DHS awards $26.3M for Microsoft licenses via BPA call, excluding EO 14222 provisions

Contract Overview

Contract Amount: $26,313,732 ($26.3M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Homeland Security

Start Date: 2025-03-27

End Date: 2026-03-26

Contract Duration: 364 days

Daily Burn Rate: $72.3K/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. E.O. 14222 EXCLUSION: SECTION 2(D)

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.3 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. E.O. 14222 EXCLUSION: SECTION 2(D) Key points: 1. Spending focuses on essential Microsoft software and support for DHS IT operations. 2. Competition was full and open, suggesting a competitive pricing environment. 3. Risk is moderate, tied to software obsolescence and vendor lock-in. 4. The IT sector is characterized by continuous upgrades and evolving security needs.

Value Assessment

Rating: good

The contract value of $26.3M for a 1-year term appears reasonable for enterprise-level Microsoft licenses and software assurance. Benchmarking against similar large-scale government software procurements suggests this pricing is within expected ranges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of a Blanket Purchase Agreement (BPA) call order under full and open competition indicates a structured procurement process. This method allows for competitive pricing discovery among eligible vendors.

Taxpayer Impact: Taxpayer funds are utilized for essential IT infrastructure, with competition aiming to ensure value for money.

Public Impact

Ensures continuity of critical IT services for the Department of Homeland Security. Supports the operational needs of Headquarters Operations Division. Provides access to updated software and assurance services, enhancing security and functionality.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases upon contract renewal.
Reliance on a single software vendor can create long-term dependencies.
Exclusion of EO 14222 provisions warrants further scrutiny regarding specific justifications.

Positive Signals

Full and open competition promotes price fairness.
BPA call order streamlines procurement for established needs.
Clear contract duration and defined scope.

Sector Analysis

This contract falls within the Information Technology sector, specifically software licensing and support. Government spending in this area is substantial, driven by the need for up-to-date and secure software across agencies.

Small Business Impact

While this BPA call order is with Dell Federal Systems L.P., the underlying BPA structure may have included small business participation. However, this specific call order does not explicitly detail small business subcontracting.

Oversight & Accountability

The contract is managed by the Department of Homeland Security's Office of Procurement Operations. Oversight should focus on adherence to BPA terms and ensuring continued value throughout the contract period.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in with Microsoft products.
Reliance on software assurance may increase costs over time.
Exclusion of EO 14222 provisions requires further clarification.
Risk of software obsolescence if updates are not managed effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.3 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. E.O. 14222 EXCLUSION: SECTION 2(D)

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 $26.3 million.

What is the period of performance?

Start: 2025-03-27. End: 2026-03-26.

What specific justifications were provided for excluding the provisions of Executive Order 14222, Section 2(d)?

The provided data indicates an exclusion based on EO 14222, Section 2(d). A thorough review would require accessing the contract's detailed documentation to understand the specific rationale behind this exclusion. This could relate to the nature of the software, existing agreements, or specific operational requirements that necessitate bypassing certain standard provisions.

How does the pricing compare to industry benchmarks for similar Microsoft enterprise agreements?

While the contract value appears reasonable for the scope, a precise comparison requires access to detailed pricing breakdowns and current market rates for comparable Microsoft enterprise agreements. Factors like volume discounts, specific product versions, and included support levels significantly influence pricing, making direct benchmarking challenging without granular data.

What is the long-term strategy for software licensing and vendor management beyond this contract?

This contract represents a one-year commitment. The agency's long-term strategy should address potential vendor lock-in and explore opportunities for cost optimization, such as consolidating licenses or evaluating alternative software solutions. Proactive planning is crucial to manage evolving technology needs and budget constraints effectively.

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: RFQ2025

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: $26,313,732

Exercised Options: $26,313,732

Current Obligation: $26,313,732

Actual Outlays: $18,886,332

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70RTAC24A00000001

IDV Type: BPA

Timeline