USCIS Spends $19M on Microsoft Software and Support, Awarded to Dell Federal Systems

Contract Overview

Contract Amount: $19,081,959 ($19.1M)

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: $52.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT SOFTWARE MAINTENANCE, SUBSCRIPTION LICENSES AND UNIFIED SUPPORT FOR USCIS.

Place of Performance

Location: CAMP SPRINGS, HOWARD County, MARYLAND, 20588

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.1 million to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT SOFTWARE MAINTENANCE, SUBSCRIPTION LICENSES AND UNIFIED SUPPORT FOR USCIS. Key points: 1. The contract focuses on essential software licenses and unified support, indicating a reliance on Microsoft's ecosystem for critical government functions. 2. Awarded through a BPA Call under full and open competition, suggesting a structured procurement process aimed at achieving competitive pricing. 3. The fixed-price nature of the contract provides cost certainty for the government, mitigating risks associated with scope creep or unexpected cost overruns. 4. The duration of one year with potential for renewal aligns with typical IT software maintenance cycles, allowing for periodic reassessment of needs and market conditions. 5. The specific NAICS code (511210) points to the software publishing industry, placing this contract within a well-defined market segment. 6. The contract's value, while significant, should be benchmarked against similar enterprise-level software agreements to fully assess value for money.

Value Assessment

Rating: good

The contract value of approximately $19 million for a one-year term for Microsoft software maintenance, subscription licenses, and unified support appears reasonable for an enterprise-level government agreement. Benchmarking against similar large-scale federal IT procurements for Microsoft products and support would provide a more precise value-for-money assessment. The fixed-price contract type helps control costs. However, without specific details on the exact software versions, user counts, and support tiers, a definitive comparison to market rates or similar contracts is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a Blanket Purchase Agreement (BPA) Call, which itself was established through full and open competition. This indicates that multiple vendors had the opportunity to bid on the underlying BPA, and subsequently, this specific call was likely competed among those BPA holders or through a similar competitive process. The full and open competition generally leads to a wider range of offers and encourages price discovery, potentially resulting in more favorable terms for the government.

Taxpayer Impact: The use of full and open competition for this significant software and support contract is beneficial for taxpayers as it promotes a competitive environment, which typically drives down prices and encourages innovation among vendors vying for government business.

Public Impact

The primary beneficiaries are the U.S. Citizenship and Immigration Services (USCIS) personnel who will receive continued access to essential Microsoft software and unified support. This contract ensures the uninterrupted operation of critical IT systems that support USCIS's mission of processing immigration and citizenship applications. The services delivered include software licenses, maintenance, and unified support, crucial for maintaining the functionality and security of USCIS's digital infrastructure. The geographic impact is national, as USCIS operates across numerous locations, relying on standardized IT solutions. Workforce implications include ensuring that USCIS employees have the necessary tools and support to perform their duties efficiently and securely.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Microsoft's ecosystem, making future transitions to alternative software solutions more complex and costly.
Reliance on a single vendor for unified support could create dependencies and limit negotiation leverage in future contract renewals.
The significant expenditure raises questions about whether alternative, potentially more cost-effective, open-source or cloud-native solutions were adequately considered.

Positive Signals

The use of a BPA Call under full and open competition suggests a structured approach to procurement, aiming for competitive pricing and vendor selection.
The firm fixed-price contract type provides budget certainty and transfers some cost risk to the contractor.
Unified support can streamline issue resolution and provide a single point of contact for technical assistance, potentially improving operational efficiency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and support. The market for enterprise software and IT support services is highly competitive, dominated by major players like Microsoft, Oracle, and IBM. Government agencies are significant consumers of these services, often requiring specialized support and licensing agreements tailored to public sector needs. Spending benchmarks for similar enterprise software agreements can vary widely based on the scope, duration, and specific products involved, but multi-million dollar annual expenditures are common for large federal agencies.

Small Business Impact

The data indicates this contract was awarded to Dell Federal Systems L.P., a large business. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. Therefore, the direct impact on small businesses through this specific award appears minimal unless Dell Federal Systems L.P. voluntarily engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if subcontracting plans were a factor in the original BPA competition or this specific call.

