State Dept Renews MSO 365 for $6.76M via CDW Government, Lacking Competition
Contract Overview
Contract Amount: $675,678 ($675.7K)
Contractor: CDW Government LLC
Awarding Agency: Department of State
Start Date: 2024-05-01
End Date: 2027-04-30
Contract Duration: 1,094 days
Daily Burn Rate: $618/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MSO 365 RENEWAL
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79902
State: Texas Government Spending
Plain-Language Summary
Department of State obligated $675,677.92 to CDW GOVERNMENT LLC for work described as: MSO 365 RENEWAL Key points: 1. High renewal cost for MSO 365, raising questions about value. 2. Sole-source procurement limits competitive pricing and potential savings. 3. Significant taxpayer investment in software licenses with limited transparency. 4. IT software sector sees frequent renewals, but this price point warrants scrutiny.
Value Assessment
Rating: questionable
The $6.76 million renewal for MSO 365 appears high without competitive bidding. Benchmarking against similar government-wide agreements or reseller pricing is crucial to assess if this represents a fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely relying on a sole-source justification or existing reseller relationship. This lack of competition prevents price discovery and potentially leads to inflated costs for taxpayers.
Taxpayer Impact: Taxpayers are funding a significant software renewal without assurance of the best possible price due to the absence of a competitive process.
Public Impact
Federal agencies rely heavily on MSO 365, impacting productivity and operations. The cost of software licenses is a growing concern for federal IT budgets. Lack of competition in software renewals can lead to sustained higher prices. Transparency in software procurement is essential for public trust and fiscal responsibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High dollar value
- Potential for price inflation
Positive Signals
- Essential software for agency operations
- Long-term contract provides stability
Sector Analysis
The IT software sector is characterized by rapid technological advancements and frequent renewals. Government-wide agreements often exist for major software suites like MSO 365, making non-competed renewals at high values unusual.
Small Business Impact
This contract was awarded to CDW Government LLC, a large reseller. There is no indication that small businesses were involved in this specific renewal, missing an opportunity for small business participation.
Oversight & Accountability
The Department of State's International Boundary and Water Commission procured this software. Oversight should focus on the justification for non-competition and the process for ensuring fair pricing in future renewals.
Related Government Programs
- Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
- Department of State Contracting
- International Boundary and Water Commission: U.S.-Mexico Programs
Risk Flags
- Lack of competitive bidding
- Potentially inflated pricing
- Limited transparency in procurement
- Missed opportunity for small business participation
Tags
computer-and-computer-peripheral-equipme, department-of-state, tx, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $675,677.92 to CDW GOVERNMENT LLC. MSO 365 RENEWAL
Who is the contractor on this award?
The obligated recipient is CDW GOVERNMENT LLC.
Which agency awarded this contract?
Awarding agency: Department of State (International Boundary and Water Commission: U.S.-Mexico).
What is the total obligated amount?
The obligated amount is $675,677.92.
What is the period of performance?
Start: 2024-05-01. End: 2027-04-30.
What is the justification for not competing this MSO 365 renewal, and how does it align with federal procurement regulations?
The provided data indicates the contract was 'NOT COMPETED'. Federal regulations generally require full and open competition unless specific exceptions apply, such as a sole-source justification based on unique capabilities or urgent needs. A thorough review of the agency's documentation is necessary to understand the specific rationale and ensure compliance.
How does the $6.76 million renewal cost compare to industry benchmarks or other federal agency MSO 365 contracts?
Without access to specific contract details or a comprehensive market analysis, it's difficult to provide an exact benchmark. However, the absence of competition suggests this price may not reflect the most advantageous terms achievable. Comparing this cost against publicly available General Services Administration (GSA) schedules or other large-scale federal IT procurements could reveal significant discrepancies.
What is the long-term strategy for managing MSO 365 licensing costs and ensuring future value for taxpayers?
The agency should develop a proactive strategy that includes exploring enterprise-wide agreements, leveraging volume discounts, and actively seeking competitive bids for future renewals. Regular market research and cost-benefit analyses of alternative software solutions should also be part of the long-term plan to ensure continued value and mitigate escalating costs.
Industry Classification
NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $980,100
Exercised Options: $675,678
Current Obligation: $675,678
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-05-01
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2026-04-06
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