DoD Navy awards $34.1M for laptops via full and open competition, raising value concerns
Contract Overview
Contract Amount: $34,108,675 ($34.1M)
Contractor: CDW Government LLC
Awarding Agency: Department of Defense
Start Date: 2017-02-21
End Date: 2021-06-30
Contract Duration: 1,590 days
Daily Burn Rate: $21.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GENERAL PURPOSE LAPTOP
Place of Performance
Location: NORTH LAS VEGAS, CLARK County, NEVADA, 89030
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $34.1 million to CDW GOVERNMENT LLC for work described as: GENERAL PURPOSE LAPTOP Key points: 1. High contract value for laptops suggests potential for significant taxpayer investment. 2. Full and open competition was utilized, indicating a broad market approach. 3. The duration of the contract (1590 days) spans several years, impacting technology relevance. 4. No small business participation noted, potentially limiting broader economic impact.
Value Assessment
Rating: questionable
The contract value of $34.1 million for general purpose laptops over nearly four years appears high. Benchmarking against similar government or commercial laptop procurements would be necessary to determine if this represents a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing, but the final price still warrants scrutiny.
Taxpayer Impact: The significant award amount means taxpayers are investing heavily in these laptops, making price efficiency a key concern.
Public Impact
Taxpayers are funding a substantial procurement of essential computing hardware for the Navy. The long contract duration may lead to the acquisition of outdated technology by its end. The absence of small business involvement means a portion of this spending did not directly benefit smaller enterprises.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High total value for standard hardware
- Long contract duration
- No small business participation
Positive Signals
- Full and open competition utilized
Sector Analysis
The IT hardware sector is characterized by rapid technological advancements and competitive pricing. Government procurements in this area often aim for cost-effectiveness through bulk purchasing and competitive bidding.
Small Business Impact
This contract did not involve small businesses, as indicated by the 'sb' field being false. This represents a missed opportunity to leverage the capabilities of smaller IT vendors and support economic diversity within the federal contracting landscape.
Oversight & Accountability
The award was a delivery order under a larger contract, suggesting some level of pre-competition or established framework. Oversight would focus on the justification for the specific award amount and adherence to contract terms.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High total contract value for standard IT equipment.
- Extended contract duration potentially leading to technology obsolescence.
- Lack of small business participation.
- Potential for overpayment if unit costs are not competitive.
Tags
electronic-computer-manufacturing, department-of-defense, nv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.1 million to CDW GOVERNMENT LLC. GENERAL PURPOSE LAPTOP
Who is the contractor on this award?
The obligated recipient is CDW GOVERNMENT LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $34.1 million.
What is the period of performance?
Start: 2017-02-21. End: 2021-06-30.
What is the average per-unit cost of these laptops, and how does it compare to market rates for similar models at the time of award?
Without the exact number of units procured, the per-unit cost cannot be calculated. However, given the total award of $34.1 million over nearly four years, the average annual spending is approximately $8.5 million. This figure should be benchmarked against prevailing market prices for enterprise-grade laptops during the contract period to assess value for money.
What specific laptop models were procured, and what were their technical specifications to justify the overall cost?
The data provided identifies the item as a 'GENERAL PURPOSE LAPTOP' but lacks specific model numbers or detailed technical specifications. Understanding the exact hardware procured is crucial for evaluating whether the $34.1 million award aligns with the required performance, durability, and features necessary for Department of Defense operations.
Were there any specific performance metrics or service level agreements tied to this contract that could justify the long duration and cost?
The provided data does not detail specific performance metrics or service level agreements. While the contract duration is 1590 days (over four years), the absence of explicit performance indicators makes it difficult to assess if this extended period was justified by requirements such as extended warranties, support services, or phased deployments.
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
Solicitation ID: M6785417Q4023
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CDW Corporation (UEI: 808068253)
Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,108,675
Exercised Options: $34,108,675
Current Obligation: $34,108,675
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785412D4153
IDV Type: IDC
Timeline
Start Date: 2017-02-21
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2021-05-25
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