DoD's $153.6M Software Purchase from Dell Marketing L.P. Under Full and Open Competition
Contract Overview
Contract Amount: $153,596,597 ($153.6M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2021-06-22
End Date: 2022-05-31
Contract Duration: 343 days
Daily Burn Rate: $447.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PERSONA 3
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $153.6 million to DELL MARKETING L.P. for work described as: PERSONA 3 Key points: 1. Significant spending on software publishers, indicating a substantial need for software solutions. 2. Dell Marketing L.P. is a major player, suggesting a competitive landscape for software. 3. The contract's value presents a moderate risk if not managed efficiently. 4. Spending falls within the IT sector, a critical area for government operations.
Value Assessment
Rating: good
The contract value of $153.6 million is substantial. Benchmarking against similar software publisher contracts would be necessary to fully assess its pricing reasonableness, but the firm fixed price structure suggests a degree of cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.
Taxpayer Impact: The competitive award process likely resulted in favorable pricing, maximizing taxpayer value for the software procured.
Public Impact
Ensures the Department of the Navy has access to necessary software for its operations. Supports a major technology vendor, potentially impacting the broader IT market. The large sum allocated highlights the government's reliance on commercial software solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed carefully.
- Risk of software obsolescence over the contract period.
- Dependency on a single vendor for critical software needs.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost predictability.
- Supports a well-established technology provider.
Sector Analysis
This spending falls within the Information Technology sector, specifically software publishing. Government IT spending is consistently high, reflecting the increasing digitization of operations and the need for advanced software solutions across all agencies.
Small Business Impact
While Dell Marketing L.P. is a large business, the contract does not explicitly mention small business participation. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a structured procurement process. Oversight would focus on contract performance, delivery, and adherence to the firm fixed price.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Large contract value.
- Potential for software obsolescence.
- Dependency on a single vendor.
- Lack of specific software details.
- No explicit mention of small business subcontracting.
Tags
software-publishers, department-of-defense, tx, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $153.6 million to DELL MARKETING L.P.. PERSONA 3
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $153.6 million.
What is the period of performance?
Start: 2021-06-22. End: 2022-05-31.
What specific software was procured, and how does it align with the Department of the Navy's strategic objectives?
The data does not specify the exact software titles or categories procured. Understanding the specific software is crucial to assess its alignment with the Department of the Navy's mission requirements and long-term strategic goals. Without this detail, it's difficult to fully evaluate the value and necessity of this significant expenditure.
What are the potential risks associated with a firm fixed price contract for software, especially concerning updates and support?
Firm fixed price contracts can pose risks for software procurement if not carefully structured. The government might face challenges if the vendor is unwilling to provide necessary updates or support without additional charges, or if the software becomes obsolete before the contract ends. Ensuring comprehensive terms for updates, maintenance, and end-of-life support within the initial contract is vital to mitigate these risks.
How does the $153.6 million expenditure compare to the Department of Defense's overall IT budget and similar software procurements?
This expenditure represents a significant portion of the Department of Defense's IT budget, highlighting the importance of software acquisition. Benchmarking this amount against historical spending on similar software categories and against the overall defense IT budget is essential to gauge its efficiency and necessity. Without comparative data, it's challenging to determine if this represents optimal resource allocation.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
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: ONE DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $153,596,597
Exercised Options: $153,596,597
Current Obligation: $153,596,597
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600121A0084
IDV Type: BPA
Timeline
Start Date: 2021-06-22
Current End Date: 2022-05-31
Potential End Date: 2022-05-31 00:00:00
Last Modified: 2023-03-05
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