DHS awarded $61.8M for Microsoft Software Assurance to Dell Marketing L.P., a firm fixed-price contract
Contract Overview
Contract Amount: $61,812,343 ($61.8M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Homeland Security
Start Date: 2013-06-28
End Date: 2015-06-26
Contract Duration: 728 days
Daily Burn Rate: $84.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT SOFTWARE ASSURANCE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472
Plain-Language Summary
Department of Homeland Security obligated $61.8 million to DELL MARKETING L.P. for work described as: MICROSOFT SOFTWARE ASSURANCE Key points: 1. The contract value of $61.8M over two years represents a significant investment in software licensing and support. 2. Dell Marketing L.P. secured this award through full and open competition, suggesting a competitive bidding process. 3. The firm fixed-price contract type indicates that the government has a clear understanding of the scope and cost. 4. This award falls under the Electronic Computer Manufacturing NAICS code, aligning with IT hardware and software procurement. 5. The contract duration of 728 days (2 years) provides a stable period for software assurance services. 6. The award amount of $84.9M is noted, though the awarded value is $61.8M.
Value Assessment
Rating: fair
The awarded value of $61.8M for Microsoft Software Assurance over two years needs further benchmarking against similar government-wide agreements or enterprise licenses. Without specific details on the software covered and the level of assurance, it's challenging to definitively assess value for money. However, the firm fixed-price nature suggests cost certainty for the government. The reported 'br' value of $84.9M, if representing a ceiling or previous award, would indicate this award is below that, potentially a positive sign if scope is comparable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The fact that Dell Marketing L.P. was the selected contractor suggests they offered the most advantageous proposal based on the evaluation criteria. The number of bidders is not specified, but full and open competition generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring the government receives competitive pricing for its software assurance needs.
Public Impact
Federal employees within the Department of Homeland Security will benefit from access to updated Microsoft software and support services. The contract ensures the continued availability and security of critical Microsoft software for DHS operations. The geographic impact is primarily within the District of Columbia, where DHS headquarters and many operations are located. This contract supports the IT workforce by providing necessary tools and licenses for their daily tasks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft products, requiring ongoing significant investment.
- The specific terms and conditions of the 'Software Assurance' are not detailed, making it hard to gauge the full scope of services.
- Reliance on a single vendor (Microsoft) for core software needs can pose long-term strategic risks.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Firm fixed-price contract provides cost certainty for the duration of the award.
- Ensures continued access to essential software and support for a critical federal agency.
Sector Analysis
This contract falls within the broader Information Technology sector, specifically focusing on software licensing and assurance. The market for enterprise software licensing, particularly for major vendors like Microsoft, is substantial within the federal government. Comparable spending benchmarks would involve looking at other large federal IT procurements for software maintenance and assurance agreements, as well as government-wide agreements like Enterprise Software Agreements (ESAs) or General Services Administration (GSA) schedules.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). As Dell Marketing L.P. is a large business, there is no direct subcontracting requirement for small businesses explicitly stated in this award data. The impact on the small business ecosystem is therefore minimal from this specific contract's structure, though Dell may engage small businesses in its broader supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security's Office of Procurement Operations. Accountability is ensured through the firm fixed-price contract terms, requiring delivery of specified software assurance services. Transparency is provided through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Microsoft Enterprise Agreements
- Software and Information Systems
- IT Procurement
- Department of Homeland Security IT Spending
- General Services Administration Schedules
Risk Flags
- Potential Vendor Lock-in
- Lack of Specific Software Details
- Reliance on Proprietary Software
Tags
it, software-licensing, software-assurance, department-of-homeland-security, dell-marketing-l-p, microsoft, firm-fixed-price, full-and-open-competition, district-of-columbia, federal-contract, information-technology, naics-334111
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $61.8 million to DELL MARKETING L.P.. MICROSOFT SOFTWARE ASSURANCE
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 $61.8 million.
What is the period of performance?
