HHS awards $18.3M Microsoft Enterprise Agreement for FY25, impacting IHS operations
Contract Overview
Contract Amount: $18,331,718 ($18.3M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Health and Human Services
Start Date: 2025-05-30
End Date: 2026-05-31
Contract Duration: 366 days
Daily Burn Rate: $50.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ENTERPRISE AGREEMENT FY25
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $18.3 million to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT ENTERPRISE AGREEMENT FY25 Key points: 1. Contract provides essential software licenses and support, crucial for agency-wide IT infrastructure. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of 366 days aligns with annual software licensing cycles. 5. This agreement supports the Indian Health Service's mission-critical functions. 6. The award value is a significant investment in maintaining current software capabilities.
Value Assessment
Rating: good
The $18.3 million award for the Microsoft Enterprise Agreement appears reasonable given the scope of providing software licenses and support for a federal agency. Benchmarking against similar enterprise-level software agreements for large government organizations suggests this value is within expected ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator for value for money. Further analysis would involve comparing specific license types and quantities to market rates, but the overall contract structure supports good value.
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 process is designed to foster a competitive environment, potentially leading to better pricing and terms for the government. The number of bidders is not specified, but the method of competition suggests that the government sought the best available solution through a broad solicitation.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and encouraging innovation among vendors, ensuring the government receives optimal value for its investment.
Public Impact
Benefits the Indian Health Service (IHS) by providing necessary software licenses and support. Ensures continuity of IT operations and access to essential software tools for IHS staff. Supports the delivery of healthcare services by enabling reliable technology infrastructure. Impacts the federal workforce within IHS by providing the tools needed for their daily tasks. Geographic impact is nationwide, covering all IHS facilities and personnel requiring these software licenses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with enterprise-wide Microsoft software.
- Reliance on a single software vendor could limit future flexibility in IT solutions.
- Ensuring adequate training and support for end-users across the IHS is crucial for adoption.
Positive Signals
- Firm fixed-price contract provides budget certainty.
- Full and open competition suggests a robust market evaluation.
- Long-term enterprise agreement can streamline procurement and management of software licenses.
Sector Analysis
This contract falls within the Software Publishers sector, specifically for enterprise-wide software licensing and support. The market for enterprise software agreements is dominated by a few major players, including Microsoft, and federal agencies frequently engage in such agreements to standardize software and manage costs. Comparable spending benchmarks for similar enterprise agreements across federal agencies can vary widely based on user count, software suite, and support levels, but this $18.3 million award represents a substantial investment in IT infrastructure.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As a large enterprise agreement, it is likely that the primary awardee is a major vendor, and any small business participation would be through subcontracting opportunities, which are not detailed here. Further investigation into the awardee's subcontracting plan would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Health and Human Services' procurement and financial management offices. The firm fixed-price nature of the contract provides a degree of accountability by locking in costs. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Microsoft Enterprise Agreements
- Federal Civilian IT Procurement
- Indian Health Service IT Modernization
- Software Licensing and Support Contracts
Risk Flags
- Potential for vendor lock-in
- Lack of specific product/license detail
- Absence of historical spending comparison
- Unspecified user/device count
- Missing performance metrics (SLAs/KPIs)
Tags
it, software, microsoft, enterprise-agreement, hhs, indian-health-service, full-and-open-competition, firm-fixed-price, fy25, maryland, bpa-call
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $18.3 million to DELL FEDERAL SYSTEMS L.P. MICROSOFT ENTERPRISE AGREEMENT FY25
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 Health and Human Services (Indian Health Service).
What is the total obligated amount?
The obligated amount is $18.3 million.
What is the period of performance?
Start: 2025-05-30. End: 2026-05-31.
What specific Microsoft software products and license types are included in this $18.3 million agreement?
The provided data identifies this as a 'MICROSOFT ENTERPRISE AGREEMENT FY25' but does not detail the specific software products or license types covered. Enterprise Agreements typically include a suite of products such as Windows operating systems, Office 365 (now Microsoft 365) productivity tools, server licenses (e.g., Windows Server, SQL Server), and potentially cloud services like Azure. The exact breakdown is crucial for a granular value assessment, as different products and license metrics (per user, per device, per core) have vastly different costs and usage patterns. Without this detail, it's challenging to benchmark against market rates effectively.
How does the $18.3 million award compare to previous Microsoft software spending by the Indian Health Service?
Historical spending data for the Indian Health Service's Microsoft software procurement is not provided in the current dataset. To assess if $18.3 million represents an increase, decrease, or stable spending level, a review of prior years' contracts for similar enterprise agreements or software licenses would be necessary. Analyzing trends in federal IT spending, particularly for software, can reveal patterns of investment, potential cost savings achieved through consolidation, or escalating costs due to new technology adoption or expanded user bases. Understanding this historical context is vital for evaluating the current award's financial implications.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this Microsoft Enterprise Agreement?
The provided contract details do not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) tied to this Microsoft Enterprise Agreement. For software licensing and support contracts of this magnitude, SLAs are critical for ensuring the vendor meets performance expectations regarding software availability, uptime, response times for technical support, and patch management. The absence of this information in the summary data means a thorough assessment of the contractor's performance obligations and the government's recourse in case of non-performance cannot be made. These details are typically found in the contract's statement of work or performance work statement.
What is the estimated number of users or devices covered by this $18.3 million Microsoft Enterprise Agreement?
The data provided does not specify the number of users or devices covered by this $18.3 million Microsoft Enterprise Agreement. Enterprise Agreements are often priced based on user counts (per user licenses) or device counts. Knowing the total number of licensed seats is fundamental for calculating the per-unit cost and comparing it to industry benchmarks. For instance, if the agreement covers 50,000 users, the per-user cost would be approximately $366 ($18.3M / 50,000). If it covers 100,000 users, the per-user cost drops to $183. This metric is essential for evaluating the value proposition and pricing competitiveness.
Are there any specific cybersecurity requirements or compliance mandates included in this contract for Microsoft software?
The provided summary data does not explicitly detail cybersecurity requirements or compliance mandates within this Microsoft Enterprise Agreement. Federal contracts, especially those involving IT systems and software, are subject to stringent cybersecurity regulations (e.g., NIST standards, CMMC if applicable) and data privacy laws. It is highly probable that the agreement incorporates standard federal cybersecurity clauses and requires Microsoft to adhere to specific security protocols for software delivery, updates, and support. However, without the full contract documentation, the specific cybersecurity measures and compliance obligations cannot be confirmed.
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: $18,331,718
Exercised Options: $18,331,718
Current Obligation: $18,331,718
Actual Outlays: $17,135,725
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA22A0004
IDV Type: BPA
Timeline
Start Date: 2025-05-30
Current End Date: 2026-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2026-03-20
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