DOJ Spends $58.8M on Software Assurance and True-Up via CDW Government LLC BPA Call
Contract Overview
Contract Amount: $58,795,365 ($58.8M)
Contractor: CDW Government LLC
Awarding Agency: Department of Justice
Start Date: 2016-07-01
End Date: 2019-06-30
Contract Duration: 1,094 days
Daily Burn Rate: $53.7K/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 TRUEUP/SETUP
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530
Plain-Language Summary
Department of Justice obligated $58.8 million to CDW GOVERNMENT LLC for work described as: ANNUAL SOFTWARE ASSURANCE AND TRUEUP/SETUP Key points: 1. Significant annual spending on software assurance and true-up services. 2. CDW Government LLC is the sole awardee under this BPA Call. 3. The contract spans three years, indicating a medium-term commitment. 4. The spending is categorized under Computer and Software Stores. 5. The contract type is Firm Fixed Price, providing cost certainty.
Value Assessment
Rating: fair
The annual cost of $58.8M for software assurance and true-up appears high, especially considering the contract's duration. Benchmarking against similar software maintenance and support contracts would be necessary to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded via a BPA Call under a Full and Open Competition, suggesting initial competition for the overarching BPA. However, the specific call to CDW Government LLC might have limited direct competition at the task order level.
Taxpayer Impact: Taxpayer funds are being utilized for software maintenance and support. The effectiveness of this spending hinges on whether the services provided are essential and competitively priced.
Public Impact
Ensures software licenses remain current and compliant for the Department of Justice. Supports critical IT infrastructure by maintaining up-to-date software. Potential for cost savings if true-up services are managed efficiently. Reliance on a single vendor for these services could pose a risk if not managed carefully.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High annual expenditure for software assurance.
- Lack of specific details on the 'true-up/setup' services.
- Potential for vendor lock-in with a single BPA call awardee.
Positive Signals
- Firm Fixed Price contract provides budget predictability.
- Awarded under Full and Open Competition for the BPA.
- Supports essential software for agency operations.
Sector Analysis
The Department of Justice's spending falls within the IT sector, specifically software procurement and maintenance. The $58.8M annual spend is substantial and warrants scrutiny to ensure value for money compared to industry benchmarks for similar software assurance and support services.
Small Business Impact
The data indicates the awardee is CDW Government LLC, a large business. There is no explicit mention of small business participation in this specific BPA call, suggesting limited direct opportunities for small businesses on this particular contract.
Oversight & Accountability
The contract was awarded via a BPA Call, which is a mechanism for streamlined procurement. Oversight would focus on the utilization of the software, the necessity of the assurance services, and whether the pricing remains competitive throughout the contract period.
Related Government Programs
- Computer and Software Stores
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- High annual expenditure.
- Lack of detailed software product information.
- Potential for price creep over contract duration.
- Limited visibility into specific 'true-up' activities.
- No clear indication of small business utilization.
Tags
computer-and-software-stores, department-of-justice, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $58.8 million to CDW GOVERNMENT LLC. ANNUAL SOFTWARE ASSURANCE AND TRUEUP/SETUP
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 $58.8 million.
What is the period of performance?
Start: 2016-07-01. End: 2019-06-30.
What specific software products and versions are covered under this assurance and true-up contract, and how does the $58.8M annual cost align with market rates for these specific products?
The provided data lacks specifics on the software covered. A detailed breakdown of software titles, versions, and license counts is crucial for a meaningful cost analysis. Without this, it's difficult to benchmark against market rates. The $58.8M annual cost could be justified if it covers a vast and complex software portfolio, but without details, it appears high and warrants further investigation into the specific services and products included.
What is the risk associated with relying on a single vendor, CDW Government LLC, for annual software assurance and true-up services across the Department of Justice?
The primary risk is potential vendor lock-in and reduced negotiating leverage for future renewals or different software needs. If CDW Government LLC is the sole provider under this BPA call, the DOJ may face challenges in seeking alternative solutions or negotiating better terms. This could lead to inflated prices over time and a lack of flexibility in adapting to evolving technological requirements or seeking more cost-effective options.
How effectively is the Department of Justice leveraging the software assurance and true-up services to maximize the value of its software investments?
Effectiveness is difficult to gauge without performance metrics. While the contract ensures software is up-to-date, it's unclear if the DOJ is fully utilizing the features and benefits of the licensed software. The 'true-up' aspect suggests a need to reconcile licenses, implying potential past under-licensing or over-licensing. Measuring the actual return on investment from these services, beyond basic compliance, would indicate true effectiveness.
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: $58,795,365
Exercised Options: $58,795,365
Current Obligation: $58,795,365
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DJJ14F2527
IDV Type: BPA
Timeline
Start Date: 2016-07-01
Current End Date: 2019-06-30
Potential End Date: 2019-06-30 00:00:00
Last Modified: 2019-09-27
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