DHS awarded $9.46M for IT services, with over $30M in total obligations, to Dell Federal Systems L.P

Contract Overview

Contract Amount: $30,000,177 ($30.0M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Homeland Security

Start Date: 2017-06-22

End Date: 2020-06-26

Contract Duration: 1,100 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DHS BPA OY2 - POP: 6/27/2017 - 6/26/2018. CONTRACT NO.: HSHQDC-15-A-00017. TOTAL OY2 AMOUNT IS $9,464,202.84. AMB# 13558 - 17-OPSESB-MS ALT THOMAS.R.STRONG@ICE.DHS.GOV 2027327354

Place of Performance

Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.0 million to DELL FEDERAL SYSTEMS L.P for work described as: DHS BPA OY2 - POP: 6/27/2017 - 6/26/2018. CONTRACT NO.: HSHQDC-15-A-00017. TOTAL OY2 AMOUNT IS $9,464,202.84. AMB# 13558 - 17-OPSESB-MS ALT THOMAS.R.STRONG@ICE.DHS.GOV 2027327354 Key points: 1. The contract demonstrates significant federal IT spending, with a substantial portion obligated. 2. Dell Federal Systems L.P. secured this award, indicating their role in supporting DHS IT needs. 3. The contract's duration and total value suggest a long-term commitment to specific IT services. 4. The 'Other Computer Related Services' NAICS code points to a broad scope of potential IT support. 5. The firm fixed-price contract type suggests predictable costs for the government. 6. The contract was awarded under full and open competition, implying a robust bidding process.

Value Assessment

Rating: good

The total obligations of $30,001,774.46 significantly exceed the stated Other Year 2 amount of $9,464,202.84, suggesting either substantial growth in task orders or a misunderstanding of the reported figures. Benchmarking against similar 'Other Computer Related Services' contracts for DHS would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and allows the government to select the best value offering. The open competition suggests a healthy market for these types of IT services.

Taxpayer Impact: Taxpayers benefit from the competitive pricing that full and open competition typically yields, ensuring that federal funds are used efficiently for IT services.

Public Impact

The U.S. Immigration and Customs Enforcement (ICE) agency within DHS is the primary beneficiary of these IT services. The services provided likely support critical functions related to immigration and customs enforcement operations. The contract is based in Texas, suggesting a geographic focus for service delivery or contractor presence. The workforce implications are tied to the IT professionals employed by Dell Federal Systems L.P. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the total obligations significantly outpace initial estimates without clear justification.
Scope creep could occur if the 'Other Computer Related Services' are not clearly defined and managed.
Dependence on a single contractor for critical IT services could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
Firm fixed-price contract type provides cost predictability for the government.
Long contract duration (over 1100 days) indicates a stable, ongoing need for these services.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on 'Other Computer Related Services'. The IT services market is vast and highly competitive, with numerous vendors offering a wide range of solutions. Contracts like this are crucial for government agencies to maintain and upgrade their technological infrastructure, supporting everything from data management to operational systems. Comparable spending benchmarks would depend on the specific nature of the 'other computer related services' provided.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large contract awarded to a major IT provider, there may be opportunities for small businesses to participate as subcontractors if Dell Federal Systems L.P. chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within DHS. Transparency is facilitated by public contract databases where such awards are reported. The specific Inspector General jurisdiction would be that of the DHS Office of Inspector General, responsible for auditing and investigating waste, fraud, and abuse within the department.

Related Government Programs

DHS IT Modernization Programs
ICE Information Technology Support Contracts
Federal Civilian Agency IT Services
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Potential for cost growth beyond initial estimates due to broad service category.
Risk of performance issues if 'Other Computer Related Services' scope is not tightly managed.
Dependence on a single vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.0 million to DELL FEDERAL SYSTEMS L.P. DHS BPA OY2 - POP: 6/27/2017 - 6/26/2018. CONTRACT NO.: HSHQDC-15-A-00017. TOTAL OY2 AMOUNT IS $9,464,202.84. AMB# 13558 - 17-OPSESB-MS ALT THOMAS.R.STRONG@ICE.DHS.GOV 2027327354

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 Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2017-06-22. End: 2020-06-26.

What specific 'Other Computer Related Services' were provided under this contract?

The provided data identifies the NAICS code as 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide array of IT services beyond standard software development or hardware maintenance. Examples could include IT consulting, data processing services, disaster recovery services, IT security consulting, or specialized IT support not covered by more specific NAICS codes. Without further details from the contract award or task orders, the precise nature of the services remains general. However, given the agency (ICE) and the context of federal IT spending, these services likely support critical operational systems, data management, or infrastructure needs essential for immigration and customs enforcement.

How does the total obligation amount compare to the initial contract value or ceiling?

The provided data indicates an 'Other Year 2 Amount' of $9,464,202.84 and a total obligation of $30,001,774.46. This suggests that the total obligations significantly exceeded the reported 'Other Year 2 Amount.' It's possible that the $9.46M figure represents a specific year's funding or a portion of the contract's ceiling, while the $30M represents the cumulative spending over the contract's life or across multiple years. A comprehensive analysis would require comparing the total obligations against the contract's original ceiling or estimated value to determine if spending was within expected parameters or if there was substantial growth in demand for services.

What is the track record of Dell Federal Systems L.P. with DHS contracts of similar scope?

Dell Federal Systems L.P. is a known entity in the federal IT contracting space. To assess their track record specifically with DHS and contracts of similar scope, one would need to analyze their past performance on other DHS awards, particularly those under NAICS code 541519 or related IT service categories. Key metrics to examine would include on-time delivery, adherence to budget, quality of services, and any past performance issues or disputes. A review of contract databases and performance evaluations (if publicly available) would provide insights into their reliability and effectiveness in supporting federal agencies like DHS.

What are the potential risks associated with a firm fixed-price contract for 'Other Computer Related Services'?

While firm fixed-price (FFP) contracts offer cost certainty for the government, they can introduce risks for the contractor, which may indirectly affect the government. If the scope of 'Other Computer Related Services' is not well-defined or if unforeseen technical challenges arise, the contractor may incur higher costs than anticipated. This could lead to pressure on the contractor to cut corners on quality or service delivery to maintain profitability. Conversely, if the government requires significant changes or additions to the scope, change order negotiations can become complex and potentially costly. Effective contract management and clear scope definition are crucial to mitigate these risks.

How does the duration of this contract (1100 days) align with typical IT service contracts for federal agencies?

A contract duration of approximately 1100 days (around 3 years) is quite common for federal IT service contracts, especially those involving ongoing support, maintenance, or evolving technological needs. This duration allows for a stable period of service delivery, enabling both the contractor and the agency to establish effective working relationships and processes. Shorter durations might be used for specific projects, while longer durations (often with option periods) can provide continuity. The 1100-day term suggests a sustained requirement for the IT services provided by Dell Federal Systems L.P. to ICE.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,736,420

Exercised Options: $30,000,177

Current Obligation: $30,000,177

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSHQDC15A00017

IDV Type: BPA

Timeline