Department of State Spends $14.6M on Dell Servers via Full & Open Competition
Contract Overview
Contract Amount: $14,653,648 ($14.7M)
Contractor: Standard-Blazar, LLC
Awarding Agency: Department of State
Start Date: 2025-09-30
End Date: 2026-09-29
Contract Duration: 364 days
Daily Burn Rate: $40.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DELL POWEREDGE R760 SERVERS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20052
Plain-Language Summary
Department of State obligated $14.7 million to STANDARD-BLAZAR, LLC for work described as: DELL POWEREDGE R760 SERVERS Key points: 1. Significant investment in IT infrastructure with Dell PowerEdge R760 servers. 2. Competition method indicates a deliberate effort to achieve best value. 3. Potential risk lies in the concentration of spending within a single contract. 4. IT hardware procurement is a common but critical area for government spending.
Value Assessment
Rating: good
The total award amount of $14.6M for servers appears reasonable given the quantity and model. Benchmarking against similar large-scale server procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive bidding process was utilized. This method is designed to promote price discovery and ensure fair market pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
Ensures critical IT infrastructure for the Department of State is up-to-date. Supports agency operations and data processing capabilities. Procurement process aims for cost-effectiveness through competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Concentration of spending within one contract.
- Reliance on a specific server model.
Positive Signals
- Full and open competition utilized.
- Clear delivery and end dates.
- Firm fixed price contract type.
Sector Analysis
This procurement falls within the IT hardware sector, specifically server infrastructure. Spending benchmarks for similar federal IT hardware contracts can vary widely based on quantity, specifications, and vendor.
Small Business Impact
The data does not indicate any specific set-asides for small businesses in this procurement. Large-scale IT hardware contracts are often awarded to major vendors, potentially limiting direct small business participation.
Oversight & Accountability
The contract is a delivery order under a larger agreement, suggesting existing oversight mechanisms. Further review of the parent contract and the specific justification for excluding sources would be beneficial.
Related Government Programs
- Other Computer Related Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for vendor lock-in with specific hardware.
- Lack of small business participation evident.
- Concentration of funds in a single delivery order.
- Need for detailed justification for source exclusion.
Tags
other-computer-related-services, department-of-state, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $14.7 million to STANDARD-BLAZAR, LLC. DELL POWEREDGE R760 SERVERS
Who is the contractor on this award?
The obligated recipient is STANDARD-BLAZAR, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $14.7 million.
What is the period of performance?
Start: 2025-09-30. End: 2026-09-29.
What is the expected lifespan and performance benefit of these specific Dell servers compared to alternative options that may have been considered during the competition?
The Dell PowerEdge R760 servers are designed for high performance and reliability, suitable for demanding enterprise workloads. Their expected lifespan typically aligns with federal IT refresh cycles, often 3-5 years. The specific performance benefits would depend on the configuration and the agency's workload requirements, but they generally offer advancements in processing power, memory capacity, and I/O compared to older generations.
What were the specific reasons for excluding other sources prior to the full and open competition, and did this exclusion impact the final price?
The exclusion of sources prior to full and open competition implies that initial market research or specific requirements may have led to a narrowed down list of potential vendors or solutions. The justification for this exclusion is critical; if it was based on unique capabilities or existing infrastructure compatibility, it could limit price competition. However, the subsequent 'full and open' award suggests that multiple bidders were ultimately allowed to compete, mitigating potential price inflation from the initial exclusion.
How does the total contract value of $14.6M compare to the agency's historical spending on similar server hardware, and what is the projected return on investment?
Comparing $14.6M to historical spending requires access to the Department of State's past IT procurement data. However, for large-scale server deployments, this figure is within a plausible range, especially if it includes multiple units and extended support. A projected ROI would depend on factors like improved operational efficiency, reduced downtime, enhanced data security, and the ability to support new mission-critical applications enabled by the new hardware.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 19AQMM25Q0035
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9547 OLD CREEK DR, FAIRFAX, VA, 22032
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,653,648
Exercised Options: $14,653,648
Current Obligation: $14,653,648
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD70B
IDV Type: GWAC
Timeline
Start Date: 2025-09-30
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2026-04-07
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