NIH Awards $108M Enterprise License Agreement to Dell Federal Systems for Software Publishing
Contract Overview
Contract Amount: $108,185,530 ($108.2M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Health and Human Services
Start Date: 2024-03-01
End Date: 2027-02-28
Contract Duration: 1,094 days
Daily Burn Rate: $98.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NIH MS ENTERPRISE LICENSE AGREEMENT
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $108.2 million to DELL FEDERAL SYSTEMS L.P for work described as: NIH MS ENTERPRISE LICENSE AGREEMENT Key points: 1. Significant investment in software licensing for NIH operations. 2. Dell Federal Systems is a major player in the IT hardware and services market. 3. Potential risk associated with long-term software dependency and vendor lock-in. 4. Spending falls within the IT sector, specifically software procurement.
Value Assessment
Rating: fair
The total award value of $108M over three years suggests a substantial commitment. Benchmarking against similar large-scale enterprise software agreements is necessary to fully assess value, as per-unit costs are not provided.
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 potentially better pricing for the government.
Taxpayer Impact: Taxpayer funds are being used for this significant software procurement, with the expectation of value derived from the licensed software for NIH research and operations.
Public Impact
Supports critical research and administrative functions at NIH. Ensures access to necessary software tools for thousands of researchers and staff. Potential for cost savings through enterprise-wide licensing compared to individual purchases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term software dependency
- Potential for vendor lock-in
- Need for ongoing license management
Positive Signals
- Full and open competition
- Firm fixed price contract
- Supports critical NIH mission
Sector Analysis
This contract falls within the IT sector, specifically software licensing. Enterprise-wide software agreements are common for large federal agencies to standardize tools and manage costs, with typical spending varying widely based on agency size and software needs.
Small Business Impact
While Dell Federal Systems is a large business, the contract mechanism (BPA Call) could potentially allow for subcontracting opportunities for small businesses, though this is not explicitly stated.
Oversight & Accountability
The award is managed by the National Institutes of Health, a component of HHS. Oversight would involve monitoring contract performance, adherence to terms, and ensuring the software meets NIH's evolving needs.
Related Government Programs
- Software Publishers
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for vendor lock-in
- Long-term software dependency
- Need for detailed software usage and value metrics
- Ensuring competitive pricing for specific software components
Tags
software-publishers, department-of-health-and-human-services, tx, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $108.2 million to DELL FEDERAL SYSTEMS L.P. NIH MS ENTERPRISE LICENSE AGREEMENT
Who is the contractor on this award?
The obligated recipient is DELL FEDERAL SYSTEMS L.P.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $108.2 million.
What is the period of performance?
Start: 2024-03-01. End: 2027-02-28.
What specific software products are covered under this enterprise license agreement, and how do their costs compare to market rates for similar enterprise licenses?
The provided data does not specify the exact software products included in the NIH MS Enterprise License Agreement. A detailed breakdown of the software suite and a comparative market analysis of its pricing against similar enterprise licenses would be crucial for a comprehensive value assessment. This information is essential to determine if the $108 million award represents a competitive price for the functionalities provided.
What are the key performance indicators (KPIs) for this contract, and how will NIH measure the effectiveness and utilization of the licensed software?
Effectiveness and utilization metrics are not detailed in the provided data. NIH should establish clear KPIs related to software uptime, user adoption rates, and the achievement of research or operational goals enabled by the software. Regular performance reviews against these KPIs will be vital to ensure the $108 million investment yields tangible benefits and justifies the expenditure over the contract's duration.
What is the strategy for managing potential vendor lock-in and ensuring future flexibility, given the long-term nature of this enterprise license agreement?
The strategy for mitigating vendor lock-in is not explicitly outlined. NIH should proactively plan for future software needs, including exploring interoperability with other systems and considering exit strategies or transition plans. Regular reviews of the software landscape and competitive market will be necessary to ensure NIH is not unduly constrained by this agreement when future procurement decisions are made.
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: $183,199,546
Exercised Options: $108,185,530
Current Obligation: $108,185,530
Actual Outlays: $70,990,941
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA22A0004
IDV Type: BPA
Timeline
Start Date: 2024-03-01
Current End Date: 2027-02-28
Potential End Date: 2028-02-29 00:00:00
Last Modified: 2026-03-16
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