DoD's $244.6M Microsoft Enterprise Products Contract with Dell Federal Shows Strong Value
Contract Overview
Contract Amount: $244,569,552 ($244.6M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Defense
Start Date: 2019-11-12
End Date: 2020-10-31
Contract Duration: 354 days
Daily Burn Rate: $690.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ENTERPRISE PRODUCTS
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $244.6 million to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT ENTERPRISE PRODUCTS Key points: 1. Significant spending on enterprise software, indicating reliance on Microsoft products. 2. Dell Federal Systems L.P. secured the contract, highlighting competition in the IT services sector. 3. The contract's duration and value present a moderate risk for vendor lock-in. 4. Spending benchmarks for IT services suggest this is within a typical range for large-scale deployments.
Value Assessment
Rating: good
The $244.6 million contract for Microsoft Enterprise Products appears to be a reasonable investment given the scale and duration. Benchmarking against similar large-scale enterprise software procurements suggests competitive pricing was likely achieved through the full and open competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is the most effective method for ensuring competitive pricing and value for taxpayer money. This approach allows multiple vendors to bid, driving down costs and encouraging innovation.
Taxpayer Impact: Full and open competition generally leads to better pricing, maximizing the value of taxpayer funds spent on essential IT infrastructure.
Public Impact
Ensures critical IT infrastructure for the Department of Defense remains operational and up-to-date. Supports thousands of military and civilian personnel with essential software tools. Potential for follow-on contracts or expansions based on current usage and needs.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft products.
- Reliance on a single vendor for critical enterprise software.
Positive Signals
- Awarded through full and open competition.
- Significant investment in essential IT infrastructure.
- Clear contract duration and defined scope.
Sector Analysis
This contract falls within the Information Technology sector, specifically for enterprise software and related services. Spending benchmarks for IT services at the federal level can vary widely, but large-scale enterprise agreements like this are common for agencies with extensive user bases.
Small Business Impact
While this contract was awarded to Dell Federal Systems L.P., there is no explicit indication of small business participation in the provided data. Future analysis could explore subcontracting opportunities for small businesses within this IT services domain.
Oversight & Accountability
The contract was managed by the Defense Information Systems Agency (DISA), a key component for IT oversight within the DoD. The use of a Blanket Purchase Agreement (BPA) Call suggests a structured procurement process was followed.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for vendor lock-in
- Reliance on a single software ecosystem
- Cybersecurity risks associated with enterprise software
- Need for ongoing training and support
Tags
other-computer-related-services, department-of-defense, tx, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $244.6 million to DELL FEDERAL SYSTEMS L.P. MICROSOFT ENTERPRISE PRODUCTS
Who is the contractor on this award?
The obligated recipient is DELL FEDERAL SYSTEMS L.P.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $244.6 million.
What is the period of performance?
Start: 2019-11-12. End: 2020-10-31.
What is the specific breakdown of Microsoft products included in this $244.6 million contract, and how does it align with the DoD's strategic IT goals?
The provided data does not detail the specific Microsoft products covered under this $244.6 million contract. Understanding the exact software suite (e.g., Office 365, Windows licenses, server products) is crucial for assessing its alignment with the DoD's strategic IT modernization efforts and ensuring it meets evolving cybersecurity and operational requirements.
What measures are in place to mitigate the risk of vendor lock-in and ensure future flexibility, given the significant investment in Microsoft enterprise products?
Mitigation strategies for vendor lock-in typically involve contract clauses that allow for easier transition to alternative solutions, regular reviews of software needs, and exploring open-source or multi-vendor strategies where feasible. The DoD should actively monitor market trends and maintain flexibility in its IT architecture to avoid long-term dependency on a single vendor's ecosystem.
How does the per-unit cost of these Microsoft enterprise products compare to commercial market rates or other government agency contracts to ensure optimal value?
Without specific per-unit cost data for individual Microsoft products, a direct comparison is challenging. However, the contract's award under full and open competition suggests that pricing was vetted against market conditions. Periodic benchmarking against GSA schedules or other agency-wide agreements would further validate the cost-effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HC108419R0018
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Technologies Inc.
Address: 1 DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $244,569,552
Exercised Options: $244,569,552
Current Obligation: $244,569,552
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC108420A0003
IDV Type: BPA
Timeline
Start Date: 2019-11-12
Current End Date: 2020-10-31
Potential End Date: 2020-10-31 00:00:00
Last Modified: 2024-09-06
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