DHS ICE awards $16.6M Dell contract for electronic computer manufacturing, with a 364-day duration
Contract Overview
Contract Amount: $16,595,468 ($16.6M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Homeland Security
Start Date: 2005-06-27
End Date: 2006-06-26
Contract Duration: 364 days
Daily Burn Rate: $45.6K/day
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOFTWARE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536
Plain-Language Summary
Department of Homeland Security obligated $16.6 million to DELL MARKETING L.P. for work described as: SOFTWARE Key points: 1. The contract value of $16.6 million for a single year of service suggests a potentially high per-unit cost or significant scope. 2. Limited competition is indicated by the single award, raising questions about price discovery and potential overpayment. 3. The firm fixed-price contract type offers cost certainty for the government but shifts risk to the contractor. 4. This award falls under the Electronic Computer Manufacturing category, suggesting a need for hardware or related services. 5. The contract's duration of 364 days is typical for annual requirements or bridge contracts. 6. The awarding agency, U.S. Immigration and Customs Enforcement (ICE), indicates a focus on operational technology needs.
Value Assessment
Rating: fair
The contract value of $16.6 million for a 364-day period averages to approximately $45,592 per day. Without specific details on the hardware or services procured, it is difficult to benchmark against similar contracts. However, the absence of multiple bids suggests that the government may not have achieved the most competitive pricing. Further analysis would require understanding the specific electronic components or manufacturing services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source action, meaning only one vendor was solicited. This approach is typically used when only one responsible source is available, or in cases of urgent need. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces. This raises concerns about whether the selected vendor, Dell Marketing L.P., provided the best possible value.
Taxpayer Impact: Sole-source awards limit the government's ability to secure competitive pricing, potentially leading to higher costs for taxpayers. Without a competitive environment, there is less pressure on the contractor to offer the lowest possible price.
Public Impact
This contract directly benefits U.S. Immigration and Customs Enforcement (ICE) by providing necessary electronic computer manufacturing resources. The services delivered are crucial for ICE's operational technology infrastructure, supporting its law enforcement and national security missions. The geographic impact is primarily within the District of Columbia, where the contract is registered. Workforce implications are likely related to the manufacturing and supply chain of electronic computer components, potentially supporting jobs in that sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Lack of transparency in the selection process for a sole-source contract.
- Potential for vendor lock-in if this is a recurring need without re-competition.
- The specific nature of 'electronic computer manufacturing' is broad and could encompass various components, making value assessment difficult.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Award to a well-established vendor like Dell Marketing L.P. suggests a degree of reliability.
- The contract duration is relatively short, allowing for re-evaluation and potential re-competition in the future.
Sector Analysis
The Electronic Computer Manufacturing sector is a critical component of the technology industry, encompassing the production of hardware, components, and related systems. This contract, valued at $16.6 million, represents a specific procurement within this broad sector. Comparable spending benchmarks would depend heavily on the exact nature of the manufacturing services or components procured. The IT hardware market is highly competitive, but sole-source awards can bypass these dynamics.
Small Business Impact
There is no indication that this contract involved small business set-asides. As a sole-source award to Dell Marketing L.P., it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the award structure. This contract does not appear to directly support the small business ecosystem.
Oversight & Accountability
Oversight for this contract would fall under the Department of Homeland Security's internal procurement and contract management processes. As a firm fixed-price contract, the primary accountability measure is the delivery of the specified goods or services. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Homeland Security IT Procurement
- U.S. Immigration and Customs Enforcement Technology Contracts
- Electronic Computer Manufacturing Services
- Sole-Source IT Acquisitions
Risk Flags
- Sole-source award raises concerns about competition and potential overpricing.
- Lack of detailed information on specific products/services procured hinders value assessment.
- Potential for vendor lock-in due to sole-source nature.
Tags
it, department-of-homeland-security, u-s-immigration-and-customs-enforcement, delivery-order, firm-fixed-price, sole-source, electronic-computer-manufacturing, district-of-columbia, dell-marketing-l-p, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $16.6 million to DELL MARKETING L.P.. SOFTWARE
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).
What is the total obligated amount?
The obligated amount is $16.6 million.
What is the period of performance?
Start: 2005-06-27. End: 2006-06-26.
What specific electronic computer manufacturing services or products were procured under this contract?
The provided data indicates the contract falls under the PSC code 334111 (Electronic Computer Manufacturing). However, the specific nature of the goods or services is not detailed. This could range from the assembly of custom computer systems, manufacturing of specific components, to the provision of specialized hardware. Without this detail, a precise assessment of value for money or comparison to market rates is challenging. Further investigation into the contract's statement of work would be necessary to understand the exact deliverables.
What was the justification for awarding this contract on a sole-source basis to Dell Marketing L.P.?
Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. For this contract, the justification for sole-sourcing to Dell Marketing L.P. is not provided in the summary data. Understanding this justification is crucial for assessing whether the government adequately explored competitive options and obtained fair pricing. It is possible that Dell possessed unique capabilities, proprietary technology, or was the only vendor capable of meeting an immediate operational requirement for ICE.
How does the $16.6 million contract value compare to typical annual spending for similar IT hardware or manufacturing needs at ICE?
Benchmarking the $16.6 million contract value against typical annual spending for similar IT hardware or manufacturing needs at ICE requires historical spending data and a clear definition of the procured items. The provided data shows a 364-day duration, suggesting an annual or near-annual requirement. Without knowing the specific components or services, it's difficult to make a direct comparison. However, for a single year, $16.6 million represents a significant investment, implying either a large quantity of goods, high-value components, or specialized manufacturing services. Analysis of past ICE procurements for similar IT infrastructure would be needed for a robust comparison.
What are the potential risks associated with a sole-source award for electronic computer manufacturing?
The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the best possible value. Other risks include reduced innovation, as the sole provider may have less incentive to improve products or services. There's also a risk of vendor lock-in, where the agency becomes dependent on a single supplier, making future transitions more difficult and potentially costly. Furthermore, the absence of a competitive process can raise concerns about transparency and fairness in the procurement.
What is Dell Marketing L.P.'s track record with federal government contracts, particularly with DHS and ICE?
Dell Marketing L.P. is a major federal contractor with a significant history of supplying IT hardware and services across various government agencies, including the Department of Homeland Security (DHS) and its components like U.S. Immigration and Customs Enforcement (ICE). While this specific contract was sole-sourced, Dell has likely been awarded numerous other contracts through competitive processes. Their extensive experience suggests a familiarity with government procurement requirements and a capacity to deliver. However, the performance and pricing on any specific contract, including this one, would need to be evaluated based on individual contract data and performance metrics.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Contractor Details
Parent Company: Dell Technologies Inc. (UEI: 601839660)
Address: ONE DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,595,468
Exercised Options: $16,595,468
Current Obligation: $16,595,468
Parent Contract
Parent Award PIID: COW3A0081
IDV Type: BPA
Timeline
Start Date: 2005-06-27
Current End Date: 2006-06-26
Potential End Date: 2006-06-26 00:00:00
Last Modified: 2017-07-31
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