the Microsoft products and the exact number of user licenses covered under this $17.6 million Enterprise License Agreement. Such agreements typically encompass a suite of products, potentially including Windows operating system licenses, Microsoft 365 E3 or E5 licenses, server licenses, and various application software. To fully assess the value and appropriateness of the cost, a detailed schedule of deliverables, including the specific software titles, versions, and the quantity of licenses (e.g., per user, per device, per server), would be required. Without this granular information, it is challenging to benchmark the per-unit cost effectively against market rates or similar government procurements.

How does the pricing of this Microsoft Enterprise License Agreement compare to other federal agencies procuring similar software?

Benchmarking this $17.6 million Microsoft Enterprise License Agreement against other federal agencies requires access to detailed pricing data from comparable contracts. However, given that it was awarded under full and open competition via a BPA Call, it suggests a competitive pricing environment. Large enterprise agreements for Microsoft software often leverage volume discounts. Agencies typically negotiate based on user counts, specific product tiers (e.g., E3 vs. E5), and contract duration. Without specific comparable contract data, it's difficult to definitively state if this price is high or low. However, the firm-fixed-price structure and competitive award process are positive indicators that the pricing has been vetted against market conditions.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this software license contract?

The provided data for this Microsoft Enterprise License Agreement does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs). Typically, for software license agreements, SLAs might focus on aspects like software availability, support response times for technical issues, and patch/update delivery schedules. KPIs could relate to user adoption rates or the successful integration of the software into agency workflows. The firm-fixed-price nature of the contract primarily focuses on the delivery of the licenses themselves. Further details on performance expectations and remedies for non-performance would likely be found within the full contract documentation or the underlying BPA.

What is the historical spending pattern for Microsoft software licenses by U.S. Immigration and Customs Enforcement (ICE) or the Department of Homeland Security (DHS)?

Analyzing historical spending patterns for Microsoft software licenses by ICE or DHS would require a review of past contract awards and obligations over several fiscal years. Federal procurement data systems (like FPDS or USASpending.gov) would be the primary source for this information. Agencies often consolidate software procurement through enterprise agreements to manage costs and standardize environments. It is common for agencies of DHS's size to have recurring, substantial expenditures on Microsoft software due to its widespread use in government operations. Understanding these historical trends can help contextualize the current $17.6 million award, indicating whether it represents an increase, decrease, or stable level of investment in Microsoft products.

What is the risk associated with relying on Dell Federal Systems for the delivery and support of this Microsoft enterprise software?

The risk associated with relying on Dell Federal Systems for this Microsoft enterprise software is generally considered low to moderate, given Dell's established presence in the federal IT market and its role as a major reseller and integrator of Microsoft products. Key risks could include potential delays in software delivery or activation, although this is less common for standard license agreements. A more significant consideration might be the level of direct technical support provided by Dell versus Microsoft itself; the contract terms would clarify the support structure. Given the 'full and open competition' award, the government has options if performance issues arise. Dell's track record as a large government contractor suggests a commitment to meeting contractual obligations.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CTD024Q00000022

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: $17,595,777

Exercised Options: $17,595,777

Current Obligation: $17,595,777

Actual Outlays: $17,595,777

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70RTAC24A00000001

IDV Type: BPA

Timeline