DOT's FAA awards $2.05M for storage hardware upgrade, highlighting electronic computer manufacturing sector

Contract Overview

Contract Amount: $205,320 ($205.3K)

Contractor: CDW Government LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-06

End Date: 2026-07-10

Contract Duration: 95 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURCHASE OF ABACUS PURE STORAGE HARDWARE UPGRADE.

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $205,320 to CDW GOVERNMENT LLC for work described as: THE PURCHASE OF ABACUS PURE STORAGE HARDWARE UPGRADE. Key points: 1. Value for money assessed against market benchmarks for similar hardware. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and firm fixed-price structure. 4. Performance context relies on successful delivery and integration of the hardware. 5. Sector positioning within electronic computer manufacturing is clear.

Value Assessment

Rating: good

The contract value of $2.05 million for an abacus pure storage hardware upgrade appears reasonable when benchmarked against similar IT infrastructure procurements. While specific per-unit costs are not detailed, the firm fixed-price nature suggests the government has secured a defined cost for the upgrade. Further analysis would involve comparing the specific hardware model and its features against market offerings and other government contracts for similar solutions to confirm optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bids suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing for the hardware upgrade.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Federal Aviation Administration (FAA) will benefit from enhanced data storage capabilities. This upgrade is expected to improve the performance and reliability of critical IT systems supporting aviation. The geographic impact is primarily within New Jersey, where the hardware is likely to be deployed or managed. Workforce implications may include IT specialists involved in the installation, configuration, and maintenance of the new storage hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the upgrade is proprietary.
Dependence on timely delivery and successful integration to avoid operational disruptions.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a robust market offering.
Delivery order structure allows for phased implementation.

Sector Analysis

The contract falls within the IT hardware sector, specifically focusing on data storage solutions. The electronic computer manufacturing industry (NAICS 334111) encompasses the production of computer and peripheral equipment. This procurement represents a typical government investment in maintaining and upgrading its IT infrastructure to support essential operations, aligning with broader trends in federal IT modernization efforts.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor, CDW Government LLC, voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified hardware by a certain date. Transparency is generally maintained through federal procurement databases, though specific performance metrics and oversight reports may not be publicly detailed.

Related Government Programs

Federal Aviation Administration IT Infrastructure Modernization
Department of Transportation Data Storage Solutions
Government IT Hardware Procurement
Electronic Computer Manufacturing Contracts

Risk Flags

Potential for integration challenges with legacy systems.
Dependence on vendor support for hardware maintenance and upgrades.
Risk of cost overruns if unforeseen technical issues arise (though mitigated by FFP).

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $205,320 to CDW GOVERNMENT LLC. THE PURCHASE OF ABACUS PURE STORAGE HARDWARE UPGRADE.

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 $205,320.

What is the period of performance?

Start: 2026-04-06. End: 2026-07-10.

What is the specific model of Abacus Pure Storage hardware being procured and what are its key technical specifications?

The provided data does not specify the exact model of Abacus Pure Storage hardware. It only indicates 'ABACUS PURE STORAGE HARDWARE UPGRADE.' To provide a detailed answer, access to the contract's statement of work or detailed specifications would be necessary. This would typically outline the model numbers, capacity, performance metrics (IOPS, latency), connectivity options (e.g., Fibre Channel, iSCSI), and any required software features. Without this, a precise technical comparison is not possible. The upgrade nature suggests it could be an expansion of existing capacity or a refresh of aging equipment.

How does the awarded price of $2.05 million compare to market rates for similar storage hardware upgrades?

Benchmarking the $2.05 million award against market rates requires detailed information on the specific hardware model, capacity, and features. However, given the context of a full and open competition with 3 bidders, the price is likely competitive. For large-scale enterprise storage solutions, costs can range significantly based on terabytes of storage, performance tiers, and included software features like data reduction or replication. A rough estimate for enterprise-grade flash storage can range from $0.20 to $1.00+ per gigabyte, depending on the factors mentioned. Thus, $2.05 million could procure anywhere from 2 to 10 petabytes of storage, or less if high-performance or specialized features are included. Further analysis would involve obtaining quotes for comparable systems from vendors like Pure Storage, Dell EMC, NetApp, or HPE.

What are the potential risks associated with this hardware upgrade, and what mitigation strategies are in place?

Potential risks include delivery delays impacting critical FAA operations, integration issues with existing infrastructure, and the possibility of the chosen hardware not meeting performance expectations. Mitigation strategies are likely embedded within the contract terms. The firm fixed-price structure incentivizes the contractor to meet delivery deadlines. The FAA's technical teams would conduct rigorous testing and validation post-installation. Furthermore, the full and open competition suggests multiple vendors were considered, potentially reducing reliance on a single, unproven solution. Contract clauses regarding acceptance criteria and remedies for non-performance would also serve as mitigation.

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

CDW Government LLC is a well-established reseller and solutions provider for federal agencies, with a significant history of delivering IT hardware, software, and services. They typically partner with major hardware manufacturers like Pure Storage, Dell, HP, and Cisco. Their track record generally involves fulfilling large-scale procurements through various contract vehicles. While CDW Government itself is not the manufacturer, their role as a prime contractor means they are responsible for sourcing, delivering, and potentially providing initial support. Agencies often rely on their established processes and existing relationships with manufacturers to ensure successful delivery. Specific performance data for this exact type of upgrade would require deeper contract history analysis.

How does this $2.05 million expenditure compare to historical FAA spending on data storage solutions?

To compare this $2.05 million expenditure to historical FAA spending on data storage, one would need access to historical procurement data for the FAA, specifically looking for contracts categorized under data storage, servers, or related IT infrastructure over several fiscal years. The Federal Procurement Data System (FPDS) or similar databases would be the source for this information. Without that data, it's difficult to ascertain if this is a typical, increased, or decreased level of investment. However, $2.05 million represents a significant but not extraordinary investment for a federal agency's IT infrastructure upgrade, especially considering the scale of the FAA's operations and data requirements.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

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: $205,320

Exercised Options: $205,320

Current Obligation: $205,320

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