DoD's $159M Microsoft Software Purchase Under Full and Open Competition
Contract Overview
Contract Amount: $159,275,151 ($159.3M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2022-06-01
End Date: 2022-11-30
Contract Duration: 182 days
Daily Burn Rate: $875.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT PERSONAS 3, 4, 5
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $159.3 million to DELL MARKETING L.P. for work described as: MICROSOFT PERSONAS 3, 4, 5 Key points: 1. Significant investment in Microsoft software licenses. 2. Competition was robust, involving DELL MARKETING L.P. 3. Risk appears moderate given established software and competition. 4. Spending falls within the Software Publishers sector.
Value Assessment
Rating: good
The $159.3M award for Microsoft software appears reasonable given the nature of enterprise software licensing. Benchmarking against similar large-scale government software procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open solicitation process for essential software.
Public Impact
Ensures access to critical software for Department of the Navy operations. Supports software licensing needs across various defense applications. Potential for cost savings through competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Software obsolescence risk over time.
- Dependence on a single vendor (Microsoft) for core functionality.
Positive Signals
- Full and open competition ensures best value.
- Clear contract period with defined end date.
Sector Analysis
The Department of Defense's significant investment in software aligns with broader government IT spending trends. Benchmarks for enterprise software licenses vary widely but this award represents a substantial commitment.
Small Business Impact
This contract does not appear to directly involve small businesses as prime contractors, focusing instead on large enterprise software solutions. Subcontracting opportunities for small businesses are not detailed in the provided data.
Oversight & Accountability
The award was made under a BPA Call, suggesting it falls under a pre-negotiated agreement. Oversight would involve monitoring contract performance and adherence to terms by the Department of the Navy.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for vendor lock-in with Microsoft.
- Risk of software becoming outdated if not managed proactively.
- Dependence on a single supplier for critical IT functions.
- Need for ongoing monitoring of license utilization and compliance.
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 $159.3 million to DELL MARKETING L.P.. MICROSOFT PERSONAS 3, 4, 5
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 $159.3 million.
What is the period of performance?
Start: 2022-06-01. End: 2022-11-30.
What is the specific breakdown of software products included in this $159M award?
The provided data does not specify the exact Microsoft software products covered by this $159.3M award. Further details would be needed to understand the specific licenses, versions, and quantities procured, which is crucial for assessing value and potential future upgrade requirements.
How does the per-unit cost compare to commercial pricing for these Microsoft licenses?
A direct per-unit cost comparison to commercial pricing is not possible without knowing the specific software titles and license types. Government contracts often include volume discounts, but also may have specific terms that differ from commercial offerings, making a direct benchmark challenging.
What is the long-term strategy for managing Microsoft software licenses and potential vendor lock-in?
The long-term strategy for managing these licenses and mitigating vendor lock-in is not detailed. Agencies typically employ software asset management (SAM) tools and strategies, including periodic re-competition or exploring alternative solutions, to manage costs and reduce reliance on a single provider over time.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
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: $159,275,151
Exercised Options: $159,275,151
Current Obligation: $159,275,151
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600121A0083
IDV Type: BPA
Timeline
Start Date: 2022-06-01
Current End Date: 2022-11-30
Potential End Date: 2023-05-31 00:00:00
Last Modified: 2025-10-27
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