DoD awards $20.8M for Microsoft products, with Dell Marketing L.P. as the contractor
Contract Overview
Contract Amount: $20,805,443 ($20.8M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2024-11-01
End Date: 2025-10-31
Contract Duration: 364 days
Daily Burn Rate: $57.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSFT PRODUCTS
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $20.8 million to DELL MARKETING L.P. for work described as: MICROSFT PRODUCTS Key points: 1. Contract value represents a significant investment in software licensing and support. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of 364 days indicates a need for ongoing software services. 4. Fixed-price contract type aims to control costs for the government. 5. The specific NAICS code (511210) points to the software publishing industry. 6. The award was made under a BPA Call, implying a pre-negotiated framework agreement.
Value Assessment
Rating: good
The contract value of $20.8 million for Microsoft products is substantial. Benchmarking this against similar enterprise software agreements is crucial. Given the fixed-price nature, the government aims to lock in costs. However, without specific details on the software suite and user count, a precise value-for-money assessment is challenging. The award to Dell Marketing L.P. suggests a competitive procurement process for these Microsoft licenses.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific mechanism used was a BPA Call, which suggests that a broader Basic Purchasing Agreement was already in place, and this is a call-off order against that agreement. The level of competition is not explicitly stated in terms of the number of bidders, but the 'full and open' designation implies a robust process.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider selection of qualified vendors, ultimately driving down costs.
Public Impact
The Department of Defense is the primary beneficiary, receiving essential Microsoft software. This contract ensures continued access to critical software for defense operations. The geographic impact is likely nationwide, supporting various DoD installations. Workforce implications include ensuring military and civilian personnel have the necessary tools.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specific Microsoft products.
- Reliance on a single contractor (Dell) for procurement of these Microsoft licenses.
- Need for robust asset management to ensure all licenses are utilized effectively.
Positive Signals
- Full and open competition can lead to favorable pricing.
- Fixed-price contract type provides cost certainty.
- Award under a BPA Call suggests an efficient procurement process.
Sector Analysis
This contract falls within the Software Publishers (NAICS 511210) sector, a critical component of the IT industry. The market for enterprise software licenses is vast, with significant government spending allocated annually. This contract represents a portion of the DoD's overall IT procurement strategy, ensuring access to widely used productivity and operating system software. Comparable spending benchmarks would involve analyzing other large-scale enterprise software agreements across federal agencies.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it's unlikely that small businesses were exclusively targeted. However, Dell Marketing L.P. may engage small businesses as subcontractors, though this is not detailed in the award information. The impact on the small business ecosystem would depend on Dell's subcontracting practices.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and financial management offices. The Defense Contract Management Agency (DCMA) may also play a role in oversight. Transparency is facilitated by public contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Microsoft Enterprise Agreements
- Department of Defense Software Procurement
- IT Services and Software Contracts
- Basic Purchasing Agreements (BPAs)
Risk Flags
- Potential for cost overruns if scope creep occurs.
- Dependence on vendor for timely security updates.
- Need for robust asset management to ensure license compliance.
Tags
it, defense, department-of-defense, software-publishers, microsoft-products, dell-marketing-l.p., full-and-open-competition, bpa-call, firm-fixed-price, maryland, enterprise-software
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to DELL MARKETING L.P.. MICROSFT PRODUCTS
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 $20.8 million.
What is the period of performance?
Start: 2024-11-01. End: 2025-10-31.
What specific Microsoft products are covered under this $20.8 million contract?
The provided data does not specify the exact Microsoft products included in this $20.8 million contract. Typically, such large awards cover a range of enterprise software, potentially including operating systems (like Windows), productivity suites (like Microsoft 365), server software, and specialized applications. To determine the specific products, one would need to consult the detailed contract award documents or the associated Statement of Work (SOW). The NAICS code 511210 (Software Publishers) confirms the nature of the goods, but not the specific titles.
How does the $20.8 million contract value compare to previous spending on similar Microsoft products by the DoD?
To compare this $20.8 million contract value to previous DoD spending on similar Microsoft products, historical data from contract databases such as FPDS or USASpending would need to be analyzed. This would involve filtering for contracts with the Department of Defense, the vendor (or similar vendors like Dell for Microsoft products), and relevant product/service codes over several fiscal years. Without this comparative analysis, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending for these types of software licenses and support.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These details are typically found within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For software licensing and support contracts, common SLAs might relate to software availability, response times for technical support, patch deployment timelines, and user training delivery. The effectiveness of the contract hinges on the DoD's ability to monitor and enforce these performance metrics.
What is the risk profile of Dell Marketing L.P. as a contractor for this type of IT procurement?
Dell Marketing L.P. is a well-established and large technology vendor with extensive experience in government contracting, including IT procurements. Their risk profile for this type of contract is generally considered low due to their size, market presence, and established track record. Potential risks could include supply chain disruptions (though less likely for software), or performance issues related to support and delivery, but these are typically mitigated by contract terms and oversight. The 'full and open competition' also suggests that other vendors were available, providing a competitive check.
What is the anticipated impact of this contract on the cybersecurity posture of the Department of Defense?
This contract, by providing necessary Microsoft software licenses and potentially support, is intended to maintain and potentially enhance the DoD's cybersecurity posture. Access to up-to-date operating systems and productivity software, along with timely security patches and updates managed through vendor support, is fundamental to defending against cyber threats. The specific cybersecurity benefits depend on the software versions procured and the security configurations implemented by the DoD, which are not detailed in the award summary.
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: $20,805,443
Exercised Options: $20,805,443
Current Obligation: $20,805,443
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600121A0083
IDV Type: BPA
Timeline
Start Date: 2024-11-01
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 00:00:00
Last Modified: 2025-12-09
More Contracts from Dell Marketing L.P.
- Microsoft ESA Agreement — $1.3B (Department of Defense)
- Microsoft Products — $508.0M (Department of Defense)
- Microsoft M365 E5 — $477.2M (Department of Defense)
- 200410!000781!5700!GV90 !ssg/Pk !gs35f4076d !C!N! !n!fa877104f8320! !20040630!20040709!114315195!114315195!114315195!n!dell Marketing L P !ONE Dell WAY !round Rock !tx!78682!63500!491!48!round Rock !williamson !texas !+000012313462!n!n!000000000000!7030!adp Software !A7 !electronics and Communication Equip !000 !* !511210!E! !6! ! ! ! ! !99990909!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! ! — $471.3M (Department of Defense)
- Microsoft Enterprise Products — $354.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)