Commerce Dept. Spends $561M on Other Computer Services via Delivery Order to CDW Government LLC
Contract Overview
Contract Amount: $561,166,063 ($561.2M)
Contractor: CDW Government LLC
Awarding Agency: Department of Commerce
Start Date: 2017-06-28
End Date: 2022-10-31
Contract Duration: 1,951 days
Daily Burn Rate: $287.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $561.2 million to CDW GOVERNMENT LLC for work described as: IGF::OT::IGF Key points: 1. Significant spending on IT services, primarily 'Other Computer Related Services'. 2. CDW Government LLC is the sole awardee, raising questions about competition. 3. The contract spans nearly 5 years, indicating a long-term need. 4. The high value suggests potential for cost savings through better negotiation or competition.
Value Assessment
Rating: fair
The total award value of $561M over 1951 days is substantial. Benchmarking against similar 'Other Computer Related Services' contracts is difficult without more granular data on the specific services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although the contract type is 'FULL AND OPEN COMPETITION', the data shows a single awardee (CDW GOVERNMENT LLC) for a delivery order. This suggests that while the initial solicitation was open, the subsequent award was specific, potentially limiting broader competition for this particular order.
Taxpayer Impact: The large contract value means that any inefficiencies or suboptimal pricing could represent a significant cost to taxpayers. Ensuring competitive pricing throughout the contract lifecycle is crucial.
Public Impact
Taxpayers are funding extensive IT services for the U.S. Census Bureau. The reliance on a single vendor for this large sum warrants scrutiny of service delivery and pricing. Data collection and analysis capabilities of the Census Bureau are supported by this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed service breakdown
- Potential for vendor lock-in
- Limited transparency on pricing justification
Positive Signals
- Long-term contract provides stability for Census Bureau operations
- Firm Fixed Price contract limits cost overrun risk for the government
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services' (NAICS 541519). Spending in this sector is consistently high across federal agencies, supporting a wide range of digital infrastructure and operational needs.
Small Business Impact
The data indicates that this contract was awarded to CDW Government LLC, a large business. There is no explicit indication of small business participation or subcontracting within this specific award, suggesting limited direct benefit to small businesses.
Oversight & Accountability
The contract's duration and significant value necessitate robust oversight to ensure performance, adherence to terms, and fair pricing. Regular reviews by the Department of Commerce and the U.S. Census Bureau are expected.
Related Government Programs
- Other Computer Related Services
- Department of Commerce Contracting
- U.S. Census Bureau Programs
Risk Flags
- High contract value
- Single awardee for delivery order
- Broad service category lacks specificity
- Long contract duration
Tags
other-computer-related-services, department-of-commerce, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $561.2 million to CDW GOVERNMENT LLC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is CDW GOVERNMENT LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (U.S. Census Bureau).
What is the total obligated amount?
The obligated amount is $561.2 million.
What is the period of performance?
Start: 2017-06-28. End: 2022-10-31.
What specific 'Other Computer Related Services' were procured under this contract, and how do their costs compare to market rates?
The provided data lacks specificity regarding the exact services rendered. 'Other Computer Related Services' is a broad category. A detailed breakdown of services like IT consulting, system integration, data processing, or specialized software support is needed. Without this, a precise cost comparison to market rates is impossible, making it difficult to assess value for money.
Given the single awardee for this delivery order, what mechanisms were in place to ensure fair pricing and prevent potential monopolies?
While the initial contract may have been 'Full and Open Competition', the award to a single vendor for a substantial amount raises concerns. The government should have employed competitive bidding processes for the delivery order itself, potentially through established government-wide acquisition contracts (GWACs) or other competitive vehicles. Price analysis techniques, including comparison to other bids or historical pricing, are crucial to ensure fair pricing.
How effectively has this contract supported the U.S. Census Bureau's mission, particularly in light of its significant cost?
The effectiveness hinges on the critical nature of the 'Other Computer Related Services' to the Census Bureau's operations, such as data collection, processing, and analysis for national statistics. If these services were essential and delivered without major disruption, the contract could be deemed effective. However, the high cost necessitates a thorough review of performance metrics and achieved outcomes against expenditures.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CDW Corporation
Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $573,415,797
Exercised Options: $573,415,797
Current Obligation: $561,166,063
Actual Outlays: $1,850
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSN316201500011W
IDV Type: GWAC
Timeline
Start Date: 2017-06-28
Current End Date: 2022-10-31
Potential End Date: 2023-03-29 00:00:00
Last Modified: 2023-04-14
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