HHS awards $85.8M CDC contract to Dell for IT hardware and services via full and open competition
Contract Overview
Contract Amount: $85,773,571 ($85.8M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Health and Human Services
Start Date: 2022-04-01
End Date: 2025-03-31
Contract Duration: 1,095 days
Daily Burn Rate: $78.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NITAAC CIO-CS: CDC MS ELA RENEWAL 2022-2025
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $85.8 million to DELL FEDERAL SYSTEMS L.P for work described as: NITAAC CIO-CS: CDC MS ELA RENEWAL 2022-2025 Key points: 1. The contract is for IT hardware and services, a common area of federal spending. 2. Dell Federal Systems L.P. is the awardee, indicating established vendor relationships. 3. The contract utilizes a full and open competition, suggesting a competitive pricing environment. 4. The firm fixed price contract type aims to control costs for the government.
Value Assessment
Rating: good
The award amount of $85.8M over three years for IT hardware and services appears reasonable given the scope. Benchmarking against similar large-scale IT procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract vehicle (CIO-CS) implies pre-negotiated terms.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing taxpayer value for essential IT resources.
Public Impact
Ensures continued access to critical IT hardware and services for the CDC. Supports public health initiatives by providing necessary technological infrastructure. The award to a large vendor may have limited direct impact on small businesses unless subcontracting opportunities are present.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of specific small business participation noted.
- Contract duration is substantial, requiring ongoing performance monitoring.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract type.
- Supports critical public health agency.
Sector Analysis
This contract falls within the Information Technology sector, specifically IT hardware and services. Federal IT spending is a significant portion of the overall budget, with benchmarks varying widely based on specific needs.
Small Business Impact
The data indicates the awardee is not a small business, and there is no explicit mention of small business set-asides or subcontracting goals. Further investigation into subcontracting plans would be needed to assess small business impact.
Oversight & Accountability
The contract is managed under the NITAAC CIO-CS GWAC, which provides a framework for IT procurement. Oversight will involve monitoring Dell's performance against contract requirements and ensuring adherence to the firm fixed price.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for vendor lock-in if specific hardware/software is mandated.
- Reliance on a single large vendor for critical IT infrastructure.
- Need for ongoing vigilance to ensure competitive pricing is maintained throughout the contract.
- Limited visibility into small business participation.
Tags
electronic-computer-manufacturing, department-of-health-and-human-services, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $85.8 million to DELL FEDERAL SYSTEMS L.P. NITAAC CIO-CS: CDC MS ELA RENEWAL 2022-2025
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 Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $85.8 million.
What is the period of performance?
Start: 2022-04-01. End: 2025-03-31.
What specific IT hardware and services are included in this renewal, and how do they align with the CDC's evolving technological needs?
The provided data does not detail the specific hardware and services covered by the renewal. Understanding the exact scope is crucial for assessing the contract's value and ensuring it meets the CDC's current and future operational requirements. This information would typically be found in the contract's statement of work.
What is the benchmark pricing for similar IT hardware and services contracts of this scale and duration awarded under full and open competition?
Benchmarking requires access to a database of comparable federal contracts, including details on scope, duration, and pricing structures. Without this comparative data, it's difficult to definitively assess if $85.8M represents optimal value. However, the full and open competition and firm fixed price suggest an effort to achieve competitive pricing.
How will the performance of Dell Federal Systems L.P. be monitored to ensure effective delivery of IT resources and value for taxpayer money?
Performance monitoring will likely involve the Contracting Officer's Representative (COR) at the CDC, who will track deliverables, service levels, and adherence to the contract terms. Regular performance reviews and reporting mechanisms are standard procedures to ensure accountability and effective resource utilization.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75D301-22-Q-74488
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Francisco Partners Management, L.P.
Address: 1 DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $89,617,446
Exercised Options: $85,773,571
Current Obligation: $85,773,571
Actual Outlays: $85,730,715
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSN316201500005W
IDV Type: GWAC
Timeline
Start Date: 2022-04-01
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2024-03-05
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