DHS ICE Spends $11M on Software Licenses from Dell Marketing L.P
Contract Overview
Contract Amount: $11,007,430 ($11.0M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Homeland Security
Start Date: 2004-11-24
End Date: 2005-04-16
Contract Duration: 143 days
Daily Burn Rate: $77.0K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOFTWARE LICENSES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536
Plain-Language Summary
Department of Homeland Security obligated $11.0 million to DELL MARKETING L.P. for work described as: SOFTWARE LICENSES Key points: 1. Significant spending on software licenses highlights reliance on commercial off-the-shelf (COTS) solutions. 2. Dell Marketing L.P. is a major IT vendor, indicating potential for concentrated spending. 3. The contract was awarded via a competitive delivery order, suggesting some price discovery. 4. Spending is concentrated in the IT sector, specifically within electronic computer manufacturing.
Value Assessment
Rating: fair
The total award amount of $11,007,430.02 for software licenses appears substantial. Benchmarking against similar large-scale software license procurements would be necessary to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, this suggests that multiple vendors had an opportunity to bid, contributing to price discovery. However, the specific competition details and number of bids are not provided.
Taxpayer Impact: Taxpayer funds are utilized for this procurement. The competitive nature of the award order aims to ensure reasonable pricing, but the overall value for money requires further analysis.
Public Impact
Federal agencies rely heavily on software for operations, impacting efficiency and data management. Procurements of this scale can influence market dynamics for software vendors. Transparency in pricing and competition is crucial for public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed pricing breakdown
- Limited information on competition effectiveness
- Potential for vendor lock-in with COTS software
Positive Signals
- Awarded through a competitive process
- Firm fixed price contract type limits cost overrun risk
Sector Analysis
This procurement falls within the Information Technology sector, specifically related to electronic computer manufacturing. Benchmarks for software license spending vary widely based on agency needs and software types.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement. Large IT contracts often involve prime contractors who may or may not subcontract to small businesses.
Oversight & Accountability
The contract was awarded by the Department of Homeland Security (DHS) to U.S. Immigration and Customs Enforcement (ICE). Standard DHS oversight procedures would apply, but specific details are not provided.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- High dollar value for software licenses
- Lack of detailed justification for software selection
- Potential for vendor lock-in
- Limited transparency on competitive pricing outcomes
Tags
electronic-computer-manufacturing, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $11.0 million to DELL MARKETING L.P.. SOFTWARE LICENSES
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).
What is the total obligated amount?
The obligated amount is $11.0 million.
What is the period of performance?
Start: 2004-11-24. End: 2005-04-16.
What specific software was procured, and how does its functionality align with ICE's mission requirements?
The provided data lacks specifics on the exact software titles or suites purchased. Understanding the functionality is critical to assessing if the $11M expenditure directly supports ICE's core mission objectives, such as border security, immigration enforcement, and customs operations, and if alternative, potentially more cost-effective solutions were considered.
What was the competitive landscape for this delivery order, and did it result in significant cost savings compared to non-competitive options?
While designated as a 'competitive delivery order,' the extent of competition and the resulting price savings are not detailed. Further investigation into the number of bids received and the price difference compared to a sole-source or limited-source scenario would clarify the effectiveness of the competition in achieving value for taxpayer money.
What is the long-term cost implication of these software licenses, including maintenance, support, and potential future upgrades?
The $11M represents the initial acquisition cost. A comprehensive analysis must consider the total cost of ownership over the software's lifecycle. This includes annual maintenance fees, technical support costs, and the potential need for expensive upgrades or replacements, which could significantly increase the overall financial burden on ICE.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Technologies Inc. (UEI: 601839660)
Address: ONE DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $442,400,947
Exercised Options: $11,007,430
Current Obligation: $11,007,430
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F4076D
IDV Type: FSS
Timeline
Start Date: 2004-11-24
Current End Date: 2005-04-16
Potential End Date: 2009-06-26 00:00:00
Last Modified: 2017-07-29
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