Commerce Department awards $1.08M IT services contract to Dell Federal Systems L.P

Contract Overview

Contract Amount: $1,077,623 ($1.1M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Commerce

Start Date: 2026-05-01

End Date: 2027-04-30

Contract Duration: 364 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DELL MICROSOFT SERVICES

Place of Performance

Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682

State: Texas Government Spending

Plain-Language Summary

Department of Commerce obligated $1.1 million to DELL FEDERAL SYSTEMS L.P for work described as: DELL MICROSOFT SERVICES Key points: 1. Contract awarded via BPA Call under full and open competition. 2. Services are categorized under 'Other Computer Related Services'. 3. Contract duration is 364 days, indicating a short-term need. 4. Firm Fixed Price contract type suggests predictable costs. 5. No small business set-aside was utilized for this award. 6. Contract awarded to a single vendor, Dell Federal Systems L.P.

Value Assessment

Rating: fair

The contract value of $1.08 million for approximately one year of IT services appears within a reasonable range for specialized computer services. Benchmarking against similar contracts for 'Other Computer Related Services' would provide a clearer picture of value for money. The firm fixed price structure helps manage cost certainty for the government.

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 offers. The specific mechanism used was a BPA Call, which suggests an existing Blanket Purchase Agreement was leveraged. The number of bidders is not specified, but the competition type implies a robust process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

Benefits the Department of Commerce by providing essential IT services. Services delivered likely support the Office of the Secretary's operations. Geographic impact is primarily within Texas, where the contract is registered. Workforce implications are tied to the IT service providers employed by Dell.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of 'Other Computer Related Services' could lead to scope creep.
Reliance on a single vendor for these services might limit future flexibility.
No indication of performance metrics or service level agreements in the provided data.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Awarded under full and open competition, suggesting a fair process.
Leveraging an existing BPA Call streamlines the procurement process.

Sector Analysis

The IT services sector is vast and highly competitive. This contract falls under the 'Other Computer Related Services' NAICS code (541519), which encompasses a broad range of IT support and consulting. The market for these services is characterized by numerous providers, from large integrators to specialized firms. The contract value is relatively modest within the broader federal IT spending landscape.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The award went to a large prime contractor, Dell Federal Systems L.P.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Commerce's contracting officers and program managers. Transparency is facilitated by federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
IT Support Services
Computer Systems Design Services
IT Services for Federal Agencies

Risk Flags

Lack of detailed service scope
Potential for vendor lock-in
No explicit performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $1.1 million to DELL FEDERAL SYSTEMS L.P. DELL MICROSOFT SERVICES

Who is the contractor on this award?

The obligated recipient is DELL FEDERAL SYSTEMS L.P.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2026-05-01. End: 2027-04-30.

What specific IT services are included under the 'Other Computer Related Services' category for this contract?

The provided data only specifies the NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide array of IT functions, including but not limited to IT support, help desk services, network management, system administration, IT consulting, and potentially specialized software or hardware support. Without the full contract details or statement of work, the precise nature of the services Dell Federal Systems L.P. will provide remains undefined. Further clarification would be needed from the Department of Commerce to understand the exact deliverables and scope.

How does the $1.08 million contract value compare to similar IT services contracts awarded by the Department of Commerce?

Comparing the $1.08 million contract value requires access to a broader dataset of IT services contracts awarded by the Department of Commerce, specifically within the 'Other Computer Related Services' (NAICS 541519) category. However, for a one-year duration, this value suggests a mid-sized engagement. Federal IT spending is substantial, and contracts can range from tens of thousands to hundreds of millions of dollars. This particular award appears to be a focused, potentially specialized, service requirement rather than a large-scale enterprise IT solution. A detailed benchmark analysis would involve examining contract duration, service scope, and the number of bidders for comparable awards.

What are the potential risks associated with awarding a contract for 'Other Computer Related Services' to a single vendor like Dell?

Awarding IT services to a single vendor, even under full and open competition, carries potential risks. These can include vendor lock-in, where switching providers becomes difficult and costly. There's also a risk of reduced innovation if the vendor becomes complacent due to a lack of direct competition for follow-on work. Furthermore, if the vendor's performance falters or their pricing increases significantly in future procurements, the agency may have limited immediate alternatives. The firm fixed price helps mitigate cost overruns for this specific period, but long-term strategic risks related to vendor dependency remain.

What is the significance of this contract being awarded via a BPA Call?

A Blanket Purchase Agreement (BPA) Call signifies that this contract was issued under an existing BPA. BPAs are simplified acquisition methods that allow federal agencies to fill anticipated repetitive needs for supplies or services. Awarding via a BPA Call suggests that Dell Federal Systems L.P. was likely an incumbent or pre-qualified vendor under a broader BPA. This method streamlines the procurement process, reduces administrative burden, and can lead to faster delivery of services compared to a traditional full and open competition for each individual requirement. It implies a pre-existing relationship and established terms.

What does the 'Firm Fixed Price' contract type imply for the Department of Commerce and Dell?

The 'Firm Fixed Price' (FFP) contract type means that the price is set and not subject to adjustment based on the contractor's cost experience in performing the work. For the Department of Commerce, this offers significant cost certainty and predictability, as they know the exact amount they will pay, barring any contract modifications. For Dell Federal Systems L.P., it places the entire cost risk on them. They must manage their resources efficiently to deliver the contracted services within the agreed-upon price. If their costs exceed the fixed price, their profit margin will decrease; if they manage costs effectively, their profit will increase.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Francisco Partners Management, L.P.

Address: 1 DELL WAY, ROUND ROCK, TX, 78682

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,077,623

Exercised Options: $1,077,623

Current Obligation: $1,077,623

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L524A13ES0005

IDV Type: BPA

Timeline