DoD's $20.9M Microsoft ESA Contract Awarded to Dell Amidst Full and Open Competition
Contract Overview
Contract Amount: $20,928,424 ($20.9M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2023-11-01
End Date: 2023-11-01
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ESA AND SUBSCRIPTION
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $20.9 million to DELL MARKETING L.P. for work described as: MICROSOFT ESA AND SUBSCRIPTION Key points: 1. Significant spending on software licenses and subscriptions for Microsoft products. 2. Dell Marketing L.P. secured the contract under full and open competition. 3. The award highlights the ongoing reliance on major software vendors within the Defense sector. 4. Potential for cost savings through competitive bidding on enterprise agreements.
Value Assessment
Rating: good
The contract value of $20.9M for Microsoft Enterprise Software Agreement (ESA) and subscriptions appears reasonable given the scope of enterprise software. Benchmarking against similar large-scale government software procurements 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 competitive process is expected to drive favorable pricing and ensure the government receives good value for its investment in Microsoft software.
Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive procurement process for essential software, likely resulting in cost savings compared to non-competitive awards.
Public Impact
Ensures DoD personnel have access to necessary Microsoft software for operations. Supports critical defense information systems and technological infrastructure. Provides a standardized software environment across various defense agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft products.
- Reliance on a single software provider can create long-term dependency.
- Need for ongoing monitoring of subscription costs and usage.
Positive Signals
- Awarded through full and open competition.
- Utilizes a firm-fixed-price contract type.
- Supports critical defense operations.
Sector Analysis
The Department of Defense's spending on IT software, particularly enterprise agreements for major vendors like Microsoft, is substantial. This contract falls within the typical range for large federal IT procurements, reflecting the ongoing need for robust software solutions in defense.
Small Business Impact
This contract was awarded to Dell Marketing L.P. and does not indicate any specific set-aside for small businesses. The nature of large enterprise software agreements often favors larger prime contractors.
Oversight & Accountability
The award under full and open competition suggests a robust procurement process. However, ongoing oversight is necessary to ensure continued value, manage license utilization, and address any potential cost escalations over the life of the agreement.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for vendor lock-in
- Reliance on a single software provider
- Risk of price increases upon renewal
- Need for ongoing license management and optimization
Tags
software-publishers, department-of-defense, md, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.9 million to DELL MARKETING L.P.. MICROSOFT ESA AND SUBSCRIPTION
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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $20.9 million.
What is the period of performance?
Start: 2023-11-01. End: 2023-11-01.
What is the total cost of ownership for this Microsoft ESA over its potential lifespan, considering future renewals and potential price increases?
The total cost of ownership requires projecting future renewal costs, potential price hikes from Microsoft, and the ongoing need for these licenses. Without multi-year projections and escalation clauses, a precise TCO is difficult. However, agencies should budget for potential increases and explore volume discounts or alternative licensing models to mitigate long-term expenses.
How does the per-unit cost of these Microsoft licenses compare to commercial market rates or other federal agency agreements?
A direct comparison of per-unit costs requires detailed knowledge of the specific Microsoft products and license types included in the ESA. While full and open competition aims for favorable pricing, government rates can differ from commercial ones due to volume and specific contract terms. Benchmarking against GSA schedules or other agency ESAs is crucial for validation.
What mechanisms are in place to ensure efficient utilization of these Microsoft software licenses and prevent over-provisioning?
Effective utilization relies on robust asset management and regular audits. Agencies should implement tracking systems to monitor license deployment and usage, identifying underutilized licenses for reallocation or retirement. Regular reviews with the vendor and internal stakeholders are essential to align software inventory with actual needs.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Francisco Partners Management, L.P.
Address: ONE DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,928,424
Exercised Options: $20,928,424
Current Obligation: $20,928,424
Actual Outlays: $3,699,599
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600121A0083
IDV Type: BPA
Timeline
Start Date: 2023-11-01
Current End Date: 2023-11-01
Potential End Date: 2023-11-01 00:00:00
Last Modified: 2025-10-27
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