HHS Spends $27.6M on Microsoft Enterprise Agreement Follow-On, Awarded to Dell
Contract Overview
Contract Amount: $27,617,051 ($27.6M)
Contractor: Dell Computer Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2008-05-01
End Date: 2011-07-15
Contract Duration: 1,170 days
Daily Burn Rate: $23.6K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
Number of Offers Received: 1
Pricing Type: OTHER (NONE OF THE ABOVE)
Sector: IT
Official Description: TAS::75 4554::TAS MICROSOFT ENTERPRISE AGREEMENT TRUUP BASE YEAR - FOLLOW ON TO HHS MS EA - BASE YEAR POP - 05/01/08 - 04/30/09
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $27.6 million to DELL COMPUTER CORPORATION for work described as: TAS::75 4554::TAS MICROSOFT ENTERPRISE AGREEMENT TRUUP BASE YEAR - FOLLOW ON TO HHS MS EA - BASE YEAR POP - 05/01/08 - 04/30/09 Key points: 1. The contract is a follow-on to a competed action, suggesting prior competition. 2. Dell Computer Corporation is the awardee, indicating a specific vendor relationship. 3. The contract covers electronic computer manufacturing, a broad IT category. 4. The total duration is 1170 days, spanning over three years.
Value Assessment
Rating: fair
The reported award amount of $27.6M for a multi-year enterprise agreement appears within a reasonable range for large-scale software licensing. However, without specific details on the software suite and user count, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract is described as a 'FOLLOW ON TO COMPETED ACTION,' which implies previous competition. However, the current awardee is Dell, and the nature of the follow-on (e.g., sole-source extension, recompete) is not explicitly stated, impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for this enterprise software agreement. The value for money depends on the negotiated terms and the necessity of the software for HHS operations.
Public Impact
Federal agencies rely heavily on enterprise software agreements for productivity and IT infrastructure. The use of follow-on actions can streamline procurement but may limit competitive pressure. Transparency in contract details, including pricing and scope, is crucial for public trust. This contract contributes to the overall federal IT spending landscape.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on competition type for the follow-on action.
- Limited insight into specific software components and user base.
- Potential for vendor lock-in with enterprise agreements.
Positive Signals
- Follow-on action suggests a streamlined procurement process.
- Award to a major IT vendor like Dell indicates established supply chain.
- Contract duration provides budget predictability for the agency.
Sector Analysis
This contract falls under the Information Technology sector, specifically related to electronic computer manufacturing and software licensing. Federal IT spending is a significant portion of the overall budget, with enterprise agreements being common for large agencies like HHS.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large enterprise agreements are often awarded to major corporations, potentially limiting direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The contract is awarded by the Department of Health and Human Services (HHS), a large federal agency with established oversight mechanisms. The 'FOLLOW ON TO COMPETED ACTION' designation suggests some level of prior review, but further details on the current justification and approval process are needed.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Lack of detailed scope of work.
- Ambiguity regarding the nature of the 'follow-on' action.
- Potential for uncompetitive pricing if not re-competed.
- Absence of specific performance metrics.
- Limited transparency on software utilization and optimization.
Tags
electronic-computer-manufacturing, department-of-health-and-human-services, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $27.6 million to DELL COMPUTER CORPORATION. TAS::75 4554::TAS MICROSOFT ENTERPRISE AGREEMENT TRUUP BASE YEAR - FOLLOW ON TO HHS MS EA - BASE YEAR POP - 05/01/08 - 04/30/09
Who is the contractor on this award?
The obligated recipient is DELL COMPUTER CORPORATION.
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 $27.6 million.
What is the period of performance?
Start: 2008-05-01. End: 2011-07-15.
What specific Microsoft software products and services are included in this enterprise agreement, and how do they align with HHS's current and future mission needs?
The provided data lacks specifics on the exact Microsoft software suite covered by this enterprise agreement. Understanding the included products (e.g., operating systems, productivity software, cloud services) and their alignment with HHS's operational requirements is crucial for assessing value. Without this detail, it's difficult to determine if the $27.6M expenditure is justified by the agency's actual needs and if it supports strategic IT goals.
What was the competitive landscape during the original competed action, and what factors led to Dell being the awardee for this follow-on agreement?
The data states this is a 'FOLLOW ON TO COMPETED ACTION,' implying a prior competitive process. However, it does not detail the original competitors or the evaluation criteria. Understanding why Dell was selected for this follow-on is key to assessing risk. If the follow-on was not re-competed, it raises questions about whether the government received the best possible pricing and terms compared to a new competitive solicitation.
How does the per-unit cost or total cost of ownership for this Microsoft Enterprise Agreement compare to industry benchmarks for similar government or commercial contracts?
Benchmarking the cost-effectiveness of this $27.6M Microsoft Enterprise Agreement is challenging without granular data on user counts, specific software licenses, support levels, and contract duration. While the total value is provided, a per-unit cost analysis (e.g., per user, per device) against comparable government or commercial agreements is necessary. This would help determine if HHS secured competitive pricing and is achieving optimal value for its investment in Microsoft software.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FOLLOW ON TO COMPETED ACTION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: OTHER (NONE OF THE ABOVE) (3)
Evaluated Preference: NONE
Contractor Details
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,138,094
Exercised Options: $27,617,051
Current Obligation: $27,617,051
Parent Contract
Parent Award PIID: 263030505
IDV Type: GWAC
Timeline
Start Date: 2008-05-01
Current End Date: 2011-07-15
Potential End Date: 2011-07-15 00:00:00
Last Modified: 2014-06-20
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