DOJ Spends $44.9M on Software Assurance and Licensing via BPA with CDW Government LLC
Contract Overview
Contract Amount: $44,906,569 ($44.9M)
Contractor: CDW Government LLC
Awarding Agency: Department of Justice
Start Date: 2013-06-15
End Date: 2014-06-30
Contract Duration: 380 days
Daily Burn Rate: $118.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT;;IGF 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 $44.9 million to CDW GOVERNMENT LLC for work described as: IGF::OT;;IGF ANNUAL SOFTWARE ASSURANCE AND LICENSE Key points: 1. Significant spending on software assurance and licensing highlights ongoing IT infrastructure needs. 2. CDW Government LLC secured the contract, indicating a competitive landscape for IT resellers. 3. The contract's duration and firm-fixed-price structure suggest predictable cost management. 4. Analysis of per-unit costs is crucial to ensure value for taxpayer dollars. 5. The absence of small business participation warrants further investigation.
Value Assessment
Rating: fair
The total award of $44.9M for software assurance and licensing over approximately one year appears substantial. Benchmarking against similar government-wide contracts for software maintenance and support is necessary to determine if this represents a competitive price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a Blanket Purchase Agreement (BPA) likely streamlined the acquisition process and potentially leveraged pre-negotiated pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential software maintenance and licensing, which is a standard operational cost for government IT. Ensuring competitive pricing is key to maximizing the value of this expenditure.
Public Impact
Ensures continued access to critical software and security updates for DOJ systems. Supports the operational continuity of various offices, boards, and divisions within the Department of Justice. The spending reflects the ongoing investment in maintaining a secure and functional IT environment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Potential for price creep on software renewals
- Dependence on a single vendor for broad software assurance
Positive Signals
- Awarded under full and open competition
- Firm-fixed-price contract type
- Supports critical DOJ operations
Sector Analysis
This spending falls within the Information Technology sector, specifically software maintenance and licensing. Government IT spending benchmarks often focus on total IT budgets and specific categories like cloud services or hardware. This contract represents a significant portion of software assurance spending for the DOJ.
Small Business Impact
The data indicates that no small businesses were involved in this contract award. Agencies should actively seek opportunities to include small businesses in their procurement strategies, especially for IT services and software, to foster competition and economic growth.
Oversight & Accountability
The use of a BPA suggests a framework for ongoing oversight. However, detailed review of individual task orders and vendor performance is crucial to ensure accountability and adherence to contract terms.
Related Government Programs
- Computer and Software Stores
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- High dollar value contract
- Potential for vendor lock-in
- Lack of small business participation
- Limited visibility into specific software covered
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 $44.9 million to CDW GOVERNMENT LLC. IGF::OT;;IGF 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 $44.9 million.
What is the period of performance?
Start: 2013-06-15. End: 2014-06-30.
What specific software titles or suites are covered under this assurance and licensing agreement, and how do their costs compare to market rates?
The provided data does not specify the exact software titles. A detailed breakdown is needed to assess if the $44.9M expenditure aligns with market pricing for specific enterprise software licenses and assurance services. Without this granularity, it's difficult to definitively gauge value for money beyond the competitive award process.
What is the risk associated with relying on a single vendor, CDW Government LLC, for such a large software assurance and licensing contract?
The primary risk is potential vendor lock-in and reduced negotiation leverage in future renewals. While CDW is a reseller, dependence on them for a broad range of software assurance could limit flexibility in adopting alternative solutions or negotiating better terms if competition diminishes. This also poses a risk if CDW's service quality declines.
How effectively does this contract support the Department of Justice's mission-critical functions and cybersecurity posture?
The contract's effectiveness hinges on the criticality of the software covered. If it includes essential operating systems, security software, and core productivity tools, it is highly effective in maintaining operational continuity and security. However, without knowing the specific software, a definitive assessment of its contribution to mission-critical functions and cybersecurity is challenging.
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: $44,906,569
Exercised Options: $44,906,569
Current Obligation: $44,906,569
Parent Contract
Parent Award PIID: DJJ08F1710
IDV Type: BPA
Timeline
Start Date: 2013-06-15
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2015-04-20
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