DoD Navy awards $30M for Laptops via Full and Open Competition
Contract Overview
Contract Amount: $30,058,075 ($30.1M)
Contractor: CDW Government LLC
Awarding Agency: Department of Defense
Start Date: 2016-03-31
End Date: 2021-06-30
Contract Duration: 1,917 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GENERAL PURPOSE LAPTOP
Place of Performance
Location: NORTH LAS VEGAS, CLARK County, NEVADA, 89030
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $30.1 million to CDW GOVERNMENT LLC for work described as: GENERAL PURPOSE LAPTOP Key points: 1. Significant contract value of $30M for general purpose laptops. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract duration is long (1917 days), potentially impacting price stability. 4. Sector is IT hardware procurement, a common area for federal spending.
Value Assessment
Rating: fair
The contract value is substantial, but without specific unit pricing or comparison data, it's difficult to definitively assess value. The firm fixed price contract type offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the long duration and specific vendor (CDW) might warrant further investigation into price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential IT equipment. Competitive bidding aims to ensure reasonable prices, but long-term contracts can sometimes lead to less favorable pricing over time.
Public Impact
Ensures availability of essential computing hardware for Navy personnel. Supports the IT infrastructure of a major federal agency. Potential for technology refresh cycles within the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may not reflect current market prices.
- Lack of specific per-unit cost data makes value assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the IT hardware procurement sector, specifically for general purpose laptops. Federal spending in this area is consistent, with agencies requiring regular updates and replacements for end-user devices.
Small Business Impact
The data indicates the award went to CDW Government LLC, a large reseller. There is no explicit information on small business participation or subcontracting in this award notice.
Oversight & Accountability
The award was a delivery order under a larger contract vehicle. Oversight would typically involve monitoring contract performance, delivery schedules, and adherence to terms by the contracting officer.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration potentially leading to outdated technology.
- Lack of specific per-unit cost data for detailed value analysis.
- Potential for price increases or uncompetitive pricing over the contract's lifespan.
- No explicit mention of small business subcontracting.
Tags
electronic-computer-manufacturing, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.1 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 $30.1 million.
What is the period of performance?
Start: 2016-03-31. End: 2021-06-30.
What was the average per-unit cost for these laptops, and how does it compare to market rates at the time of award and throughout the contract's life?
The provided data does not include the average per-unit cost. To assess value, a comparison with prevailing market prices for similar laptop models during the contract period (2016-2021) would be necessary. This would reveal if the firm fixed price offered good value over the long term or if prices became uncompetitive as technology advanced.
Given the 5-year duration, what mechanisms were in place to ensure the technology remained current and competitively priced?
A 5-year duration for IT hardware can be lengthy. Mechanisms like technology refresh clauses, regular price reviews, or options for updated models could have been incorporated. Without this information, there's a risk that the government received outdated technology or paid above-market rates towards the end of the contract.
How did the full and open competition process translate into actual cost savings for taxpayers?
Full and open competition generally drives down prices by allowing multiple vendors to bid. While this contract was awarded competitively, the long duration and potential for price escalation over time mean the initial savings might have diminished. A detailed analysis of pricing trends throughout the contract's life would be needed to quantify the ultimate taxpayer impact.
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
Solicitation ID: M6785416Q4057
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, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,058,075
Exercised Options: $30,058,075
Current Obligation: $30,058,075
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785412D4153
IDV Type: IDC
Timeline
Start Date: 2016-03-31
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2021-05-25
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