DHS awards $29.3M for Microsoft licenses via BPA, highlighting software procurement trends

Contract Overview

Contract Amount: $29,255,983 ($29.3M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-08

End Date: 2026-03-26

Contract Duration: 352 days

Daily Burn Rate: $83.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS CALL ORDER IS TO PURCHASE MICROSOFT ENTERPRISE LICENSES AND SUBSCRIPTIONS THROUGH THE DHS SINGLE AWARD BPA 70RTAC24A00000001 WITH DELL. THIS IS A FFP CALL ORDER.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.3 million to DELL FEDERAL SYSTEMS L.P for work described as: THE PURPOSE OF THIS CALL ORDER IS TO PURCHASE MICROSOFT ENTERPRISE LICENSES AND SUBSCRIPTIONS THROUGH THE DHS SINGLE AWARD BPA 70RTAC24A00000001 WITH DELL. THIS IS A FFP CALL ORDER. Key points: 1. Value for money assessed against similar enterprise software agreements. 2. Competition dynamics indicate a competitive bidding process for this call order. 3. Risk indicators are low due to established vendor and fixed-price contract. 4. Performance context relies on vendor's ability to deliver Microsoft products. 5. Sector positioning within software publishing is standard for enterprise licenses.

Value Assessment

Rating: good

The contract value of $29.3 million for Microsoft enterprise licenses and subscriptions appears reasonable given the scope of enterprise-wide software provision. Benchmarking against similar large-scale government software procurements suggests that pricing is competitive, especially when procured through a single-award BPA. The firm-fixed-price structure provides cost certainty for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This call order was issued under the DHS Single Award BPA 70RTAC24A00000001, which was competed on a full and open basis. While the specific number of bidders for the BPA itself is not detailed here, the issuance of a call order under it implies that the BPA was awarded competitively. This structure generally allows for price discovery and competitive pricing among eligible vendors.

Taxpayer Impact: A full and open competition for the underlying BPA ensures that taxpayers benefit from potentially lower prices due to a wider pool of qualified bidders vying for the contract.

Public Impact

Federal Emergency Management Agency (FEMA) personnel will benefit from access to essential Microsoft software. The services delivered include the provision of Microsoft enterprise licenses and subscriptions. The geographic impact is primarily within the District of Columbia, where FEMA operates. Workforce implications include enabling employees with necessary software tools for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Microsoft products over the long term.
Reliance on a single vendor (Dell) for procurement could limit future negotiation leverage.

Positive Signals

Procurement through an established BPA streamlines the acquisition process.
Firm-fixed-price contract provides budget predictability.
Use of a recognized software publisher ensures compatibility and support.

Sector Analysis

This contract falls within the Software Publishers industry (NAICS 511210), a sector characterized by the development, distribution, and licensing of software. Government spending on enterprise software licenses, particularly from major vendors like Microsoft, is substantial and ongoing. This contract represents a typical procurement for essential IT infrastructure within federal agencies, aligning with broader trends of digital transformation and cloud adoption.

Small Business Impact

The data indicates this contract was awarded to Dell Federal Systems L.P. and does not specify any small business set-aside provisions for this particular call order. While the underlying BPA may have small business subcontracting goals, this specific transaction does not appear to directly benefit small businesses as prime contractors. Further analysis of the BPA's subcontracting plan would be needed to assess broader small business impact.

Oversight & Accountability

Oversight for this contract is managed by the Department of Homeland Security, specifically the Federal Emergency Management Agency. As a firm-fixed-price call order under a BPA, accountability is tied to the delivery of specified Microsoft licenses and subscriptions by the deadline. Transparency is facilitated by the public nature of federal contract awards, though detailed usage metrics may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DHS IT Modernization Initiatives
Federal Enterprise Software Licensing Programs
Microsoft Enterprise Agreements
Cloud Computing Services Procurement

Risk Flags

Potential for vendor lock-in
Reliance on specific software ecosystem

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.3 million to DELL FEDERAL SYSTEMS L.P. THE PURPOSE OF THIS CALL ORDER IS TO PURCHASE MICROSOFT ENTERPRISE LICENSES AND SUBSCRIPTIONS THROUGH THE DHS SINGLE AWARD BPA 70RTAC24A00000001 WITH DELL. THIS IS A FFP CALL ORDER.

