DoD Spends $6.65M on Microsoft Products via BPA Call with Dell Marketing L.P
Contract Overview
Contract Amount: $6,651,106 ($6.7M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2026-01-08
End Date: 2026-05-31
Contract Duration: 143 days
Daily Burn Rate: $46.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT PRODUCTS
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $6.7 million to DELL MARKETING L.P. for work described as: MICROSOFT PRODUCTS Key points: 1. Significant spending on software publishers, with Microsoft products being a key focus. 2. Dell Marketing L.P. is a competitor in the software and hardware space. 3. Risk of vendor lock-in and potential for higher costs if competition is not sustained. 4. IT sector spending, specifically on software licenses and support.
Value Assessment
Rating: fair
The total award amount of $6.65M for Microsoft products is substantial. Benchmarking against similar contracts for enterprise software licenses and support is necessary to determine true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a BPA Call with full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms within the BPA call need further review to ensure optimal price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential software. Ensuring competitive pricing through the BPA call mechanism is crucial for maximizing the value of this expenditure.
Public Impact
Ensures access to critical Microsoft software for Department of Defense operations. Supports the Defense Information Systems Agency's mission through necessary software procurement. Potential for follow-on contracts or renewals, impacting future spending. Highlights the reliance on major software vendors for government IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases on future renewals.
- Dependence on a single vendor's ecosystem.
- Limited visibility into per-unit cost breakdown.
Positive Signals
- Awarded under full and open competition.
- Utilizes an existing BPA call, potentially streamlining procurement.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Information Technology sector, specifically software procurement. Spending benchmarks for enterprise software licenses and support vary widely based on the specific products and quantities, but $6.65M represents a significant investment.
Small Business Impact
While Dell Marketing L.P. is a large business, the contract was awarded under full and open competition, which theoretically allows for small business participation as subcontractors. However, direct small business awards are not indicated.
Oversight & Accountability
The use of a BPA Call suggests an established procurement vehicle. Oversight should focus on ensuring the terms of the BPA call are being met and that the pricing remains competitive throughout the contract period.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for price escalation in future contract periods.
- Vendor lock-in associated with Microsoft's ecosystem.
- Lack of detailed cost breakdown for specific products.
- Reliance on a single supplier (Microsoft) for critical software.
Tags
software-publishers, department-of-defense, al, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.7 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 $6.7 million.
What is the period of performance?
Start: 2026-01-08. End: 2026-05-31.
What is the specific breakdown of Microsoft products being procured and their associated unit costs?
The provided data does not detail the specific Microsoft products or their unit costs. A breakdown is essential for a thorough value assessment. Understanding the mix of operating systems, productivity software, and specialized applications, along with their respective license types (perpetual, subscription, user-based, device-based), is crucial for benchmarking and identifying potential cost-saving opportunities.
How does the pricing compare to other government or commercial contracts for similar Microsoft software bundles?
Benchmarking is critical. Without comparative data, it's difficult to ascertain if $6.65M represents a fair price. Factors like volume discounts, contract duration, and included support levels significantly influence pricing. Comparing against GSA schedules, other agency contracts, or even commercial enterprise agreements would provide valuable insights into potential overpayment or cost-effectiveness.
What is the long-term strategy for Microsoft software procurement and potential for alternative solutions?
This contract represents a point-in-time purchase. A long-term strategy should consider the total cost of ownership, including maintenance, upgrades, and training. Exploring open-source alternatives or consolidating software licenses could lead to significant savings and reduce vendor dependency over time. Evaluating the necessity of all procured Microsoft products is also key.
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: $6,651,106
Exercised Options: $6,651,106
Current Obligation: $6,651,106
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600121A0083
IDV Type: BPA
Timeline
Start Date: 2026-01-08
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2026-01-08
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