DoD's $29.6M Microsoft Enterprise Agreement with Dell Marketing L.P. awarded under full and open competition
Contract Overview
Contract Amount: $29,576,603 ($29.6M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2011-12-29
End Date: 2012-12-31
Contract Duration: 368 days
Daily Burn Rate: $80.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ENTERPRISE AGREEMENT
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $29.6 million to DELL MARKETING L.P. for work described as: MICROSOFT ENTERPRISE AGREEMENT Key points: 1. The contract value represents a significant investment in enterprise software licensing and support. 2. Competition dynamics suggest a potentially competitive bidding process for this large-scale software agreement. 3. The firm-fixed-price structure aims to provide cost certainty for the government. 4. Performance is tied to the delivery of essential software and support services for U.S. Special Operations Command. 5. This agreement falls within the broader IT sector, specifically focusing on enterprise software solutions. 6. The award to Dell Marketing L.P. indicates a preference for established IT vendors with broad product portfolios.
Value Assessment
Rating: fair
Benchmarking the value of this specific Microsoft Enterprise Agreement is challenging without detailed service breakdowns and comparison to similar large-scale government software licenses. The $29.6 million price tag over its duration suggests a substantial commitment. However, without access to the specific software licenses, user counts, and support levels included, a precise value-for-money assessment is difficult. It is important to compare this to other enterprise agreements for similar software suites across different agencies to understand if the pricing is competitive.
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 a bid. The presence of multiple bidders, though not explicitly detailed in the provided data, is implied by the competition type. This process is designed to foster price discovery and ensure the government receives competitive pricing by allowing various vendors to propose their solutions and pricing structures.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring that the government is not overpaying for goods or services.
Public Impact
U.S. Special Operations Command personnel benefit from access to essential Microsoft software and support. The contract ensures the availability of critical IT infrastructure for national security operations. The geographic impact is primarily within the operational areas of U.S. Special Operations Command, which can be global. Workforce implications include ensuring IT professionals have the necessary tools to perform their duties effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with enterprise software agreements.
- Risk of over-licensing if user needs change significantly during the contract term.
- Dependence on a single vendor for critical software infrastructure.
Positive Signals
- Provides a consolidated and potentially cost-effective way to acquire Microsoft software across an organization.
- Firm-fixed-price contract offers budget predictability.
- Awarded through full and open competition, suggesting a competitive pricing environment.
Sector Analysis
This contract falls within the Information Technology sector, specifically concerning enterprise software licensing and support. The market for enterprise software, particularly from major vendors like Microsoft, is characterized by large, long-term agreements with government agencies. Comparable spending benchmarks would involve analyzing other large federal IT procurements for software licenses and maintenance, which often run into millions or tens of millions of dollars, reflecting the scale of government IT needs.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Dell Marketing L.P., is a large business, and the focus of this agreement is on enterprise-level software solutions rather than services that might typically be subcontracted to smaller firms.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Special Operations Command's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified software and support. Transparency is facilitated through contract award databases like FPDS-NG, which provide public access to contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Microsoft Enterprise Agreements
- Software Licensing and Support Contracts
- Department of Defense IT Procurement
- U.S. Special Operations Command IT Services
Risk Flags
- Potential for cost overruns if software utilization is not optimized.
- Risk of obsolescence if software versions are not actively managed.
- Dependence on vendor for critical software updates and security patches.
Tags
it, software-licensing, enterprise-agreement, department-of-defense, us-special-operations-command, full-and-open-competition, firm-fixed-price, dell-marketing-l-p, microsoft, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.6 million to DELL MARKETING L.P.. MICROSOFT ENTERPRISE AGREEMENT
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $29.6 million.
What is the period of performance?
Start: 2011-12-29. End: 2012-12-31.
What specific Microsoft software products and versions are covered under this $29.6 million enterprise agreement?
The provided data does not specify the exact Microsoft software products and versions included in this $29.6 million enterprise agreement. Enterprise agreements typically cover a broad suite of Microsoft products, which can include operating systems (e.g., Windows), productivity software (e.g., Microsoft Office Suite, now Microsoft 365), server software (e.g., Windows Server, SQL Server), and potentially other specialized applications. The precise composition would be detailed in the contract's statement of work or licensing schedules. Without this detail, it's difficult to assess the value or relevance of the software to the U.S. Special Operations Command's specific needs.
How does the $29.6 million cost compare to similar enterprise software agreements for other large federal agencies?
Comparing the $29.6 million cost of this Microsoft Enterprise Agreement to similar contracts across federal agencies requires access to detailed data on the scope, duration, and specific software included in those other agreements. Large federal agencies often enter into multi-year enterprise agreements for Microsoft products, with costs varying significantly based on the number of users, the specific product suite (e.g., Microsoft 365 E3 vs. E5), and the level of support. While $29.6 million over approximately one year (based on the award and end dates) is substantial, it needs to be benchmarked against agreements with comparable user bases and product entitlements to determine if it represents good value for money. Without such comparative data, a definitive assessment of its competitiveness is not possible.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?
The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this Microsoft Enterprise Agreement. Typically, such contracts would include SLAs related to software availability, support response times, and issue resolution times for technical support. Performance would be measured against these defined metrics. The firm-fixed-price nature of the contract implies that the contractor, Dell Marketing L.P., is obligated to provide the licensed software and associated support services as specified. Failure to meet critical SLAs could potentially lead to contractual remedies, though the specifics would be outlined in the contract's terms and conditions.
What is the track record of Dell Marketing L.P. in fulfilling large-scale enterprise software agreements for the Department of Defense?
Dell Marketing L.P. has a significant track record of fulfilling large-scale IT contracts, including software licensing and hardware provision, for various U.S. government agencies, including the Department of Defense. As a major IT vendor, they are experienced in managing complex enterprise agreements. While this specific data point pertains to a Microsoft Enterprise Agreement, Dell's broader experience in delivering IT solutions and support to the DoD suggests a capacity to manage such contracts. A deeper dive into past performance reviews and contract histories would provide more granular insights into their specific performance on similar software-centric agreements.
What is the potential for cost savings or efficiencies gained by consolidating Microsoft software procurement through this enterprise agreement?
Consolidating Microsoft software procurement through an enterprise agreement like this one generally offers potential cost savings and efficiencies compared to purchasing individual licenses or smaller volume agreements. Enterprise agreements often provide volume discounts, predictable pricing over the contract term, and simplified license management. For the U.S. Special Operations Command, this agreement likely streamlines the acquisition process, reduces administrative overhead, and ensures access to the latest software versions and updates. The 'Microsoft Enterprise Agreement' structure is specifically designed to achieve these economies of scale and operational efficiencies for large organizations.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
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
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,576,603
Exercised Options: $29,576,603
Current Obligation: $29,576,603
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F4076D
IDV Type: FSS
Timeline
Start Date: 2011-12-29
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2014-05-22
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