DoD Awards $153.6M for Microsoft 365 E5 Licenses to Dell Marketing L.P
Contract Overview
Contract Amount: $153,615,670 ($153.6M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2023-01-31
End Date: 2026-01-31
Contract Duration: 1,096 days
Daily Burn Rate: $140.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 8509649109!M365 E5 FOR OFFICE USERS
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $153.6 million to DELL MARKETING L.P. for work described as: 8509649109!M365 E5 FOR OFFICE USERS Key points: 1. Significant award for enterprise software licenses, indicating substantial user base. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk appears moderate given the established nature of the software and vendor. 4. Spending is within the IT sector, specifically software publishers.
Value Assessment
Rating: good
The contract value of $153.6 million for Microsoft 365 E5 licenses appears reasonable given the scale of enterprise software deployments. Benchmarking against similar large-scale government or enterprise software agreements would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. The use of a BPA Call suggests a streamlined process within an existing framework.
Taxpayer Impact: Taxpayer funds are being used for essential software licenses, with competition aiming to ensure cost-effectiveness.
Public Impact
Ensures continued access to critical productivity and security software for Department of Defense users. Supports digital transformation initiatives within the DoD by providing advanced collaboration tools. Potential for enhanced cybersecurity posture through M365 E5's security features.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft products.
- Need for ongoing training and support for users.
- Cybersecurity risks associated with cloud-based software.
Positive Signals
- Awarded under full and open competition.
- Long-term contract provides budget stability.
- Leverages established enterprise software.
Sector Analysis
This award falls within the Information Technology sector, specifically software licensing. Government spending on enterprise software suites like Microsoft 365 is substantial and reflects the increasing digitization of government operations.
Small Business Impact
The awardee is Dell Marketing L.P., a large business. There is no explicit indication of small business participation in this specific award, which is common for large enterprise software contracts.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, indicating established procurement processes. Oversight would involve monitoring contract performance, license utilization, and adherence to terms.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Dependence on a single software vendor.
- Potential for future price increases upon contract renewal.
- Complexity of managing licenses across a large organization.
- Need for robust data security and privacy controls.
Tags
software-publishers, department-of-defense, va, 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.. 8509649109!M365 E5 FOR OFFICE USERS
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 (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $153.6 million.
What is the period of performance?
Start: 2023-01-31. End: 2026-01-31.
What is the projected cost per user over the contract duration?
The total contract value is $153.6 million over approximately three years. Without the exact number of users, a precise per-user cost cannot be calculated. However, this figure represents a significant investment in enterprise software, and understanding the user count is crucial for assessing the value and efficiency of the per-user licensing model.
What are the specific cybersecurity benefits M365 E5 provides to the DoD?
Microsoft 365 E5 includes advanced security features such as threat protection, identity and access management, information protection, and compliance tools. These are designed to help organizations defend against sophisticated cyber threats, manage user access securely, and protect sensitive data, which are critical for a defense agency.
How does this contract align with the DoD's broader IT modernization strategy?
This contract supports the DoD's IT modernization by providing a unified platform for communication, collaboration, and productivity. Leveraging cloud-based solutions like M365 E5 can enhance agility, improve data sharing, and enable more efficient workflows, aligning with goals to modernize infrastructure and adopt modern technologies.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: 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: Francisco Partners Management, L.P.
Address: ONE DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,161,060,962
Exercised Options: $1,956,386,215
Current Obligation: $153,615,670
Actual Outlays: $38,105,435
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600121A0083
IDV Type: BPA
Timeline
Start Date: 2023-01-31
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-11-18
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