NIH spends $162M on Microsoft enterprise software and services via a full and open competition BPA call
Contract Overview
Contract Amount: $162,381 ($162.4K)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Health and Human Services
Start Date: 2021-01-25
End Date: 2022-01-24
Contract Duration: 364 days
Daily Burn Rate: $446/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NIH MICROSOFT ENTERPRISE AGREEMENT SOFTWARE AND PROFESSIONAL SERVICES
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $162,381.32 to DELL MARKETING L.P. for work described as: NIH MICROSOFT ENTERPRISE AGREEMENT SOFTWARE AND PROFESSIONAL SERVICES Key points: 1. The contract represents a significant investment in enterprise software and professional services for the NIH. 2. Competition was robust, indicating potential for competitive pricing and value. 3. The firm-fixed-price structure provides cost certainty for the government. 4. Performance duration is one year, allowing for regular reassessment of needs and vendor performance. 5. The contract falls under the Software Publishers NAICS code, aligning with IT infrastructure needs. 6. The award was made to DELL MARKETING L.P., a major IT vendor.
Value Assessment
Rating: good
The total award amount of $162.38 million for a one-year Microsoft enterprise agreement and professional services appears substantial. Benchmarking against similar large-scale enterprise software agreements is complex due to varying scopes and service levels. However, the firm-fixed-price nature suggests that the NIH has negotiated a defined cost for these services, which is a positive indicator for value. Without specific details on the exact software licenses and support levels, a precise value-for-money assessment is challenging, but the competitive bidding process should have driven a reasonable price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific award mechanism was a Blanket Purchase Agreement (BPA) Call, suggesting that a pre-existing BPA was leveraged. The fact that it was fully competed is a strong positive signal for price discovery and ensuring the government receives competitive pricing. The number of bidders is not specified, but the open competition itself is a key factor in achieving market-driven pricing.
Taxpayer Impact: A full and open competition ensures that taxpayers benefit from the most competitive pricing available in the market, as multiple vendors had the opportunity to bid on this significant contract.
Public Impact
The National Institutes of Health (NIH) is the primary beneficiary, gaining access to essential Microsoft software and professional services. This contract supports the operational needs of a leading biomedical research institution. The services likely enable critical research, data management, and administrative functions across NIH facilities. The geographic impact is concentrated within Maryland, where the NIH is headquartered. The contract supports the IT workforce within the NIH and potentially the vendor's workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft products, requiring careful management of future renewals and transitions.
- The large dollar amount necessitates robust oversight to ensure funds are used efficiently and effectively.
- Reliance on a single vendor for enterprise-wide software and services could pose risks if the vendor's offerings or support falter.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing and a wide selection of potential vendors.
- Firm-fixed-price contract provides budget certainty and protects against cost overruns.
- The contract duration of one year allows for flexibility and reassessment of needs and vendor performance.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software licensing and professional services. The market for enterprise software agreements, particularly for major vendors like Microsoft, is substantial and highly competitive. The NIH's spending aligns with broader government trends of consolidating software licenses and leveraging enterprise agreements to achieve economies of scale and standardize IT infrastructure. Comparable spending benchmarks would involve looking at other large federal agencies' agreements for similar Microsoft enterprise solutions.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor is DELL MARKETING L.P., a large entity, there is no explicit information regarding small business subcontracting requirements or performance within this specific award. Further analysis would be needed to determine if small businesses are involved in the subcontracting chain and their overall participation in supporting this NIH requirement.
Oversight & Accountability
The contract is a BPA Call, which typically operates under the oversight of the BPA issuing agency. The firm-fixed-price nature provides a degree of financial oversight by locking in costs. Accountability measures would be tied to the performance of services and delivery of software as per the contract terms. Transparency is generally enhanced by the competitive bidding process. Specific Inspector General jurisdiction would depend on the agency overseeing the BPA and the nature of any potential investigations.
