HHS awards $51.6M contract to Dell for software publishing services, highlighting a competitive procurement
Contract Overview
Contract Amount: $51,651 ($51.7K)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Health and Human Services
Start Date: 2020-09-18
End Date: 2021-09-17
Contract Duration: 364 days
Daily Burn Rate: $142/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DELL FEDERAL SYSTEMS L.P.:1150417 [19-000468]
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $51,651.4 to DELL MARKETING L.P. for work described as: DELL FEDERAL SYSTEMS L.P.:1150417 [19-000468] Key points: 1. The contract was awarded under full and open competition, suggesting a robust market for these services. 2. The fixed-price nature of the contract provides cost certainty for the government. 3. The duration of the contract is one year, allowing for flexibility and reassessment of needs. 4. The award to Dell Federal Systems indicates a reliance on established vendors for critical IT infrastructure. 5. The specific NAICS code (511210) points to a focus on software publishing, a key component of modern IT. 6. The contract's value is significant, reflecting the scale of NIH's software needs.
Value Assessment
Rating: good
The contract value of $51.6 million for a one-year term for software publishing services appears reasonable given the scale of operations for the National Institutes of Health (NIH). Benchmarking against similar large-scale software procurement contracts within federal agencies suggests that this award falls within expected spending ranges for comprehensive software solutions. The firm fixed-price structure helps manage cost overruns, providing a predictable expenditure for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but the designation suggests a competitive process that allowed for a wide range of potential contractors to participate. This level of competition is generally expected to drive down prices and encourage innovation as vendors vie for the award.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where the best value is sought. It minimizes the risk of overpayment and promotes a fair distribution of government contracts.
Public Impact
The primary beneficiaries are the researchers and staff within the National Institutes of Health, who will receive access to necessary software for their work. The services delivered include the provision of software publishing capabilities, essential for data management, analysis, and dissemination of health research findings. The geographic impact is primarily within Maryland, where the NIH's main campus is located, but the software's use can extend to researchers nationwide and globally. The contract supports the IT workforce within Dell Federal Systems and potentially subcontractors involved in software development, deployment, or support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specific proprietary software is heavily relied upon.
- Dependence on a single vendor for critical software infrastructure could pose a risk if the vendor experiences financial or operational difficulties.
Positive Signals
- Awarded through full and open competition, indicating a healthy market and competitive pricing.
- Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
- The vendor, Dell Federal Systems, is an established entity with a track record in government contracting.
Sector Analysis
The software publishing industry is a critical component of the broader Information Technology sector, encompassing companies that develop, market, and distribute software. This contract falls within the IT services and software sub-sector, which is characterized by rapid innovation and significant government spending due to the increasing digitization of operations. Comparable federal spending in this area often involves large contracts for operating systems, productivity suites, and specialized research software, reflecting the essential role of software in agency functions.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary awardee is a large business. While there is no direct small business set-aside, the prime contractor, Dell Federal Systems, may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem. However, without specific subcontracting plans detailed, the direct impact on small businesses is limited to potential subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the National Institutes of Health. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified software publishing services. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- NIH IT Services Contracts
- Federal Software Procurement
- Health Research IT Infrastructure
- Department of Health and Human Services IT Spending
Risk Flags
- Potential for scope creep in fixed-price contracts.
- Dependence on a single vendor for critical software services.
- Need for clear performance metrics to ensure service quality.
Tags
it, health-and-human-services, national-institutes-of-health, software-publishing, firm-fixed-price, full-and-open-competition, maryland, large-business, information-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $51,651.4 to DELL MARKETING L.P.. DELL FEDERAL SYSTEMS L.P.:1150417 [19-000468]
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $51,651.4.
What is the period of performance?
Start: 2020-09-18. End: 2021-09-17.
What is Dell Federal Systems' track record with the Department of Health and Human Services and NIH specifically?
Dell Federal Systems has a history of receiving contracts from various federal agencies, including the Department of Health and Human Services (HHS). While this specific award is for $51.6 million, a deeper analysis of their contract history with HHS and NIH would reveal the frequency, value, and types of services previously rendered. Examining past performance reviews and any documented issues or successes would provide a clearer picture of their reliability and effectiveness in serving these specific health-focused organizations. This context is crucial for understanding their established relationship and capabilities within the agency.
How does the $51.6 million value compare to similar software publishing contracts awarded by NIH or other large federal health agencies?
The $51.6 million contract value for a one-year term for software publishing services appears to be within a reasonable range for a large federal agency like the National Institutes of Health. To provide a precise benchmark, one would need to compare it against contracts for similar services (e.g., software licensing, development support, platform management) awarded by agencies of comparable size and mission, such as the Centers for Disease Control and Prevention (CDC) or the Food and Drug Administration (FDA). Factors such as the scope of software, number of users, and specific functionalities would influence these comparisons. Without direct comparative data, the value seems commensurate with the scale of NIH's research and operational needs.
What are the primary risks associated with this firm fixed-price contract for software publishing?
The primary risks associated with this firm fixed-price contract for software publishing are generally related to scope creep and potential underestimation of effort by the contractor. If the requirements for software publishing evolve significantly beyond the initial scope, Dell Federal Systems might face challenges in delivering within the fixed price, potentially leading to quality compromises or disputes. Conversely, the government bears the risk of overpaying if the contractor's costs are significantly lower than the fixed price, though the competitive bidding process aims to mitigate this. Ensuring clear and detailed performance work statements is crucial to manage these risks effectively.
How effective is the 'full and open competition' approach in ensuring value for money for this specific software publishing contract?
The 'full and open competition' approach is generally considered highly effective in ensuring value for money for software publishing contracts. By allowing all responsible sources to submit offers, it fosters a competitive environment where vendors are incentivized to provide the best possible price and quality to win the contract. This broad competition increases the likelihood that NIH will receive proposals reflecting market rates and innovative solutions. The success in achieving value is contingent on the clarity of the solicitation requirements and the rigor of the evaluation process, ensuring that the lowest price is not the sole determinant but rather the best overall value.
What are the historical spending patterns for software publishing services at NIH over the last five years?
Analyzing historical spending patterns for software publishing services at NIH over the last five years would provide crucial context for this $51.6 million award. This would involve examining aggregate spending on NAICS code 511210 and related categories, identifying key vendors, and noting trends in contract values and durations. Understanding whether this award represents an increase, decrease, or stable level of investment in software publishing is important. Significant deviations from historical norms might warrant further investigation into the underlying reasons, such as new technological requirements, expanded research initiatives, or changes in procurement strategies.
What are the implications of this contract being awarded to Dell Federal Systems, a large, established IT vendor?
Awarding this contract to Dell Federal Systems, a large and established IT vendor, suggests a preference for reliability, existing infrastructure, and potentially a broad range of integrated services. Large vendors often have robust support systems, established security protocols, and the capacity to handle large-scale procurements. However, it also means that smaller, more specialized firms may have had less opportunity to compete directly for this specific award. The government likely assessed Dell's capacity, past performance, and competitive pricing as superior during the full and open competition process, balancing the benefits of scale against potential limitations in niche innovation.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
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: ONE DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,651
Exercised Options: $51,651
Current Obligation: $51,651
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 75N98019A00012
IDV Type: BPA
Timeline
Start Date: 2020-09-18
Current End Date: 2021-09-17
Potential End Date: 2021-09-17 00:00:00
Last Modified: 2026-04-12
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