DoD's $22M Dell Laptop Purchase: 24,661 Units Acquired Under Full and Open Competition
Contract Overview
Contract Amount: $21,997,612 ($22.0M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Defense
Start Date: 2012-06-28
End Date: 2012-08-01
Contract Duration: 34 days
Daily Burn Rate: $647.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: U434TLD - 24,661 UNITS OF THE DELL LATITUDE E6520
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $22.0 million to DELL FEDERAL SYSTEMS L.P for work described as: U434TLD - 24,661 UNITS OF THE DELL LATITUDE E6520 Key points: 1. Significant volume purchase of Dell Latitude laptops for the Department of the Army. 2. Acquisition was conducted under full and open competition, suggesting a competitive bidding process. 3. The contract was awarded as a delivery order, indicating it was part of a larger agreement. 4. The fixed price contract type aims to control costs for this large hardware procurement.
Value Assessment
Rating: good
The per-unit cost of approximately $892 appears reasonable for business-class laptops purchased in 2012, considering bulk discounts and the specific model's capabilities at the time. Benchmarking against similar government or commercial purchases from that era would provide a more precise assessment.
Cost Per Unit: $892
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders. This method is expected to drive competitive pricing and ensure the government receives fair market value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers benefited from potentially lower prices than might have been achieved through a sole-source or limited competition.
Public Impact
Ensures operational readiness for Army personnel by providing necessary computing equipment. Supports the Department of Defense's technology modernization efforts. Potential for data security and standardization across deployed units. Economic impact through contract with Dell Federal Systems L.P.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for technology obsolescence given the 2012 award date.
- Limited visibility into specific configuration details and software included.
- Reliance on a single vendor for a large quantity of hardware.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Significant quantity purchase may have yielded volume discounts.
Sector Analysis
This procurement falls within the Electronic Computer Manufacturing sector. Government spending on laptops and related IT hardware is substantial, with agencies often seeking cost-effective solutions through competitive bidding to meet operational needs.
Small Business Impact
While the prime contractor is Dell Federal Systems L.P., the data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this specific contract.
Oversight & Accountability
The award was made under full and open competition, suggesting adherence to standard procurement regulations. Oversight would focus on contract performance, delivery timelines, and adherence to the firm fixed price.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for technology obsolescence.
- Limited information on small business subcontracting.
- Age of hardware raises concerns about current security standards.
- Lack of detailed performance metrics post-delivery.
Tags
electronic-computer-manufacturing, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to DELL FEDERAL SYSTEMS L.P. U434TLD - 24,661 UNITS OF THE DELL LATITUDE E6520
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 Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.0 million.
What is the period of performance?
Start: 2012-06-28. End: 2012-08-01.
What was the total cost savings achieved through the full and open competition compared to a sole-source award for these 24,661 laptops?
Quantifying the exact savings from full and open competition is challenging without a baseline sole-source price. However, competitive bidding generally drives prices down significantly. For a purchase of this scale, savings could range from 10-30% or more compared to a non-competitive award, representing millions of dollars for the taxpayer.
Given the 2012 award date, what are the risks associated with technology obsolescence and support for these Dell Latitude E6520 laptops?
The primary risk is technology obsolescence. Laptops purchased in 2012 are now significantly outdated in terms of processing power, security features, and battery life. This could impact user productivity and increase vulnerability to modern cyber threats. Furthermore, manufacturer support and parts availability for such older models may be limited or discontinued.
How effectively did this procurement meet the Department of the Army's evolving IT requirements and security standards over the laptop's lifecycle?
The effectiveness is questionable due to the age of the hardware. While meeting requirements in 2012, the E6520 likely falls short of current security protocols and performance demands. This could necessitate earlier-than-planned replacements, increasing lifecycle costs and potentially impacting mission effectiveness if critical software or security updates are incompatible.
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: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Technologies Inc. (UEI: 601839660)
Address: 1 DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $21,997,612
Exercised Options: $21,997,612
Current Obligation: $21,997,612
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0002
IDV Type: IDC
Timeline
Start Date: 2012-06-28
Current End Date: 2012-08-01
Potential End Date: 2012-08-01 00:00:00
Last Modified: 2021-04-29
More Contracts from Dell Federal Systems L.P
- THE Purpose of This Acquisition IS to Provide the Department of Veterans Affairs With an Enterprise Agreement for Brand Name Microsoft Software Products and Services. This Enterprise Agreement Will Provide 1) Support Services 2) Operational Support and 3) Additional Licenses of Microsoft Products, Current and Planned, to Support the VA Enterprise. Subject Procurement WAS Competed Among Microsoft's Eight Authorized Federal Government License Solution Providers. Igf::ot::igf — $1.7B (Department of Veterans Affairs)
- VA Microsoft Enterprise License Agreement — $1.6B (Department of Veterans Affairs)
- Microsoft Enterprise Agreement — $602.2M (Department of Veterans Affairs)
- Cloud Hosted Enterprise Services (ches) — $369.2M (General Services Administration)
- Microsoft Jela III AF Enterprise Licenses SA — $282.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)