DoD's $15.4M Microsoft Software Contract with Dell Federal Systems Raises Questions on Value and Competition
Contract Overview
Contract Amount: $15,432,300 ($15.4M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Defense
Start Date: 2022-06-01
End Date: 2025-05-31
Contract Duration: 1,095 days
Daily Burn Rate: $14.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT SOFTWARE - WHCA
Place of Performance
Location: NAVAL ANACOST ANNEX, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20373
Plain-Language Summary
Department of Defense obligated $15.4 million to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT SOFTWARE - WHCA Key points: 1. The contract value of $15.4 million for Microsoft software is significant, requiring careful scrutiny. 2. Competition is noted as 'FULL AND OPEN COMPETITION', but the award mechanism (BPA CALL) warrants further examination. 3. Potential risks include overpricing for software licenses and the effectiveness of the competition method. 4. The sector is IT, specifically 'Other Computer Related Services', a common area for substantial government spending.
Value Assessment
Rating: fair
The $15.4 million price tag for Microsoft software needs to be benchmarked against similar government and commercial contracts. Without specific license details and quantities, a precise comparison is difficult, but the amount suggests a substantial volume or premium pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition via a BPA Call. While this indicates a competitive process, the specific details of the bidding and evaluation are crucial to ensure the best price was achieved and that the competition was meaningful.
Taxpayer Impact: Taxpayer funds are being used for this significant software purchase. Ensuring competitive pricing and value for money is essential to minimize the financial impact on taxpayers.
Public Impact
This contract impacts the Department of Defense's IT infrastructure, potentially affecting national security operations. The use of Microsoft software is widespread, meaning this contract could set a precedent for future software procurements. Transparency in the award process and pricing is crucial for public trust and accountability in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific software details
- Potential for inflated pricing on commodity software
- Effectiveness of BPA Call for this value
Positive Signals
- Awarded under full and open competition
- Firm Fixed Price contract type limits cost risk
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Government spending in IT, particularly for software licenses and support, is consistently high, often representing a significant portion of agency budgets.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation or subcontracting opportunities.
Oversight & Accountability
The award through a BPA Call requires diligent oversight to ensure the terms are being met and that the pricing remains competitive throughout the contract period. Agency contracting officers must verify the necessity and cost-effectiveness of each call against the base BPA.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for overpricing on software licenses
- Lack of specific software details hinders value assessment
- Effectiveness of competition via BPA Call for this value
- Limited transparency on specific software products and quantities
Tags
other-computer-related-services, department-of-defense, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.4 million to DELL FEDERAL SYSTEMS L.P. MICROSOFT SOFTWARE - WHCA
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 $15.4 million.
What is the period of performance?
Start: 2022-06-01. End: 2025-05-31.
What specific Microsoft software products and quantities are included in this $15.4 million contract, and how does the unit pricing compare to GSA Schedule or other government-wide agreements?
The provided data lacks specifics on the exact Microsoft software products and quantities. A thorough analysis would require accessing the contract details to compare unit pricing against established government benchmarks like GSA Schedules or other enterprise agreements. This comparison is vital to determine if the $15.4 million represents fair market value or if there's potential for overpayment.
Given the 'FULL AND OPEN COMPETITION' designation, what was the competitive landscape, and were there any sole-source justifications or limitations that might have impacted the final price?
While designated as 'FULL AND OPEN COMPETITION', the award mechanism being a 'BPA CALL' warrants scrutiny. It's important to understand if multiple vendors submitted bids and how the selection was made. If the BPA itself had limitations or if the call was structured in a way that inadvertently favored certain vendors, it could have influenced price discovery and potentially led to a less competitive outcome than intended.
How does the 'Other Computer Related Services' classification and the use of Dell Federal Systems as the awardee align with the Department of Defense's broader IT strategy and existing software licens
The classification 'Other Computer Related Services' is broad. Understanding how this specific procurement fits into the DoD's larger IT modernization efforts and existing enterprise licensing agreements is key. Awarding through Dell suggests a reseller model, which necessitates verifying that this approach provides the best value compared to direct procurement or other channels, ensuring alignment with strategic goals and cost-efficiency.
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 › IT AND TELECOM - APLLICATIONS
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: Francisco Partners Management, L.P.
Address: 1 DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,432,300
Exercised Options: $15,432,300
Current Obligation: $15,432,300
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600119A0003
IDV Type: BPA
Timeline
Start Date: 2022-06-01
Current End Date: 2025-05-31
Potential End Date: 2025-05-31 00:00:00
Last Modified: 2026-01-07
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