HHS awards $12.8M for Microsoft Enterprise Licenses to CDW Government LLC
Contract Overview
Contract Amount: $12,828,958 ($12.8M)
Contractor: CDW Government LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2017-12-29
End Date: 2022-12-31
Contract Duration: 1,828 days
Daily Burn Rate: $7.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT SOFTWARE ENTERPRISE LICENSE AGREEMENT
Place of Performance
Location: VERNON HILLS, LAKE County, ILLINOIS, 60061
State: Illinois Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $12.8 million to CDW GOVERNMENT LLC for work described as: MICROSOFT SOFTWARE ENTERPRISE LICENSE AGREEMENT Key points: 1. Significant investment in enterprise software licenses for NIH. 2. CDW Government LLC secured the contract. 3. Potential for cost savings through enterprise agreements. 4. Focus on IT services within the healthcare sector.
Value Assessment
Rating: fair
The total award amount is $12.8M over five years. Benchmarking against similar enterprise license agreements for Microsoft products is difficult without specific product details and user counts. However, the duration suggests a comprehensive deployment.
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 ensures the government receives fair market value.
Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process for essential software licenses.
Public Impact
Ensures access to critical Microsoft software for federal health research. Supports the operational needs of the National Institutes of Health. Potential for widespread use across various NIH departments and projects. Long-term agreement provides budget predictability for software procurement.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Lack of specific software details limits cost-effectiveness assessment.
- Vendor lock-in risk with enterprise licenses.
- Potential for underutilization of licenses.
Positive Signals
- Long-term agreement provides stability.
- Full and open competition ensures fair pricing.
- Supports critical government research functions.
Sector Analysis
This contract falls within the IT sector, specifically software licensing for government agencies. Benchmarks for similar enterprise agreements vary widely based on the specific Microsoft products and the scale of deployment.
Small Business Impact
While this contract was awarded under full and open competition, there is no specific indication of small business participation or subcontracting. Large enterprise agreements often favor major resellers.
Oversight & Accountability
The contract was awarded via a delivery order under an existing agreement, suggesting prior oversight. The duration and value warrant continued monitoring to ensure continued value and adherence to terms.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Lack of specific software details.
- Potential for license underutilization.
- Vendor lock-in.
- Limited visibility into specific product pricing.
- No explicit small business set-aside.
Tags
other-computer-related-services, department-of-health-and-human-services, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $12.8 million to CDW GOVERNMENT LLC. MICROSOFT SOFTWARE ENTERPRISE LICENSE AGREEMENT
Who is the contractor on this award?
The obligated recipient is CDW GOVERNMENT LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2017-12-29. End: 2022-12-31.
What is the specific breakdown of Microsoft products and user counts covered by this enterprise license agreement?
The provided data does not specify the exact Microsoft products included in this enterprise license agreement, nor does it detail the number of users or devices covered. This information is crucial for a precise cost-benefit analysis and for understanding the full scope of the software deployment across the National Institutes of Health.
How does the per-unit cost of these licenses compare to commercial market rates for similar enterprise agreements?
Without the specific product SKUs, license types (e.g., CALs, server licenses), and user counts, a direct per-unit cost comparison to commercial market rates is not feasible. However, enterprise agreements are typically negotiated for volume discounts, which should result in a lower per-unit cost than individual purchases, assuming competitive bidding.
What mechanisms are in place to ensure the NIH is not overpaying for licenses that may become underutilized over the contract's five-year term?
The contract's 'full and open competition' award method suggests initial price discovery. However, ongoing oversight is critical. Mechanisms like periodic license audits, tracking actual usage, and incorporating flexible terms for adjustments in future orders would help mitigate overpayment risk due to underutilization.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: NIHJT2014002
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,827,046
Exercised Options: $12,827,046
Current Obligation: $12,828,958
Actual Outlays: $3,221,833
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSN316201500011W
IDV Type: GWAC
Timeline
Start Date: 2017-12-29
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2026-04-15
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