Department of Defense awarded $23.4M for Dell laptops, with 6 bidders competing

Contract Overview

Contract Amount: $23,430,531 ($23.4M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Defense

Start Date: 2011-09-02

End Date: 2011-09-26

Contract Duration: 24 days

Daily Burn Rate: $976.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: U434ITD - DELL LATITUDE E6520

Place of Performance

Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to DELL FEDERAL SYSTEMS L.P for work described as: U434ITD - DELL LATITUDE E6520 Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. Strong competition dynamics suggest fair market pricing was likely achieved. 3. No immediate risk indicators are apparent from the contract details. 4. This contract represents a standard procurement for end-user computing devices. 5. Positioned within the IT hardware sector, supporting general IT infrastructure needs.

Value Assessment

Rating: good

The contract value of $23.4 million for laptops is within a typical range for large federal procurements of this nature. The firm fixed-price contract type provides cost certainty. Benchmarking against similar large-scale laptop procurements would offer further insight, but the competitive nature of this award suggests a fair price was negotiated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With six bidders participating, the level of competition was robust. This suggests that the government received a range of offers, likely leading to competitive pricing and a good selection of qualified vendors.

Taxpayer Impact: A high level of competition benefits taxpayers by driving down prices and ensuring the government obtains goods and services at the most favorable terms possible.

Public Impact

End-users within the Department of the Army will benefit from updated computing hardware. The contract supports the delivery of electronic computing devices essential for military operations and administrative functions. The geographic impact is primarily within Texas, where the contractor is located. Workforce implications include the potential for Dell's manufacturing and support staff to be engaged.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Multiple bidders (6) participated, indicating a healthy competitive environment.
Firm fixed-price contract type offers cost predictability.
Contractor is a well-established provider of IT hardware.

Sector Analysis

This contract falls within the Information Technology sector, specifically in the manufacturing and supply of electronic computers. The market for federal IT hardware procurement is substantial, with agencies consistently purchasing laptops, desktops, and related equipment to maintain operational readiness. This award to Dell Federal Systems L.P. aligns with the broader trend of government reliance on major IT vendors for standardized hardware solutions.

Small Business Impact

There is no indication that this contract involved small business set-asides. As a large procurement likely for a significant quantity of laptops, it would typically be awarded to established prime contractors. Subcontracting opportunities for small businesses may exist within Dell's supply chain, but this is not explicitly detailed in the award information.

Oversight & Accountability

The firm fixed-price contract type provides a degree of oversight by establishing a clear ceiling on costs. The Department of the Army's contracting officers are responsible for ensuring performance and compliance. Transparency is facilitated through public contract databases where such awards are reported. Further oversight would typically involve contract administration and quality assurance processes.

Related Government Programs

Department of Defense IT Procurement
Federal End-User Computing Devices
Dell Inc. Federal Contracts
Information Technology Hardware Manufacturing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to DELL FEDERAL SYSTEMS L.P. U434ITD - 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 $23.4 million.

What is the period of performance?

Start: 2011-09-02. End: 2011-09-26.

What is the typical lifespan and refresh cycle for Dell Latitude E6520 laptops in a federal environment?

The Dell Latitude E6520, released around 2011, is an older model. In a federal environment, the typical lifespan and refresh cycle for laptops can vary significantly based on agency policy, usage intensity, and budget. Generally, agencies aim to refresh standard-issue laptops every 3-5 years to maintain security, performance, and compatibility with updated software. However, some laptops might be used longer in less demanding roles or kept as spares. Given the age of this model, it's likely that these laptops have either been fully depreciated and replaced or are nearing the end of their extended service life, potentially being used for basic tasks or in specific, non-critical functions.

How does the unit price of these Dell Latitude E6520 laptops compare to contemporary market prices at the time of award?

Determining the exact unit price without knowing the quantity purchased is challenging. However, the total award of $23,430,531 suggests a significant number of units. At the time of award (2011), the Dell Latitude E6520 was a business-class laptop. Comparable models in the consumer market might have ranged from $800 to $1500 depending on configuration. Federal procurement often involves bulk discounts, but also potentially higher specifications or extended warranties. The presence of six bidders in a full and open competition suggests that the pricing achieved was likely competitive within the federal acquisition landscape for that specific configuration and service level agreement at that time.

What specific configurations or features were included in these Dell Latitude E6520 laptops to meet Department of the Army requirements?

The provided data does not specify the exact configurations or features of the Dell Latitude E6520 laptops procured under this contract. Federal agencies typically procure laptops with specific requirements tailored to their operational needs, which can include enhanced security features (e.g., TPM chips, fingerprint readers), specific processor speeds, RAM amounts, storage types (SSD vs. HDD), operating system versions, and extended warranties or support services. For a business-class model like the Latitude E6520, configurations could range widely. The Department of the Army likely specified a standard build that balanced performance, security, and cost-effectiveness for its user base.

What is the track record of DELL FEDERAL SYSTEMS L.P. in fulfilling large federal IT hardware contracts?

DELL FEDERAL SYSTEMS L.P. (now Dell Technologies) has a long and extensive track record of fulfilling large federal IT hardware contracts across various agencies, including the Department of Defense, civilian agencies, and intelligence community components. They are a major supplier of laptops, desktops, servers, and other IT infrastructure to the U.S. government. Their history includes numerous awards for large-volume procurements, often through competitive bidding processes. While specific performance metrics for every contract are not publicly detailed, their continued success in winning significant federal contracts indicates a generally reliable performance history and a strong understanding of government procurement requirements and standards.

Were there any performance issues or contract disputes associated with this specific $23.4 million award for Dell laptops?

Based on the available summary data for this contract (U434ITD), there is no immediate indication of performance issues or contract disputes. The data provided focuses on the award details, including the contractor, amount, competition level, and dates. Information regarding contract disputes or performance issues typically surfaces through more detailed contract performance reports, legal filings, or specific government oversight findings, which are not included in this dataset. Without access to such detailed performance records, it is assumed the contract was executed as intended.

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: 6

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: $23,430,531

Exercised Options: $23,430,531

Current Obligation: $23,430,531

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0002

IDV Type: IDC

Timeline