DoD's Army Awards $22.5M for CONUS Laptops via Full and Open Competition
Contract Overview
Contract Amount: $22,502,610 ($22.5M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Defense
Start Date: 2009-11-30
End Date: 2009-11-30
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE
Sector: IT
Official Description: CONUS LAPTOPS
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78664
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $22.5 million to DELL FEDERAL SYSTEMS L.P for work described as: CONUS LAPTOPS Key points: 1. Spending focused on electronic computer manufacturing (NAICS 334111). 2. Competition was full and open, suggesting potential for competitive pricing. 3. The contract was a delivery order, indicating it's part of a larger agreement. 4. No small business participation was noted. 5. The contract was awarded by the Department of the Army.
Value Assessment
Rating: fair
The contract value of $22.5M for 5 laptops seems high on a per-unit basis. Without specific model details or quantities, a direct comparison is difficult, but this warrants further investigation into the unit pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive sign for price discovery. However, the limited number of delivery orders (5) and the fixed-price contract type suggest that the initial pricing may not have been fully optimized.
Taxpayer Impact: Taxpayer funds were used in a competitive process, but the value for money needs to be assessed based on the unit cost and actual performance.
Public Impact
Procurement of essential computing hardware for military operations. Potential impact on the domestic computer manufacturing sector. Ensures operational readiness through technology provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost concern
- Lack of small business participation
Positive Signals
- Full and open competition utilized
- Clear agency and product identification
Sector Analysis
This spending falls within the IT sector, specifically electronic computer manufacturing. Benchmarks for similar large-scale laptop procurements by government agencies would be useful to assess value.
Small Business Impact
The data indicates no small business participation in this contract. Efforts to ensure small businesses have opportunities in IT hardware procurements could be explored.
Oversight & Accountability
The award was a delivery order, suggesting it might be under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the terms of the parent contract and the justification for this specific order.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpricing due to high unit cost
- Lack of small business inclusion
- Unclear quantity of items procured
- Fixed-price contract may not reflect current market value
Tags
electronic-computer-manufacturing, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.5 million to DELL FEDERAL SYSTEMS L.P. CONUS LAPTOPS
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 Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.5 million.
What is the period of performance?
Start: 2009-11-30. End: 2009-11-30.
What was the specific quantity of laptops procured under this $22.5M award, and what was the per-unit cost?
The provided data indicates only 5 delivery orders were issued, which seems exceptionally low for a $22.5 million contract. This suggests either a misunderstanding of the data or a significant discrepancy. If the quantity is indeed very small, the per-unit cost would be extremely high, raising serious value concerns. Clarification on the quantity is essential for accurate cost analysis.
Given the full and open competition, why was the contract awarded as a delivery order, and what was the pricing strategy?
Delivery orders are typically issued against existing indefinite-delivery/indefinite-quantity (IDIQ) contracts. While the initial IDIQ might have been competed fully and openly, the pricing for individual delivery orders depends on the terms established in that parent contract. The fixed-price nature suggests a set price per unit, but the overall value hinges on whether this price was competitive at the time of the IDIQ award and if it reflects current market rates.
What is the expected lifespan and technological obsolescence risk for these CONUS laptops, and how does it compare to similar government procurements?
The risk of technological obsolescence for laptops is significant, typically within a 3-5 year cycle. For military-grade CONUS laptops, the lifespan might be extended due to ruggedization and specific configurations. Without knowing the exact models and their intended use, it's hard to assess the risk precisely. However, government procurements often aim for longer lifecycles, which can sometimes lead to acquiring older technology at higher prices if not managed carefully.
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: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Technologies Inc.
Address: 1 DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,502,610
Exercised Options: $22,502,610
Current Obligation: $22,502,610
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0002
IDV Type: IDC
Timeline
Start Date: 2009-11-30
Current End Date: 2009-11-30
Potential End Date: 2009-11-30 00:00:00
Last Modified: 2024-10-25
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