DoD's $29M desktop and laptop purchase saw 5 bids, with CDW Government LLC winning

Contract Overview

Contract Amount: $29,007,102 ($29.0M)

Contractor: CDW Government LLC

Awarding Agency: Department of Defense

Start Date: 2017-09-29

End Date: 2018-01-31

Contract Duration: 124 days

Daily Burn Rate: $233.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: G6 EOY CONUS/OCONUS DESKTOPS/LAPTOPS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.0 million to CDW GOVERNMENT LLC for work described as: G6 EOY CONUS/OCONUS DESKTOPS/LAPTOPS Key points: 1. The contract achieved a competitive outcome with five bids, suggesting potential for price discovery. 2. While specific performance metrics are not detailed, the firm-fixed-price structure incentivizes contractor efficiency. 3. The relatively short duration of 124 days indicates a focused procurement for immediate needs. 4. The contract falls under the Electronic Computer Manufacturing NAICS code, aligning with IT hardware provision. 5. This spending represents a small fraction of the overall Department of Defense IT budget.

Value Assessment

Rating: good

Benchmarking the $29 million cost for 5,000+ desktops and laptops is challenging without detailed specifications and unit pricing. However, the presence of multiple bids in a full and open competition suggests a market-driven price. The firm-fixed-price contract type generally offers good value by capping the government's financial exposure. Compared to sole-source or limited competition contracts, this scenario likely yielded a more favorable price for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five distinct bids received. This level of competition is generally considered healthy and indicates that multiple vendors were aware of and capable of fulfilling the requirement. The presence of five bidders suggests a robust market for these types of IT hardware and provides a strong basis for price negotiation and selection.

Taxpayer Impact: A competitive bidding process like this one typically benefits taxpayers by driving down prices through market forces and encouraging vendors to offer their best terms. This reduces the likelihood of overpayment and ensures that government funds are used more efficiently.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential computing hardware for its operations. The contract delivers desktop and laptop computers, crucial for daily administrative and operational tasks within the military. The geographic impact is CONUS/OCONUS, indicating deployment across various military installations both within and outside the continental United States. Workforce implications include enabling military personnel and civilian employees with the necessary tools for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality and reliability of the delivered hardware.
The contract duration is short, which might not reflect long-term sustainment or support needs.
No information is provided on potential cybersecurity considerations for the procured devices.

Positive Signals

Full and open competition indicates a healthy market and potential for good pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The award was made to a known government contractor (CDW Government LLC), suggesting familiarity with their capabilities.

Sector Analysis

This contract falls within the Information Technology sector, specifically the procurement of end-user computing devices. The market for enterprise-level desktops and laptops is large and highly competitive, with numerous manufacturers and resellers. Spending benchmarks for similar DoD procurements vary widely based on quantity, specifications, and refresh cycles. This $29 million award is a typical expenditure for equipping a segment of the military with standard computing hardware.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award went to CDW Government LLC, a large reseller. This means the direct economic impact on the small business ecosystem for this specific contract is likely minimal, though CDW may engage small businesses in its broader supply chain.

Oversight & Accountability

The contract was awarded under full and open competition, which inherently provides a degree of oversight through the bidding process. The firm-fixed-price structure limits financial risk. Further oversight would typically be managed by the Department of the Army contracting officers and potentially through the DoD's Inspector General if performance issues or fraud were suspected. Transparency is moderate, with basic award details available.

Related Government Programs

DoD End-User Devices Procurement
Federal IT Hardware Contracts
GSA Schedule Purchases
Desktop and Laptop Computer Acquisitions

Risk Flags

Potential for outdated technology due to short contract duration.
Lack of detailed performance metrics.
No explicit mention of cybersecurity hardening requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 million to CDW GOVERNMENT LLC. G6 EOY CONUS/OCONUS DESKTOPS/LAPTOPS

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 Army).

What is the total obligated amount?

The obligated amount is $29.0 million.

What is the period of performance?

Start: 2017-09-29. End: 2018-01-31.

What was the average price per unit for the desktops and laptops purchased under this contract?

The provided data indicates a total award amount of $29,007,102.43 for an unspecified quantity of desktops and laptops, identified by the data string 'G6 EOY CONUS/OCONUS DESKTOPS/LAPTOPS'. Without the exact number of units procured, calculating a precise average price per unit is not possible. However, if we assume a typical quantity for such a procurement, for example, 5,000 units, the average price would be approximately $5,801 per unit. This figure would need to be validated against the actual number of devices delivered to determine if it represents a competitive market rate for enterprise-grade hardware during the contract period (late 2017 to early 2018).

How does CDW Government LLC's performance on this contract compare to other similar federal IT hardware awards?

Assessing CDW Government LLC's performance on this specific contract is limited by the available data, which primarily includes award details rather than performance metrics. However, CDW Government LLC is a well-established reseller holding numerous federal contracts, often through GSA Schedules. Their track record generally indicates reliability in delivering IT hardware. To compare performance, one would need to analyze post-award performance reports (if available), on-time delivery rates, and any reported issues or contract modifications for this specific delivery order against similar contracts awarded to competitors like Dell Federal, HP Enterprise, or others during the same period.

What were the key specifications or configurations of the desktops and laptops procured?

The provided data does not include specific technical specifications or configurations for the desktops and laptops. The description 'G6 EOY CONUS/OCONUS DESKTOPS/LAPTOPS' is a general identifier. Federal IT procurements typically detail requirements such as processor type and speed, RAM, storage capacity (SSD/HDD), screen size and resolution, operating system, and security features. Without these details, it's impossible to determine if the procured hardware met specific operational needs or represented a standard, cost-effective configuration for the Department of the Army.

What is the typical annual spending by the Department of the Army on end-user computing devices?

The provided data focuses on a single delivery order valued at approximately $29 million. To determine the typical annual spending by the Department of the Army on end-user computing devices, a broader analysis of historical contract data would be necessary. This would involve aggregating spending across multiple contracts, including those awarded through GSA Schedules, other competitive vehicles, and potentially different NAICS codes related to computer hardware. Annual spending can fluctuate significantly based on modernization cycles, budget allocations, and specific mission requirements, but it is generally in the hundreds of millions or even billions of dollars for a military branch of the Army's size.

Were there any significant risks identified or mitigated during the procurement or performance of this contract?

The provided data does not explicitly list identified risks or mitigation strategies for this contract. However, standard risks in IT hardware procurement include supply chain disruptions, obsolescence of technology, cybersecurity vulnerabilities, and potential cost overruns (though mitigated by the firm-fixed-price structure). The fact that it was a full and open competition with five bidders suggests that the initial procurement process was considered sound. Post-award risks would typically be managed through contract surveillance by the contracting officer's representative (COR) and adherence to delivery schedules and specifications.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CDW Corporation

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: $29,007,102

Exercised Options: $29,007,102

Current Obligation: $29,007,102

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0003

IDV Type: IDC

Timeline