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CHIPS Articles: Announcing a New Department of the Navy VMware BPA

Announcing a New Department of the Navy VMware BPA
By Navy Enterprise Software Licensing Team, DoD ESI Navy, SPAWAR Systems Center, Pacific - April-June 2016
On March 18, 2016, the Department of the Navy Enterprise Software Licensing (DON ESL) team awarded a Blanket Purchase Agreement (BPA) for VMware licenses and maintenance. The agreement will support the renewal of licenses and maintenance and procurement of new VMware brand software licenses with licenses and maintenance for desktop and server-based products.

“The three-year agreement has a base year, plus two one-year option periods, with an estimated value of $42.7million. The agreement has two components by which orders can be placed: (1) the BPA, and (2) the centralized Enterprise License Agreement (ELA). The offerings under the ELA represent a 35 percent discount off the publisher’s manufacturer suggested retail price (MSRP) for new licenses, maintenance, and maintenance renewals on all licenses already in the install base," said Bob Franco, DON VMware Project Officer. “The new VMware agreement includes the latest virtualization products, as well as products that have not yet reached end of life.”

The DON ESL VMware Agreement, valid through March 17, 2019, continues to consolidate previously purchased VMware licenses used across the Department of Navy and optimizes cost savings by leveraging the full purchasing power of the DON, thus providing great value to its customers, according to Franco.

Newly acquired licenses, associated maintenance, and maintenance renewals on existing licenses must be compatible and interoperable with existing DON hardware and technology equipment.

The Space and Naval Warfare Systems Center (SSC) Pacific provides centralized ordering for all ELA products and maintenance under the agreement. Funding will also be provided to SSC Pacific by the individual end-user organizations and will be centrally managed by SSC Pacific. Ordering under the ELA will have a six-month onboarding period consisting of monthly buys, ending on Nov. 1, which will shift to a quarterly procurement cycle, beginning Dec. 1, for the remainder of the agreement.

The single-award BPA established against GSA Schedule per FAR 8.405-3(a), Blanket Purchase Agreements (BPA), is the overarching acquisition vehicle. A Class Limited Source Justification (CLSJ) was created at the BPA level and supports the procurement of all server-based products including all maintenance renewals. For any orders outside of the ELA, customers must execute their own LSJ which gives commands ordering approval to purchase products on a brand name basis.

“The DON ESL agreement also allows for BPA procurements by commands using their existing ordering processes and policies directly off the agreement anytime there is a new requirement. The BPA provides a 22 percent discount off manufacturer's suggested retail price for new licenses, and 30 percent discount for new maintenance (SnS). Orders against the BPA portion of this agreement for non-server products will require ordering commands to generate their own justification and authorization (J&A),” Franco said.

Use of the DON BPAs is mandatory for all DON organizations and programs per the joint memo "Mandatory Use of DON Enterprise Licensing Agreements," which was signed Feb. 22, 2012, by the Department of the Navy Chief Information Officer, the Assistant Secretary of the Navy for Research Development and Acquisition, and the Assistant Secretary of the Navy for Financial Management and Comptroller.

Activities should coordinate with their respective organization or program office and follow their current ordering and funding processes to place orders under this agreement.

The DON ESL VMware BPA is just one of the offerings under the Department of Defense Enterprise Software Initiative (ESI) licensing agreements. ESI is the preferred source for information technology acquisition across the DoD and offers thousands of IT products and services available under its agreements with discounted savings and best terms and conditions for DoD commands.

For detailed ordering instructions and templates, refer to the VMware Ordering Guide available at

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CHIPS is an official U.S. Navy website sponsored by the Department of the Navy (DON) Chief Information Officer, the Department of Defense Enterprise Software Initiative (ESI) and the DON's ESI Software Product Manager Team at Space and Naval Warfare Systems Center Pacific.

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