State Dept. Spends $68.4M on Microsoft Licenses via CDWG BPA, Awarded in 2009

Contract Overview

Contract Amount: $68,395,742 ($68.4M)

Contractor: CDW Government LLC

Awarding Agency: Department of State

Start Date: 2009-12-29

End Date: 2015-12-28

Contract Duration: 2,190 days

Daily Burn Rate: $31.2K/day

Competition Type: NOT COMPETED

Sector: IT

Official Description: BPA CALL S-AQMMA-10-L-0228 UNDER CDWG BPA S-AQMMA-10-A-0057, AWARDED DECEMBER 30, 2009 (EFFECTIVE DATE 12/29/2009) FOR MICROSOFT ENTERPRISE LICENSE AGREEMENT FOR SOFTWARE ASSURANCE FOR EXISTING LICENSE BASE.

Place of Performance

Location: VERNON HILLS, LAKE County, ILLINOIS, 60061

State: Illinois Government Spending

Plain-Language Summary

Department of State obligated $68.4 million to CDW GOVERNMENT LLC for work described as: BPA CALL S-AQMMA-10-L-0228 UNDER CDWG BPA S-AQMMA-10-A-0057, AWARDED DECEMBER 30, 2009 (EFFECTIVE DATE 12/29/2009) FOR MICROSOFT ENTERPRISE LICENSE AGREEMENT FOR SOFTWARE ASSURANCE FOR EXISTING LICENSE BASE. Key points: 1. Significant expenditure on enterprise software licenses highlights reliance on major vendors. 2. The contract was awarded under a pre-existing BPA, suggesting a streamlined but potentially less competitive process. 3. Long contract duration (2009-2015) indicates a sustained need for Microsoft software assurance. 4. Lack of competition raises questions about price discovery and potential overspending.

Value Assessment

Rating: questionable

The total award amount of $68.4M for Microsoft Enterprise Licenses over six years is substantial. Without specific per-unit pricing or comparison to similar government-wide agreements, it's difficult to definitively assess value. However, the lack of competition suggests potential for higher-than-market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This BPA Call was not competed, relying on an existing BPA (S-AQMMA-10-A-0057). While this can expedite procurement, it limits price discovery and competition, especially for a large expenditure. The original BPA's competition method is not detailed here.

Taxpayer Impact: Taxpayer funds are used for this purchase. The lack of competition may result in a higher cost than if it were fully competed, impacting the efficient use of taxpayer money.

Public Impact

Government reliance on a single software vendor (Microsoft) for critical operations. Potential for higher costs due to non-competitive award, impacting budget allocation for other services. Long-term commitment to specific software versions may hinder adoption of newer, potentially more cost-effective technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
High total award amount
Reliance on single vendor

Positive Signals

Procurement under existing BPA streamlined process
Software assurance ensures access to updates and support

Sector Analysis

This contract falls within the Information Technology sector, specifically software licensing. Government spending on enterprise software is a significant portion of IT budgets, often dominated by a few major vendors like Microsoft, Oracle, and Adobe. Benchmarks for similar large-scale enterprise license agreements are highly variable based on scope and negotiation.

Small Business Impact

The awardee, CDW Government LLC, is a large business. There is no indication that small businesses were involved in this specific BPA Call, either as subcontractors or as direct awardees, which is common for large enterprise software agreements.

Oversight & Accountability

The original BPA was awarded in 2009, and this call was made in 2009. Oversight would have focused on adherence to the BPA terms and conditions. The lack of competition for this specific call limits the oversight opportunities related to price negotiation and market competitiveness.

Related Government Programs

Computer and Software Stores
Department of State Contracting
Department of State Programs

Risk Flags

Lack of competition for a significant expenditure.
Potential for inflated pricing due to non-competitive award.
Long contract duration may lock agency into specific technology.
Limited transparency on per-unit costs and value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $68.4 million to CDW GOVERNMENT LLC. BPA CALL S-AQMMA-10-L-0228 UNDER CDWG BPA S-AQMMA-10-A-0057, AWARDED DECEMBER 30, 2009 (EFFECTIVE DATE 12/29/2009) FOR MICROSOFT ENTERPRISE LICENSE AGREEMENT FOR SOFTWARE ASSURANCE FOR EXISTING LICENSE BASE.

Who is the contractor on this award?

The obligated recipient is CDW GOVERNMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $68.4 million.

What is the period of performance?

Start: 2009-12-29. End: 2015-12-28.

Was the original BPA (S-AQMMA-10-A-0057) competed, and what were the terms that allowed for non-competitive calls of this magnitude?

The provided data indicates this specific BPA Call was 'NOT COMPETED'. The original BPA's competition status is not detailed. However, the fact that this call was made under an existing BPA suggests the original BPA was established through a competitive process, allowing for subsequent calls. The terms of that original BPA would dictate the conditions under which such calls could be made without further competition.

What was the per-unit cost for the Microsoft software licenses, and how does it compare to other government agencies or commercial entities during the contract period?

The provided data does not include per-unit cost details for the Microsoft licenses. The total award amount is $68.4 million over six years. Without itemized pricing, a direct comparison to other contracts or commercial rates is impossible. This lack of transparency makes it difficult to assess if the government received a fair market price.

What was the process for determining the need for Microsoft Enterprise License Assurance for the existing license base, and were alternative solutions considered?

The data states the purpose was 'SOFTWARE ASSURANCE FOR EXISTING LICENSE BASE'. This implies a decision was made to maintain and update the current Microsoft software environment. The process for this determination and consideration of alternatives (like different software suites or open-source options) is not detailed in the provided information, making it difficult to assess the strategic value and cost-effectiveness of this specific choice.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $68,395,742

Exercised Options: $68,395,742

Current Obligation: $68,395,742

Parent Contract

Parent Award PIID: SAQMMA10A0057

IDV Type: BPA

Timeline