VA's $28.8M Dell PC Refresh Contract Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $28,825,709 ($28.8M)

Contractor: Dell Marketing L.P.

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-09-21

End Date: 2017-07-14

Contract Duration: 1,757 days

Daily Burn Rate: $16.4K/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 - ORDER #11, PURCHASE OF PCS, MONITORS, INSTALLATION, IMAGE LOAD,DATA MIGRATION, AND INCENTIVES.

Place of Performance

Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28.8 million to DELL MARKETING L.P. for work described as: ENTERPRISE-WIDE PC AND MONITOR REFRESH CONTRACT - ORDER #11, PURCHASE OF PCS, MONITORS, INSTALLATION, IMAGE LOAD,DATA MIGRATION, AND INCENTIVES. Key points: 1. Contract focused on essential IT hardware and services, including installation and data migration. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of nearly five years indicates a significant, long-term IT refresh cycle. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The primary vendor, Dell Marketing L.P., is a major player in the IT hardware market. 6. The contract was issued as a delivery order against a larger contract vehicle. 7. Geographic location of performance is Texas.

Value Assessment

Rating: good

The contract value of $28.8 million for enterprise-wide PC and monitor refresh, including installation and data migration, appears reasonable given the scope and duration. Benchmarking against similar large-scale IT refresh contracts would provide a more precise value assessment. The firm fixed-price structure offers cost predictability. However, without specific details on the number of units or service levels, a definitive value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 8 bidders suggests a healthy level of competition for this IT hardware and services requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. This process ensures that the government is obtaining the best value available in the market.

Public Impact

Veterans Affairs (VA) personnel benefit from updated and reliable computing equipment. Services include the procurement, installation, and data migration for PCs and monitors. The contract's performance is located in Texas. Ensures VA staff have the necessary tools to perform their duties efficiently, supporting the delivery of services to veterans. Potential for IT support jobs related to installation and maintenance within Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if refresh cycles are not managed effectively.
Dependence on a single vendor for a large portion of IT hardware could pose supply chain risks.
Ensuring timely and efficient data migration is critical to minimize disruption to VA operations.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract provides cost certainty.
The vendor, Dell, is a well-established provider of IT hardware.
The contract addresses a critical need for IT modernization within the VA.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on hardware procurement and related services. The market for enterprise IT hardware is dominated by large manufacturers and resellers. The VA's spending on IT infrastructure is substantial, reflecting the growing reliance on technology for government operations. This contract represents a typical refresh cycle for end-user computing devices, essential for maintaining operational efficiency and security.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large enterprise-wide refresh, it is likely that the primary award went to a large business. However, the prime contractor, Dell Marketing L.P., may engage small businesses for subcontracting opportunities related to installation, support, or logistics, though this is not explicitly detailed in the award information.

Oversight & Accountability

The contract was awarded as a delivery order against a larger contract vehicle, suggesting that the underlying vehicle likely has established oversight mechanisms. The firm fixed-price nature of the contract provides a degree of financial oversight. Further transparency would be enhanced by public reporting on specific performance metrics and adherence to delivery schedules. The Department of Veterans Affairs' Office of Inspector General would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Enterprise IT Hardware Procurement
IT Services Contracts
Computer and Electronic Product Manufacturing
Data Migration Services
IT Infrastructure Modernization

Risk Flags

Potential for obsolescence if refresh cycles are not maintained.
Supply chain disruptions impacting delivery timelines.
Data security risks during migration process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.8 million to DELL MARKETING L.P.. ENTERPRISE-WIDE PC AND MONITOR REFRESH CONTRACT - ORDER #11, PURCHASE OF PCS, MONITORS, INSTALLATION, IMAGE LOAD,DATA MIGRATION, AND INCENTIVES.

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 $28.8 million.

What is the period of performance?

Start: 2012-09-21. End: 2017-07-14.

What was the specific number of PCs and monitors procured under this contract?

The provided data does not specify the exact number of PCs and monitors procured under this contract. The total award amount of $28.8 million covers the purchase of these devices, along with installation, image loading, data migration, and incentives. To determine the per-unit cost, one would need the total quantity of devices. Without this information, a precise cost-per-unit analysis is not possible. However, the contract's scope suggests a significant number of devices, likely in the thousands, to support an enterprise-wide refresh for a large agency like the Department of Veterans Affairs.

How does the per-unit cost of these PCs and monitors compare to market rates at the time of award?

A direct comparison of per-unit cost to market rates is not feasible with the provided data, as the specific quantities of PCs and monitors are not detailed. The contract value of $28.8 million encompasses hardware, installation, image loading, and data migration. To benchmark effectively, we would need to isolate the hardware cost and the number of units. Assuming a typical enterprise-grade PC and monitor, and considering the volume discounts likely negotiated under a full and open competition, the pricing might be competitive. However, without itemized pricing and quantities, a definitive assessment against market benchmarks is speculative.

What were the key performance indicators (KPIs) for the installation and data migration services?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for the installation and data migration services. Typically, such contracts would include metrics related to on-time delivery, successful data transfer rates, minimal downtime during migration, and user satisfaction post-installation. The firm fixed-price nature suggests that meeting these performance standards would be crucial for the contractor to avoid penalties or ensure full payment. The Department of Veterans Affairs would have internal quality assurance processes to monitor these aspects.

What is Dell Marketing L.P.'s track record with the Department of Veterans Affairs for similar IT refresh contracts?

Dell Marketing L.P. is a major IT hardware vendor with a long-standing relationship with various government agencies, including the Department of Veterans Affairs. While this specific data point focuses on one delivery order, Dell frequently secures contracts for IT equipment across federal agencies. Their track record generally includes supplying a wide range of computing devices and related services. For the VA, Dell has been a consistent supplier for end-user devices, often through large IDIQ (Indefinite Delivery, Indefinite Quantity) vehicles or direct awards, indicating familiarity with the agency's requirements and operational environment.

Were there any significant cost overruns or contract modifications during the performance period?

The provided data summarizes the initial award and does not include information on contract modifications, cost overruns, or changes to the original scope or value. To assess cost performance and potential overruns, one would need to examine contract modification history, delivery payment records, and any associated reports from the contracting officer or the VA's financial systems. Without access to this detailed contract administration data, it is impossible to determine if there were significant deviations from the original $28.8 million award.

How does this contract's value compare to the VA's overall IT spending on end-user devices?

The $28.8 million value of this specific contract represents a significant investment in end-user computing for the Department of Veterans Affairs. However, to contextualize it within the VA's overall IT spending, a broader analysis is required. The VA manages a vast IT infrastructure supporting numerous healthcare facilities and administrative offices nationwide. Their total annual IT budget often runs into billions of dollars, encompassing software, hardware, cybersecurity, network infrastructure, and IT services. This contract, while substantial for a single refresh cycle, is likely a component of a larger, ongoing IT modernization strategy rather than the entirety of their end-user device expenditure.

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: $28,825,709

Exercised Options: $28,825,709

Current Obligation: $28,825,709

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA798A11P0280

IDV Type: IDC

Timeline