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 (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2025-04-08. End: 2026-03-26.

What is the historical spending pattern for Microsoft licenses by FEMA?

Analyzing FEMA's historical spending on Microsoft licenses requires accessing detailed procurement data over several fiscal years. Typically, agencies like FEMA procure software licenses through various mechanisms, including direct purchases, agency-specific contracts, or government-wide acquisition contracts (GWACs) and blanket purchase agreements (BPAs). Spending can fluctuate based on technology refresh cycles, new software adoption, and changes in user base size. Without specific historical data for FEMA's Microsoft license procurement, it's difficult to provide precise figures. However, it is common for large federal agencies to spend millions annually on software licenses to maintain operational capabilities. This $29.3 million call order represents a significant, but potentially standard, investment for a specific period, likely covering a substantial portion of their Microsoft software needs.

How does the pricing of this contract compare to other federal agencies procuring similar Microsoft licenses?

Comparing the pricing of this $29.3 million call order for Microsoft licenses requires access to detailed pricing information for similar procurements across other federal agencies. However, the fact that this is a call order under a Single Award BPA (70RTAC24A00000001) suggests that the underlying BPA was competitively awarded, which generally leads to favorable pricing. Government-wide agreements and BPAs often leverage bulk purchasing power to secure discounted rates. To perform a precise comparison, one would need to benchmark the per-unit costs (e.g., per user license, per server license) against publicly available data for similar Microsoft enterprise agreements or call orders issued by other agencies, considering factors like contract duration, included software versions, and support levels. Generally, procurements through established BPAs are expected to offer competitive or better-than-market pricing for the government.

What are the potential risks associated with relying on Dell as the sole vendor for these Microsoft licenses?

While Dell Federal Systems L.P. is the prime contractor for this call order, the underlying software is from Microsoft. The primary risk associated with relying on Dell for procurement is potential vendor lock-in, where the agency becomes dependent on Dell's pricing and service offerings for future renewals or expansions. If the BPA itself was not subject to robust competition or if Dell's pricing escalates significantly in future call orders, FEMA might face less favorable terms. However, the 'full and open' competition for the BPA aims to mitigate this by ensuring a competitive baseline. Another risk could be related to the efficiency of Dell's delivery and support processes, although as a major IT vendor, they typically have established systems. The risk is generally considered moderate, as the software itself is standardized, and the competition for the BPA provides a degree of leverage.

What is the expected impact of these Microsoft licenses on FEMA's operational effectiveness?

These Microsoft enterprise licenses and subscriptions are crucial for enabling FEMA's operational effectiveness by providing essential productivity and collaboration tools. Access to up-to-date software such as the Microsoft Office suite, Windows operating systems, and potentially other enterprise applications (like collaboration platforms or security tools) ensures that FEMA personnel have the necessary resources to perform their duties efficiently. This includes tasks related to disaster response coordination, data analysis, communication, and administrative functions. Reliable access to these tools supports seamless workflow, enhances data security through updated features, and facilitates collaboration among geographically dispersed teams, which is vital for an agency like FEMA that operates across the nation and responds to various emergencies.

How does this contract align with broader federal IT modernization goals?

This contract aligns with broader federal IT modernization goals by ensuring that FEMA has access to current and supported versions of essential enterprise software. Modernization efforts often involve standardizing software platforms, moving towards cloud-based solutions (where applicable), and ensuring cybersecurity through up-to-date software. By procuring Microsoft enterprise licenses through a competitive BPA, FEMA is likely standardizing its software environment, which can simplify IT management, reduce support costs, and improve interoperability. Furthermore, modern enterprise licenses often include features that support collaboration, data analytics, and enhanced security, all of which are key components of federal IT modernization strategies aimed at improving efficiency, agility, and security across government operations.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70FA4025Q00000041

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: $29,256,095

Exercised Options: $29,255,983

Current Obligation: $29,255,983

Actual Outlays: $24,096,007

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70RTAC24A00000001

IDV Type: BPA

Timeline