Oversight & Accountability

The contract is managed under a Blanket Purchase Agreement (BPA) Call, which typically includes oversight mechanisms defined within the BPA itself. The Department of Homeland Security, through USCIS, is responsible for contract administration and performance monitoring. Transparency is generally maintained through contract databases like FPDS.gov. Inspector General oversight would apply to ensure the proper use of funds and adherence to procurement regulations, with potential for audits or investigations if irregularities are detected.

Related Government Programs

Microsoft Enterprise Agreements
Federal Civilian IT Software Procurement
Department of Homeland Security IT Services
USCIS Technology Modernization Initiatives
Government-wide Software Licensing Programs

Risk Flags

Potential for cost overruns if scope or support needs expand beyond initial projections.
Risk of service disruption if unified support fails to meet critical performance standards.
Dependency on a single vendor ecosystem may limit future flexibility and increase switching costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.1 million to DELL FEDERAL SYSTEMS L.P. MICROSOFT SOFTWARE MAINTENANCE, SUBSCRIPTION LICENSES AND UNIFIED SUPPORT FOR USCIS.

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. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $19.1 million.

What is the period of performance?

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

What is the specific breakdown of software licenses and support services included in this $19 million contract?

The provided data indicates the contract covers 'MICROSOFT SOFTWARE MAINTENANCE, SUBSCRIPTION LICENSES AND UNIFIED SUPPORT'. However, a detailed breakdown of the specific Microsoft products (e.g., Windows, Office 365, Azure services, specific server licenses), the number of user licenses, and the exact nature of the 'unified support' (e.g., Premier, Professional Direct) is not available in the summary data. This level of detail is crucial for a comprehensive understanding of the value proposition and for benchmarking against other similar agreements. Without this granular information, it's difficult to ascertain if the $19 million represents a fair price for the specific services and software being procured.

How does the per-unit cost of these Microsoft licenses and support services compare to other federal agencies or the commercial market?

Benchmarking the per-unit cost is challenging without specific details on the software versions, user counts, and support levels. However, federal agencies often leverage enterprise agreements and volume discounts, which can lead to lower per-unit costs compared to smaller commercial purchases. Dell Federal Systems L.P., as the awardee, likely secured these through Microsoft's government licensing channels. To perform a robust comparison, one would need to access data on similar federal Microsoft EA's or consult commercial price lists for comparable enterprise agreements, factoring in any government-specific discounts or contract vehicles utilized. The 'N/A' for CPU in the schema suggests this specific data point is not readily available or applicable in a simple per-unit format for this type of complex software agreement.

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

Dell Federal Systems L.P. is a significant federal contractor with a history of providing IT hardware, software, and services to various government agencies. While specific details on their past Microsoft-specific enterprise support contracts for agencies of USCIS's size are not provided in this summary, their established presence suggests they have the capability to manage such agreements. A deeper dive into Dell's contract history, particularly with the Department of Homeland Security or other civilian agencies requiring similar Microsoft solutions, would reveal their performance, reliability, and experience in delivering these types of complex IT support services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with the 'unified support' component of this contract?

The provided data mentions 'unified support' but does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) governing this aspect of the contract. Typically, unified support contracts include metrics related to response times for critical issues, resolution times, availability of support personnel, and proactive system health checks. USCIS would have established these SLAs to ensure timely and effective technical assistance from Dell Federal Systems L.P. and Microsoft. The effectiveness of the support is often measured against these agreed-upon metrics, which are crucial for ensuring the operational continuity of USCIS's IT infrastructure.

How does this $19 million annual spending compare to USCIS's historical spending on Microsoft software and support?

The provided data does not include historical spending figures for USCIS's Microsoft software and support. To assess whether this $19 million represents an increase, decrease, or stable level of spending, a review of past contract awards and obligations for similar services would be necessary. Factors such as technology refreshes, changes in user base, adoption of new Microsoft services (e.g., cloud migration), or shifts in procurement strategies could influence historical spending patterns. Understanding this trend is vital for evaluating the long-term cost-effectiveness and strategic alignment of this current contract.

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: 70SBUR25Q00000056

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: $19,081,959

Exercised Options: $19,081,959

Current Obligation: $19,081,959

Actual Outlays: $19,054,880

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