DHS awarded $45M for IT hardware, with Dell as the primary contractor, over two years
Contract Overview
Contract Amount: $45,023,694 ($45.0M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Homeland Security
Start Date: 2007-06-27
End Date: 2009-06-26
Contract Duration: 730 days
Daily Burn Rate: $61.7K/day
Competition Type: FULL AND OPEN COMPETITION
Sector: IT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Homeland Security obligated $45.0 million to DELL MARKETING L.P. for work described as: Key points: 1. The contract utilized a Blanket Purchase Agreement (BPA) structure, suggesting a pre-negotiated framework for IT hardware procurement. 2. The award was made under full and open competition, indicating a broad market solicitation. 3. The duration of the contract was 730 days, providing a stable period for IT hardware supply. 4. The primary contractor, Dell Marketing L.P., is a well-established provider of IT hardware. 5. The North American Industry Classification System (NAICS) code 334111 points to the manufacturing of electronic computers, aligning with the hardware focus. 6. The contract's value of approximately $45 million over two years suggests a significant but not exceptionally large procurement for IT hardware.
Value Assessment
Rating: good
Benchmarking the value of this contract requires more granular data on the specific IT hardware procured. However, a $45 million award over two years for IT hardware from a major vendor like Dell, under full and open competition, suggests a reasonable price point. Without specific unit costs or detailed product lists, a precise value-for-money assessment is challenging. Comparing it to similar large-scale IT hardware procurements by agencies like DHS would provide further context on its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation implies a competitive process designed to solicit the best offers. This approach generally leads to more favorable pricing and a wider selection of qualified vendors.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a broader range of innovative solutions, ensuring the government receives the best value for its spending.
Public Impact
Federal agencies, particularly within the Department of Homeland Security, benefit from a reliable supply of essential IT hardware. The contract supports the operational needs of U.S. Immigration and Customs Enforcement (ICE) by providing necessary computing equipment. The geographic impact is primarily within the District of Columbia, where the contracting activity is registered. The contract supports the IT hardware manufacturing and supply chain sector, indirectly impacting the technology workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the types and quantities of hardware procured makes it difficult to assess if the $45M represents optimal value.
- The contract duration of two years might not be long enough for long-term strategic IT planning or to secure significant volume discounts.
- No information is provided on small business subcontracting, raising questions about broader economic impact.
Positive Signals
- Awarded under full and open competition, suggesting a robust and fair bidding process.
- Dell Marketing L.P. is a reputable and experienced provider of IT hardware, indicating a lower risk of performance issues.
- The BPA structure implies that pricing and terms were likely pre-negotiated, potentially streamlining future procurements.
Sector Analysis
The IT hardware sector is characterized by rapid technological advancements and intense competition among major manufacturers. This contract falls within the electronic computer manufacturing sub-sector. Spending in this area is critical for government operations, supporting everything from basic office functions to complex data processing and cybersecurity. Comparable spending benchmarks would typically involve analyzing annual IT hardware procurement data across federal agencies, looking at average costs for similar equipment types and volumes.
Small Business Impact
This contract does not appear to have a specific small business set-aside. The award to Dell Marketing L.P., a large corporation, suggests that small businesses were likely not the primary focus of this particular BPA. However, large prime contractors often engage small businesses for subcontracting opportunities. Without specific subcontracting plans or reporting, the direct impact on the small business ecosystem remains unclear, though it's possible they could benefit indirectly.
Oversight & Accountability
The oversight for this contract would typically fall under the Department of Homeland Security's procurement oversight framework and the U.S. Immigration and Customs Enforcement's program management. Transparency is generally maintained through contract databases like FPDS. Accountability measures would involve performance monitoring against the BPA terms and conditions. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- General Services Administration (GSA) Schedules
- IT Hardware Procurement
- Department of Homeland Security IT Spending
- Blanket Purchase Agreements (BPAs)
- Dell Inc. Federal Contracts
Risk Flags
- Lack of specific hardware details
- Limited information on competition metrics (number of bidders)
- No explicit mention of small business subcontracting goals or achievements
Tags
it-hardware, dell-marketing-l-p, department-of-homeland-security, u-s-immigration-and-customs-enforcement, blanket-purchase-agreement, full-and-open-competition, electronic-computer-manufacturing, district-of-columbia, large-contract, it-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $45.0 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 Homeland Security (U.S. Immigration and Customs Enforcement).
