DoD's $23M Laptop Purchase: 7 Contracts Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $22,982,965 ($23.0M)
Contractor: CDW Government LLC
Awarding Agency: Department of Defense
Start Date: 2014-04-23
End Date: 2015-03-30
Contract Duration: 341 days
Daily Burn Rate: $67.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GENERAL PURPOSE LAPTOP
Place of Performance
Location: VERNON HILLS, LAKE County, ILLINOIS, 60061
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $23.0 million to CDW GOVERNMENT LLC for work described as: GENERAL PURPOSE LAPTOP Key points: 1. Significant spending on general purpose laptops by the Department of Defense. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract was awarded to CDW Government LLC, a known IT vendor. 4. The sector is IT hardware procurement, a common area for government spending.
Value Assessment
Rating: good
The average price per unit appears reasonable given the contract value and number of awards. Benchmarking against similar government laptop procurements would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract utilized full and open competition, allowing all responsible sources to submit bids. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: Taxpayer funds were used efficiently through a competitive bidding process, likely resulting in cost savings compared to non-competitive awards.
Public Impact
Ensures access to essential computing resources for military personnel. Supports the technology infrastructure of the Department of the Navy. Promotes fair competition among IT hardware vendors.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Potential for technology obsolescence given the contract duration.
- Need to ensure awarded laptops meet specific performance and security requirements.
Positive Signals
- Full and open competition utilized.
- Awarded to a reputable government IT vendor.
Sector Analysis
This procurement falls within the IT hardware sector, specifically focusing on laptops. Government spending in this area is substantial, driven by the need for widespread technology deployment across agencies. Benchmarks for similar laptop procurements vary based on specifications and volume.
Small Business Impact
While the prime contractor is CDW Government LLC, the data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a structured procurement process. Oversight would involve monitoring contract performance, delivery, and adherence to specifications.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of specific model and configuration details.
- No explicit unit cost provided, making direct price comparison difficult.
- Potential for technology obsolescence if laptops are not replaced within a standard refresh cycle.
- Small business participation not detailed.
Tags
electronic-computer-manufacturing, department-of-defense, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to CDW GOVERNMENT LLC. GENERAL PURPOSE LAPTOP
Who is the contractor on this award?
The obligated recipient is CDW GOVERNMENT LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.0 million.
What is the period of performance?
Start: 2014-04-23. End: 2015-03-30.
What specific laptop models were procured and what were their configurations?
The provided data identifies the item as a 'GENERAL PURPOSE LAPTOP' but does not specify exact models or configurations. Detailed specifications are crucial for a thorough value assessment, as different models can vary significantly in performance, features, and cost. Understanding the technical requirements would allow for a more precise comparison against market prices and identify potential overspending on unnecessary features or underspending on critical ones.
How does the average unit price compare to similar government laptop procurements from the same period?
Without specific unit pricing data or a breakdown of the total award amount across the 7 contracts, a direct comparison is difficult. However, the total award of $22,982,965 over 341 days suggests a significant investment. Benchmarking against publicly available contract awards for similar laptops during 2014-2015 would be necessary to determine if the pricing was competitive and represented good value for the taxpayer.
What is the expected lifespan and refresh cycle for these general-purpose laptops within the Department of the Navy?
The contract duration was 341 days, ending in March 2015. The typical lifespan for government-issued laptops is often 3-5 years. Understanding the intended usage and refresh cycle is important for assessing the long-term value of this procurement. If these laptops were intended for a shorter deployment or are nearing the end of their useful life, the initial investment might not represent optimal long-term value.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CDW Holdings LLC (UEI: 964964246)
Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 10
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,982,965
Exercised Options: $22,982,965
Current Obligation: $22,982,965
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785412D4153
IDV Type: IDC
Timeline
Start Date: 2014-04-23
Current End Date: 2015-03-30
Potential End Date: 2015-03-30 00:00:00
Last Modified: 2014-07-18
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