Interior Department's $46M Microsoft Enterprise Agreement with Dell Marketing L.P. ran for 4 years
Contract Overview
Contract Amount: $46,094,964 ($46.1M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of the Interior
Start Date: 2005-06-17
End Date: 2009-06-16
Contract Duration: 1,460 days
Daily Burn Rate: $31.6K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DEPT WIDE MICROSOFT ENTERPRISE AGREEMENT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410
Plain-Language Summary
Department of the Interior obligated $46.1 million to DELL MARKETING L.P. for work described as: DEPT WIDE MICROSOFT ENTERPRISE AGREEMENT Key points: 1. The contract provided a broad range of Microsoft software and services, indicating a significant reliance on a single vendor for enterprise-wide IT needs. 2. The fixed-price contract structure offered cost certainty for the Department of the Interior, though it may limit flexibility in adapting to evolving software needs. 3. The contract was awarded as a competitive delivery order, suggesting some level of market engagement, but the specifics of the competition are not detailed. 4. With a duration of four years, the agreement allowed for long-term planning and integration of Microsoft products across departmental systems. 5. The contract's value of approximately $46 million over its term positions it as a substantial IT procurement for the agency.
Value Assessment
Rating: fair
Benchmarking the value of this specific Microsoft Enterprise Agreement is challenging without detailed pricing breakdowns and comparisons to similar agency-wide agreements. However, the $46 million expenditure over four years suggests a significant investment in software licensing and support. The fixed-price nature provides budget predictability. Without knowing the specific software titles and quantities procured, it's difficult to assess if the per-unit costs were competitive against market rates or other government agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded as a competitive delivery order, which implies that multiple vendors had an opportunity to bid. However, the term 'delivery order' often refers to task orders placed against a pre-existing indefinite-delivery indefinite-quantity (IDIQ) contract. The level of competition for the underlying IDIQ and this specific delivery order would determine the extent of price discovery. Without more information on the number of bids received and the nature of the competition for the IDIQ, it's difficult to definitively assess its impact on price.
Taxpayer Impact: A competitive award process, even for a delivery order, generally benefits taxpayers by encouraging vendors to offer more favorable pricing and terms to secure the business.
Public Impact
Federal employees within the Department of the Interior benefit from access to essential Microsoft software and services, enabling daily operations and administrative functions. The contract supports a wide array of IT services and software licenses, crucial for the functioning of various departmental offices and mission-critical systems. The geographic impact is nationwide, as the Department of the Interior operates across numerous locations within the United States and its territories. Workforce implications include ensuring that federal employees have the necessary tools and software to perform their duties efficiently and securely.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with a large enterprise agreement for a specific software suite.
- Risk of over-procurement or under-utilization of software licenses if needs change significantly during the contract term.
- Dependence on a single vendor for critical software updates and security patches.
Positive Signals
- Consolidated purchasing power can lead to better pricing and terms compared to individual software purchases.
- Streamlined procurement and management of software licenses across the department.
- Ensures access to up-to-date software versions and technical support.
Sector Analysis
This contract falls within the broader Information Technology sector, specifically focusing on software licensing and enterprise agreements. The market for enterprise software, particularly from major vendors like Microsoft, is characterized by large, long-term contracts. Government agencies often leverage these agreements to standardize software across their organizations and achieve economies of scale. Comparable spending benchmarks would involve looking at other large federal agencies' enterprise software agreements with similar vendors.
Small Business Impact
The provided data indicates that small business participation (sb) was false for this contract. This suggests that the primary awardee, Dell Marketing L.P., is not a small business, and there is no explicit indication of small business set-asides or subcontracting goals being a significant component of this specific award. Consequently, the direct impact on the small business ecosystem from this particular contract appears limited, though Dell itself 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 the Interior. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified software and services. Transparency is generally achieved through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.