What is the total obligated amount?
The obligated amount is $45.0 million.
What is the period of performance?
Start: 2007-06-27. End: 2009-06-26.
What specific types of electronic computer hardware were procured under this contract?
The provided data indicates the contract falls under NAICS code 334111 (Electronic Computer Manufacturing) and was awarded to Dell Marketing L.P. for IT hardware. However, the specific types of hardware (e.g., desktops, laptops, servers, peripherals) and their quantities are not detailed in the summary data. This level of granularity is typically found in the individual task orders issued against the Blanket Purchase Agreement (BPA). Without access to these task orders, a precise understanding of the procured items is not possible. Future analysis could involve reviewing ICE's IT asset inventories or specific procurement requests to identify the hardware deployed under this agreement.
How does the $45 million contract value compare to similar IT hardware procurements by DHS or other agencies?
A $45 million contract value over two years for IT hardware is a substantial award, reflecting significant procurement volume. To benchmark this, one would compare it against similar BPAs or large-scale IT hardware contracts awarded by agencies like the Department of Defense, GSA, or other components within DHS. Factors such as the specific types of hardware, quantities, and contract duration are crucial for a fair comparison. For instance, if other agencies are procuring similar volumes of enterprise-grade hardware over similar periods for around $20-25 million annually, this contract appears to be within a reasonable range. However, without detailed comparative data on specific hardware configurations and market prices at the time of award, a definitive assessment of value-for-money is difficult.
What is Dell Marketing L.P.'s track record with federal IT hardware contracts, particularly with DHS?
Dell Marketing L.P. has a long and extensive history of providing IT hardware solutions to the federal government, including significant contracts with the Department of Homeland Security (DHS). Their track record generally indicates a strong capability in delivering a wide range of computing products, from individual workstations to complex server infrastructure. DHS, being a large agency with substantial IT needs, frequently procures hardware from major vendors like Dell. While specific performance metrics for this particular BPA are not detailed here, Dell's consistent presence in federal IT procurement suggests a generally positive performance history and reliability in meeting government requirements. Agencies often rely on established vendors like Dell due to their established support networks and product familiarity.
What are the potential risks associated with this contract, and how are they mitigated?
Potential risks for this IT hardware contract include technology obsolescence, supply chain disruptions, and performance issues with the delivered equipment. Given the rapid pace of technological change, hardware procured today could be outdated within a few years. Supply chain issues, as seen globally in recent years, could also lead to delays or increased costs. Performance risks are mitigated by Dell's established reputation as a reliable hardware provider and the terms of the BPA, which likely include specifications and potentially warranties. Furthermore, the contract's duration of two years is relatively short, limiting the exposure to long-term technological shifts. Oversight by ICE and DHS procurement officials would also identify and address any emerging performance or delivery issues.
How does the use of a Blanket Purchase Agreement (BPA) impact the efficiency and cost-effectiveness of this procurement?
A Blanket Purchase Agreement (BPA) is a simplified way to fill anticipated repetitive needs for supplies or services. For IT hardware, a BPA allows agencies like ICE to establish pre-negotiated terms, conditions, and pricing with vendors like Dell. This streamlines the procurement process for individual orders placed against the BPA, reducing administrative burden and lead times. By consolidating requirements under a BPA, agencies can often achieve better pricing through volume commitments. The efficiency comes from avoiding the need to conduct a full solicitation for each individual purchase. Cost-effectiveness is enhanced by the pre-negotiated rates, which are typically competitive, and the reduced transaction costs associated with faster ordering.
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: NEGOTIATED PROPOSAL/QUOTE
Evaluated Preference: NONE
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: $45,023,694
Exercised Options: $45,023,694
Current Obligation: $45,023,694
Parent Contract
Parent Award PIID: COW3A0081
IDV Type: BPA
Timeline
Start Date: 2007-06-27
Current End Date: 2009-06-26
Potential End Date: 2009-06-26 00:00:00
Last Modified: 2017-07-31
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