HHS Microsoft Subscriptions

The Department of Health and Human Services (HHS) is planning to establish a single award Blanket Purchase Agreement (BPA) for the procurement of Microsoft products. The purpose of this acquisition is to provide a flexible and efficient purchasing mechanism that will allow HHS to continue supporting its existing Microsoft infrastructure. The BPA will enable HHS OpDivs and StaffDivs to acquire Microsoft products via an enrollment, and to purchase related professional services. The acquisition will allow HHS to establish enrollments, from which OpDivs/StaffDivs may choose to meet their requirements. Microsoft products support the core of HHS’s business operations through a range of offerings including productivity software, client operating systems, and infrastructure systems.

The BPA will have an ordering period of one year with four one-year optional ordering periods. The period of performance will allow the agency the flexibility to review the strategy prior to executing any option periods. The estimated value of the BPA is $480 million. The BPA will be issued against the GSA MAS Schedule for Information Technology, with competition restricted to Microsoft brand name products only through Microsoft-authorized resellers.

The decision to limit sources to Microsoft is justified based on several factors. HHS's existing information technology infrastructure relies heavily on Microsoft products and services, and transitioning away from Microsoft would be prohibitively expensive and disruptive. Microsoft products offer unique features and compatibility with other HHS systems that cannot be obtained from other sources. Additionally, Microsoft-authorized License Service Products (LSP) have negotiated special discounted pricing from Microsoft and provide specialized knowledge and services that make them the best value providers for the Government.

Overall, this acquisition will provide HHS with a comprehensive vehicle to obtain Microsoft products and services, ensuring the continued optimal functionality of its infrastructure while leveraging volume discounts and reducing administrative overhead.