NIH awards $7.5M Dell EMC storage contract for electronic computer manufacturing needs
Contract Overview
Contract Amount: $7,554,508 ($7.6M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Health and Human Services
Start Date: 2020-09-23
End Date: 2024-09-22
Contract Duration: 1,460 days
Daily Burn Rate: $5.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DELL EMC ISILON STORAGE ON DEMAND
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $7.6 million to DELL FEDERAL SYSTEMS L.P for work described as: DELL EMC ISILON STORAGE ON DEMAND Key points: 1. Contract leverages a firm-fixed-price model, providing cost certainty for the government. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1460 days indicates a long-term need for the services. 4. The primary contractor, Dell Federal Systems L.P., is a significant player in the federal IT market. 5. The contract falls under the Electronic Computer Manufacturing NAICS code, aligning with hardware and related services.
Value Assessment
Rating: good
The contract value of $7.55 million over approximately four years for storage solutions appears reasonable given the scope. Benchmarking against similar large-scale IT infrastructure procurements by agencies like NIH suggests this is within expected spending ranges. The firm-fixed-price structure helps manage cost overruns, contributing to good 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 bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing among vendors. The agency sought the best value through a competitive process.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and better quality solutions by allowing a wide range of vendors to participate.
Public Impact
The National Institutes of Health (NIH) benefits from enhanced data storage capabilities, crucial for its research and administrative functions. This contract supports the ongoing operations and technological infrastructure of a leading biomedical research agency. The services delivered are essential for managing and processing large volumes of sensitive research data. The geographic impact is primarily within the agency's operational centers, likely supporting research nationwide.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if future upgrades or expansions are heavily reliant on Dell EMC proprietary technology.
- Ensuring ongoing technical support and maintenance align with the long-term needs of NIH's critical research infrastructure.
Positive Signals
- The use of a firm-fixed-price contract provides budget predictability.
- Awarding under full and open competition suggests a robust market evaluation.
- The contractor, Dell Federal Systems L.P., has a strong track record in providing IT solutions to the federal government.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on data storage solutions. The federal market for IT infrastructure, including storage, is substantial, with agencies constantly seeking to upgrade and maintain their systems to handle growing data demands. Comparable spending benchmarks for enterprise storage solutions across federal agencies often run into millions of dollars annually, depending on scale and performance requirements.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the primary contractor is likely a large business. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this federal requirement.
Oversight & Accountability
Oversight for this contract would typically reside with the contracting officer and program managers within the National Institutes of Health. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified goods and services. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are reported.
Related Government Programs
- Federal Data Center Consolidation Initiative
- NIH IT Modernization Efforts
- Enterprise Storage Solutions
- Cloud Storage Services
Risk Flags
- Long-term contract duration may limit flexibility in adopting newer technologies.
- Dependence on a single vendor for critical storage infrastructure.
- Potential for scope creep if not managed tightly under fixed-price terms.
Tags
it, health-and-human-services, national-institutes-of-health, delivery-order, firm-fixed-price, full-and-open-competition, dell-emc, storage, electronic-computer-manufacturing, texas, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $7.6 million to DELL FEDERAL SYSTEMS L.P. DELL EMC ISILON STORAGE ON DEMAND
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 (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $7.6 million.
What is the period of performance?
Start: 2020-09-23. End: 2024-09-22.
What is the historical spending pattern for data storage solutions at the National Institutes of Health?
Analyzing historical spending patterns for data storage at NIH requires access to detailed procurement data over multiple fiscal years. Generally, large federal agencies like NIH have consistent and significant expenditures on IT infrastructure, including storage, to support their vast research operations. Spending can fluctuate based on technology refresh cycles, major research initiatives requiring new data handling capabilities, or shifts towards cloud-based storage solutions. Without specific historical data for NIH's storage procurements, it's difficult to provide precise figures, but it's reasonable to assume multi-million dollar annual investments are typical for an organization of its size and mission.
How does the per-unit cost of this Dell EMC storage solution compare to market rates or similar government contracts?
Determining the precise per-unit cost benchmark for this specific Dell EMC Isilon Storage On Demand contract is challenging without detailed breakdowns of storage capacity, performance tiers, and support levels. However, the overall contract value of approximately $7.55 million over four years suggests a substantial investment in enterprise-grade storage. When comparing to market rates, factors like volume discounts, government-specific pricing agreements (like GSA schedules), and the 'on-demand' service model influence the final cost. Similar large-scale storage procurements by other federal agencies often fall within a similar price range, indicating that this award is likely competitive within the federal IT procurement landscape, especially considering the potential for specialized features and support.
What is Dell Federal Systems L.P.'s track record with federal IT contracts, particularly storage solutions?
Dell Federal Systems L.P. has a well-established track record of securing and performing on numerous federal IT contracts. They are a significant vendor across various government agencies, providing a wide range of hardware, software, and services, including enterprise storage solutions. Their experience often includes large-scale deployments and long-term support agreements. Awards for storage solutions, like this one for NIH, are consistent with their market position. Agencies typically award contracts to vendors with proven past performance, reliability, and the capacity to meet complex federal requirements, suggesting Dell Federal Systems L.P. meets these criteria.
What are the potential risks associated with a long-term (4-year) firm-fixed-price storage contract?
A primary risk with a long-term, firm-fixed-price storage contract is the potential for the government to overpay if technology rapidly advances or if the initial scope of work becomes less relevant. Conversely, the contractor bears the risk of cost increases if their expenses rise significantly over the contract period. For the government, there's also a risk of vendor lock-in, making it difficult or costly to switch providers if better solutions emerge. Ensuring the contract includes flexibility for necessary upgrades or modifications, while maintaining the fixed-price benefit, is crucial for mitigating these risks. Regular performance reviews and market analysis are key oversight activities.
How does this contract align with broader federal IT modernization or data management initiatives?
This contract for Dell EMC Isilon storage directly aligns with broader federal IT modernization and data management initiatives. Agencies like NIH are under continuous pressure to manage exponentially growing datasets, ensure data integrity, and improve access for research and operations. Modernizing storage infrastructure is a foundational element of IT modernization, enabling faster processing, better analytics, and more efficient data lifecycle management. Such procurements support goals like the Federal Data Strategy, which emphasizes leveraging data as a strategic asset, and agency-specific digital transformation efforts aimed at improving service delivery and research outcomes.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $7,554,508
Exercised Options: $7,554,508
Current Obligation: $7,554,508
Actual Outlays: $7,217,639
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSN316201500005W
IDV Type: GWAC
Timeline
Start Date: 2020-09-23
Current End Date: 2024-09-22
Potential End Date: 2024-09-22 00:00:00
Last Modified: 2026-03-26
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