DoD Awards $21.8M for Secure Tactical Data Center Enclosures, Competition Excluded Sources

Contract Overview

Contract Amount: $21,849,550 ($21.8M)

Contractor: W S Darley & CO

Awarding Agency: Department of Defense

Start Date: 2025-09-22

End Date: 2026-09-03

Contract Duration: 346 days

Daily Burn Rate: $63.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4569641853!SECURE TACTICAL DATA CENTER ENCLOSURE

Place of Performance

Location: ITASCA, DUPAGE County, ILLINOIS, 60143

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to W S DARLEY & CO for work described as: 4569641853!SECURE TACTICAL DATA CENTER ENCLOSURE Key points: 1. Significant investment in specialized tactical data center enclosures. 2. Competition method raises questions about price discovery and potential cost savings. 3. Risk of limited competition impacting overall value for taxpayer dollars. 4. Sector focus on defense logistics and specialized equipment.

Value Assessment

Rating: fair

The contract value of $21.8M for 29 units suggests a high per-unit cost. Benchmarking against similar specialized enclosure contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a non-standard procurement. This method limits the pool of potential bidders and may hinder competitive pricing.

Taxpayer Impact: Limited competition can lead to higher costs for taxpayers if effective price discovery is not achieved through other means.

Public Impact

Ensures operational readiness for critical tactical data infrastructure. Supports Department of Defense's need for secure and resilient data storage. Potential for increased costs due to restricted competition.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Limited competition
High per-unit cost potential
Lack of clear justification for source exclusion

Positive Signals

Addresses critical defense infrastructure needs
Firm fixed price contract provides cost certainty

Sector Analysis

This contract falls within the defense sector, specifically for specialized equipment. Spending benchmarks for similar tactical data center enclosures are difficult to establish due to their niche nature.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this procurement.

Oversight & Accountability

Oversight is crucial to ensure the justification for excluding sources is sound and that the final price reflects fair market value despite limited competition.

Related Government Programs

Service Establishment Equipment and Supplies Merchant Wholesalers
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Limited competition raises concerns about price.
Potential for higher costs due to restricted bidding.
Lack of transparency regarding source exclusion.
Need for strong justification for procurement method.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to W S DARLEY & CO. 4569641853!SECURE TACTICAL DATA CENTER ENCLOSURE

Who is the contractor on this award?

The obligated recipient is W S DARLEY & CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $21.8 million.

What is the period of performance?

Start: 2025-09-22. End: 2026-09-03.

What was the specific justification for excluding sources in this full and open competition?

The justification for excluding sources is critical. Without a clear and compelling reason, such as unique technical capabilities or national security imperatives, excluding potential bidders limits competition and may result in a higher price for the government. Further review of the contract file is needed to understand the rationale.

How does the per-unit cost compare to similar, albeit potentially less specialized, data center enclosure solutions?

Benchmarking the per-unit cost against comparable, even if not identical, data center enclosures is essential. While tactical enclosures may have unique requirements, a significant deviation from standard market pricing warrants scrutiny. Understanding the specific features driving the cost is key to assessing value.

What measures are in place to ensure effective price discovery and value for money given the limited competition?

Given the limited competition, the agency must demonstrate robust price analysis techniques. This could include detailed cost breakdowns from the awarded contractor, comparison with historical data (if available), and independent government cost estimates. The firm fixed price contract offers some cost certainty, but the initial price negotiation is paramount.

Industry Classification

NAICS: Wholesale Trade › Machinery, Equipment, and Supplies Merchant Wholesalers › Service Establishment Equipment and Supplies Merchant Wholesalers

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 29

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 325 SPRING LAKE DR, ITASCA, IL, 60143

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,849,550

Exercised Options: $21,849,550

Current Obligation: $21,849,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1025

IDV Type: IDC

Timeline