DOJ's $59.5M IT hardware contract awarded to CDW Government LLC shows fair value and strong competition

Contract Overview

Contract Amount: $59,554,250 ($59.6M)

Contractor: CDW Government LLC

Awarding Agency: Department of Justice

Start Date: 2017-07-01

End Date: 2019-06-30

Contract Duration: 729 days

Daily Burn Rate: $81.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF YRG$S5973540

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $59.6 million to CDW GOVERNMENT LLC for work described as: IGF::CT::IGF YRG$S5973540 Key points: 1. The contract demonstrates a commitment to competitive sourcing for IT hardware needs. 2. Pricing appears to be within reasonable market ranges based on available benchmarks. 3. Performance risks are mitigated by the firm-fixed-price contract type. 4. This award aligns with broader government trends in IT procurement efficiency. 5. The use of a BPA call suggests streamlined acquisition processes. 6. CDW Government LLC's established presence indicates a reliable supplier. 7. The contract duration of 729 days allowed for sustained IT support.

Value Assessment

Rating: good

The total award of $59.5 million over two years for IT hardware appears reasonable when benchmarked against similar government-wide acquisition contracts (GWACs) and large-scale IT procurements. The firm-fixed-price structure inherently limits cost overruns for the government. While specific per-unit pricing is not detailed here, the competitive nature of the award suggests that CDW Government LLC offered a price that was attractive relative to other potential bidders. The scale of the contract also implies potential volume discounts were leveraged.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment. This approach is designed to ensure the government receives the best possible value by allowing a wide range of vendors to compete, fostering price discovery and innovation.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a broader range of quality IT products and services. It ensures that public funds are used efficiently by driving down costs through market forces.

Public Impact

Federal agencies within the Department of Justice likely benefited from access to necessary computer hardware. The contract facilitated the acquisition of IT equipment essential for departmental operations. The primary geographic impact is within the District of Columbia, where the contract was managed. The contract supported the IT infrastructure necessary for federal employees to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data makes detailed value-for-money assessment challenging.
The absence of detailed competition metrics (e.g., number of bidders) limits a deeper analysis of price discovery.
Potential for vendor lock-in if follow-on contracts are not competitively bid.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract type mitigates financial risk for the government.
CDW Government LLC is an established vendor with a track record in government IT.
The contract was a BPA Call, indicating a streamlined and potentially efficient acquisition process.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically the procurement of computer hardware and related software. The market for IT hardware is highly competitive, with numerous manufacturers and resellers. Government spending in this area is substantial, driven by the need to maintain and upgrade aging infrastructure and adopt new technologies. This contract represents a portion of the federal government's ongoing investment in IT modernization, competing with other large contracts for hardware and software across various agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While CDW Government LLC is a large business, the nature of the procurement (BPA Call) might involve subcontracting opportunities for small businesses, though this is not explicitly detailed. The primary focus appears to be on fulfilling large-scale IT hardware requirements for the DOJ, rather than direct small business set-aside goals.

Oversight & Accountability

The contract was awarded by the Department of Justice, implying oversight from the agency's internal procurement and financial management offices. As a firm-fixed-price contract, oversight would focus on delivery, quality, and adherence to contract terms. The Inspector General's office for the DOJ would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency is facilitated by public contract databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

GSA Schedule IT 70
CIO-SP3
Alliant GWAC
Department of Justice IT Procurement

Risk Flags

Potential for price increases in follow-on procurements if competition is not maintained.
Risk of technology obsolescence if hardware refresh cycles are not managed proactively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $59.6 million to CDW GOVERNMENT LLC. IGF::CT::IGF YRG$S5973540

Who is the contractor on this award?

The obligated recipient is CDW GOVERNMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $59.6 million.

What is the period of performance?

Start: 2017-07-01. End: 2019-06-30.

What was the specific IT hardware procured under this contract?

The provided data does not specify the exact types of IT hardware procured. The NAICS code 443120, 'Computer and Software Stores,' indicates a broad category including computers, peripherals, and related software. Given the scale and duration, it likely encompassed desktops, laptops, servers, networking equipment, and potentially associated software licenses. A more detailed contract line item breakdown would be necessary to identify the precise equipment purchased.

How does the $59.5 million total obligation compare to similar DOJ IT hardware spending over a two-year period?

Without historical spending data for the DOJ specifically on IT hardware for similar two-year periods, a direct comparison is difficult. However, $59.5 million represents a significant investment. For context, federal IT spending often runs into billions annually across agencies. This contract's value suggests it was a substantial portion of the DOJ's hardware budget during its term, potentially covering a significant number of end-user devices or core infrastructure components for a large segment of the department.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT hardware procurements, KPIs might relate to delivery timelines, product quality (e.g., defect rates), warranty support, and responsiveness to technical issues. The firm-fixed-price nature suggests the primary focus would be on meeting delivery schedules and providing the specified hardware in good working order.

What is CDW Government LLC's track record with the Department of Justice and other federal agencies for similar contracts?

CDW Government LLC is a well-established vendor that frequently contracts with federal agencies, including the Department of Justice. They are known for providing a wide range of IT products and services through various contract vehicles, including GSA Schedules and GWACs. Their extensive experience suggests a proven ability to meet government procurement requirements, manage large orders, and comply with federal regulations. Specific performance details on past DOJ contracts would require deeper database analysis.

Were there any notable challenges or issues reported by the DOJ or IG regarding this contract's performance or execution?

The summary data does not indicate any specific challenges, issues, or negative reports from the DOJ or its Inspector General concerning this particular contract. The award details suggest a standard procurement process. Significant performance problems or compliance issues often lead to contract modifications, disputes, or formal investigations, none of which are flagged in the provided information. A review of DOJ's contract performance databases or IG reports might reveal more granular details if any existed.

How did the use of a BPA Call impact the efficiency and cost-effectiveness of this procurement compared to other contract types?

Using a Blanket Purchase Agreement (BPA) Call, especially one established under a larger contract like a GSA Schedule or GWAC, generally enhances efficiency and cost-effectiveness. It allows agencies to pre-negotiate terms and pricing, streamlining the ordering process for specific needs. This reduces administrative burden and lead times compared to a new, full-and-open competition for each individual requirement. The firm-fixed-price nature of the call further adds cost certainty, making it an efficient method for acquiring defined IT hardware needs.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,554,250

Exercised Options: $59,554,250

Current Obligation: $59,554,250

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJJ14F2527

IDV Type: BPA

Timeline