DoD's $33.89M Dell contract for ADP systems development services awarded in 2005 shows mixed value and competition
Contract Overview
Contract Amount: $33,891,496 ($33.9M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2005-07-29
End Date: 2008-06-30
Contract Duration: 1,067 days
Daily Burn Rate: $31.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200612!000821!1700!M67854!COMMANDING GENERAL !GS35F4076D !C!N! !N!M6785405F4940! !20050729!20070730!114315195!114315195!114315195!N!DELL MARKETING L P !ONE DELL WAY !ROUND ROCK !TX!78682!53832!491!48!OLD ROUND ROCK !WILLIAMSON !TEXAS !+000010739360!N!N!000000000000!D302!ADP SYSTEMS DEVELOPMENT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541219!A!A!6! ! ! ! ! !99990909!B!E!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! !1727!M67854!0001! !
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $33.9 million to DELL MARKETING L.P. for work described as: 200612!000821!1700!M67854!COMMANDING GENERAL !GS35F4076D !C!N! !N!M6785405F4940! !20050729!20070730!114315195!114315195!114315195!N!DELL MARKETING L P !ONE DELL WAY !ROUND ROCK !TX!78682!53832!491!48!OLD ROUND ROCK !WILL… Key points: 1. The contract's value proposition is unclear due to a lack of detailed performance metrics and benchmarking against similar ADP systems development services. 2. Competition was full and open, suggesting a potentially competitive pricing environment, but the number of bidders is not specified. 3. Risk indicators are moderate, with a long performance period and a firm-fixed-price contract type, which can shift risk to the contractor. 4. Performance context is limited, with no specific details on project milestones, deliverables, or quality assessments provided. 5. The contract falls within the IT sector, specifically ADP systems development services, a critical area for defense operations. 6. The contract was awarded to Dell Marketing L.P., a major IT vendor, indicating a reliance on established industry players for complex IT needs.
Value Assessment
Rating: fair
The total award amount of $33.89 million for ADP systems development services over approximately three years presents a moderate expenditure. Without specific performance metrics, quality assessments, or detailed breakdowns of services rendered, it is difficult to definitively benchmark the value for money. Comparing this to similar contracts for ADP systems development services within the Department of Defense or other federal agencies would require more granular data on the scope and complexity of the work performed. The firm-fixed-price nature suggests a defined cost structure, but the overall value is contingent on the successful delivery of the specified systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows all responsible sources to submit offers. This approach is generally favored for maximizing competition and achieving the best value for the government. However, the specific number of bids received is not detailed in the provided data, making it impossible to assess the actual level of competition. A high number of bidders would typically indicate robust price discovery and potentially lower prices, while a low number might suggest market limitations or specific technical requirements that narrowed the field.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to bid, driving down prices and increasing the likelihood of obtaining services at a competitive rate. This process aims to ensure that government funds are used efficiently by leveraging market forces.
Public Impact
The primary beneficiaries of this contract are the Department of Defense, specifically the Department of the Navy, through the provision of enhanced ADP systems development services. The services delivered are related to the development of Automated Data Processing (ADP) systems, crucial for military operations, logistics, and administrative functions. The geographic impact is primarily within the Department of the Navy's operational areas, though the specific locations of service delivery are not detailed. Workforce implications include the employment of IT professionals and developers by Dell Marketing L.P. to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics makes it difficult to assess the quality and effectiveness of the ADP systems developed.
- The contract duration of over three years could lead to scope creep or evolving requirements that may not be fully captured in the initial award.
- Limited information on the specific nature of the ADP systems development services hinders a thorough risk assessment.
Positive Signals
- Awarded under full and open competition, suggesting a potentially competitive pricing environment.
- Firm-fixed-price contract type shifts cost overrun risk to the contractor, providing budget certainty for the government.
- Contract awarded to a well-established IT vendor (Dell Marketing L.P.) implies a level of reliability and experience.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on ADP systems development services. The IT services market within the federal government is substantial, with agencies consistently investing in modernizing and developing their technological infrastructure. Comparable spending benchmarks for ADP systems development services can vary widely based on complexity, duration, and specific technological requirements. However, contracts of this magnitude for specialized IT development are common across various federal agencies, particularly within defense and intelligence communities that require robust and secure systems.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Consequently, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The award to a large prime contractor like Dell Marketing L.P. means that any subcontracting opportunities would be at the discretion of the prime. Without specific subcontracting plans detailed in the contract, the impact on the small business ecosystem is indirect and depends on Dell's procurement practices.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated through contract award databases like FPDS, which provide basic information on contract value, duration, and awardee. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Defense Information Technology Contracting
- ADP Systems Modernization
- IT Services for Department of the Navy
- Federal IT Development Contracts
- Large Prime Contractor IT Awards
Risk Flags
- Lack of detailed performance metrics.
- Limited information on competition specifics (number of bidders).
