VA's $9.8M computer manufacturing contract awarded to Dell Marketing L.P. in Texas

Contract Overview

Contract Amount: $9,816,914 ($9.8M)

Contractor: Dell Marketing L.P.

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-09-27

End Date: 2008-12-31

Contract Duration: 461 days

Daily Burn Rate: $21.3K/day

Pricing Type: NOT REPORTED

Sector: IT

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78772

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.8 million to DELL MARKETING L.P. for work described as: Key points: 1. Contract awarded for electronic computer manufacturing services. 2. Significant spending on computer hardware for the Department of Veterans Affairs. 3. Contract duration of 461 days indicates a medium-term need. 4. Awarded as a Blanket Purchase Agreement (BPA), suggesting a flexible purchasing mechanism. 5. The contract was not set aside for small businesses. 6. Texas is the state of performance for this contract.

Value Assessment

Rating: fair

The total award amount of $9.8 million for electronic computer manufacturing is substantial. Benchmarking this against similar contracts is difficult without more specific details on the types and quantities of computers procured. However, given the scale, it suggests a significant hardware refresh or expansion for the VA. The pricing would need to be compared against prevailing market rates for similar configurations at the time of award to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly detailed in the provided data. As a Blanket Purchase Agreement (BPA), it could have been established under a pre-existing contract vehicle that allowed for competitive bidding, or it might have been established with limited competition depending on the underlying authority. Further investigation into the BPA's establishment is needed to determine the number of bidders and the extent of competition.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices, ensuring that taxpayer funds are used more efficiently. If this BPA was established with limited competition, there's a risk that prices may be higher than they would be in a fully open market.

Public Impact

Veterans Affairs personnel benefit from updated computer equipment. Ensures operational continuity and efficiency for VA IT systems. Supports the IT infrastructure necessary for delivering healthcare and administrative services to veterans. Workforce implications include IT support staff for deployment and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on competition level could hide potential overspending.
No specific small business set-aside noted, potentially limiting opportunities for smaller vendors.

Positive Signals

Award to a known entity like Dell suggests a degree of reliability in product delivery.
BPA structure can offer flexibility and potentially faster procurement for essential IT needs.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically electronic computer manufacturing. The market for enterprise-level computer hardware is dominated by a few large manufacturers. The VA, as a large federal agency, represents a significant customer base for these companies. Spending benchmarks for similar large-scale hardware procurements by federal agencies can vary widely based on technology refresh cycles and agency-specific needs.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses. This means that larger, established companies like Dell Marketing L.P. were eligible and awarded the contract. While this ensures access to major suppliers, it may limit subcontracting opportunities for small businesses unless Dell actively pursues them. The absence of a small business set-aside suggests a focus on fulfilling a large-scale requirement with a primary vendor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a Blanket Purchase Agreement (BPA), its usage and adherence to terms would be monitored by the VA's procurement officials. Transparency regarding the specific terms, pricing, and competition used to establish the BPA would be key to assessing accountability. Inspector General involvement would depend on any reported issues of fraud, waste, or abuse.

Related Government Programs

VA IT Modernization Initiatives
Federal End-User Device Procurement
GSA Schedule Purchases

Risk Flags

Lack of detailed competition information
Unit cost and pricing structure not specified
Specific performance metrics not detailed

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.8 million to DELL MARKETING L.P.. See the official description on USAspending.

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 $9.8 million.

What is the period of performance?

Start: 2007-09-27. End: 2008-12-31.

What specific types and quantities of computers were procured under this contract?

The provided data does not specify the exact types (e.g., desktops, laptops, servers) or quantities of computers procured under this $9.8 million contract. The North American Industry Classification System (NAICS) code 334111, 'Electronic Computer Manufacturing,' indicates the general nature of the goods. To understand the full scope, one would need to consult the detailed contract award files or BPA call orders, which would itemize the specific hardware configurations and volumes purchased by the Department of Veterans Affairs.

How does the $9.8 million award compare to historical VA spending on computer hardware?

Comparing this $9.8 million award to historical VA spending requires access to broader spending data. The Department of Veterans Affairs is a large agency with continuous IT needs. This single award represents a portion of their overall hardware budget. To assess its significance, one would need to analyze VA's IT procurement history over several fiscal years, looking at total spending on end-user devices, average award sizes, and the frequency of similar large procurements. Without this context, it's difficult to determine if $9.8 million is high, low, or typical for a single computer manufacturing contract.

What was the pricing structure and unit cost for the computers purchased?

The provided data does not include specific pricing details or unit costs for the computers procured under this contract. The total award amount is $9.8 million, and the contract duration was 461 days. To determine the unit cost, we would need information on the quantity of items purchased. Furthermore, the pricing structure (e.g., fixed price, cost-plus) and any discounts negotiated would be detailed in the contract's line item details or BPA call orders. Benchmarking these unit costs against market rates at the time of award would be crucial for assessing value.

What is the track record of Dell Marketing L.P. with the Department of Veterans Affairs?

Dell Marketing L.P. is a major technology vendor with a long history of supplying hardware to government agencies, including the Department of Veterans Affairs. While this specific contract award of $9.8 million is noted, Dell likely holds numerous contracts and participates in various purchasing vehicles with the VA. A comprehensive assessment of their track record would involve reviewing past performance evaluations, the volume and types of contracts previously awarded to Dell by the VA, and any reported issues or successes in fulfilling VA's IT requirements over time.

Were there any specific performance requirements or service level agreements associated with this contract?

The provided summary data does not detail specific performance requirements or Service Level Agreements (SLAs) for this contract. As a Blanket Purchase Agreement (BPA) for electronic computer manufacturing, performance expectations would typically be outlined in the BPA's terms and conditions or specified in individual call orders placed against the BPA. These could include delivery timelines, warranty provisions, technical support levels, and product specifications. Without access to the full contract documentation, the specifics of performance metrics remain unknown.

What is the significance of this contract being a Blanket Purchase Agreement (BPA)?

A Blanket Purchase Agreement (BPA) is a simplified method of filling anticipated repetitive needs for supplies or services. It is not a contract in itself but rather a charge account arrangement. This $9.8 million award likely represents the ceiling amount for purchases made under this BPA over its duration. BPAs can offer convenience and potential cost savings through pre-negotiated terms and pricing, allowing agencies to quickly procure common items like computers. The flexibility of a BPA means specific quantities and delivery dates are often determined by individual orders placed against it.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

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: V200P1869

IDV Type: BPA

Timeline