VA awards $20.4M for computer hardware to Dell, highlighting firm fixed-price contract
Contract Overview
Contract Amount: $20,381,375 ($20.4M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Veterans Affairs
Start Date: 2009-12-15
End Date: 2014-04-15
Contract Duration: 1,582 days
Daily Burn Rate: $12.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HARDWARE EQUIPMENT FOR TO#19
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78772
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $20.4 million to DELL MARKETING L.P. for work described as: HARDWARE EQUIPMENT FOR TO#19 Key points: 1. Significant award for computer hardware to a major vendor. 2. Competition method was full and open, suggesting potential for competitive pricing. 3. Contract duration of over 4 years indicates a substantial, long-term need. 4. No small business participation noted, which could be a missed opportunity.
Value Assessment
Rating: good
The award value of $20.4M over 1582 days suggests a reasonable annual spend. Benchmarking against similar large-scale hardware procurements would be necessary for a definitive assessment, but the firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally allows for the widest range of potential offerors and promotes competitive pricing. The use of a BPA (Blanket Purchase Agreement) indicates a pre-negotiated framework for efficient ordering.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging multiple vendors to bid, potentially driving down prices.
Public Impact
Ensures VA facilities have necessary computer hardware for operations. Supports the technology infrastructure for a major federal agency. Potential for technology refresh cycles impacting user productivity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to technology obsolescence if not managed.
Positive Signals
- Full and open competition utilized.
- Firm fixed-price contract provides cost predictability.
Sector Analysis
This procurement falls under the IT hardware sector, specifically electronic computer manufacturing. Spending benchmarks in this area are highly variable due to rapid technological advancements and market fluctuations. Large federal IT hardware contracts often involve significant sums.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific award, as the 'sb' field is false. Efforts to ensure small business participation in future IT hardware procurements or subcontracts could be explored.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight of this contract. The use of a BPA and firm fixed-price terms suggests a structured approach to managing this spending.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for technology obsolescence due to long duration.
- Lack of explicit small business participation.
- Need for detailed unit cost analysis to confirm value.
- Dependence on a single vendor (Dell) for a large hardware award.
Tags
electronic-computer-manufacturing, department-of-veterans-affairs, tx, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $20.4 million to DELL MARKETING L.P.. HARDWARE EQUIPMENT FOR TO#19
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 $20.4 million.
What is the period of performance?
Start: 2009-12-15. End: 2014-04-15.
What was the average per-unit cost of the hardware procured under this BPA?
The provided data does not include specific per-unit cost details for the hardware. To determine this, a deeper dive into the individual orders placed against the BPA would be required. This would allow for a comparison against market rates and identify potential cost savings or overspending on specific equipment types.
What are the risks associated with a 4-year contract for hardware given rapid technological change?
A significant risk of a long hardware contract is technology obsolescence. The hardware procured may become outdated before the contract ends, leading to reduced performance or compatibility issues. This necessitates careful planning for technology refresh cycles and potentially including clauses for upgrades or replacements within the contract.
How effectively did the full and open competition drive down prices compared to other contract types?
While full and open competition generally promotes competitive pricing, the exact effectiveness in driving down prices cannot be determined without a benchmark. Comparing the final negotiated prices against estimated costs or prices achieved through other competitive methods for similar hardware would be necessary. The firm fixed-price nature, however, caps the government's cost exposure.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,381,375
Exercised Options: $20,381,375
Current Obligation: $20,381,375
Parent Contract
Parent Award PIID: V200P1869
IDV Type: BPA
Timeline
Start Date: 2009-12-15
Current End Date: 2014-04-15
Potential End Date: 2014-04-15 00:00:00
Last Modified: 2014-09-17
More Contracts from Dell Marketing L.P.
- Microsoft ESA Agreement — $1.3B (Department of Defense)
- Microsoft Products — $508.0M (Department of Defense)
- Microsoft M365 E5 — $477.2M (Department of Defense)
- 200410!000781!5700!GV90 !ssg/Pk !gs35f4076d !C!N! !n!fa877104f8320! !20040630!20040709!114315195!114315195!114315195!n!dell Marketing L P !ONE Dell WAY !round Rock !tx!78682!63500!491!48!round Rock !williamson !texas !+000012313462!n!n!000000000000!7030!adp Software !A7 !electronics and Communication Equip !000 !* !511210!E! !6! ! ! ! ! !99990909!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! ! — $471.3M (Department of Defense)
- Microsoft Enterprise Products — $354.9M (Department of Defense)
Other Department of Veterans Affairs Contracts
- CCN Region 3 Express Report — $5.2B (Optum Public Sector Solutions, Inc.)
- Express Report for FY22 Region 2 — $5.1B (Optum Public Sector Solutions, Inc.)
- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Optum Public Sector Solutions, Inc.)
- Express Report for the Patient Centered Community Care (PC3) Contract — $3.3B (Triwest Healthcare Alliance Corp)
- CCN Region Three FY21 Express Report — $3.1B (Optum Public Sector Solutions, Inc.)