DHS TSA Spends $30.6M on Microsoft Software via BPA Call with Dell Federal
Contract Overview
Contract Amount: $30,648,497 ($30.6M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Homeland Security
Start Date: 2023-03-27
End Date: 2024-03-26
Contract Duration: 365 days
Daily Burn Rate: $84.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT SOFTWARE PRODUCTS FOR NEW ITEMS AND RENEWAL ITEMS.
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $30.6 million to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT SOFTWARE PRODUCTS FOR NEW ITEMS AND RENEWAL ITEMS. Key points: 1. Significant spending on essential software licenses and renewals. 2. Competition was full and open, indicating a competitive bidding process. 3. Risk appears moderate, primarily related to software obsolescence and vendor lock-in. 4. IT sector spending, specifically on computer-related services.
Value Assessment
Rating: good
The contract value of $30.6M for Microsoft software over one year appears reasonable given the nature of enterprise software licensing and renewals. Benchmarking against similar large-scale software procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition via a BPA Call, suggesting a robust price discovery process. This method allows multiple vendors to compete, potentially driving down costs.
Taxpayer Impact: Taxpayer funds are utilized for essential software supporting TSA operations. The competitive nature of the award aims to ensure value for money.
Public Impact
Ensures TSA has necessary software for critical operations. Supports ongoing IT infrastructure maintenance and upgrades. Potential for cost savings through competitive bidding on software licenses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Software license management and potential for over-licensing.
- Dependence on a single software vendor (Microsoft).
Positive Signals
- Awarded under full and open competition.
- Utilizes an existing Blanket Purchase Agreement (BPA) for efficiency.
Sector Analysis
This contract falls within the Information Technology sector, specifically for computer-related services. Spending benchmarks for enterprise software licenses can vary widely based on agency size and specific software needs.
Small Business Impact
The data indicates the award went to Dell Federal Systems L.P., a large business. There is no explicit information on small business participation in this specific BPA Call.
Oversight & Accountability
The use of a BPA Call suggests adherence to established procurement procedures. Oversight would involve monitoring contract performance and ensuring compliance with terms and conditions.
Related Government Programs
- Other Computer Related Services
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Potential for vendor lock-in.
- Risk of software obsolescence.
- Dependence on a single software provider.
- Need for ongoing license management to avoid overspending.
Tags
other-computer-related-services, department-of-homeland-security, tx, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $30.6 million to DELL FEDERAL SYSTEMS L.P. MICROSOFT SOFTWARE PRODUCTS FOR NEW ITEMS AND RENEWAL ITEMS.
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 (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $30.6 million.
What is the period of performance?
Start: 2023-03-27. End: 2024-03-26.
What is the projected cost savings compared to a sole-source procurement for this Microsoft software?
While the exact savings are not quantifiable without a baseline sole-source estimate, awarding under full and open competition generally yields significant cost reductions. The competitive process forces vendors to offer their best pricing, preventing the premium often associated with non-competitive awards. This approach ensures taxpayer dollars are used more efficiently for essential software.
What are the risks associated with the long-term reliance on Microsoft software for TSA?
Long-term reliance on Microsoft software presents risks such as vendor lock-in, making future transitions to alternative solutions costly and complex. There's also a risk of price increases for renewals and potential obsolescence if TSA doesn't actively manage its license portfolio and explore newer versions or alternatives. Security vulnerabilities specific to the Microsoft ecosystem also pose a constant threat.
How effectively does this contract enable TSA's mission objectives?
This contract is crucial for enabling TSA's mission by providing the essential software infrastructure required for its operations. Reliable access to up-to-date software ensures the functionality of critical systems used for security, data management, and communication. The firm fixed-price nature provides budget certainty, allowing TSA to plan and execute its technology roadmap effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,795,677
Exercised Options: $30,648,497
Current Obligation: $30,648,497
Actual Outlays: $30,891,717
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 70RTAC21A00000001
IDV Type: BPA
Timeline
Start Date: 2023-03-27
Current End Date: 2024-03-26
Potential End Date: 2024-03-26 03:42:22
Last Modified: 2025-05-15
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