DoD's $38.8M Microsoft Enterprise Agreement for MHS: Full and Open Competition
Contract Overview
Contract Amount: $38,867,654 ($38.9M)
Contractor: Softchoice Corp
Awarding Agency: Department of Defense
Start Date: 2008-06-27
End Date: 2011-07-29
Contract Duration: 1,127 days
Daily Burn Rate: $34.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ENTERPRISE AGREEMENT (MSELA) FOR THE MILITARY HEALTH SYSTEM (MHS)
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60654, UNITED STATES OF AMERICA
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $38.9 million to SOFTCHOICE CORP for work described as: MICROSOFT ENTERPRISE AGREEMENT (MSELA) FOR THE MILITARY HEALTH SYSTEM (MHS) Key points: 1. Significant investment in enterprise software for the Military Health System. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract duration is substantial, requiring ongoing monitoring. 4. Focus on IT infrastructure within the healthcare sector.
Value Assessment
Rating: good
The $38.8M award for Microsoft software appears reasonable given the enterprise-wide scope and duration. Benchmarking against similar large-scale government software licenses would provide a more precise assessment.
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 competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure supporting military healthcare operations, with competition aiming to optimize value.
Public Impact
Ensures critical IT infrastructure for military healthcare services. Supports the operational needs of the Military Health System. Provides access to essential Microsoft software for personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration and potential for price increases over time.
- Reliance on a single vendor's software ecosystem.
Positive Signals
- Full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the Information Technology sector, specifically software procurement for a large government agency. Spending benchmarks for enterprise software agreements can vary widely based on user count and software suite.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
Oversight would typically involve contract performance reviews, financial audits, and ensuring compliance with terms and conditions by the Department of the Air Force.
Related Government Programs
- Computer and Software Stores
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for vendor lock-in.
- Long contract duration may not adapt to rapid tech changes.
- Lack of small business participation noted.
- Need for ongoing price benchmarking.
Tags
computer-and-software-stores, department-of-defense, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.9 million to SOFTCHOICE CORP. MICROSOFT ENTERPRISE AGREEMENT (MSELA) FOR THE MILITARY HEALTH SYSTEM (MHS)
Who is the contractor on this award?
The obligated recipient is SOFTCHOICE CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $38.9 million.
What is the period of performance?
Start: 2008-06-27. End: 2011-07-29.
What is the total cost per user over the contract's life?
Calculating the exact total cost per user requires knowing the number of users and the contract duration in months. With a duration of 1127 days (approx. 37 months) and an award of $38.8M, a rough estimate could be derived, but precise user counts are needed for an accurate per-user cost benchmark.
What are the risks associated with vendor lock-in for this enterprise agreement?
Vendor lock-in is a significant risk, as the MHS becomes reliant on Microsoft's ecosystem. Switching to alternative software or vendors in the future could incur substantial costs, require extensive retraining, and disrupt operations, making long-term strategic planning crucial.
How effectively does this agreement support the MHS's evolving technological needs?
The effectiveness hinges on whether the licensed software and support align with the MHS's current and future technological roadmap. Regular reviews and potential modifications to the agreement are necessary to ensure it remains relevant and supports evolving healthcare IT demands.
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: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Softchoice Corporation (UEI: 248864415)
Address: 314 W SUPERIOR ST STE - 301, CHICAGO, IL, 60610
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $38,867,654
Exercised Options: $38,867,654
Current Obligation: $38,867,654
Parent Contract
Parent Award PIID: GS35F0196M
IDV Type: FSS
Timeline
Start Date: 2008-06-27
Current End Date: 2011-07-29
Potential End Date: 2011-07-29 00:00:00
Last Modified: 2017-07-16
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