HHS Awards $62.6M Microsoft Enterprise Agreement to CDW Government LLC
Contract Overview
Contract Amount: $62,623,608 ($62.6M)
Contractor: CDW Government LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2014-06-28
End Date: 2019-05-01
Contract Duration: 1,768 days
Daily Burn Rate: $35.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF MICROSOFT ENTERPRISE AGREEMENT FOR NIH/CIT/ISDP
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $62.6 million to CDW GOVERNMENT LLC for work described as: IGF::CT::IGF MICROSOFT ENTERPRISE AGREEMENT FOR NIH/CIT/ISDP Key points: 1. Significant spending on enterprise software licenses. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk of vendor lock-in and potential for future price increases. 4. IT sector spending, with benchmarks for similar agreements. 5. Long-term contract duration may impact adaptability to new technologies.
Value Assessment
Rating: good
The contract value of $62.6 million over approximately 5 years appears reasonable for a large enterprise Microsoft agreement. Benchmarking against similar government-wide or agency-specific Microsoft Enterprise Agreements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a delivery order under an existing agreement suggests a structured procurement process.
Taxpayer Impact: Taxpayer funds are used for this significant IT expenditure. Competitive bidding aims to ensure value for money, but ongoing management is crucial to control costs over the contract's life.
Public Impact
Provides essential software for critical government operations at NIH. Impacts IT infrastructure and user productivity across multiple agencies. Potential for cost savings through enterprise-wide licensing and volume discounts. Ensures access to updated software and support services for federal employees.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if usage or licensing terms are not managed effectively.
- Risk of technology obsolescence over the contract's duration.
- Dependence on a single vendor for critical software infrastructure.
Positive Signals
- Awarded through full and open competition.
- Long-term agreement provides budget stability for IT software.
- Likely includes volume discounts and enterprise-level support.
Sector Analysis
This contract falls within the Information Technology sector, specifically enterprise software licensing. Government spending on enterprise software, particularly from major vendors like Microsoft, is substantial and often benchmarked against other federal agencies and large commercial entities.
Small Business Impact
The data does not indicate specific participation or set-asides for small businesses in this particular contract. Large enterprise agreements often involve major IT vendors or resellers, which may limit direct small business involvement unless they are subcontractors.
Oversight & Accountability
Oversight would typically involve contract management by the agency's contracting officer and program managers to ensure compliance with terms, delivery of services, and appropriate use of funds. Regular reviews and audits are standard for such significant contracts.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for cost escalation in future renewals.
- Risk of underutilization of licensed software.
- Dependence on Microsoft for critical IT infrastructure.
- Contract duration may outpace technological advancements.
Tags
electronic-computer-manufacturing, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $62.6 million to CDW GOVERNMENT LLC. IGF::CT::IGF MICROSOFT ENTERPRISE AGREEMENT FOR NIH/CIT/ISDP
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 $62.6 million.
What is the period of performance?
Start: 2014-06-28. End: 2019-05-01.
What is the total cost per user or per device over the life of the contract, and how does this compare to industry benchmarks for similar Microsoft enterprise agreements?
Calculating the precise cost per user or device requires detailed usage data and specific license types included in the agreement. Without this granular information, a direct comparison is difficult. However, for large enterprise agreements, costs can range significantly based on the software suite, support levels, and negotiated discounts. Benchmarking against publicly available data for similar government or large commercial Microsoft EA's would be necessary for a meaningful assessment.
What mechanisms are in place to mitigate the risk of vendor lock-in and ensure future cost-effectiveness as technology evolves?
Mitigation strategies for vendor lock-in often include carefully defined contract terms that allow for flexibility, periodic reviews of software needs, and exploring open-source alternatives where feasible. The contract's duration and renewal clauses are critical. Agencies should actively monitor technological advancements and market shifts to renegotiate terms or transition to new solutions before the current agreement becomes overly restrictive or cost-prohibitive.
How effectively does this agreement support the specific IT needs and mission objectives of NIH and other participating agencies?
The effectiveness of the agreement hinges on its alignment with the agencies' strategic IT roadmaps and operational requirements. Successful implementation would be evidenced by improved user productivity, enhanced cybersecurity posture, streamlined IT management, and cost savings compared to unmanaged software procurement. Regular feedback from end-users and IT staff, alongside performance metrics, would provide insights into its actual effectiveness.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
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: NIHJT2014004
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CDW Corporation (UEI: 808068253)
Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $62,623,608
Exercised Options: $62,623,608
Current Obligation: $62,623,608
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 263030501
IDV Type: GWAC
Timeline
Start Date: 2014-06-28
Current End Date: 2019-05-01
Potential End Date: 2019-05-01 00:00:00
Last Modified: 2019-05-06
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