DoD's $51M contract for clinical imaging hardware/software awarded to Dell Federal Systems L.P

Contract Overview

Contract Amount: $50,960,664 ($51.0M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Defense

Start Date: 2023-09-28

End Date: 2028-09-29

Contract Duration: 1,828 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMMERCIAL-OFF-THE-SHELF HARDWARE AND SOFTWARE SUPPLY FOR ENTERPRISE CLINICAL IMAGING ARCHIVE INFRASTRUCTURE

Place of Performance

Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $51.0 million to DELL FEDERAL SYSTEMS L.P for work described as: COMMERCIAL-OFF-THE-SHELF HARDWARE AND SOFTWARE SUPPLY FOR ENTERPRISE CLINICAL IMAGING ARCHIVE INFRASTRUCTURE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for commercial off-the-shelf hardware and software, indicating a focus on readily available solutions. 3. A firm-fixed-price contract type helps manage cost certainty for the government. 4. The duration of the contract is over 5 years, suggesting a long-term need for these services. 5. The awardee, Dell Federal Systems L.P., is a known entity in the federal IT space. 6. The contract supports the Defense Health Agency, highlighting its importance to military healthcare IT infrastructure.

Value Assessment

Rating: good

The contract value of approximately $51 million over five years for enterprise clinical imaging hardware and software appears reasonable given the scope. Benchmarking against similar large-scale IT infrastructure procurements for healthcare systems suggests this falls within expected ranges. The firm-fixed-price structure provides cost predictability. Without specific unit cost data or detailed service level agreements, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of multiple bidders, though not explicitly stated in the provided data, is implied by this competition type. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider range of vendors to participate, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive improved clinical imaging capabilities. Services delivered include the supply of commercial off-the-shelf hardware and software essential for enterprise clinical imaging archive infrastructure. The geographic impact is likely widespread within military healthcare facilities that utilize the Defense Health Agency's systems. Workforce implications may include IT support staff for installation, maintenance, and operation of the new imaging infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the chosen COTS solutions become proprietary and difficult to integrate with future systems.
Reliance on a single vendor for critical hardware and software could pose supply chain risks.
Ensuring adequate cybersecurity measures are in place for sensitive clinical imaging data is paramount.

Positive Signals

Award to a reputable vendor like Dell Federal Systems L.P. suggests a level of reliability and experience.
The use of COTS products can lead to faster deployment and easier maintenance compared to custom solutions.
The firm-fixed-price contract type provides budget certainty for the government.

Sector Analysis

This contract falls within the broader IT services and hardware sector, specifically focusing on healthcare IT infrastructure. The market for enterprise imaging solutions is substantial, driven by the increasing digitization of medical records and the need for efficient data management and access. Comparable spending benchmarks in this area often involve multi-million dollar investments for large federal agencies, reflecting the complexity and scale of maintaining robust healthcare IT systems.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there was no small business set-aside (ss) for this contract. This suggests that the procurement was not specifically targeted towards small businesses. Consequently, the direct impact on the small business ecosystem may be limited, although the prime contractor, Dell Federal Systems L.P., may engage small businesses as subcontractors if their internal policies or the contract's needs dictate.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Health Agency contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified goods and services. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Health Agency IT Modernization Programs
Enterprise Imaging Systems
Clinical Data Archiving Solutions
Federal Health IT Procurement

Risk Flags

Potential for vendor lock-in with COTS solutions.
Cybersecurity risks associated with sensitive health data.
Long-term sustainment and supportability of COTS products.
Integration challenges with existing or future healthcare IT systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.0 million to DELL FEDERAL SYSTEMS L.P. COMMERCIAL-OFF-THE-SHELF HARDWARE AND SOFTWARE SUPPLY FOR ENTERPRISE CLINICAL IMAGING ARCHIVE INFRASTRUCTURE

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 (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $51.0 million.

What is the period of performance?

Start: 2023-09-28. End: 2028-09-29.

What is the track record of Dell Federal Systems L.P. in delivering similar enterprise imaging solutions to the Department of Defense or other federal agencies?

Dell Federal Systems L.P. has a significant history of providing IT hardware, software, and services to the federal government, including the Department of Defense. They are a well-established vendor with numerous contracts for various IT infrastructure needs. While specific details on past enterprise imaging projects for the DHA are not provided here, their broad experience in supplying COTS hardware and software, coupled with their federal contracting expertise, suggests a capable partner. Past performance evaluations, often part of the federal procurement process, would offer more granular insights into their success with similar, large-scale deployments, including adherence to schedules, budget, and technical specifications.

How does the per-unit cost of the hardware and software components compare to market rates for similar commercial off-the-shelf products?

The provided data does not include specific per-unit costs for the hardware and software components. Therefore, a direct comparison to market rates is not possible with the information given. However, since the contract was awarded under full and open competition and is a firm-fixed-price type, it implies that the pricing was reviewed and deemed acceptable by the contracting agency. To perform a detailed benchmark, one would need to identify the specific COTS products procured and compare their unit prices against publicly available pricing from commercial vendors or other government contracts that procured the same or similar items.

What are the primary risks associated with relying on commercial off-the-shelf (COTS) products for a critical clinical imaging archive infrastructure?

Relying on COTS products for critical infrastructure like clinical imaging archives presents several risks. Firstly, there's the risk of vendor lock-in, where the government becomes dependent on a specific vendor's ecosystem, making future transitions or integrations difficult and costly. Secondly, COTS products may not perfectly align with unique government requirements, potentially leading to workarounds or compromises in functionality. Thirdly, the long-term support and maintenance of COTS products can be uncertain; vendors may discontinue product lines or change support models. Finally, ensuring robust cybersecurity for COTS solutions, especially those handling sensitive health data, requires diligent configuration and ongoing patching, as vulnerabilities can be exploited if not managed proactively.

What is the expected impact of this contract on the Defense Health Agency's ability to manage and access clinical imaging data?

This contract is expected to significantly enhance the Defense Health Agency's (DHA) ability to manage and access clinical imaging data. By providing new hardware and software for an enterprise clinical imaging archive infrastructure, it aims to create a more unified, efficient, and potentially scalable system. This should lead to improved data accessibility for healthcare providers, enabling better-informed diagnoses and treatment plans. Furthermore, a modern archive infrastructure can improve data integrity, reduce storage costs, and facilitate compliance with data retention policies. The overall goal is to modernize the DHA's imaging IT infrastructure, supporting better patient care across military healthcare facilities.

How does the total contract value of approximately $51 million compare to historical spending on similar IT infrastructure procurements by the Department of Defense?

The total contract value of approximately $51 million over five years for enterprise clinical imaging hardware and software is substantial, but within the expected range for large-scale IT infrastructure procurements by a major federal agency like the Department of Defense. The DoD consistently invests billions annually in IT modernization and sustainment. For context, similar procurements for enterprise resource planning systems, network upgrades, or large-scale data management solutions often run into tens or hundreds of millions of dollars. The specific value of this contract should be viewed relative to the scope of services, the number of users or facilities supported, and the technological advancements it aims to implement within the Defense Health Agency's clinical imaging domain.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Francisco Partners Management, L.P.

Address: 1 DELL WAY, ROUND ROCK, TX, 78682

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,463,846

Exercised Options: $50,960,664

Current Obligation: $50,960,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J16D0010

IDV Type: IDC

Timeline