VA Awards $19.6M Dell Contract for Enterprise PCs and Monitors Under Full and Open Competition
Contract Overview
Contract Amount: $19,956,658 ($20.0M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Veterans Affairs
Start Date: 2011-09-28
End Date: 2017-07-14
Contract Duration: 2,116 days
Daily Burn Rate: $9.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE-WIDE PC AND MONITOR REFRESH CONTRACT
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78744
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $20.0 million to DELL MARKETING L.P. for work described as: ENTERPRISE-WIDE PC AND MONITOR REFRESH CONTRACT Key points: 1. Contract awarded to Dell Marketing L.P. for $19.6 million. 2. Procurement utilized full and open competition. 3. The contract covers enterprise-wide PC and monitor refresh. 4. Duration of the contract was 2116 days. 5. This falls under the Electronic Computer Manufacturing sector.
Value Assessment
Rating: good
The contract was awarded under firm fixed price terms, providing cost certainty. The total award amount of $19.6 million for a 5.8-year period suggests a reasonable annual spend for enterprise hardware.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The use of full and open competition likely resulted in a competitive price, maximizing taxpayer value for the procured IT equipment.
Public Impact
Ensures federal employees have up-to-date computing equipment for efficient operations. Supports the Department of Veterans Affairs' mission by providing necessary technology infrastructure. Potential for standardization of hardware across the VA, simplifying IT support and maintenance. Dell's established presence suggests reliable product delivery and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively long (2116 days).
- No specific mention of sustainability or energy efficiency requirements.
- Potential for vendor lock-in if refresh cycles are not managed effectively post-contract.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost predictability.
- Significant investment in essential IT infrastructure.
- Awarded to a well-established vendor.
Sector Analysis
This contract falls within the IT hardware sector, specifically electronic computer manufacturing. Spending benchmarks for enterprise PC and monitor refreshes vary widely based on agency size and hardware specifications, but $19.6 million over nearly six years for a large agency like the VA is within a plausible range.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large enterprise-wide hardware procurements are often dominated by major manufacturers and their prime contracting arms.
Oversight & Accountability
The contract was awarded by the Department of Veterans Affairs, indicating internal oversight. The use of full and open competition suggests a structured procurement process designed to ensure fairness and value.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Long contract duration may lead to technology obsolescence.
- Lack of specific small business participation noted.
- No explicit mention of sustainability or energy efficiency goals.
- Potential for vendor lock-in if not managed post-award.
Tags
electronic-computer-manufacturing, department-of-veterans-affairs, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $20.0 million to DELL MARKETING L.P.. ENTERPRISE-WIDE PC AND MONITOR REFRESH CONTRACT
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $20.0 million.
What is the period of performance?
Start: 2011-09-28. End: 2017-07-14.
What was the specific scope of 'enterprise-wide' and the number of units procured to justify the $19.6 million cost?
The provided data lacks specific details on the exact number of PCs and monitors procured or the precise definition of 'enterprise-wide' scope. To fully assess value, understanding the quantity and type of hardware (e.g., desktops vs. laptops, monitor sizes) is crucial for accurate per-unit cost analysis and comparison against industry benchmarks.
How did the pricing compare to other similar large-scale enterprise hardware refresh contracts awarded around the same period?
Without access to a broader market analysis or a database of comparable contracts, it's difficult to definitively benchmark this $19.6 million award. However, the firm fixed price and full and open competition suggest an effort to secure competitive pricing. A detailed comparison would require analyzing unit costs against similar government or commercial procurements for comparable hardware specifications.
What mechanisms were in place to ensure the technology procured remained relevant and effective throughout the contract's 2116-day duration?
The contract's long duration (nearly six years) raises questions about technology obsolescence. While firm fixed price provides cost certainty, it doesn't inherently guarantee that the most current technology was secured or that it would remain effective for the entire period. Oversight would be needed to ensure the VA managed refresh cycles and potential upgrades effectively within the contract's framework.
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
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Technologies Inc. (UEI: 601839660)
Address: ONE 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: $19,956,658
Exercised Options: $19,956,658
Current Obligation: $19,956,658
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: VA798A11P0280
IDV Type: IDC
Timeline
Start Date: 2011-09-28
Current End Date: 2017-07-14
Potential End Date: 2017-07-14 00:00:00
Last Modified: 2017-07-06
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