HHS Awards $12.4M for Microsoft Licenses via BPA Call, Ending June 2026
Contract Overview
Contract Amount: $12,390,558 ($12.4M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Health and Human Services
Start Date: 2025-06-30
End Date: 2026-06-29
Contract Duration: 364 days
Daily Burn Rate: $34.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ENTERPRISE AGREEMENT BPA LICENSES
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $12.4 million to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT ENTERPRISE AGREEMENT BPA LICENSES Key points: 1. Significant contract value for enterprise software licenses. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to software obsolescence and vendor lock-in. 4. Sector is IT, specifically software publishing.
Value Assessment
Rating: good
The contract value of $12.4M for 364 days appears reasonable for enterprise-level Microsoft licenses. Benchmarking against similar large-scale enterprise agreements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition via a BPA Call. This method generally promotes competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Taxpayer funds are being used for essential software, with competition aiming to ensure value for money.
Public Impact
Ensures continued access to critical Microsoft software for HHS operations. Supports government-wide IT infrastructure through established procurement vehicles. Potential for cost savings through bulk licensing and competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Software obsolescence
- Vendor lock-in
- Cybersecurity vulnerabilities
Positive Signals
- Established procurement vehicle (BPA Call)
- Firm Fixed Price contract type
- Full and Open Competition
Sector Analysis
This contract falls within the IT sector, specifically software licensing. Government spending on software is substantial, with benchmarks varying widely based on software type and volume.
Small Business Impact
The data does not indicate specific small business participation in this BPA Call award. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.
Oversight & Accountability
The use of a BPA Call suggests that the underlying BPA underwent a competitive process. Oversight of this specific call ensures adherence to the BPA's terms and conditions.
Related Government Programs
- Software Publishers
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Potential for software obsolescence over the contract period.
- Risk of vendor lock-in with Microsoft enterprise licensing.
- Dependence on a single software vendor for critical IT functions.
- Cybersecurity risks associated with enterprise software.
Tags
software-publishers, department-of-health-and-human-services, md, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $12.4 million to DELL FEDERAL SYSTEMS L.P. MICROSOFT ENTERPRISE AGREEMENT BPA LICENSES
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 (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $12.4 million.
What is the period of performance?
Start: 2025-06-30. End: 2026-06-29.
What is the total cost per user or per device for these Microsoft licenses?
The provided data does not specify the number of users or devices covered by the $12.4M agreement. To determine the per-unit cost, we would need to know the total quantity of licenses or endpoints being procured. This information is crucial for accurate benchmarking against industry standards and identifying potential cost efficiencies.
What are the specific Microsoft products and versions included in this agreement?
The data identifies the award as 'MICROSOFT ENTERPRISE AGREEMENT BPA LICENSES' but does not detail the specific products (e.g., Windows, Office 365, server licenses) or their versions. Knowing the exact software suite is essential for assessing its relevance to HHS's current needs and for evaluating potential risks associated with outdated software or licensing models.
How does the pricing compare to other federal agencies or commercial entities for similar Microsoft enterprise agreements?
While the contract was awarded under full and open competition, a direct price comparison requires access to pricing data from similar agreements. Benchmarking against GSA schedules, other agency BPA calls, or commercial enterprise agreements for comparable Microsoft products and volumes is necessary to validate the value for money achieved in this $12.4M award.
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: $12,390,558
Exercised Options: $12,390,558
Current Obligation: $12,390,558
Actual Outlays: $12,390,558
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA22A0004
IDV Type: BPA
Timeline
Start Date: 2025-06-30
Current End Date: 2026-06-29
Potential End Date: 2026-06-29 00:00:00
Last Modified: 2026-03-20
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