DoD's $23.3M Microsoft License Agreement with Dell Marketing L.P. awarded under full and open competition
Contract Overview
Contract Amount: $23,317,794 ($23.3M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2007-03-31
End Date: 2011-12-31
Contract Duration: 1,736 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT LICENSE AGREEMENT - BASE YEAR
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $23.3 million to DELL MARKETING L.P. for work described as: MICROSOFT LICENSE AGREEMENT - BASE YEAR Key points: 1. The contract value is $23.3 million over its duration. 2. Dell Marketing L.P. was the awardee. 3. The contract was awarded by the Department of Defense, U.S. Special Operations Command. 4. It was procured under full and open competition. 5. The contract covers electronic computer manufacturing.
Value Assessment
Rating: fair
The contract value of $23.3 million for a Microsoft license agreement over approximately 4.7 years appears reasonable, but without specific license details or comparable contract data, a precise valuation is difficult. The firm fixed price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should have led to a fair market price. The presence of multiple bidders, if any, would have further driven price discovery.
Taxpayer Impact: Taxpayer funds were used for this procurement. The competitive nature of the award aims to ensure value for money, minimizing potential overspending.
Public Impact
This agreement provides essential software licenses for U.S. Special Operations Command, supporting critical national security missions. The use of a well-established vendor like Microsoft ensures compatibility and operational continuity for the end-users. The contract's duration of over four years suggests a long-term need for these software resources within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific license details makes it hard to assess true value.
- Potential for vendor lock-in with Microsoft software.
- No clear indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Long contract duration indicates sustained operational need.
Sector Analysis
This contract falls under the IT sector, specifically software licensing. Spending benchmarks for similar enterprise-level software agreements within the Department of Defense can vary widely based on user numbers, software versions, and support levels.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were available or pursued.
Oversight & Accountability
The award was made by the Department of Defense, U.S. Special Operations Command, implying oversight from these entities. The firm fixed price contract type offers a degree of accountability regarding cost.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Lack of detailed software product information.
- Potential for vendor lock-in.
- No explicit mention of small business subcontracting.
- Long contract duration may not reflect current technology needs.
- Limited insight into the competitive landscape beyond 'full and open'.
Tags
electronic-computer-manufacturing, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to DELL MARKETING L.P.. MICROSOFT LICENSE AGREEMENT - BASE YEAR
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $23.3 million.
What is the period of performance?
Start: 2007-03-31. End: 2011-12-31.
What specific Microsoft software products and quantities were included in this $23.3 million agreement, and how does this compare to market rates for similar enterprise licenses?
The provided data lacks the specifics of the software products and quantities. To assess value, a detailed breakdown of licenses (e.g., Windows, Office 365, server licenses) and user counts is necessary. Benchmarking against GSA schedules or other government-wide agreements for comparable Microsoft enterprise agreements would reveal if the $23.3 million price was competitive for the scope of software provided.
Given the long-term nature of software licensing, what are the risks associated with vendor lock-in and future upgrade costs for this Microsoft agreement?
Vendor lock-in is a significant risk, as switching operating systems or productivity suites can be costly and disruptive. Future upgrade costs are also a concern; as newer versions are released, the government may face pressure to upgrade to maintain support or access new features, potentially leading to additional expenditures beyond the initial $23.3 million.
How effectively did the full and open competition process ensure the best possible price and terms for these Microsoft licenses for the U.S. Special Operations Command?
Full and open competition is designed to maximize price discovery and ensure the government receives competitive pricing. However, its effectiveness hinges on the number and quality of bids received. Without knowing the number of bidders or the specific pricing strategies employed, it's difficult to definitively state how effective it was, though it provides a strong framework for achieving value.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $54,283,162
Exercised Options: $23,317,794
Current Obligation: $23,317,794
Parent Contract
Parent Award PIID: GS35F4076D
IDV Type: FSS
Timeline
Start Date: 2007-03-31
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2014-05-22
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