Social Security Administration spent $23.4M on Dell servers, a significant investment in IT infrastructure
Contract Overview
Contract Amount: $23,379,717 ($23.4M)
Contractor: Dell Marketing L.P.
Awarding Agency: Social Security Administration
Start Date: 2013-09-23
End Date: 2014-09-22
Contract Duration: 364 days
Daily Burn Rate: $64.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF, DELIVERY AND INSTALLATION OF DELL APPLICATION SERVERS FOR BRANCH OFFICE SERVER REPLACEMENT THROUGHOUT THE UNITED STATES AND ITS TERRITORIES.
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682, UNITED STATES OF AMERICA
State: Texas Government Spending
Plain-Language Summary
Social Security Administration obligated $23.4 million to DELL MARKETING L.P. for work described as: IGF::OT::IGF, DELIVERY AND INSTALLATION OF DELL APPLICATION SERVERS FOR BRANCH OFFICE SERVER REPLACEMENT THROUGHOUT THE UNITED STATES AND ITS TERRITORIES. Key points: 1. The contract focused on the delivery and installation of Dell application servers, indicating a need for updated hardware. 2. The award was made through full and open competition, suggesting a robust market for server solutions. 3. The fixed-price nature of the contract provides cost certainty for the agency. 4. The contract duration of one year suggests a need for ongoing hardware refresh cycles. 5. The primary contractor, Dell Marketing L.P., is a major player in the IT hardware market. 6. The spending aligns with the broader federal trend of modernizing IT infrastructure to improve service delivery.
Value Assessment
Rating: good
The contract value of $23.4 million for server delivery and installation appears reasonable given the scale of the Social Security Administration's operations. Benchmarking against similar federal IT hardware procurements would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns, which is a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award suggests that Dell Marketing L.P. was the most advantageous offer received by the agency, likely based on a combination of price, technical capabilities, and other factors. The competitive process should have driven a fair market price.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds, ensuring that the agency is not overpaying for essential IT equipment.
Public Impact
Federal employees within the Social Security Administration benefit from updated and reliable server infrastructure, enabling efficient processing of social security benefits and services. The delivery and installation of servers across the United States and its territories ensures that branch offices have the necessary hardware to operate. This contract supports the IT workforce involved in the deployment and maintenance of server hardware. Citizens relying on Social Security services indirectly benefit from improved system performance and reliability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if future procurements heavily favor Dell hardware.
- Risk of obsolescence if server technology advances rapidly beyond the installed base within the contract period.
- Dependence on a single supplier for delivery and installation could lead to delays if the supplier faces production or logistical issues.
Positive Signals
- Award to a well-established vendor with a proven track record in delivering IT hardware.
- Firm fixed-price contract provides budget certainty.
- Full and open competition suggests a healthy market and potential for competitive pricing.
Sector Analysis
The procurement of application servers falls within the broader Information Technology sector, specifically in the area of computer hardware manufacturing and sales. The federal government is a significant purchaser of IT equipment, with substantial annual spending on servers, networking gear, and end-user devices. This contract represents a portion of that overall spending, aimed at maintaining and upgrading critical IT infrastructure necessary for government operations. Comparable spending benchmarks would involve analyzing other large-scale server procurements by agencies like the Department of Defense or the General Services Administration.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The award was made to Dell Marketing L.P., a large corporation. There is no explicit information regarding subcontracting opportunities for small businesses within this specific award, though large IT hardware contracts can sometimes include such provisions.
Oversight & Accountability
Oversight for this contract would typically be managed by the Social Security Administration's contracting officers and program managers. The firm fixed-price nature provides a degree of financial oversight by limiting potential cost increases. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.
Related Government Programs
- Federal Information Technology Acquisition Reform Act (FITARA)
- General Services Administration (GSA) IT Schedule Contracts
- Social Security Administration IT Modernization Initiatives
Risk Flags
- Single Award
- Potential for Vendor Lock-in
- Reliance on Specific Technology
Tags
it, social-security-administration, dell-marketing-l.p., firm-fixed-price, full-and-open-competition, servers, hardware-delivery, installation, united-states, branch-office-replacement
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $23.4 million to DELL MARKETING L.P.. IGF::OT::IGF, DELIVERY AND INSTALLATION OF DELL APPLICATION SERVERS FOR BRANCH OFFICE SERVER REPLACEMENT THROUGHOUT THE UNITED STATES AND ITS TERRITORIES.
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $23.4 million.
What is the period of performance?
Start: 2013-09-23. End: 2014-09-22.
What is the historical spending pattern of the Social Security Administration on Dell servers?
