DOT's $46.8M Microsoft ELA with Dell Marketing L.P. awarded under BPA Call
Contract Overview
Contract Amount: $46,791,833 ($46.8M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Transportation
Start Date: 2014-06-30
End Date: 2017-06-29
Contract Duration: 1,095 days
Daily Burn Rate: $42.7K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ELA
Place of Performance
Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08401
Plain-Language Summary
Department of Transportation obligated $46.8 million to DELL MARKETING L.P. for work described as: MICROSOFT ELA Key points: 1. Spending on Microsoft ELA reached $46.8M over 3 years. 2. Competition was limited, awarded under a BPA Call. 3. Risk is moderate due to reliance on a single vendor for software. 4. Sector is IT, specifically Information Services.
Value Assessment
Rating: fair
The contract value of $46.8M for a 3-year ELA appears high. Benchmarking against similar enterprise agreements for Microsoft software is difficult without specific product details, but the total spend suggests significant licensing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Awarded under a BPA Call, indicating a pre-competed framework, but the specific call may not have been widely advertised. This limits direct competition and potentially impacts price discovery.
Taxpayer Impact: Taxpayer funds were used for this significant software expenditure, with potential for savings if negotiated aggressively.
Public Impact
Federal agencies rely heavily on software licenses, impacting IT budgets. The use of BPA calls can streamline procurement but may reduce competition. Ensuring fair pricing for enterprise software is crucial for fiscal responsibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overspending on software licenses
- Vendor lock-in
Positive Signals
- Streamlined procurement via BPA Call
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the Information Technology sector, specifically software licensing. Federal spending on IT, including software, is substantial, with ELA's being a common method for large agencies to manage software needs.
Small Business Impact
No indication of small business participation in this specific award. Larger enterprise agreements often involve major vendors, potentially excluding smaller IT service providers.
Oversight & Accountability
The use of a BPA Call suggests some level of pre-competition and oversight. However, the specific terms and pricing negotiated within the call warrant scrutiny to ensure value for money.
Related Government Programs
- All Other Information Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Lack of detailed cost breakdown
- Vendor lock-in risk
- Reliance on a single software provider
Tags
all-other-information-services, department-of-transportation, nj, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $46.8 million to DELL MARKETING L.P.. MICROSOFT ELA
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $46.8 million.
What is the period of performance?
Start: 2014-06-30. End: 2017-06-29.
What was the specific justification for using a BPA Call instead of a more open competition for this Microsoft ELA?
Using a BPA Call likely aimed to expedite the procurement process by leveraging an existing, pre-competed contract vehicle. This can be efficient for agencies needing specific IT solutions quickly. However, it may limit the pool of potential offerors and the opportunity for broader market price discovery compared to a full and open solicitation.
How does the per-unit cost of software licenses under this ELA compare to market rates or other federal agency agreements?
Without detailed line-item data on the specific Microsoft products and quantities licensed, a direct per-unit cost comparison is challenging. The total contract value of $46.8M suggests a significant volume. Benchmarking would require access to the ELA's schedule of rates and comparison with similar government-wide or agency-specific agreements for comparable software suites.
What measures were in place to ensure this ELA provided the best value and avoided vendor lock-in for the Federal Aviation Administration?
The firm fixed price contract type provides cost certainty. However, the nature of an Enterprise License Agreement (ELA) inherently creates a degree of vendor lock-in. Oversight would focus on contract terms regarding renewal options, exit strategies, and ensuring that the pricing negotiated reflects volume discounts and competitive market conditions at the time of award.
Industry Classification
NAICS: Information › Other Information Services › All Other Information Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Technologies Inc. (UEI: 601839660)
Address: ONE DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,791,833
Exercised Options: $46,791,833
Current Obligation: $46,791,833
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: DTOS5914A00007
IDV Type: BPA
Timeline
Start Date: 2014-06-30
Current End Date: 2017-06-29
Potential End Date: 2017-06-29 00:00:00
Last Modified: 2021-05-11
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