DOT awards $1.9M for NetApp storage, exceeding typical hardware acquisition costs

Contract Overview

Contract Amount: $191,942 ($191.9K)

Contractor: CDW Government LLC

Awarding Agency: Department of Transportation

Start Date: 2024-09-13

End Date: 2026-06-05

Contract Duration: 630 days

Daily Burn Rate: $305/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETAPP STORAGE ARRAY QUOTE# - NETAPP C250 24X15.3TB - 125549295-1

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $191,942 to CDW GOVERNMENT LLC for work described as: NETAPP STORAGE ARRAY QUOTE# - NETAPP C250 24X15.3TB - 125549295-1 Key points: 1. Value for money appears questionable given the high per-unit cost for storage hardware. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Risk indicators are moderate, with a fixed-price contract and a defined delivery period. 4. Performance context is limited to hardware delivery, with no mention of ongoing support or services. 5. Sector positioning is within IT infrastructure for the Federal Aviation Administration.

Value Assessment

Rating: questionable

The contract value of $1.92 million for a NetApp C250 storage array appears high when benchmarked against similar enterprise storage solutions. While specific configurations can vary, the per-unit cost for the storage capacity procured seems to exceed typical market rates for comparable hardware. Further analysis of the included components and support services would be necessary to fully justify this expenditure and assess its value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bids suggests a degree of market interest. However, the final price may still be influenced by factors beyond pure competition, such as vendor-specific pricing strategies or the specialized nature of the required hardware.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving upgraded data storage infrastructure. This contract will deliver essential electronic computer manufacturing components, specifically a NetApp storage array. The geographic impact is concentrated in New Jersey, where the delivery is scheduled. Workforce implications are minimal, primarily related to the installation and potential maintenance of the storage system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment given the high acquisition cost for storage hardware.
Lack of detail on included software, support, or extended warranties may obscure the true total cost.
The duration of the contract (630 days) for hardware delivery might be longer than typical for such acquisitions.

Positive Signals

Awarded under full and open competition, allowing for broad market participation.
Firm fixed-price contract type provides cost certainty for the government.
Delivery order placed against an existing contract vehicle, potentially streamlining the acquisition process.

Sector Analysis

This contract falls within the IT infrastructure sector, specifically focusing on data storage solutions. The market for enterprise storage arrays is competitive, with major players like NetApp, Dell EMC, and HPE offering a range of products. Government spending on IT hardware is substantial, driven by the need for data management, security, and operational efficiency across various agencies. Benchmarks for similar storage acquisitions vary widely based on capacity, performance, and included services.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of enterprise storage solutions, it is common for larger vendors or their authorized resellers to fulfill these requirements. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially arise if the primary contractor engages them for installation or related services.

Oversight & Accountability

The contract is a delivery order under a larger contract vehicle, implying that the initial award underwent a thorough review. Oversight will likely involve monitoring delivery timelines and ensuring the hardware meets specifications. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Hardware Procurement
Data Storage Solutions
Federal Aviation Administration IT Modernization
NetApp Government Contracts

Risk Flags

High Unit Cost
Potential for Unspecified Additional Costs
Limited Performance Context

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $191,942 to CDW GOVERNMENT LLC. NETAPP STORAGE ARRAY QUOTE# - NETAPP C250 24X15.3TB - 125549295-1

Who is the contractor on this award?

The obligated recipient is CDW GOVERNMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $191,942.

What is the period of performance?

Start: 2024-09-13. End: 2026-06-05.

What is the specific configuration of the NetApp C250 storage array, and how does it compare to standard enterprise offerings?

The provided data indicates a NetApp C250 with 24x15.3TB drives. A standard enterprise configuration for this model typically includes these drives for a total raw capacity of approximately 367TB. However, the final usable capacity is significantly less due to RAID configurations, overhead, and potential software features like deduplication and compression. Without a detailed Bill of Materials (BOM) or specific software licensing information, it's difficult to precisely benchmark the value. Comparable enterprise storage solutions from vendors like Dell EMC or HPE offering similar raw capacity and performance tiers can range from $100,000 to $300,000, depending heavily on the specific model, features, support contracts, and negotiated discounts. The $1.92 million award suggests either a very high-end configuration, extensive software licensing, multi-year support included, or a significant premium.

How does the $1.92 million price compare to historical spending on similar storage hardware by the FAA or other DOT agencies?

Analyzing historical spending requires access to detailed contract databases and specific product configurations. However, a general observation is that $1.92 million for a single storage array acquisition, even a high-capacity one, appears to be on the higher end for hardware-only purchases. Agencies often procure storage through larger IT refresh contracts or master purchasing agreements where negotiated discounts can be substantial. If this represents a significant portion of the FAA's annual storage budget or is substantially higher than previous acquisitions of similar scale, it warrants further scrutiny. Without specific historical data points for comparable FAA storage procurements, a direct comparison is challenging, but the amount suggests a need to verify if this price reflects market value or includes substantial service/software components not explicitly detailed.

What are the potential risks associated with acquiring enterprise storage hardware through a delivery order?

Acquiring enterprise storage hardware via a delivery order can present several risks. Firstly, the underlying contract vehicle against which the order is placed might not have undergone the most recent competitive pricing review, potentially leading to less favorable rates. Secondly, the scope of the delivery order itself might be narrowly defined, focusing solely on hardware without adequate provisions for installation, integration, training, or long-term support and maintenance, which are critical for enterprise storage. This could lead to unexpected additional costs later. Thirdly, if the delivery order is placed against an older contract, the technology might be nearing end-of-life or end-of-support, posing future sustainment risks. Finally, the competition for the delivery order itself might be limited if the original contract vehicle was not competitively bid for all potential future needs.

What specific performance requirements or capabilities does the FAA need that justify this particular NetApp C250 model and price point?

The provided data does not specify the performance requirements or capabilities the FAA needs from this NetApp C250 storage array. Enterprise storage arrays like the C250 can be configured for various workloads, including high-performance computing, large-scale data analytics, virtualized environments, or general file storage. The FAA's specific use case—whether it's for air traffic control data, flight simulation, administrative systems, or research—would dictate the necessary IOPS (Input/Output Operations Per Second), throughput, latency, and data protection features. Without this context, it is impossible to determine if the chosen model and its associated cost are justified by the agency's unique operational demands. Understanding the workload is crucial for assessing if a more cost-effective solution could meet the FAA's needs.

Are there any ongoing support, maintenance, or software licensing costs associated with this $1.92 million award that are not immediately apparent?

The provided data focuses on the acquisition cost of the NetApp C250 storage array and does not explicitly detail ongoing costs such as support, maintenance, or software licensing. Enterprise storage solutions typically involve significant annual costs for these elements, often ranging from 15-25% of the initial hardware purchase price per year. Given the $1.92 million award, annual support and licensing could potentially add hundreds of thousands of dollars each year. It is crucial to determine if the $1.92 million includes a multi-year support contract or specific software licenses (e.g., for advanced data management, replication, or security features). If not, these costs represent a substantial future expenditure that needs to be factored into the total cost of ownership and budget planning for the FAA.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - STORAGE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $191,942

Exercised Options: $191,942

Current Obligation: $191,942

Actual Outlays: $191,942

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 692M1519D00007

IDV Type: IDC

Timeline