NRC awards $3.4M for Microsoft software and Azure cloud services to Dell Federal Systems

Contract Overview

Contract Amount: $3,447,095 ($3.4M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BPA CALL FOR MICROSOFT SUBSCRIPTION SOFTWARE LICENSES, AZURE CLOUD SERVICE AND RELATED RENEWALS/MAINTENANCE.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $3.4 million to DELL FEDERAL SYSTEMS L.P for work described as: BPA CALL FOR MICROSOFT SUBSCRIPTION SOFTWARE LICENSES, AZURE CLOUD SERVICE AND RELATED RENEWALS/MAINTENANCE. Key points: 1. Contract provides essential software licenses and cloud services for agency operations. 2. Dell Federal Systems, a known entity, secured this call against a broader BPA. 3. The contract's duration and fixed-price nature suggest predictable cost management. 4. Performance is tied to software and cloud service delivery, with clear deliverables. 5. This spending falls within the broader IT services sector for government agencies. 6. The contract value is modest, indicating a focused scope for specific needs.

Value Assessment

Rating: good

The contract value of $3.45 million over 364 days appears reasonable for enterprise software licenses and cloud services. Benchmarking against similar government-wide acquisition contracts (GWACs) or agency-specific IT procurements for Microsoft products and Azure services would provide a more precise value-for-money assessment. However, given the nature of software subscriptions and cloud usage, the pricing is likely competitive, especially if sourced through an existing, competitively awarded BPA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was issued as a call against a Blanket Purchase Agreement (BPA) that was awarded under full and open competition. The specific competition for this call order is not detailed, but the underlying BPA's competitive nature suggests that multiple vendors had the opportunity to bid. The existence of a BPA typically streamlines the ordering process while maintaining a competitive foundation.

Taxpayer Impact: A full and open competition for the underlying BPA ensures that taxpayers benefit from a wide range of potential suppliers, driving down prices and fostering innovation.

Public Impact

The Nuclear Regulatory Commission (NRC) benefits from access to essential Microsoft software and Azure cloud services. Services delivered include software licenses, cloud hosting, and related maintenance/renewals. The geographic impact is primarily within the NRC's operational centers, likely concentrated in Maryland. Workforce implications involve enabling NRC staff with necessary digital tools and infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Microsoft-specific solutions.
Reliance on a single vendor for critical IT infrastructure could pose risks.
Azure cloud service costs can escalate if not carefully managed and monitored.

Positive Signals

Utilizes established and widely supported Microsoft software and Azure cloud platform.
Call against a BPA likely means pre-negotiated favorable terms.
Fixed-price contract provides cost certainty for the specified period.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and cloud computing services. The market for these services is vast and highly competitive, with major players like Microsoft, Amazon Web Services, and Google Cloud dominating the cloud infrastructure space. Government agencies increasingly rely on these platforms for operational efficiency, data storage, and application hosting. Spending benchmarks for similar IT services contracts within federal agencies can range from thousands to billions of dollars, depending on the scope and scale of services required.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the primary awardee is Dell Federal Systems L.P., a large business, the underlying BPA may have provisions for small business subcontracting. Analysis of the BPA's terms and conditions would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Nuclear Regulatory Commission's contracting officers and program managers. The contract's performance will be monitored against the terms and conditions of the BPA call order, including delivery schedules and service level agreements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Schedules
Cloud Computing Services
Software Licenses
Microsoft Enterprise Agreements
IT Services

Risk Flags

Potential for cost escalation in cloud services.
Reliance on a single vendor ecosystem.
Need for robust performance monitoring and management.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $3.4 million to DELL FEDERAL SYSTEMS L.P. BPA CALL FOR MICROSOFT SUBSCRIPTION SOFTWARE LICENSES, AZURE CLOUD SERVICE AND RELATED RENEWALS/MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is DELL FEDERAL SYSTEMS L.P.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the track record of Dell Federal Systems L.P. in fulfilling similar government contracts for Microsoft software and Azure services?

Dell Federal Systems L.P. has a significant track record of providing IT hardware, software, and services to the U.S. federal government. They are a frequent awardee of contracts and calls against various Blanket Purchase Agreements (BPAs) and Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, including those related to software licensing and cloud services. Their experience often involves large-scale deployments and ongoing support for agencies. Specific to Microsoft products and Azure, Dell acts as a reseller and integrator, leveraging their partnership with Microsoft. Performance on past contracts, as reflected in federal procurement data and past performance questionnaires, generally indicates a capability to meet delivery and service requirements. However, a detailed review of specific past performance evaluations for similar contracts would be necessary for a comprehensive assessment.

How does the pricing of this contract compare to similar government procurements for Microsoft software and Azure cloud services?

Direct comparison of pricing for this specific $3.45 million call order is challenging without access to the underlying BPA's negotiated rates and the specific SKUs or service levels procured. However, the fact that this is a call against a BPA suggests that the pricing has already undergone some level of competitive scrutiny during the BPA's award. Government-wide contracts like NASA SEWP or GSA IT Schedule 70 often provide benchmark pricing for similar software and cloud services. If this BPA call order's unit prices are significantly higher than those found on established GWACs for comparable offerings, it might indicate a less favorable negotiation or a need for closer price analysis. Conversely, if prices align or are lower, it suggests good value.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns in Azure cloud services if usage is not managed effectively, vendor lock-in with Microsoft's ecosystem, and the possibility of service disruptions impacting NRC operations. Mitigation strategies likely involve robust monitoring of Azure consumption, implementing cost optimization measures, and establishing clear service level agreements (SLAs) with Dell and Microsoft. The fixed-price nature of the software licenses component mitigates some cost uncertainty. Furthermore, the NRC's internal IT governance and oversight processes are expected to manage the overall risk profile. The reliance on a single vendor for core IT functions is a common risk in government IT procurement, often managed through diversification strategies in other areas or strong contract management.

How effective is the Nuclear Regulatory Commission in leveraging IT services like this to achieve its mission objectives?

The Nuclear Regulatory Commission's mission involves regulating the civilian use of nuclear materials and ensuring safety and security. Effective IT services, including reliable software and scalable cloud infrastructure, are crucial for data analysis, regulatory compliance tracking, incident response, and secure communication. This contract for Microsoft software and Azure cloud services directly supports these functions by providing the tools and platform necessary for modern digital operations. The agency's ability to procure and manage these services efficiently, as indicated by this competitively sourced BPA call, suggests a commitment to leveraging technology. The effectiveness is ultimately measured by how well these IT resources enable the NRC to perform its core regulatory and oversight functions securely and efficiently.

What are the historical spending patterns of the Nuclear Regulatory Commission on software licenses and cloud services?

Analyzing historical spending patterns for the Nuclear Regulatory Commission (NRC) on software licenses and cloud services would reveal trends in IT modernization and cloud adoption. Typically, federal agencies have seen a gradual shift from on-premises software and infrastructure to cloud-based solutions over the past decade. The NRC likely has a history of purchasing perpetual software licenses for various applications. More recently, there has been a government-wide push towards cloud adoption, driven by cost efficiency, scalability, and enhanced security features. This $3.45 million call for Microsoft software and Azure services represents a component of this ongoing transition. Examining prior years' budgets and contract awards for the NRC would quantify the extent of this shift and identify key technology areas receiving investment.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: 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: Francisco Partners Management, L.P.

Address: 1 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: $17,087,211

Exercised Options: $5,247,095

Current Obligation: $3,447,095

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 31310023A0001

IDV Type: BPA

Timeline