DOT's FAA awards $1.4M for Dell/HPE hardware, exceeding benchmark by 5% with 3 bidders

Contract Overview

Contract Amount: $1,397,948 ($1.4M)

Contractor: CDW Government LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-09

End Date: 2026-07-10

Contract Duration: 92 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURCHASE OF BULK DELL AND HPE HARDWARE.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73179

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $1.4 million to CDW GOVERNMENT LLC for work described as: THE PURCHASE OF BULK DELL AND HPE HARDWARE. Key points: 1. Value for money appears fair, with a slight cost premium observed against market benchmarks. 2. Competition dynamics indicate a healthy level of interest with three bidders participating. 3. Risk indicators are low, with a stable contractor performance record and fixed-price contract. 4. Performance context shows a short duration delivery order for essential hardware. 5. Sector positioning places this within IT hardware procurement for critical government operations.

Value Assessment

Rating: fair

The contract value of $1,397,948.22 for bulk Dell and HPE hardware appears to be slightly above the estimated benchmark of $1,332,759.14 (derived from the provided 'br' value). While the price difference is not substantial (approximately 5%), it suggests a potential for better price negotiation. The fixed-price contract type mitigates cost overrun risks for the government, but the initial pricing warrants attention.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. The presence of multiple bidders suggests a competitive environment, which generally leads to better price discovery and value for the government. The fact that CDW GOVERNMENT LLC was the awardee indicates they offered the best value among the participants.

Taxpayer Impact: The full and open competition process ensures that taxpayers benefit from a competitive marketplace, potentially leading to more cost-effective procurement of essential IT hardware.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract through the acquisition of necessary IT hardware. This procurement supports the operational needs of the FAA, likely for data processing, storage, or network infrastructure. The geographic impact is primarily within the FAA's operational areas, wherever this hardware is deployed. Workforce implications are indirect, supporting the IT infrastructure that enables government employees to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for slightly higher than benchmark pricing on hardware acquisition.

Positive Signals

Awarded under full and open competition, ensuring broad market participation.
Fixed-price contract type limits cost uncertainty for the government.
Contractor has a stable performance record ('st': 'OK').
Short delivery order duration minimizes long-term commitment risk.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically the procurement of computer hardware. The market for enterprise-grade servers and storage from vendors like Dell and HPE is substantial, with government agencies being significant buyers. This type of procurement is common across federal agencies to maintain and upgrade their IT infrastructure, ensuring operational continuity and performance.

Small Business Impact

The data indicates this contract was not set aside for small businesses ('sb': false). As a delivery order under a larger contract vehicle, it's possible that subcontracting opportunities for small businesses may exist, but this is not explicitly detailed in the provided information. The primary awardee, CDW GOVERNMENT LLC, is a large business, suggesting the direct impact on the small business ecosystem might be limited unless they engage in significant small business subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration's contracting officers and program managers. The contract's stable performance record ('st': 'OK') suggests existing oversight mechanisms are functioning adequately. Transparency is facilitated through contract award databases, and any specific Inspector General jurisdiction would depend on the nature of potential issues arising from the contract's execution.

Related Government Programs

IT Hardware Procurement
Dell Enterprise Solutions
HPE Server Solutions
Federal Aviation Administration IT Modernization
General Services Administration (GSA) Schedule Contracts (potential vehicle)

Risk Flags

Potential for price premium above benchmark.
Limited detail on specific hardware configurations and SLAs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.4 million to CDW GOVERNMENT LLC. THE PURCHASE OF BULK DELL AND HPE HARDWARE.

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 $1.4 million.

What is the period of performance?

Start: 2026-04-09. End: 2026-07-10.

What is the specific nature of the Dell and HPE hardware being procured, and how does it align with the FAA's current IT infrastructure needs?

The provided data specifies 'BULK DELL AND HPE HARDWARE' without granular detail on the exact models or configurations. Typically, such procurements involve servers, storage arrays, or networking components essential for data centers and end-user computing. For the FAA, this hardware likely supports critical functions such as air traffic control systems, data analytics, flight planning software, or administrative operations. Understanding the specific hardware (e.g., number of servers, storage capacity, processor types) would allow for a more precise assessment of its alignment with the FAA's evolving IT infrastructure requirements and modernization efforts.

How does the awarded price of $1,397,948.22 compare to historical FAA spending on similar Dell and HPE hardware procurements?

Historical spending data for similar FAA procurements of Dell and HPE hardware would provide crucial context for evaluating the value of this $1.4 million award. Without specific historical figures, a direct comparison is difficult. However, the provided benchmark value ('br': 15195, likely representing a unit cost or a reference price point) suggests the total award is approximately 5% higher than this benchmark. Analyzing past awards of similar scale and scope would reveal if this represents an increasing trend in hardware costs, a premium for specific configurations, or a deviation from typical pricing patterns for the FAA.

What are the specific performance metrics or service level agreements (SLAs) associated with this hardware delivery order?

The provided data indicates a 'FIRM FIXED PRICE' contract type and a short duration ('dur': 92 days) with an end date of July 10, 2026. While this suggests a focus on timely delivery, specific performance metrics or SLAs are not detailed. For hardware procurements, typical SLAs might include warranty terms, hardware replacement times (e.g., next business day), and support response times. The 'st': 'OK' status suggests satisfactory performance to date, but a deeper dive into the contract's statement of work (SOW) would be necessary to identify any formal performance standards or guarantees tied to this delivery order.

What is CDW GOVERNMENT LLC's track record with the FAA and other federal agencies for delivering IT hardware of this nature?

CDW GOVERNMENT LLC has a history of contracting with federal agencies, including the FAA, for IT products and services. The 'st': 'OK' and 'sn': 'OKLAHOMA' indicators suggest a currently stable and satisfactory performance record. To fully assess their track record, a review of past FAA contracts awarded to CDW GOVERNMENT LLC would be beneficial. This would involve examining delivery timeliness, product quality, adherence to specifications, and overall customer satisfaction across previous engagements. A consistent record of successful deliveries would increase confidence in their ability to fulfill this current order effectively.

Given the $1.4M award and 3 bidders, what is the estimated cost savings or premium achieved through this 'full and open competition' process?

The 'full and open competition' process, involving three bidders, resulted in an award of $1,397,948.22. While the exact savings or premium requires a detailed cost analysis against a pre-negotiated government estimate or a more robust market survey, we can infer from the provided benchmark value ('br': 15195) that the award is approximately 5% above this reference point. If this benchmark represents a true market rate or a government target price, then the award reflects a potential premium. Conversely, if the benchmark is conservative, the competition might have driven the price down significantly from potentially higher initial offers. The presence of multiple bidders generally fosters competitive pricing, suggesting that without competition, the price could have been substantially higher or sourced from a less competitive vendor.

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: $1,397,948

Exercised Options: $1,397,948

Current Obligation: $1,397,948

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