DHS Awards $52.6M for Microsoft License Maintenance to Dell Federal Systems
Contract Overview
Contract Amount: $52,625,338 ($52.6M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Homeland Security
Start Date: 2017-06-27
End Date: 2020-06-26
Contract Duration: 1,095 days
Daily Burn Rate: $48.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS PR FUNDS THE NEW BASE YEAR FOR MICROSOFT LICENSE MAINTENANCE - BPA CALL AGAINST HSHQDC-15-A-00017. POP: 6/27/17 TO 6/26/18 COR: ANTOINE BROOKS
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $52.6 million to DELL FEDERAL SYSTEMS L.P for work described as: THIS PR FUNDS THE NEW BASE YEAR FOR MICROSOFT LICENSE MAINTENANCE - BPA CALL AGAINST HSHQDC-15-A-00017. POP: 6/27/17 TO 6/26/18 COR: ANTOINE BROOKS Key points: 1. Contract awarded for base year of Microsoft license maintenance. 2. Competition method was 'Full and Open', suggesting broad market access. 3. Risk appears moderate given the nature of software maintenance contracts. 4. Spending falls within IT services sector, specifically 'Other Computer Related Services'.
Value Assessment
Rating: good
The contract value of $52.6M for a one-year base period for Microsoft license maintenance appears reasonable. Benchmarking against similar large-scale software maintenance contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded via a BPA Call under a 'Full and Open Competition' BPA. This method generally promotes competitive pricing by allowing any qualified vendor to bid.
Taxpayer Impact: Taxpayer funds are being used for essential software maintenance, ensuring operational continuity for the Transportation Security Administration.
Public Impact
Ensures continued operation of critical Microsoft software for TSA. Supports government-wide IT infrastructure through established BPA. Potential for future renewals or expansions of license agreements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in subsequent years.
- Dependence on a single vendor for maintenance.
Positive Signals
- Awarded under a competitive BPA.
- Supports essential government IT functions.
Sector Analysis
This contract falls under the Information Technology sector, specifically 'Other Computer Related Services'. IT spending for software maintenance is a significant portion of government IT budgets, often benchmarked against commercial rates.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Dell Federal Systems, a large business. There is no direct indication of small business participation in this specific award.
Oversight & Accountability
The contract was awarded under a Blanket Purchase Agreement (BPA), which typically involves established oversight mechanisms. Further review of the BPA's terms and the call order would clarify specific accountability measures.
Related Government Programs
- Other Computer Related Services
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Potential for price increases in future years.
- Vendor lock-in for critical software maintenance.
- Limited visibility into total contract cost without option period data.
Tags
other-computer-related-services, department-of-homeland-security, tx, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $52.6 million to DELL FEDERAL SYSTEMS L.P. THIS PR FUNDS THE NEW BASE YEAR FOR MICROSOFT LICENSE MAINTENANCE - BPA CALL AGAINST HSHQDC-15-A-00017. POP: 6/27/17 TO 6/26/18 COR: ANTOINE BROOKS
Who is the contractor on this award?
The obligated recipient is DELL FEDERAL SYSTEMS L.P.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $52.6 million.
What is the period of performance?
Start: 2017-06-27. End: 2020-06-26.
What is the total cost of ownership for these Microsoft licenses over the full contract duration, including potential option periods?
The provided data only covers the base year cost of $52.6M. To determine the total cost of ownership, information on any exercised option periods and their associated values would be required. Without this, a comprehensive assessment of long-term financial commitment and value is not possible.
What are the specific risks associated with relying on a single vendor for critical software maintenance, and are there mitigation strategies in place?
The primary risk is vendor lock-in and potential price escalations. Mitigation strategies could include negotiating multi-year agreements with price caps, exploring alternative software solutions, or ensuring robust service level agreements are in place to guarantee support quality and responsiveness.
How does the pricing for this Microsoft license maintenance compare to similar government or commercial contracts for comparable services?
Benchmarking this $52.6M contract against similar government or commercial agreements for Microsoft license maintenance is crucial for assessing value. Factors like the specific software versions, support levels, and contract duration influence pricing, making direct comparisons challenging without detailed specifications.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Technologies Inc.
Address: 1 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: $52,625,338
Exercised Options: $52,625,338
Current Obligation: $52,625,338
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSHQDC15A00017
IDV Type: BPA
Timeline
Start Date: 2017-06-27
Current End Date: 2020-06-26
Potential End Date: 2020-06-26 12:06:00
Last Modified: 2022-04-27
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