DHS Awards $4.18M BPA Call for Microsoft Licenses and Azure Support to Dell Federal

Contract Overview

Contract Amount: $4,181,673 ($4.2M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Homeland Security

Start Date: 2024-03-27

End Date: 2029-03-26

Contract Duration: 1,825 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO ESTABLISH A NEW BPA CALL FOR MICROSOFT ENTERPRISE LICENSES, OFFICE 365 SUBSCRIPTIONS, AND AZURE SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.2 million to DELL FEDERAL SYSTEMS L.P for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO ESTABLISH A NEW BPA CALL FOR MICROSOFT ENTERPRISE LICENSES, OFFICE 365 SUBSCRIPTIONS, AND AZURE SUPPORT. Key points: 1. Significant investment in essential Microsoft enterprise licenses and Azure support. 2. Dell Federal Systems L.P. is the awardee under a full and open competition. 3. The contract spans five years, indicating a long-term need for these services. 4. Potential for cost savings through enterprise licensing agreements.

Value Assessment

Rating: good

The total award amount is $4.18 million over five years. Benchmarking against similar enterprise license agreements for Microsoft products and Azure support is necessary to fully assess value, but the firm-fixed-price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust process for soliciting bids and ensuring competitive pricing. This method typically leads to better price discovery and value for the government.

Taxpayer Impact: The firm-fixed-price contract provides budget predictability for taxpayers. The competitive award process aims to secure the best possible pricing for these critical software and cloud services.

Public Impact

Ensures continued access to vital Microsoft software for Department of Homeland Security operations. Supports cloud infrastructure through Azure, a key component of modern government IT. The five-year duration provides stability for IT planning and resource allocation. Award to a major federal IT contractor like Dell Federal.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with enterprise licenses.
Need to monitor Azure usage to control costs.

Positive Signals

Full and open competition ensures fair pricing.
Firm-fixed-price contract provides budget certainty.
Long-term agreement for essential software and cloud services.

Sector Analysis

This contract falls under the Software Publishers sector, specifically for enterprise licenses and cloud support. Spending benchmarks for similar government-wide enterprise agreements (GWACs) or agency-specific procurements of Microsoft and Azure services would provide context.

Small Business Impact

The awardee is Dell Federal Systems L.P., a large business. There is no explicit mention of small business participation in this specific BPA Call, which is common for enterprise-wide software licensing agreements.

Oversight & Accountability

The Office of the Inspector General is the specific office within DHS receiving these services. Standard government procurement oversight processes apply to ensure compliance and accountability for this BPA Call.

Related Government Programs

Software Publishers
Department of Homeland Security Contracting
Office of the Inspector General Programs

Risk Flags

Potential for price increases upon renewal.
Dependency on a single vendor's ecosystem.
Need for ongoing training and support for users.
Cybersecurity risks associated with cloud services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.2 million to DELL FEDERAL SYSTEMS L.P. THE PURPOSE OF THIS REQUIREMENT IS TO ESTABLISH A NEW BPA CALL FOR MICROSOFT ENTERPRISE LICENSES, OFFICE 365 SUBSCRIPTIONS, AND AZURE SUPPORT.

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 the Inspector General).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2024-03-27. End: 2029-03-26.

What is the projected per-user or per-service cost compared to commercial equivalents or other government contracts?

A detailed cost-benefit analysis comparing the negotiated per-unit costs against commercial list prices, other government enterprise agreements (like NASA SEWP or GSA Schedules), and previous DHS contracts is crucial. This will determine if the $4.18 million represents optimal value for the Microsoft licenses and Azure support over the five-year period.

Are there sufficient safeguards to manage potential cost overruns or scope creep, particularly with Azure support?

The firm-fixed-price nature of the BPA Call provides a baseline cost. However, Azure support often involves variable usage. Robust monitoring mechanisms, clear service level agreements (SLAs), and defined thresholds for additional support costs are essential to mitigate risks of unexpected expenditures and ensure taxpayer funds are used efficiently.

How effectively will these licenses and support enable the Office of the Inspector General to achieve its mission objectives?

The acquisition of Microsoft enterprise licenses and Azure support is intended to provide the OIG with modern, secure, and reliable tools for data analysis, collaboration, and operations. The effectiveness will depend on user adoption, integration with existing systems, and the extent to which these technologies enhance the OIG's ability to conduct audits and investigations.

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

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: $11,765,687

Exercised Options: $6,488,699

Current Obligation: $4,181,673

Actual Outlays: $3,599,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70RTAC24A00000001

IDV Type: BPA

Timeline