- Unclear scope of 'ADP Systems Development Services'.
- Potential for outdated technology given contract award date.
Tags
it, department-of-defense, department-of-the-navy, firm-fixed-price, large-contract, full-and-open-competition, adp-systems-development, it-services, dell-marketing-lp, 2005-award, us-federal-government
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.9 million to DELL MARKETING L.P.. 200612!000821!1700!M67854!COMMANDING GENERAL !GS35F4076D !C!N! !N!M6785405F4940! !20050729!20070730!114315195!114315195!114315195!N!DELL MARKETING L P !ONE DELL WAY !ROUND ROCK !TX!78682!53832!491!48!OLD ROUND ROCK !WILLIAMSON !TEXAS !+000010739360!N!N!000000000000!D302!ADP SYSTEMS DEVELOPMENT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541219!A!A!6! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $33.9 million.
What is the period of performance?
Start: 2005-07-29. End: 2008-06-30.
What was the specific nature of the ADP systems developed under this contract, and what were the key performance indicators (KPIs) used to measure success?
The provided data identifies the contract as being for 'ADP SYSTEMS DEVELOPMENT SERVICES' (D302). However, it does not specify the exact nature of these systems (e.g., logistics, personnel, intelligence) or the key performance indicators (KPIs) used to measure their development success. Without this information, it is challenging to assess the technical achievements or the impact of the developed systems. Typically, such contracts would include detailed statements of work outlining system requirements, functionalities, and specific metrics for performance, quality, and timeliness. The absence of this detail limits a thorough evaluation of the contract's effectiveness and the value delivered.
How does the per-unit cost or overall value of this contract compare to similar ADP systems development contracts awarded by the Department of Defense or other federal agencies during the same period?
Benchmarking the value of this $33.89 million contract for ADP systems development services against similar contracts is difficult without more specific details on the scope, complexity, and duration of the services rendered. The provided data indicates a contract duration of approximately 3 years (2005-07-29 to 2008-06-30) and a total value of $33,891,495.55. To perform a meaningful comparison, one would need to identify comparable contracts with similar statements of work, technological requirements, and service levels. Factors such as the number of users supported, the criticality of the system, and the specific development methodologies employed would significantly influence cost. A preliminary review of federal procurement data might reveal other large-scale ADP development contracts, but a precise value-for-money assessment would require a detailed apples-to-apples comparison.
What was the track record of Dell Marketing L.P. with the Department of Defense or similar government agencies for ADP systems development prior to or during this contract?
Dell Marketing L.P. is a well-established technology vendor with a significant history of contracting with the U.S. federal government, including the Department of Defense. Prior to and during this 2005-2008 contract for ADP systems development services, Dell likely had numerous other contracts for hardware, software, and IT services. Assessing their specific track record for ADP systems development would require a deeper dive into their contract history with DoD, looking at past performance evaluations, any reported issues or successes on similar projects, and their overall reputation for delivering complex IT solutions. Given Dell's size and market presence, it is reasonable to assume they possess substantial experience, but the quality and relevance of that experience for this specific type of development work would need further investigation.
What were the primary risks associated with this contract, and how were they mitigated by the Department of the Navy?
Primary risks associated with this ADP systems development contract likely included technical risks (e.g., system integration challenges, software bugs, performance issues), schedule risks (e.g., delays in development milestones), cost risks (though mitigated by the firm-fixed-price structure), and performance risks (e.g., failure to meet specified requirements). The firm-fixed-price (FFP) contract type itself is a risk mitigation strategy, shifting the financial risk of cost overruns to the contractor, Dell Marketing L.P. The Department of the Navy would have also employed oversight mechanisms, such as regular progress reviews, acceptance testing of deliverables, and potentially performance bonds, to manage these risks. The long performance period (over three years) could also introduce risks related to evolving technology or changing requirements, which would need to be managed through contract modifications or careful scope definition.
How has the Department of the Navy's spending on ADP systems development services evolved since this contract was awarded in 2005?
Spending on ADP systems development services by the Department of the Navy has likely evolved significantly since this $33.89 million contract was awarded in 2005. The landscape of IT development has changed dramatically with the rise of cloud computing, agile methodologies, cybersecurity imperatives, and data analytics. Federal agencies, including the Navy, have increasingly shifted towards cloud-based solutions and Software-as-a-Service (SaaS) models, which may alter the nature and procurement of development services. While specific historical spending figures require dedicated analysis of federal procurement databases over time, it's probable that the Navy's investment in IT development has continued, potentially with a greater emphasis on modernizing legacy systems, enhancing cybersecurity, and leveraging data for operational advantage. The specific focus might have shifted from traditional on-premise ADP systems to more integrated, network-centric, and potentially cloud-hosted solutions.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Computer Corporation (UEI: 114315195)
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: GS35F4076D
IDV Type: FSS
Timeline
Start Date: 2005-07-29
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2014-05-22
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