DOT's FAA awards $701K for F5 Load Balancer Hardware Support, extending coverage through May 2027

Contract Overview

Contract Amount: $701,200 ($701.2K)

Contractor: CDW Government LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-02

End Date: 2027-05-26

Contract Duration: 419 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: F5 LOAD BALANCES HARDWARE SUPPORT RENEWAL

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $701,200.48 to CDW GOVERNMENT LLC for work described as: F5 LOAD BALANCES HARDWARE SUPPORT RENEWAL Key points: 1. Value for money appears reasonable given the multi-year support renewal for critical network hardware. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are low, as this is a renewal for essential hardware support, minimizing operational disruption. 4. Performance context is a hardware support renewal, ensuring continued functionality of existing F5 load balancers. 5. Sector positioning is within IT hardware maintenance and support for government agencies.

Value Assessment

Rating: good

The contract value of $701,200.48 over approximately 13 months represents a commitment to maintaining essential network infrastructure. Benchmarking against similar multi-year hardware support contracts for enterprise-grade equipment suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the FAA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a healthy level of competition for this type of specialized hardware support. This competitive process is expected to drive more favorable pricing for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government is not overpaying for essential hardware support services.

Public Impact

The Federal Aviation Administration (FAA) benefits directly through the continued operational support of its F5 load balancing hardware. This ensures the reliability and performance of critical network services managed by the FAA. The impact is primarily within the FAA's IT infrastructure, supporting its mission-critical operations. Workforce implications are minimal, as this contract covers hardware support rather than direct personnel services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract provides cost predictability.
Renewal of existing support for critical hardware.

Sector Analysis

This contract falls within the IT hardware maintenance and support sector, a crucial segment for government agencies relying on robust network infrastructure. The market for specialized hardware support, particularly for enterprise solutions like F5 load balancers, is competitive but requires specific vendor expertise. Comparable spending benchmarks for similar multi-year support agreements for network appliances often range from tens of thousands to hundreds of thousands of dollars annually, depending on the hardware's criticality and scale.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The primary contractor, CDW Government LLC, is a large business. Therefore, the direct impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order under an existing contract, it likely adheres to the oversight mechanisms of the parent contract. Transparency is maintained through federal contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Network Hardware Maintenance
IT Infrastructure Support
Load Balancer Support Contracts
Federal Aviation Administration IT Spending

Risk Flags

Potential for vendor lock-in with specialized hardware support.
Reliance on a single vendor for critical hardware maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $701,200.48 to CDW GOVERNMENT LLC. F5 LOAD BALANCES HARDWARE SUPPORT RENEWAL

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 $701,200.48.

What is the period of performance?

Start: 2026-04-02. End: 2027-05-26.

What is the track record of CDW Government LLC in providing similar IT hardware support to federal agencies?

CDW Government LLC is a well-established reseller and provider of IT solutions to the public sector. They have a history of delivering hardware, software, and related services to numerous federal agencies, including the Department of Transportation. Their experience typically includes managing support contracts for a wide range of IT equipment. While specific performance metrics for this exact type of support renewal are not publicly detailed, their consistent presence in federal contracting suggests a capacity to meet agency requirements. Further analysis would involve reviewing past performance evaluations if available through federal databases like the Contractor Performance Assessment Reporting System (CPARS).

How does the annual cost of this support contract compare to market rates for similar F5 load balancer support?

The total contract value is approximately $701,200 over roughly 13 months, equating to an estimated annual cost of around $647,000. This figure represents the cost for hardware support renewal for F5 load balancing equipment. Without specific details on the exact models, quantities, and service levels (e.g., 24/7 support, response times), a precise market rate comparison is challenging. However, for enterprise-grade F5 hardware, multi-year support contracts of this magnitude are not uncommon, especially for agencies with critical network uptime requirements. Industry benchmarks suggest that annual support costs for such equipment can range from 15-25% of the original hardware purchase price, a factor that would need to be considered against the FAA's initial investment.

What are the primary risks associated with this contract renewal, and how are they mitigated?

The primary risks associated with this contract renewal are potential service disruptions if the support provider fails to meet service level agreements, or if the pricing is not competitive over the contract term. Mitigation strategies include the firm-fixed-price structure, which caps costs, and the fact that this is a renewal, implying a known quantity of hardware and service needs. The competition under full and open bidding also helps mitigate pricing risks. Furthermore, the FAA likely has internal IT management and oversight processes to monitor vendor performance and ensure compliance with the contract terms. The renewal nature suggests a degree of confidence in the existing support arrangement.

What is the historical spending pattern for F5 load balancer hardware support at the FAA?

Analyzing historical spending patterns for F5 load balancer hardware support at the FAA would require access to detailed procurement data over several fiscal years. Typically, agencies renew support contracts for critical network hardware to ensure continuity of operations. Spending in this category can fluctuate based on hardware refresh cycles, changes in network architecture, and the number of devices requiring support. If the FAA has consistently relied on F5 technology for its load balancing needs, it is probable that annual spending on support has been relatively stable, with potential increases during periods of network expansion or hardware upgrades. This $701K award represents a specific period's commitment, and a broader trend analysis would involve comparing it to previous support renewals and any new hardware acquisitions.

What is the strategic importance of F5 load balancers to the FAA's operations, and how does this contract support that?

F5 load balancers are critical components of modern network infrastructure, responsible for distributing network traffic efficiently and ensuring high availability and reliability of applications and services. For the FAA, which manages complex air traffic control systems, flight information services, and internal operational networks, network uptime and performance are paramount. This contract ensures that the hardware supporting these functions remains operational and receives timely technical support and potential hardware replacements if needed. By renewing this support, the FAA mitigates the risk of network outages that could impact air safety, operational efficiency, and data integrity, thereby directly supporting its core mission.

Industry Classification

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

Product/Service Code: IT AND TELECOM - DATA CENTER

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: $701,200

Exercised Options: $701,200

Current Obligation: $701,200

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