DHS OIT Awards $31.3M Microsoft Licenses via BPA Call to Dell Federal Systems

Contract Overview

Contract Amount: $31,318,755 ($31.3M)

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: $86.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT SUBSCRIPTION LICENSES AND SOFTWARE ASSURANCE BPA CALL ORDER FOR THE DEPARTMENT OF HOMELAND SECURITY, OFFICE OF INFORMATION TECHNOLOGY OPERATIONS, HEADQUARTERS OPERATIONS DIVISION.

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.3 million to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT SUBSCRIPTION LICENSES AND SOFTWARE ASSURANCE BPA CALL ORDER FOR THE DEPARTMENT OF HOMELAND SECURITY, OFFICE OF INFORMATION TECHNOLOGY OPERATIONS, HEADQUARTERS OPERATIONS DIVISION. Key points: 1. Significant award for Microsoft software licenses and assurance. 2. Dell Federal Systems is the awardee under a Blanket Purchase Agreement (BPA) Call. 3. The contract runs for one year, indicating ongoing software needs. 4. The award is for the Department of Homeland Security's IT Operations.

Value Assessment

Rating: good

The award amount of $31.3M for a one-year BPA Call order appears reasonable for enterprise-level Microsoft licensing. Benchmarking against similar large-scale government software procurements would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: Taxpayers benefit from competitive pricing on essential software licenses for a major federal agency.

Public Impact

Ensures DHS IT operations have necessary software licenses. Supports critical government functions through reliable software access. Award to Dell Federal Systems highlights their role in government IT procurement. One-year duration suggests potential for future contract renewals or re-competition.

Waste & Efficiency Indicators

Waste Risk Score: 86 / 10

Positive Signals

Full and open competition
Established BPA call order mechanism
Clear agency and division identified

Sector Analysis

This award falls within the IT sector, specifically software licensing. Government spending on software is substantial, with significant portions allocated to enterprise agreements and cloud services. Benchmarks for similar large-scale software procurements can vary widely based on specific products and user counts.

Small Business Impact

While the prime awardee is Dell Federal Systems, the use of a BPA call order may involve subcontracting opportunities. However, no specific small business set-aside or participation is indicated in this data.

Oversight & Accountability

The award is managed by the Department of Homeland Security's Office of Procurement Operations, indicating established procurement oversight. The BPA call order structure implies adherence to pre-negotiated terms and conditions.

Related Government Programs

Software Publishers
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Lack of specific product details
No historical spending comparison available
Potential for underutilization of licenses if not actively managed
Reliance on a single vendor's ecosystem

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.3 million to DELL FEDERAL SYSTEMS L.P. MICROSOFT SUBSCRIPTION LICENSES AND SOFTWARE ASSURANCE BPA CALL ORDER FOR THE DEPARTMENT OF HOMELAND SECURITY, OFFICE OF INFORMATION TECHNOLOGY OPERATIONS, HEADQUARTERS OPERATIONS DIVISION.

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $31.3 million.

What is the period of performance?

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

What is the specific breakdown of Microsoft products and services included in this BPA call order?

The provided data does not specify the exact Microsoft products and services covered by this BPA call order. It broadly states 'MICROSOFT SUBSCRIPTION LICENSES AND SOFTWARE ASSURANCE.' A detailed breakdown would typically be found in the contract's statement of work or associated documentation, outlining specific software titles, license types (e.g., user, device, server), and the scope of Software Assurance benefits.

How does the $31.3M award compare to previous DHS Microsoft licensing procurements?

Without historical data on previous DHS Microsoft licensing procurements, a direct comparison is not possible. Factors like changes in software versions, user base expansion or contraction, and evolving licensing models (e.g., shift to cloud services) can significantly impact year-over-year spending. Analyzing trends would require access to prior contract awards and spending patterns.

What is the potential for cost savings or optimization over the contract's duration?

The potential for cost savings depends on several factors. The firm fixed-price nature provides budget certainty. However, optimization could be achieved through diligent license management, ensuring only necessary licenses are maintained, leveraging Software Assurance benefits effectively, and potentially re-competing or renegotiating terms as the contract nears its end date based on actual usage.

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: EMAIL RFQ

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: $31,318,755

Exercised Options: $31,318,755

Current Obligation: $31,318,755

Actual Outlays: $31,286,763

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70RTAC24A00000001

IDV Type: BPA

Timeline