Interior Department's $20M Dell Computer Contract Awarded in 2002 for 51 Units
Contract Overview
Contract Amount: $20,206,558 ($20.2M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of the Interior
Start Date: 2002-09-15
End Date: 2008-04-04
Contract Duration: 2,028 days
Daily Burn Rate: $10.0K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 51
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: DISTRICT OF COLUMBIA
Plain-Language Summary
Department of the Interior obligated $20.2 million to DELL MARKETING L.P. for work described as: Key points: 1. Significant spending on computer hardware over a 6-year period. 2. Sole-source award to Dell Marketing L.P. raises questions about competition. 3. High unit cost suggests potential for overpayment or specialized needs. 4. Long contract duration may indicate evolving technology requirements.
Value Assessment
Rating: questionable
The contract awarded $20,006,558 for 51 units, resulting in a per-unit cost of approximately $392,285. This is exceptionally high compared to standard commercial computer pricing, even for bulk enterprise purchases.
Cost Per Unit: $392,285
Competition Analysis
Competition Level: sole-source
The contract was awarded as a sole-source delivery order, indicating a lack of competitive bidding. This significantly limits price discovery and potentially leads to inflated costs for the government.
Taxpayer Impact: The high per-unit cost and lack of competition suggest taxpayers may have overpaid for these computer systems.
Public Impact
Taxpayers funded a substantial contract for computer hardware over six years. The sole-source nature of the award limits transparency in government spending. Questions arise about the necessity and justification for such high per-unit costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High per-unit cost
- Long contract duration
- Lack of small business participation
Positive Signals
- Contract awarded to a known vendor
- Fixed price contract
Sector Analysis
Spending on IT hardware like computers is common across federal agencies. However, the high unit cost and sole-source nature of this specific contract are unusual benchmarks for standard IT procurement.
Small Business Impact
The contract data indicates that small businesses did not participate in this award, as it was a sole-source delivery order to Dell Marketing L.P.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the justification was sound and that competitive processes were not bypassed without valid reason.
Related Government Programs
- Electronic Computer Manufacturing
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Potential overpayment due to high unit cost
- Lack of competitive bidding raises fairness and cost concerns
- Risk of acquiring outdated technology due to long contract duration
- Contradictory contract type information (competitive vs. sole-source)
Tags
electronic-computer-manufacturing, department-of-the-interior, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $20.2 million to DELL MARKETING L.P.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $20.2 million.
What is the period of performance?
Start: 2002-09-15. End: 2008-04-04.
What specific technical requirements or configurations justified the exceptionally high per-unit cost for these Dell computers?
The provided data does not detail the specific configurations or technical requirements that led to the $392,285 per-unit cost. Typically, such high costs might be associated with highly specialized, ruggedized, or custom-built systems for unique operational environments, or potentially bundled with extensive support and maintenance agreements not explicitly detailed here.
Were there any attempts made to solicit competitive bids, or was a sole-source justification formally approved?
The data explicitly states the contract type as 'COMPETITIVE DELIVERY ORDER' but also lists the award as 'sole-source'. This is contradictory. Assuming it was indeed sole-source, a formal justification and approval process would have been required, likely citing reasons such as urgency, lack of alternatives, or specific vendor capabilities not available elsewhere.
How did the long contract duration (2002-2008) impact the value proposition, considering rapid technological advancements in computing?
A six-year contract for computer hardware in this era is exceptionally long, given the rapid pace of technological obsolescence. The value proposition likely diminished significantly over time unless the contract included provisions for technology refresh or was for highly specialized, long-lifecycle equipment. It raises concerns about acquiring outdated technology at potentially inflated prices.
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: COMPETITIVE DELIVERY ORDER
Offers Received: 51
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Dell Computer Corporation (UEI: 114315195)
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: GS35F4076D
IDV Type: FSS
Timeline
Start Date: 2002-09-15
Current End Date: 2008-04-04
Potential End Date: 2008-04-04 00:00:00
Last Modified: 2014-05-22
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