Related Government Programs
- NIH IT Modernization Efforts
- Federal Enterprise Software Licensing
- Microsoft Enterprise Agreements
- IT Services and Support Contracts
- BPA Call Awards
Risk Flags
- Potential for cost overruns if scope is not tightly managed despite FFP.
- Reliance on a single vendor for critical enterprise software.
- Need for detailed performance metrics to ensure value realization.
Tags
it, software, enterprise-agreement, microsoft, dell-marketing-lp, department-of-health-and-human-services, national-institutes-of-health, maryland, firm-fixed-price, full-and-open-competition, bpa-call, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $162,381.32 to DELL MARKETING L.P.. NIH MICROSOFT ENTERPRISE AGREEMENT SOFTWARE AND PROFESSIONAL SERVICES
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 $162,381.32.
What is the period of performance?
Start: 2021-01-25. End: 2022-01-24.
What specific Microsoft software products and professional services are covered under this $162 million agreement?
The provided data does not specify the exact Microsoft software products (e.g., Windows, Office 365, Azure services) or the precise nature of the professional services included in this $162.38 million agreement. Enterprise agreements typically encompass a broad suite of software licenses and may include support, implementation, migration, and consulting services. To understand the full scope, one would need to review the detailed contract statement of work (SOW) or the BPA Call documentation. This level of detail is crucial for assessing value for money and ensuring the services align with NIH's strategic IT objectives.
How does the $162 million cost compare to previous NIH spending on similar Microsoft enterprise agreements?
The provided data does not include historical spending figures for NIH's Microsoft enterprise agreements, making a direct comparison impossible. To assess if $162.38 million represents an increase, decrease, or stable spending level, historical contract data would need to be analyzed. Factors influencing cost changes could include expanded user base, new software features, shifts in service requirements, or changes in licensing models. Understanding past spending patterns is vital for identifying trends and evaluating the cost-effectiveness of the current agreement over time.
What is the track record of DELL MARKETING L.P. in fulfilling large federal IT enterprise agreements, particularly for Microsoft solutions?
DELL MARKETING L.P. is a major federal IT contractor with a significant history of providing hardware, software, and services to government agencies. While the specific details of their performance on this particular NIH Microsoft enterprise agreement are not in the provided data, their extensive experience suggests a capacity to manage large-scale contracts. A thorough assessment would involve reviewing past performance evaluations (e.g., CPARS), other similar federal contracts awarded to Dell for Microsoft solutions, and any reported issues or successes. Their established presence in the federal market generally indicates a level of reliability and expertise.
What are the key performance indicators (KPIs) used to measure the success of this contract for the NIH?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for enterprise software and services agreements, KPIs might include software uptime and availability, response times for technical support, successful deployment of new features or services, user satisfaction rates, and adherence to project timelines for professional services. The contract's statement of work (SOW) or performance work statement (PWS) would outline these specific metrics and the associated remedies or incentives for meeting or failing to meet them. Effective KPIs are essential for ensuring the NIH receives the intended value and benefits from the agreement.
Given the firm-fixed-price structure, what mechanisms are in place to ensure the NIH is not overpaying for services that may become less critical or are underutilized?
The firm-fixed-price (FFP) structure provides cost certainty but requires careful initial scope definition to prevent overpayment. Mechanisms to mitigate this risk include robust contract management, regular performance reviews, and potentially contract modification clauses that allow for adjustments if needs change significantly. The NIH's contracting officers and technical teams would be responsible for monitoring utilization and ensuring that the contracted services remain aligned with evolving requirements. Furthermore, the one-year duration allows for a periodic reassessment of needs before renewal, providing an opportunity to adjust the scope or re-compete if necessary.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › 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: 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: $162,381
Exercised Options: $162,381
Current Obligation: $162,381
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 75N98019A00012
IDV Type: BPA
Timeline
Start Date: 2021-01-25
Current End Date: 2022-01-24
Potential End Date: 2024-01-09 00:00:00
Last Modified: 2026-04-12
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