DHS Secret Service Awards $18M Microsoft ELA to Dell Federal for FY25

Contract Overview

Contract Amount: $18,074,774 ($18.1M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-01

End Date: 2026-03-26

Contract Duration: 359 days

Daily Burn Rate: $50.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 2(D) 4(A) FY25 MICROSOFT ELA LICENSING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20223

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.1 million to DELL FEDERAL SYSTEMS L.P for work described as: 2(D) 4(A) FY25 MICROSOFT ELA LICENSING Key points: 1. Significant investment in essential software licensing for a key federal agency. 2. Competition method is 'Full and Open', suggesting a competitive bidding process. 3. Risk is moderate, tied to software vendor lock-in and potential price increases. 4. Sector is IT, specifically software licensing, a common and critical government spend.

Value Assessment

Rating: good

The award of $18.07 million for Microsoft ELA licensing appears reasonable given the scale and duration. Benchmarking against similar large-scale government ELA contracts would provide a more precise assessment, but the price seems aligned with market rates for enterprise software.

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. This method generally allows for broad market participation and price discovery, leading to potentially better pricing for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure favorable pricing for essential software licenses over the contract period.

Public Impact

Ensures continued access to critical Microsoft software for the U.S. Secret Service. Supports agency operations and cybersecurity posture through up-to-date software. Potential for cost savings through enterprise-wide licensing agreements. Impacts IT budgets within the Department of Homeland Security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Microsoft products.
Reliance on a single software provider.
Future price increases upon renewal or contract modification.

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.
Long-term ELA provides budget predictability.

Sector Analysis

This contract falls within the Information Technology sector, specifically software licensing. Government spending on enterprise software licenses is substantial, with ELA agreements being a common strategy to manage costs and ensure compliance for large organizations.

Small Business Impact

While the prime contractor is Dell Federal Systems L.P., the data does not indicate the extent of small business participation in this specific award. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

The award was made via a BPA Call, suggesting it was placed against an existing Blanket Purchase Agreement. Oversight would involve ensuring the BPA itself was competitively awarded and that this call adheres to its terms and conditions.

Related Government Programs

Software Publishers
Department of Homeland Security Contracting
U.S. Secret Service Programs

Risk Flags

Potential for price escalation in future renewals.
Dependence on a single software vendor (Microsoft).
Lack of detailed breakdown of software included in the ELA.
Need for comparative pricing analysis to confirm value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.1 million to DELL FEDERAL SYSTEMS L.P. 2(D) 4(A) FY25 MICROSOFT ELA LICENSING

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. Secret Service).

What is the total obligated amount?

The obligated amount is $18.1 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-26.

What is the specific breakdown of software products and user counts covered by this ELA, and how does it align with the Secret Service's current and projected needs?

The provided data lacks specifics on the exact software titles and user counts included in the Microsoft ELA. A detailed breakdown is crucial to assess if the $18.07 million investment accurately reflects the agency's operational requirements and avoids over-licensing or under-licensing, thereby ensuring optimal value for taxpayer funds.

How does the per-unit cost of this Microsoft ELA compare to other federal agencies or commercial entities procuring similar licenses?

Benchmarking the per-unit cost against comparable federal ELA awards or commercial enterprise agreements is essential for validating value. Without this comparative data, it's difficult to definitively state if the $18.07 million represents a competitive price, although the 'full and open competition' method suggests an effort to achieve this.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this ELA to ensure effective software delivery and support?

The data does not specify the KPIs or SLAs tied to this ELA. Effective contract management requires clearly defined metrics for software availability, performance, and vendor support response times. These measures are critical for holding the contractor accountable and ensuring the Secret Service receives the expected value and operational continuity from the licensed software.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70US0925Q70092236

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: $18,074,774

Exercised Options: $18,074,774

Current Obligation: $18,074,774

Actual Outlays: $11,535,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70RTAC24A00000001

IDV Type: BPA

Timeline