USAID's $17.4M Microsoft ELA with CDW-G: 5-Year Agreement Under State BPA

Contract Overview

Contract Amount: $17,433,132 ($17.4M)

Contractor: CDW Government LLC

Awarding Agency: Agency for International Development

Start Date: 2010-02-19

End Date: 2015-12-28

Contract Duration: 2,138 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TO PROVIDE A FIVE YEAR AGREEMENT WITH CDW-G UNDER THE DEPARTMENT OF STATE BPA (CONTRACT# S-AQMMA-10-A-0057)THAT WILL PRODUCE A USAID ELA FOR THE SPECIFIED MICROSOFT PRODUCTS.

Place of Performance

Location: VERNON HILLS, LAKE County, ILLINOIS, 60061, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

Agency for International Development obligated $17.4 million to CDW GOVERNMENT LLC for work described as: TO PROVIDE A FIVE YEAR AGREEMENT WITH CDW-G UNDER THE DEPARTMENT OF STATE BPA (CONTRACT# S-AQMMA-10-A-0057)THAT WILL PRODUCE A USAID ELA FOR THE SPECIFIED MICROSOFT PRODUCTS. Key points: 1. Spending focuses on Microsoft products via a Blanket Purchase Agreement (BPA). 2. CDW Government LLC is the sole awardee for this specific agreement. 3. The contract type is Time and Materials, indicating potential cost variability. 4. This spending falls under 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: fair

The total award of $17.4M over five years suggests a significant investment in Microsoft products. Benchmarking is difficult without specific product details, but the Time and Materials structure warrants close monitoring for cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under an existing Department of State BPA, suggesting competition may have occurred at the BPA level, but this specific award appears limited. The Time and Materials pricing could impact price discovery.

Taxpayer Impact: Taxpayer funds are used to procure essential Microsoft software licenses and support, with potential for cost overruns if not managed effectively.

Public Impact

Ensures USAID has access to necessary Microsoft software for its operations. Potential for cost savings through bulk licensing if negotiated effectively. Lack of direct competition at the award level may limit price negotiation leverage.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition for this specific award.
Time and Materials contract type can lead to cost uncertainty.
Reliance on a single vendor for a significant software agreement.

Positive Signals

Leverages existing government-wide purchasing vehicles (BPA).
Provides continuity of essential software services.

Sector Analysis

This spending falls under professional, scientific, and technical services, specifically IT-related procurement. Government IT spending benchmarks vary widely, but large enterprise license agreements are common for software.

Small Business Impact

The awardee is CDW Government LLC, a large business. There is no indication that small businesses were involved in this specific award, nor is it mandated by the contract details provided.

Oversight & Accountability

Oversight would involve monitoring the Time and Materials expenditures against the total award amount and ensuring compliance with the terms of the Department of State BPA.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Limited competition at the award level.
Time and Materials contract type.
Potential for cost overruns.
Lack of detailed product/pricing information for benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $17.4 million to CDW GOVERNMENT LLC. TO PROVIDE A FIVE YEAR AGREEMENT WITH CDW-G UNDER THE DEPARTMENT OF STATE BPA (CONTRACT# S-AQMMA-10-A-0057)THAT WILL PRODUCE A USAID ELA FOR THE SPECIFIED MICROSOFT PRODUCTS.

Who is the contractor on this award?

The obligated recipient is CDW GOVERNMENT LLC.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2010-02-19. End: 2015-12-28.

What was the original competition strategy for the Department of State BPA under which this award was made?

The provided data indicates this award was made under an existing Department of State BPA (S-AQMMA-10-A-0057). The competition strategy for the BPA itself is not detailed here. However, the fact that this specific award is listed as 'FULL AND OPEN COMPETITION' suggests that the BPA vehicle allowed for competitive bidding among eligible vendors at the time of its establishment.

How does the per-unit cost of Microsoft products under this ELA compare to other government agencies or commercial rates?

Without specific product breakdowns and unit pricing, a direct per-unit cost comparison is not possible. The Time and Materials (T&M) nature of the contract further complicates direct benchmarking, as costs are based on labor hours and materials used rather than fixed unit prices. A thorough analysis would require access to the detailed pricing schedules within the ELA.

What is the risk of vendor lock-in or price increases at renewal, given the five-year term and limited competition for this specific award?

There is a moderate risk of vendor lock-in and potential price increases. While the initial award was under a competitive BPA, the five-year term for this specific ELA could establish CDW-G as the incumbent. Future renewals or new agreements may face limited competition if alternatives are not actively explored, potentially leading to higher costs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CDW Corporation (UEI: 808068253)

Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,433,132

Exercised Options: $17,433,132

Current Obligation: $17,433,132

Timeline