Interior's $10.3M Dell Contract for Electronic Computers Awarded in 2001, Ending in 2008
Contract Overview
Contract Amount: $10,311,537 ($10.3M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of the Interior
Start Date: 2001-06-15
End Date: 2008-04-07
Contract Duration: 2,488 days
Daily Burn Rate: $4.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 51
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: TEXAS
State: Texas Government Spending
Plain-Language Summary
Department of the Interior obligated $10.3 million to DELL MARKETING L.P. for work described as: Key points: 1. The contract value of $10.3 million was awarded over a 7-year period. 2. Competition details are not fully specified, but it was a competitive delivery order. 3. The contract's long duration and fixed price structure may present risks if technology advanced significantly. 4. Spending falls within the IT sector, specifically electronic computer manufacturing.
Value Assessment
Rating: fair
The contract was awarded in 2001 for electronic computers, a sector with rapid technological change. The fixed price nature over a 7-year period suggests potential for overpayment if technology advanced significantly beyond the contracted specifications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a competitive delivery order, indicating some level of competition. However, the specifics of the competition and how price discovery was achieved are not detailed, making it difficult to assess the full impact on pricing.
Taxpayer Impact: The long-term nature of the contract at a fixed price could have resulted in taxpayers paying more than necessary if market prices for comparable technology decreased over time.
Public Impact
Government reliance on specific vendors for IT equipment can lead to higher costs. Long-term IT contracts require careful management to ensure technology remains relevant and cost-effective. The Bureau of Land Management's acquisition of electronic computers impacts its operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration for rapidly evolving technology
- Fixed price for potentially depreciating assets
- Limited detail on competition effectiveness
Positive Signals
- Competitive delivery order suggests some market vetting
- Firm fixed price provides budget certainty
Sector Analysis
This contract falls under the Information Technology sector, specifically for electronic computer manufacturing. Benchmarks for IT hardware procurement vary widely based on specific equipment, volume, and contract type, but long-term fixed-price contracts for hardware can be risky due to obsolescence.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to DELL MARKETING L.P. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The contract was awarded competitively, but the limited details provided make it difficult to assess the effectiveness of oversight and accountability throughout its duration. Post-award monitoring of technology relevance and pricing would be crucial.
Related Government Programs
- Electronic Computer Manufacturing
- Department of the Interior Contracting
- Bureau of Land Management Programs
Risk Flags
- Technology Obsolescence Risk
- Potential for Overpayment due to Fixed Price
- Limited Competition Transparency
- Long Contract Duration for IT Assets
Tags
electronic-computer-manufacturing, department-of-the-interior, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $10.3 million to DELL MARKETING L.P.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Land Management).
What is the total obligated amount?
The obligated amount is $10.3 million.
What is the period of performance?
Start: 2001-06-15. End: 2008-04-07.
Was the technology procured under this contract still relevant and cost-effective by the end of its 7-year term?
Given the rapid pace of technological advancement in electronic computers, it is questionable whether the technology procured in 2001 remained cost-effective or relevant by 2008. Without specific details on the hardware and its performance metrics, it's difficult to definitively assess. However, a 7-year fixed-price contract for such items inherently carries a risk of obsolescence and potential overpayment if not managed proactively.
What was the impact of the firm fixed price structure on the government's ability to benefit from potential market price decreases?
A firm fixed price contract protects the government from cost overruns but also prevents it from benefiting if market prices for the contracted goods decrease significantly over the contract's life. For rapidly depreciating assets like computers, this structure, especially over a long duration like 7 years, could lead to the government paying more than current market value towards the end of the contract period.
How effective was the competitive delivery order process in ensuring the best value for taxpayers?
While a competitive delivery order implies some level of competition, the effectiveness in ensuring best value depends heavily on the specifics of the solicitation, the number and quality of bids received, and the evaluation criteria used. Without these details, it's hard to gauge. The long duration and potential for technology shifts suggest that a more agile procurement strategy might have yielded better value over time.
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: COMPETITIVE DELIVERY ORDER
Offers Received: 51
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Dell Computer Corporation (UEI: 114315195)
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: GS35F4076D
IDV Type: FSS
Timeline
Start Date: 2001-06-15
Current End Date: 2008-04-07
Potential End Date: 2008-04-07 00:00:00
Last Modified: 2014-05-22
More Contracts from Dell Marketing L.P.
- Microsoft ESA Agreement — $1.3B (Department of Defense)
- Microsoft Products — $508.0M (Department of Defense)
- Microsoft M365 E5 — $477.2M (Department of Defense)
- 200410!000781!5700!GV90 !ssg/Pk !gs35f4076d !C!N! !n!fa877104f8320! !20040630!20040709!114315195!114315195!114315195!n!dell Marketing L P !ONE Dell WAY !round Rock !tx!78682!63500!491!48!round Rock !williamson !texas !+000012313462!n!n!000000000000!7030!adp Software !A7 !electronics and Communication Equip !000 !* !511210!E! !6! ! ! ! ! !99990909!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! ! — $471.3M (Department of Defense)
- Microsoft Enterprise Products — $354.9M (Department of Defense)
Other Department of the Interior Contracts
- Department of Health and Human Services, Administration of Children and Families, Office of Refugee Resettlement's Legal Services for Unaccompanied Children — $832.4M (Acacia Center for Justice)
- Military Family Life Counseling Program Igf::ot::igf — $638.8M (MHN Government Services LLC)
- Military Family Life Counseling Program — $637.0M (Magellan Healthcare Inc)
- Grants Program Solutions and Information Technology Support Services — $446.3M (Guidehouse Digital LLC)
- THE Purpose of This Requirement for Grants Program Solutions and IT Support Services IS to Provide Efficient and Effective Grant, Financial, and Contract Management Services, IT Solutions, and Support to the Grantsolutions and ITS Partners — $403.1M (Guidehouse Inc.)