Related Government Programs
- Department of the Interior IT Modernization Initiatives
- Federal Enterprise Software Licensing Programs
- Microsoft Enterprise Agreements across Government
- IT Procurement for Large Federal Agencies
Risk Flags
- Long-term commitment to a single vendor's software ecosystem.
- Potential for software license underutilization or over-utilization.
- Lack of detailed competition specifics for the delivery order.
Tags
it, software-licensing, enterprise-agreement, department-of-the-interior, dell-marketing-lp, firm-fixed-price, competitive-delivery-order, district-of-columbia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $46.1 million to DELL MARKETING L.P.. DEPT WIDE MICROSOFT ENTERPRISE AGREEMENT
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $46.1 million.
What is the period of performance?
Start: 2005-06-17. End: 2009-06-16.
What was the specific scope of software and services included in this $46 million Microsoft Enterprise Agreement?
The provided data does not detail the specific scope of software and services covered by the Department of the Interior's Microsoft Enterprise Agreement with Dell Marketing L.P. Enterprise Agreements typically encompass a broad range of Microsoft products, including operating systems, productivity suites (like Microsoft Office), server software, and potentially cloud services. The exact mix and volume of licenses would have been defined in the contract's statement of work. Without access to the full contract documentation, it's impossible to list the precise software titles and service levels procured under this $46 million award.
How did the pricing of this contract compare to other federal agencies' Microsoft Enterprise Agreements during the 2005-2009 period?
Direct comparison of pricing for this specific $46 million Microsoft Enterprise Agreement (2005-2009) against other federal agencies' agreements is challenging without access to detailed pricing data for all comparable contracts. Government-wide agreements or specific agency-level agreements negotiated by entities like the General Services Administration (GSA) could offer benchmarks. However, pricing can vary significantly based on the volume of licenses, specific product versions, support levels, and the negotiation power of the agency or the vendor. The competitive delivery order nature suggests some market pricing was considered, but the underlying IDIQ terms would be crucial for a full comparison.
What were the primary risks associated with a four-year firm fixed-price contract for enterprise software?
A primary risk with a four-year firm fixed-price enterprise software agreement is the potential for the agency's needs to evolve beyond what was initially contracted, leading to either over-licensing (paying for unused software) or under-licensing (requiring costly amendments or new procurements). Another significant risk is vendor lock-in; committing to a single vendor's ecosystem for an extended period can make it difficult and expensive to switch to alternative solutions later. Furthermore, if software prices decrease significantly in the market during the contract term, the agency might be locked into a higher price. The fixed-price nature also means the vendor bears less risk related to cost overruns, shifting more of that risk to the agency if requirements are not perfectly defined upfront.
What was the performance context and success metrics for this contract?
The provided data does not include specific performance metrics or a detailed performance context for this contract. Typically, performance for such an agreement would be evaluated based on the timely delivery of software licenses and support services, the availability and reliability of the software, and adherence to the terms of the contract. Success would be measured by the extent to which the procured Microsoft software enabled the Department of the Interior's mission objectives and supported its IT infrastructure. Without a contract performance plan or post-award reviews, assessing success is speculative.
How did the Department of the Interior manage the transition or renewal of this enterprise agreement after its 2009 expiration?
The provided data only covers the period from June 17, 2005, to June 16, 2009. Information regarding the transition or renewal of this specific Microsoft Enterprise Agreement after its expiration is not included. Federal agencies typically initiate procurement processes well in advance of contract expiration. This could involve re-competing the requirement, extending the existing contract if options allow and are exercised, or transitioning to a new contract vehicle, potentially with a different vendor or a revised scope of work based on updated agency needs and technological advancements.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Dell Computer Corporation (UEI: 114315195)
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership
Financial Breakdown
Contract Ceiling: $51,155,394
Exercised Options: $51,155,394
Current Obligation: $46,094,964
Parent Contract
Parent Award PIID: GS35F4027D
IDV Type: FSS
Timeline
Start Date: 2005-06-17
Current End Date: 2009-06-16
Potential End Date: 2009-06-16 00:00:00
Last Modified: 2012-06-27
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