Start: 2013-06-28. End: 2015-06-26.
What specific Microsoft software products and versions are covered under this Software Assurance contract?
The provided data does not specify the exact Microsoft software products and versions included in this $61.8M Software Assurance contract. Software Assurance typically covers a range of benefits for specific Microsoft products, which can include new version rights, deployment planning services, training vouchers, 24x7 technical support, and home-use rights. Understanding the precise software covered is crucial for assessing the value proposition and ensuring the contract meets the evolving needs of the Department of Homeland Security (DHS). Without this detail, it's difficult to compare the cost-effectiveness against alternative solutions or other government agreements.
How does the awarded value of $61.8M compare to previous or similar Microsoft Software Assurance contracts awarded by DHS or other agencies?
Benchmarking this $61.8M award requires access to historical contract data for similar Microsoft Software Assurance agreements. The data indicates a 'br' value of $84.9M, which could represent a ceiling, a previous award, or a related contract. If $84.9M was a prior award for comparable services, then $61.8M represents a cost saving. However, without knowing the duration, scope, and specific software covered for the $84.9M figure, a direct comparison is difficult. Generally, large enterprise agreements for software assurance can range from tens to hundreds of millions of dollars over several years, depending on the agency's size and software footprint.
What were the key evaluation criteria used in the full and open competition that led to Dell Marketing L.P. being awarded this contract?
The provided data does not detail the specific evaluation criteria used for this 'full and open competition' award. Typically, for firm fixed-price contracts, evaluation criteria might include factors such as technical approach, past performance, management capability, and price. Given it's software assurance, the vendor's ability to provide timely support, access to new versions, and potentially deployment services would be important. The 'most advantageous offer' to the government, considering both technical merit and cost, would have been selected. Further details would likely be found in the original solicitation documents.
What are the specific benefits and services included under 'Microsoft Software Assurance' in this contract?
The term 'Microsoft Software Assurance' encompasses a bundle of benefits designed to enhance the value of Microsoft software licenses. While the exact package for this $61.8M DHS contract isn't detailed, typical Software Assurance benefits include rights to new software versions released during the coverage period, deployment planning services, training vouchers for IT staff, 24x7 problem resolution support, and sometimes home-use rights for employees. For DHS, these benefits likely translate to ensuring their software is up-to-date, secure, and that their IT staff are trained to manage it effectively, thereby supporting operational continuity and efficiency.
What is the track record of Dell Marketing L.P. in fulfilling large federal IT contracts, particularly for software licensing and assurance?
Dell Marketing L.P. is a major federal contractor with a significant history of providing IT hardware, software, and related services to government agencies. While this specific award is for Microsoft Software Assurance, Dell often acts as a reseller and integrator for various software products. Their track record generally involves fulfilling large-scale procurements, including those through GSA schedules and other competitive vehicles. Assessing their performance on this specific contract would require reviewing past performance evaluations and any contract modifications or disputes associated with this award or similar ones.
Are there any identified risks associated with this contract, such as vendor lock-in or potential cost overruns despite the fixed-price nature?
Despite being a firm fixed-price contract, risks can still exist. A primary concern with large software assurance agreements, especially for proprietary software like Microsoft's, is vendor lock-in. This means the agency becomes heavily reliant on the vendor's ecosystem, making it difficult and costly to switch to alternative solutions in the future. While the price is fixed, the scope of 'Software Assurance' benefits needs to be clearly defined and managed to prevent scope creep or disputes over what services are included. Additionally, if the software itself has vulnerabilities or if support levels are not met, operational risks could arise for DHS.
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: $61,812,343
Exercised Options: $61,812,343
Current Obligation: $61,812,343
Parent Contract
Parent Award PIID: HSHQDC09A00032
IDV Type: BPA
Timeline
Start Date: 2013-06-28
Current End Date: 2015-06-26
Potential End Date: 2015-06-26 00:00:00
Last Modified: 2017-08-01
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