FDA Spends $27.8M on Microsoft Licenses and Maintenance with CDW Government LLC

Contract Overview

Contract Amount: $27,836,114 ($27.8M)

Contractor: CDW Government LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2011-06-28

End Date: 2016-04-30

Contract Duration: 1,768 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FDA MICROSOFT PRODUCT LICENSES MAINTENANCE

Place of Performance

Location: VERNON HILLS, LAKE County, ILLINOIS, 60061

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.8 million to CDW GOVERNMENT LLC for work described as: FDA MICROSOFT PRODUCT LICENSES MAINTENANCE Key points: 1. Significant spending on software licenses and maintenance highlights reliance on Microsoft products. 2. CDW Government LLC secured the contract, indicating a key vendor in the federal IT procurement landscape. 3. The contract duration of 1768 days suggests a long-term commitment to these software solutions. 4. The spending falls within the typical range for enterprise software licensing for large government agencies.

Value Assessment

Rating: fair

The $27.8M price tag for Microsoft licenses and maintenance over nearly five years appears reasonable given the scale of a federal agency like the FDA. Benchmarking against similar large-scale government software procurements is necessary for a definitive assessment.

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. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: Taxpayer funds are utilized for essential software infrastructure, ensuring agency operational continuity. The competitive award aims to maximize value for the investment.

Public Impact

Ensures FDA's continued access to critical Microsoft software for operations. Supports agency-wide productivity and data management capabilities. Potential for cost savings through competitive bidding on enterprise software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Microsoft products.
Risk of overspending if maintenance costs escalate disproportionately.
Need to ensure software is utilized efficiently to justify costs.

Positive Signals

Awarded through full and open competition.
Long-term contract provides budget stability.
Supports critical government functions.

Sector Analysis

This contract falls within the Information Technology sector, specifically software licensing and maintenance. Federal spending on IT, particularly enterprise software, is substantial, with agencies often relying on major vendors like Microsoft for core functionalities.

Small Business Impact

While the primary awardee is CDW Government LLC, the contract's full and open competition nature may have allowed for subcontracting opportunities for small businesses, though this is not explicitly detailed in the provided data.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services for the Food and Drug Administration. Standard government procurement oversight processes would apply to ensure compliance and performance.

Related Government Programs

Electronic Computer Manufacturing
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Potential for price increases in subsequent renewals.
Dependency on a single vendor for critical software.
Risk of obsolescence if software is not updated.
Ensuring compliance with licensing terms and conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.8 million to CDW GOVERNMENT LLC. FDA MICROSOFT PRODUCT LICENSES MAINTENANCE

Who is the contractor on this award?

The obligated recipient is CDW GOVERNMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2011-06-28. End: 2016-04-30.

What is the specific breakdown of licenses and maintenance costs within the $27.8M total, and how do these compare to market rates for similar enterprise agreements?

The provided data does not detail the specific breakdown of costs between licenses and maintenance. A comprehensive analysis would require access to the contract's line-item details. Benchmarking these costs against current market rates for comparable Microsoft enterprise agreements, considering volume discounts and support levels, is crucial to assess if the government secured optimal pricing and value.

What is the risk of vendor lock-in with Microsoft products, and what strategies are in place to mitigate this risk over the contract's lifespan?

The significant investment in Microsoft licenses and maintenance inherently creates a degree of vendor lock-in. Mitigation strategies could include exploring open-source alternatives for future procurements, negotiating favorable terms for license portability, and ensuring robust internal IT strategies that allow for flexibility and potential future transitions. Regular market analysis is key to understanding alternatives.

How effectively is the FDA utilizing these Microsoft products to achieve its mission objectives, and are there opportunities for cost optimization through better license management?

The effectiveness of utilization is not directly measurable from this data. However, agencies often benefit from dedicated software asset management (SAM) programs. Implementing or enhancing SAM practices can identify underutilized licenses, optimize license types (e.g., moving from perpetual to subscription or vice-versa based on usage), and ensure the agency is only paying for what it needs, thereby improving cost-effectiveness.

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

Parent Company: CDW Corporation (UEI: 808068253)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,731,817

Exercised Options: $27,836,114

Current Obligation: $27,836,114

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263030501

IDV Type: GWAC

Timeline