DoD Spends $11.1M on Microsoft Products via Dell, Awarded Under BPA Call
Contract Overview
Contract Amount: $11,103,482 ($11.1M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2025-11-01
End Date: 2026-05-31
Contract Duration: 211 days
Daily Burn Rate: $52.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT PRODUCTS
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22312
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.1 million to DELL MARKETING L.P. for work described as: MICROSOFT PRODUCTS Key points: 1. Significant spending on Microsoft products highlights reliance on specific vendors. 2. Competition was full and open, suggesting potential for price negotiation. 3. Risk of vendor lock-in and price escalation exists despite open competition. 4. IT sector spending is substantial, with software publishers being a key category.
Value Assessment
Rating: good
The $11.1M award for Microsoft products appears reasonable given the volume and duration. Benchmarking against similar enterprise software agreements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and fair market value.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for necessary software licenses and support.
Public Impact
Ensures continued access to essential Microsoft software for Department of Defense operations. Supports critical IT infrastructure and user productivity within the agency. Potential for future cost savings through competitive renewals or alternative solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft products.
- Reliance on a single distributor (Dell) for a large volume of software.
- Future price increases for software licenses and support.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- BPA Call mechanism allows for efficient ordering.
Sector Analysis
This contract falls within the Information Technology sector, specifically software procurement. Spending on software publishers is a significant component of federal IT budgets, often driven by enterprise-wide licensing agreements.
Small Business Impact
While Dell Marketing L.P. is a large business, the contract's full and open competition allows for potential participation by small businesses as subcontractors or through future set-aside opportunities if applicable.
Oversight & Accountability
The use of a BPA Call under full and open competition suggests established oversight processes. However, ongoing monitoring of usage and pricing trends is crucial for accountability.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Vendor lock-in
- Price escalation risk
- Dependence on distributor
- Software obsolescence
Tags
software-publishers, department-of-defense, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.1 million to DELL MARKETING L.P.. MICROSOFT 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 $11.1 million.
What is the period of performance?
Start: 2025-11-01. End: 2026-05-31.
What is the total cost of ownership for these Microsoft products over their lifecycle, including potential support and upgrade costs?
The total cost of ownership extends beyond the initial $11.1M award. It encompasses ongoing maintenance, support fees, and future upgrade cycles for the Microsoft software. Analyzing these long-term costs is essential for accurate budgeting and to identify potential savings through optimized licensing or alternative software solutions.
What are the specific risks associated with relying on Dell as the sole distributor for this large Microsoft software purchase?
Relying on Dell as the sole distributor for this significant Microsoft software purchase introduces risks such as potential price markups compared to direct purchasing or other resellers. It also creates a single point of contact for procurement, potentially limiting negotiation leverage and flexibility in sourcing future software needs.
How effectively does this contract support the Defense Information Systems Agency's mission objectives and technological modernization efforts?
This contract ensures DISA has access to necessary Microsoft software, which is likely integral to many of its operations and user functions. However, its effectiveness in supporting technological modernization depends on whether these software versions align with future strategic goals or if they represent legacy systems that may hinder innovation.
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: $11,103,482
Exercised Options: $11,103,482
Current Obligation: $11,103,482
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600121A0083
IDV Type: BPA
Timeline
Start Date: 2025-11-01
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2025-12-12
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)