DOJ Spends $40M on Software Assurance and Licenses with CDW Government LLC
Contract Overview
Contract Amount: $40,168,472 ($40.2M)
Contractor: CDW Government LLC
Awarding Agency: Department of Justice
Start Date: 2012-06-21
End Date: 2013-06-14
Contract Duration: 358 days
Daily Burn Rate: $112.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ANNUAL SOFTWARE ASSURANCE AND LICENSE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Justice obligated $40.2 million to CDW GOVERNMENT LLC for work described as: ANNUAL SOFTWARE ASSURANCE AND LICENSE Key points: 1. Significant annual spending on software assurance and licenses. 2. Contract awarded to CDW GOVERNMENT LLC, a major IT vendor. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls within the IT sector, a common area for substantial government expenditure.
Value Assessment
Rating: fair
The $40.17 million annual spend on software assurance and licenses is substantial. Benchmarking against similar contracts is difficult without specific software details, but the firm fixed price suggests cost predictability. Further analysis of the specific software and license types would be needed for a more precise valuation.
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 price discovery and competitive pricing, although the specific impact depends on the number and competitiveness of the bids received.
Taxpayer Impact: The firm fixed price contract aims to control costs, but the overall taxpayer impact depends on whether the negotiated price reflects true market value for the software assurance and licenses provided.
Public Impact
Ensures continued access to and support for critical software. Supports the operational needs of the Department of Justice's various offices. Potential for cost savings through competitive bidding on software licenses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific software details hinders detailed value assessment.
- Potential for vendor lock-in if specific proprietary software is involved.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The IT sector, particularly software licensing and assurance, represents a significant portion of federal spending. This contract aligns with typical government needs for maintaining and updating essential software infrastructure across various agencies.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a degree of oversight in the procurement process. However, ongoing oversight of software utilization and license compliance is crucial to ensure value for money.
Related Government Programs
- Computer and Software Stores
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- High annual expenditure.
- Potential for vendor lock-in.
- Lack of specific software details.
- Need for ongoing license management.
Tags
computer-and-software-stores, department-of-justice, dc, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $40.2 million to CDW GOVERNMENT LLC. ANNUAL SOFTWARE ASSURANCE AND LICENSE
Who is the contractor on this award?
The obligated recipient is CDW GOVERNMENT LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $40.2 million.
What is the period of performance?
Start: 2012-06-21. End: 2013-06-14.
What specific software titles and license types are covered under this contract, and how do their costs compare to market rates?
Without specific software titles, a precise market rate comparison is impossible. However, the $40.17 million annual spend suggests a large volume or high-value software. Government-wide agreements or GSA schedules could offer benchmarks, but individual software needs and negotiated discounts heavily influence pricing. Further due diligence on the software portfolio is recommended.
What are the risks associated with relying on a single vendor, CDW GOVERNMENT LLC, for such a significant software assurance and license expenditure?
While CDW is a reseller, reliance on a single primary vendor can pose risks such as price increases upon renewal, limited negotiation leverage, and potential vendor lock-in if the software is proprietary. The full and open competition at award mitigates initial risk, but ongoing vendor management and market analysis are essential to ensure continued favorable terms and explore alternatives.
How effectively is the Department of Justice managing its software licenses to ensure optimal utilization and avoid unnecessary costs?
Effective license management is critical for a $40.17 million annual spend. This involves tracking usage, identifying underutilized licenses, and ensuring compliance to avoid penalties. The firm fixed price contract provides cost certainty, but proactive license management by the DOJ is key to realizing true value and preventing overspending on unused software.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CDW Corporation (UEI: 808068253)
Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $40,168,472
Exercised Options: $40,168,472
Current Obligation: $40,168,472
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DJJ08F1710
IDV Type: BPA
Timeline
Start Date: 2012-06-21
Current End Date: 2013-06-14
Potential End Date: 2013-06-14 00:00:00
Last Modified: 2015-04-20
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