DHS awards $51.7M for Microsoft Enterprise Licenses, Year 3, via BPA Call
Contract Overview
Contract Amount: $51,696,463 ($51.7M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Homeland Security
Start Date: 2011-06-29
End Date: 2015-06-26
Contract Duration: 1,458 days
Daily Burn Rate: $35.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ENTERPRISE LICENSE COVERAGE YEAR 3 PARTIAL FUNDING MOD 1
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528
Plain-Language Summary
Department of Homeland Security obligated $51.7 million to DELL MARKETING L.P. for work described as: MICROSOFT ENTERPRISE LICENSE COVERAGE YEAR 3 PARTIAL FUNDING MOD 1 Key points: 1. Significant award value for enterprise software licensing. 2. Competition method is Full and Open, suggesting broad market access. 3. Risk of vendor lock-in with enterprise software. 4. IT sector spending, specifically software licensing.
Value Assessment
Rating: fair
The award value of $51.7M for Year 3 of a multi-year license agreement is substantial. Benchmarking against similar large-scale enterprise software contracts is difficult without specific license details, but the price appears within a typical range for comprehensive Microsoft coverage.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a BPA Call, which is a mechanism for utilizing pre-competed agreements. Full and open competition was utilized, indicating that multiple vendors could have bid, potentially leading to competitive pricing.
Taxpayer Impact: Taxpayer funds are used for essential software infrastructure. The competitive award process aims to ensure value for money, though the long-term nature of enterprise licenses can present cost challenges.
Public Impact
Ensures continued access to critical Microsoft software for DHS operations. Supports federal IT infrastructure and employee productivity. Potential for cost savings through bulk licensing agreements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term reliance on a single software vendor.
- Potential for price increases in subsequent years.
- Need for ongoing license management and optimization.
Positive Signals
- Utilizes a competitive procurement vehicle (BPA Call).
- Supports a critical government function (IT infrastructure).
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Information Technology sector, specifically software licensing. Federal spending on enterprise software licenses is a significant component of IT budgets, driven by the need for standardized productivity tools and operating systems across agencies.
Small Business Impact
While the primary awardee is Dell Marketing L.P., the use of a BPA Call under full and open competition could potentially allow for subcontracting opportunities for small businesses, depending on the BPA's structure and Dell's subcontracting plan.
Oversight & Accountability
The Department of Homeland Security's Office of Procurement Operations managed this award. Oversight would involve ensuring compliance with the BPA terms, monitoring performance, and managing contract modifications to ensure continued value and adherence to federal acquisition regulations.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Potential for cost escalation in future years.
- Dependency on Microsoft for critical software.
- Complexity of managing enterprise-wide software licenses.
- Risk of underutilization of licensed software.
Tags
electronic-computer-manufacturing, department-of-homeland-security, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $51.7 million to DELL MARKETING L.P.. MICROSOFT ENTERPRISE LICENSE COVERAGE YEAR 3 PARTIAL FUNDING MOD 1
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 (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $51.7 million.
What is the period of performance?
Start: 2011-06-29. End: 2015-06-26.
What is the total cost of the multi-year contract, and how does it compare to the initial estimated value?
The provided data shows a Year 3 partial funding of $51.7M. To assess the total contract value, data for all years and modifications would be needed. Without this, a comprehensive comparison to an initial estimate is not possible. However, the current funding indicates a substantial investment in enterprise software.
What specific Microsoft products and services are covered under this license, and are there any volume discounts applied?
The data does not specify the exact Microsoft products and services included. This information is crucial for understanding the scope and value. Volume discounts are typical for enterprise agreements, and their application would significantly impact the per-unit cost and overall cost-effectiveness of the contract.
How does the pricing for this Year 3 partial funding compare to previous years and industry benchmarks for similar enterprise agreements?
Benchmarking is challenging without specific product details and license counts. However, the $51.7M for Year 3 suggests a significant ongoing commitment. Price trends year-over-year and comparisons to GSA schedules or other agency agreements for comparable Microsoft suites would be necessary to assess fairness.
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
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,696,463
Exercised Options: $51,696,463
Current Obligation: $51,696,463
Parent Contract
Parent Award PIID: HSHQDC09A00032
IDV Type: BPA
Timeline
Start Date: 2011-06-29
Current End Date: 2015-06-26
Potential End Date: 2015-06-26 00:00:00
Last Modified: 2017-07-28
More Contracts from Dell Marketing L.P.
- Microsoft ESA Agreement — $1.3B (Department of Defense)
- Microsoft Products — $508.0M (Department of Defense)
- Microsoft M365 E5 — $477.2M (Department of Defense)
- 200410!000781!5700!GV90 !ssg/Pk !gs35f4076d !C!N! !n!fa877104f8320! !20040630!20040709!114315195!114315195!114315195!n!dell Marketing L P !ONE Dell WAY !round Rock !tx!78682!63500!491!48!round Rock !williamson !texas !+000012313462!n!n!000000000000!7030!adp Software !A7 !electronics and Communication Equip !000 !* !511210!E! !6! ! ! ! ! !99990909!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! ! — $471.3M (Department of Defense)
- Microsoft Enterprise Products — $354.9M (Department of Defense)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)