DOJ's $21.2M Microsoft License Payment to Dell via GSA Schedule BPA
Contract Overview
Contract Amount: $21,216,841 ($21.2M)
Contractor: Dell Computer Corporation
Awarding Agency: Department of Justice
Start Date: 2007-06-15
End Date: 2008-06-29
Contract Duration: 380 days
Daily Burn Rate: $55.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: NOT REPORTED
Sector: IT
Official Description: THIS IS THE DELIVERY ORDER FOR THE ANNUAL LICENSE PAYMENT AND TRUE-UP FOR THE MICROSOFT GOVERNMENT ENTERPRISE AGREEEMENT FOR JUNE 15 2007 THRU JUNE 14 2008. THE GSA SCHEDULE BASED BPA AND PAYMENT IS MADE THROUGH DELL CORPORATION.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530
Plain-Language Summary
Department of Justice obligated $21.2 million to DELL COMPUTER CORPORATION for work described as: THIS IS THE DELIVERY ORDER FOR THE ANNUAL LICENSE PAYMENT AND TRUE-UP FOR THE MICROSOFT GOVERNMENT ENTERPRISE AGREEEMENT FOR JUNE 15 2007 THRU JUNE 14 2008. THE GSA SCHEDULE BASED BPA AND PAYMENT IS MADE THROUGH DELL CORPORATION. Key points: 1. Annual license payment and true-up for Microsoft Enterprise Agreement. 2. Procurement conducted through Dell Corporation via GSA Schedule BPA. 3. Spending covers June 2007 to June 2008. 4. NAICS code 423430 indicates wholesale of computer equipment and software.
Value Assessment
Rating: fair
The contract value of $21.2M for a one-year Microsoft Enterprise Agreement license payment appears to be within a reasonable range for government-wide agreements. Benchmarking against similar large-scale software license procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, utilizing a GSA Schedule BPA. This method generally promotes competitive pricing, but the specific price discovery mechanisms for this particular software license agreement are not detailed.
Taxpayer Impact: Taxpayer funds are used for this annual software license payment. The use of a GSA Schedule BPA aims to leverage government-wide purchasing power for cost savings.
Public Impact
Ensures continued access to essential Microsoft software for Department of Justice operations. Supports the functioning of various offices, boards, and divisions within the DOJ. The payment contributes to the broader government's software licensing agreements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed pricing breakdown for the license and true-up.
- Potential for price increases in subsequent years not addressed.
Positive Signals
- Utilizes established GSA Schedule BPA for efficient procurement.
- Procurement method supports competition.
Sector Analysis
This spending falls within the Information Technology sector, specifically software licensing. Government spending on enterprise software licenses is substantial, with benchmarks varying widely based on vendor, scope, and agreement type.
Small Business Impact
This contract was awarded to Dell Corporation, a large business. There is no indication of small business participation in this specific delivery order, which is common for large enterprise software agreements.
Oversight & Accountability
The use of a GSA Schedule BPA implies adherence to established procurement regulations and oversight. However, specific oversight details for this particular delivery order are not provided.
Related Government Programs
- Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Lack of detailed cost breakdown.
- Unclear specific software products and user counts.
- Potential for price escalation in future agreements.
- Limited transparency on price negotiation within the BPA.
Tags
computer-and-computer-peripheral-equipme, department-of-justice, dc, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $21.2 million to DELL COMPUTER CORPORATION. THIS IS THE DELIVERY ORDER FOR THE ANNUAL LICENSE PAYMENT AND TRUE-UP FOR THE MICROSOFT GOVERNMENT ENTERPRISE AGREEEMENT FOR JUNE 15 2007 THRU JUNE 14 2008. THE GSA SCHEDULE BASED BPA AND PAYMENT IS MADE THROUGH DELL CORPORATION.
Who is the contractor on this award?
The obligated recipient is DELL COMPUTER CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $21.2 million.
What is the period of performance?
Start: 2007-06-15. End: 2008-06-29.
What is the breakdown of the $21.2M cost between the annual license and the true-up amount?
The provided data does not specify the exact breakdown between the annual license fee and the true-up amount for the Microsoft Enterprise Agreement. A true-up typically accounts for any additional software usage or licenses acquired during the contract period beyond the initial commitment. Understanding this split is crucial for assessing the value of the core license versus the cost of expanded usage.
What are the specific Microsoft products and user counts covered by this agreement?
The data identifies this as an 'Annual License Payment and True-Up for the Microsoft Government Enterprise Agreement' but does not list the specific Microsoft products included (e.g., Windows, Office 365, server licenses) or the number of users/devices covered. This information is essential for evaluating the appropriateness of the cost and ensuring the software aligns with the DOJ's operational needs.
How does the pricing compare to other federal agencies or commercial entities for similar Microsoft Enterprise Agreements?
Without specific product details and user counts, a direct price comparison is challenging. However, the use of a GSA Schedule BPA suggests an attempt to secure competitive pricing through government-wide volume purchasing. Benchmarking against publicly available GSA Schedule pricing or other agency agreements for comparable Microsoft Enterprise Agreements would be necessary to determine if this $21.2M represents good value.
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: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: NOT REPORTED (NO)
Evaluated Preference: NONE
Contractor Details
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: DJJ04F1014
IDV Type: BPA
Timeline
Start Date: 2007-06-15
Current End Date: 2008-06-29
Last Modified: 2009-08-22
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