Analyzing historical spending on Dell servers by the Social Security Administration (SSA) requires examining contract data over multiple fiscal years. While this specific contract award was for approximately $23.4 million in 2013-2014, understanding the broader trend involves looking at prior and subsequent awards for similar hardware. If the SSA has consistently procured Dell servers over several years, it might indicate a strategic decision to standardize on Dell hardware for its infrastructure. Conversely, a fluctuating pattern could suggest periodic competitive bidding across different vendors or a shift in IT strategy. Without access to a comprehensive historical database for the SSA's server procurements, it is difficult to provide a precise historical spending figure. However, the $23.4 million figure represents a significant, albeit single-year, investment in server technology for the agency's branch office replacements.
How does the per-unit cost of these Dell servers compare to market rates or similar federal contracts?
Determining the precise per-unit cost of the Dell application servers procured under this contract is challenging without detailed line-item data specifying the quantity and model of servers purchased. The total award of $23.4 million for a one-year duration suggests a substantial number of units or high-end configurations. To benchmark against market rates, one would need to identify the specific Dell server models (e.g., PowerEdge R740, R640) and their configurations (CPU, RAM, storage) and compare their prices from Dell's commercial price list or through IT hardware resellers. For federal contracts, comparisons would involve searching the Federal Procurement Data System (FPDS) for similar server procurements by other agencies, looking for contracts awarded under similar conditions (e.g., full and open competition, firm fixed price) and analyzing their average per-unit costs. Given Dell's position as a major vendor, their federal pricing is often competitive, but without specific model and quantity details, a definitive per-unit cost comparison is not feasible.
What are the key performance indicators (KPIs) used to evaluate the success of this server delivery and installation contract?
The success of this server delivery and installation contract would likely be evaluated based on several key performance indicators (KPIs). Primary among these would be 'On-Time Delivery,' ensuring that the servers arrived at the designated branch offices within the agreed-upon schedule. 'Installation Completion' would track whether the installation process was successfully executed according to specifications, minimizing downtime. 'Performance and Functionality' would assess whether the installed servers met the required technical specifications and performed as expected under load. 'Defect Rate' would monitor the number of hardware failures or installation errors reported post-delivery. 'Customer Satisfaction,' potentially measured through feedback from the SSA's IT personnel at the branch offices, could also be a KPI. Adherence to the 'Firm Fixed Price' would be a crucial financial KPI, ensuring the project stayed within budget.
What is the track record of Dell Marketing L.P. in fulfilling similar federal IT hardware contracts?
Dell Marketing L.P. has a long and extensive track record of fulfilling federal IT hardware contracts. As one of the largest technology vendors globally, Dell consistently secures significant government contracts across various agencies for a wide range of products, including servers, laptops, desktops, and networking equipment. Their experience includes managing large-scale deployments, adhering to strict security and compliance requirements, and navigating complex federal procurement processes. The Social Security Administration itself has a history of awarding contracts to Dell, indicating a level of trust and satisfaction with their performance. Dell's participation in major federal IT purchasing vehicles, such as GSA Schedules, further demonstrates their established presence and capability in serving the federal market. Their ability to consistently win competitive bids for substantial contracts underscores their strong performance and reliability in the federal IT sector.
What are the potential risks associated with relying on a single vendor for server hardware replacement?
Relying on a single vendor like Dell Marketing L.P. for server hardware replacement, even under a competitive contract, carries several potential risks. Firstly, there's the risk of 'Vendor Lock-in,' where the agency becomes heavily dependent on Dell's ecosystem, potentially limiting future flexibility in choosing alternative vendors or technologies. This can also lead to less competitive pricing in subsequent procurements if the vendor knows the agency has limited options. Secondly, 'Supply Chain Disruptions' can pose a significant risk; if Dell faces manufacturing delays, component shortages, or logistical issues, the SSA's server replacement schedule could be severely impacted, affecting operations. Thirdly, 'Technological Stagnation' is a concern; a single vendor might not always offer the most cutting-edge technology compared to a market with diverse innovation. Finally, 'Support and Maintenance' could become less responsive or more expensive over time if the vendor perceives reduced competition for ongoing support services.
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: 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: Dell Technologies Inc. (UEI: 601839660)
Address: ONE DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,379,717
Exercised Options: $23,379,717
Current Obligation: $23,379,717
Parent Contract
Parent Award PIID: SS001340034
IDV Type: BPA
Timeline
Start Date: 2013-09-23
Current End Date: 2014-09-22
Potential End Date: 2014-09-22 00:00:00
Last Modified: 2015-12-02
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