USAID Awards $27.6M Microsoft ELA Follow-On Contract to CDW Government LLC
Contract Overview
Contract Amount: $27,612,583 ($27.6M)
Contractor: CDW Government LLC
Awarding Agency: Agency for International Development
Start Date: 2022-03-01
End Date: 2026-02-28
Contract Duration: 1,460 days
Daily Burn Rate: $18.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS REQUEST IS TO ESTABLISH A NEW CONTRACT FOR THE CDWG MICROSOFT ELA FOLLOW-ON.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523
Plain-Language Summary
Agency for International Development obligated $27.6 million to CDW GOVERNMENT LLC for work described as: THE PURPOSE OF THIS REQUEST IS TO ESTABLISH A NEW CONTRACT FOR THE CDWG MICROSOFT ELA FOLLOW-ON. Key points: 1. Contract focuses on essential Microsoft software licensing for USAID. 2. CDW Government LLC is the incumbent provider. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract value is substantial, reflecting significant software needs.
Value Assessment
Rating: good
The contract value of $27.6M over four years appears reasonable for a comprehensive Microsoft Enterprise License Agreement (ELA) follow-on. Benchmarking against similar large-scale government ELA renewals would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure favorable pricing for essential software licenses.
Public Impact
Ensures continued access to critical Microsoft software for USAID operations. Supports agency-wide productivity and technological infrastructure. Potential for cost savings through volume licensing and competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with follow-on contracts.
- Need to monitor software usage to ensure cost-effectiveness.
Positive Signals
- Full and open competition utilized.
- Incumbent provider may offer continuity and expertise.
Sector Analysis
This contract falls within the Information Technology sector, specifically software licensing and related services. Government spending on IT, including software, is consistently high, with ELAs being a common procurement vehicle for large agencies.
Small Business Impact
While this contract was awarded to CDW Government LLC, a large business, the use of full and open competition allows for small businesses to potentially participate as subcontractors or through future opportunities if they meet the requirements.
Oversight & Accountability
The contract is a delivery order under a larger contract vehicle, suggesting it has undergone initial review. Ongoing oversight will be crucial to ensure compliance with terms and effective utilization of software.
Related Government Programs
- Other Computer Related Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Potential for price increases in future renewals.
- Dependence on a single vendor for critical software.
- Need for robust software asset management.
- Ensuring full utilization of licensed software.
Tags
other-computer-related-services, agency-for-international-development, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $27.6 million to CDW GOVERNMENT LLC. THE PURPOSE OF THIS REQUEST IS TO ESTABLISH A NEW CONTRACT FOR THE CDWG MICROSOFT ELA FOLLOW-ON.
Who is the contractor on this award?
The obligated recipient is CDW GOVERNMENT LLC.
Which agency awarded this contract?
Awarding agency: Agency for International Development (Agency for International Development).
What is the total obligated amount?
The obligated amount is $27.6 million.
What is the period of performance?
Start: 2022-03-01. End: 2026-02-28.
What specific Microsoft products and services are included in this ELA, and how do they align with USAID's current and future technological needs?
The provided data does not specify the exact Microsoft products and services covered by the ELA. A detailed breakdown is necessary to assess if the licensing aligns with USAID's strategic technology roadmap and operational requirements. Understanding the scope ensures the investment supports agency goals and avoids unnecessary expenditures on underutilized software.
How does the pricing of this follow-on ELA compare to the previous contract and industry benchmarks for similar Microsoft licensing agreements?
While the total contract value is provided, a direct comparison of per-unit costs or overall pricing trends against the previous ELA and market benchmarks is not possible with the current data. Analyzing price changes, discount levels, and the inclusion of new features or services is essential to determine if this follow-on contract represents continued value for money.
What mechanisms are in place to ensure effective utilization of the licensed software and prevent over-licensing or under-utilization throughout the contract period?
The data does not detail specific utilization monitoring or management strategies. Effective oversight requires clear reporting requirements from CDW Government LLC, regular reviews by USAID, and potentially software asset management tools. Proactive management is key to maximizing the return on investment and ensuring taxpayer funds are used efficiently.
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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,810,373
Exercised Options: $33,411,744
Current Obligation: $27,612,583
Actual Outlays: $24,924,924
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC28B
IDV Type: GWAC
Timeline
Start Date: 2022-03-01
Current End Date: 2026-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2025-09-10
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