DOJ's $26.2M Microsoft Software License Contract with CDW Government LLC Awarded via Full and Open Competition

Contract Overview

Contract Amount: $26,208,759 ($26.2M)

Contractor: CDW Government LLC

Awarding Agency: Department of Justice

Start Date: 2013-03-28

End Date: 2014-06-30

Contract Duration: 459 days

Daily Burn Rate: $57.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF MICROSOFT SOFTWARE LICENSE AND SA

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $26.2 million to CDW GOVERNMENT LLC for work described as: IGF::OT::IGF MICROSOFT SOFTWARE LICENSE AND SA Key points: 1. Value for money assessed through competitive bidding. 2. Competition dynamics indicate a robust market for software licensing. 3. Risk indicators are low due to firm-fixed-price contract type. 4. Performance context is a standard software license agreement. 5. Sector positioning within IT procurement, specifically software. 6. Contract duration of 459 days suggests a defined need. 7. Awarded under a Blanket Purchase Agreement (BPA) framework.

Value Assessment

Rating: good

The contract value of $26.2 million for Microsoft software licenses appears reasonable given the duration and the nature of the products. Benchmarking against similar large-scale software procurements for federal agencies suggests that pricing is likely competitive, especially considering it was awarded through full and open competition. The firm-fixed-price structure further supports value by locking in costs and reducing the risk of cost overruns for the Department of Justice.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was awarded suggests that multiple bids were likely received, fostering price discovery and ensuring the government obtained favorable terms. The competitive nature of the award process is a positive indicator for cost-effectiveness.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by leveraging market forces to drive down costs and encourage efficient service delivery.

Public Impact

Federal employees within the Department of Justice benefit from access to essential Microsoft software. Services delivered include the provision of computer software licenses. Geographic impact is primarily within the District of Columbia, where the DOJ is headquartered. Workforce implications include enabling DOJ staff with necessary digital tools for their operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future renewals are not competitively bid.
Reliance on a single software vendor may limit flexibility in adopting alternative solutions.

Positive Signals

Awarded through full and open competition, ensuring a competitive process.
Firm-fixed-price contract type mitigates cost escalation risks.
Utilizes a Blanket Purchase Agreement (BPA), a streamlined procurement method.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software licensing. The market for enterprise software licenses, particularly for major vendors like Microsoft, is substantial within the federal government. Agencies frequently procure these licenses to support their operational needs. Comparable spending benchmarks would involve looking at other large federal agencies' expenditures on similar Microsoft enterprise agreements.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it's possible that small businesses could have participated if they met the requirements. However, the nature of large enterprise software licenses often favors larger resellers or direct sales channels. Subcontracting implications are not detailed but are unlikely to be significant for standard software license resales.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's procurement and financial management offices. Accountability is ensured through the firm-fixed-price contract terms, requiring delivery of specified software licenses. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Microsoft Enterprise Agreements
Federal Civilian IT Procurement
Software Licensing Contracts
Department of Justice IT Spending

Risk Flags

Potential for over-licensing if usage is not actively managed.
Reliance on a single vendor ecosystem.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $26.2 million to CDW GOVERNMENT LLC. IGF::OT::IGF MICROSOFT SOFTWARE LICENSE AND SA

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 $26.2 million.

What is the period of performance?

Start: 2013-03-28. End: 2014-06-30.

What is the track record of CDW Government LLC in fulfilling federal software contracts?

CDW Government LLC has a significant track record of fulfilling federal contracts, particularly in the IT hardware and software space. They are a well-established reseller and solutions provider for government agencies, often leveraging large contract vehicles and blanket purchase agreements. Their experience typically includes delivering a wide range of software licenses and related IT products. Federal procurement data generally shows consistent performance and a high volume of awards to CDW Government, indicating reliability in meeting contractual obligations. However, specific performance metrics for individual contracts, such as on-time delivery or issue resolution rates, would require deeper analysis of past performance reviews or contract close-out reports.

How does the value of this contract compare to similar federal software procurements?

The value of this $26.2 million contract for Microsoft software licenses over approximately 15 months (March 2013 - June 2014) is substantial, reflecting a significant investment in enterprise software. To compare its value, one would look at similar procurements by other large federal agencies for comparable Microsoft products (e.g., Windows, Office Suite, server licenses) during the same period. Factors like the specific product mix, user counts, and contract duration are crucial for a fair comparison. Given that it was awarded under full and open competition, the pricing is presumed to be competitive. However, without detailed product breakdowns and user numbers, a precise per-unit cost comparison is difficult. Generally, large-volume federal procurements aim for discounted pricing compared to commercial rates.

What are the primary risks associated with this type of software licensing contract?

The primary risks associated with this type of software licensing contract include potential vendor lock-in, where the agency becomes heavily reliant on a specific vendor's ecosystem, making future transitions costly and complex. There's also a risk of over-licensing, where the agency procures more licenses than are actively used, leading to wasted expenditure. Software obsolescence or the rapid release of new versions can also pose a risk, potentially requiring additional unplanned expenditures for upgrades or new licenses. Furthermore, security vulnerabilities inherent in software require ongoing patching and management, which, if not adequately addressed by the vendor or the agency's IT security team, can lead to data breaches or system compromises. The firm-fixed-price nature mitigates financial risk for the government regarding price increases during the contract term.

How effective is the use of Blanket Purchase Agreements (BPAs) for procuring software licenses?

Blanket Purchase Agreements (BPAs) can be a highly effective tool for procuring recurring needs like software licenses, especially when established under existing indefinite-delivery, indefinite-quantity (IDIQ) contracts or through competitive means. They streamline the ordering process, reduce administrative burden, and can offer pre-negotiated pricing, leading to cost savings and faster delivery times compared to traditional contract actions. For software licenses, BPAs allow agencies to consolidate purchases from preferred vendors, ensuring consistency and leveraging volume discounts. The effectiveness hinges on proper establishment, including clear terms, pricing, and competition requirements. When used appropriately, BPAs facilitate efficient and cost-effective acquisition of necessary software resources.

What are the historical spending patterns for Microsoft software within the Department of Justice?

Historical spending patterns for Microsoft software within the Department of Justice (DOJ) likely show a consistent and significant investment over many years, reflecting the agency's reliance on Microsoft products for its vast operations. Federal agencies, including the DOJ, typically procure Microsoft software through enterprise-wide agreements or large-scale BPA calls to standardize software environments and achieve economies of scale. Spending levels can fluctuate based on technology refresh cycles, new software releases, changes in user base, and specific program requirements. Analyzing past DOJ spending data would reveal trends in the types of Microsoft products acquired (e.g., operating systems, productivity suites, server software, cloud services) and the overall budget allocated to these essential IT resources.

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,208,759

Exercised Options: $26,208,759

Current Obligation: $26,208,759

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJJ08F1710

IDV Type: BPA

Timeline