DoD's $245M Microsoft Persona 5 Contract Awarded to Dell Marketing L.P. Under Full and Open Competition
Contract Overview
Contract Amount: $244,881,345 ($244.9M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2023-06-01
End Date: 2024-05-31
Contract Duration: 365 days
Daily Burn Rate: $670.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT PERSONA 5
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $244.9 million to DELL MARKETING L.P. for work described as: MICROSOFT PERSONA 5 Key points: 1. Significant contract value of $245M for software. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the established vendor and contract type. 4. Sector is IT, specifically software publishing.
Value Assessment
Rating: good
The contract value of $245M for software is substantial. Benchmarking against similar large-scale software procurements would be necessary for a precise pricing assessment, but the firm fixed price and full competition suggest a reasonable outcome.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages a competitive marketplace and potentially lower prices.
Public Impact
Department of Defense software procurement impacting operational capabilities. Potential for widespread use within the Navy, affecting personnel and systems. Contract award to a major IT vendor highlights reliance on commercial off-the-shelf software.
Waste & Efficiency Indicators
Waste Risk Score: 67 / 10
Warning Flags
- Potential for vendor lock-in with specialized software.
- Reliance on a single software product could create integration challenges.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Awarded to a reputable vendor.
Sector Analysis
This contract falls within the IT sector, specifically software publishing. Government spending on software licenses and subscriptions is a significant portion of IT budgets, often driven by the need for specialized or commercial off-the-shelf solutions.
Small Business Impact
While the award went to Dell Marketing L.P., a large business, the use of full and open competition theoretically allows small businesses to participate as subcontractors or through prime bids on future similar procurements.
Oversight & Accountability
The Department of the Navy's procurement process, utilizing full and open competition and a firm fixed price contract, suggests adherence to standard oversight practices. Monitoring performance and adherence to terms will be key.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for vendor lock-in.
- Lack of detailed functional description.
- High contract value requires close monitoring.
- Dependence on a single software product.
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 $244.9 million to DELL MARKETING L.P.. MICROSOFT PERSONA 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 $244.9 million.
What is the period of performance?
Start: 2023-06-01. End: 2024-05-31.
What is the specific functionality and necessity of 'Microsoft Persona 5' for the Department of the Navy?
The specific functionality of 'Microsoft Persona 5' is not detailed in the provided data. However, given the context of a Department of Defense contract, it likely pertains to specialized software for user identity management, security, or operational simulation. Understanding its precise role is crucial for assessing its necessity and value beyond standard software offerings.
How does the $245M cost compare to industry benchmarks for similar enterprise software solutions?
Without knowing the exact nature of 'Microsoft Persona 5,' a direct cost comparison is difficult. However, $245M is a substantial investment. Benchmarking would require identifying comparable enterprise software suites (e.g., identity management, simulation platforms) from major vendors and analyzing their pricing structures, including licensing, support, and implementation costs over a similar duration.
What are the potential long-term risks associated with relying on a single, potentially proprietary software solution like 'Microsoft Persona 5'?
Long-term risks include vendor lock-in, making future transitions costly and complex. Dependence on a single solution can also lead to vulnerabilities if the vendor discontinues support or if security flaws are discovered. Furthermore, it may stifle innovation if alternative, more advanced solutions emerge in the market that are incompatible or too expensive to integrate.
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: $244,881,345
Exercised Options: $244,881,345
Current Obligation: $244,881,345
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600121A0083
IDV Type: BPA
Timeline
Start Date: 2023-06-01
Current End Date: 2024-05-31
Potential End Date: 2024-05-31 00:00:00
Last Modified: 2025-10-27
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