DOJ's $59M Microsoft EL SA with CDW Government LLC for Computer Software Stores
Contract Overview
Contract Amount: $59,139,883 ($59.1M)
Contractor: CDW Government LLC
Awarding Agency: Department of Justice
Start Date: 2015-07-01
End Date: 2016-06-30
Contract Duration: 365 days
Daily Burn Rate: $162.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF MICROSOFT EL SA
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Justice obligated $59.1 million to CDW GOVERNMENT LLC for work described as: IGF::CT::IGF MICROSOFT EL SA Key points: 1. Spending of $59.1M on Microsoft EL SA. 2. Competition was Full and Open. 3. Risk is moderate due to software licensing complexity. 4. Sector is IT/Software.
Value Assessment
Rating: fair
The contract value of $59.1M for a one-year term is substantial. Benchmarking against similar enterprise license agreements for Microsoft products is crucial to assess value, as pricing can vary significantly based on volume, specific product versions, and support levels.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under Full and Open Competition, indicating a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, though detailed price analysis would confirm optimal value.
Public Impact
Government reliance on Microsoft software necessitates ongoing investment. Software licensing agreements require careful management to ensure compliance and avoid overspending. The specific 'EL SA' designation needs clarification to understand its scope and benefits. Potential for cost savings through strategic sourcing and negotiation in future renewals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific product details within the data.
- Potential for vendor lock-in with Microsoft products.
- Need for robust asset management to track software usage.
Positive Signals
- Full and Open Competition ensures a competitive market.
- Firm Fixed Price contract provides cost certainty.
- Awarded to a known government contractor (CDW).
Sector Analysis
This contract falls within the Information Technology sector, specifically software procurement. Government spending on enterprise software licenses is a significant portion of IT budgets, often driven by the need for standardized operating systems and productivity suites.
Small Business Impact
While CDW Government LLC is a large business, the contract was awarded under Full and Open Competition. This does not preclude small businesses from participating in the supply chain or potentially bidding on future, smaller-scale procurements within this category.
Oversight & Accountability
Oversight would involve monitoring software utilization, license compliance, and adherence to contract terms by the Department of Justice. Regular audits and performance reviews are standard practices for such significant software agreements.
Related Government Programs
- Computer and Software Stores
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Potential for cost overruns if software is underutilized.
- Risk of vendor lock-in with Microsoft's ecosystem.
- Complexity in managing enterprise-level software licenses.
- Need for detailed justification of specific software products and quantities.
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 $59.1 million to CDW GOVERNMENT LLC. IGF::CT::IGF MICROSOFT EL 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 $59.1 million.
What is the period of performance?
Start: 2015-07-01. End: 2016-06-30.
What specific Microsoft products and licenses were included in this $59.1M agreement, and how do they align with the Department of Justice's operational needs?
The provided data lacks specifics on the exact Microsoft products and licenses covered by the 'EL SA'. A comprehensive analysis would require reviewing the contract's statement of work and associated license agreements to determine if the procured software directly supports DOJ's mission requirements and if the quantity and type of licenses are justified by usage patterns.
What was the pricing structure and justification for the $59.1M expenditure, and how does it compare to market benchmarks for similar enterprise agreements?
The contract utilized a Firm Fixed Price model, offering cost predictability. However, without detailed pricing breakdowns and comparisons to industry benchmarks for equivalent Microsoft enterprise agreements, it's difficult to definitively assess if $59.1M represented optimal value. Factors like volume discounts, support levels, and contract duration significantly influence pricing.
What mechanisms were in place to ensure efficient utilization and prevent over-licensing of Microsoft software under this agreement?
Effective utilization and prevention of over-licensing typically rely on robust IT asset management (ITAM) practices. This includes regular software inventory, usage monitoring, and license reconciliation. The Department of Justice would need established ITAM policies and procedures to ensure that the number of licenses procured accurately reflects actual deployment and need.
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: $59,139,883
Exercised Options: $59,139,883
Current Obligation: $59,139,883
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DJJ14F2527
IDV Type: BPA
Timeline
Start Date: 2015-07-01
Current End Date: 2016-06-30
Potential End Date: 2019-06-30 00:00:00
Last Modified: 2015-09-28
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