VA Spends $24.7M on Dell PCs and Monitors via Full and Open Competition
Contract Overview
Contract Amount: $24,656,927 ($24.7M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Veterans Affairs
Start Date: 2014-09-29
End Date: 2017-07-14
Contract Duration: 1,019 days
Daily Burn Rate: $24.2K/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 - VA LIFE CYCLE PCS
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78744
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $24.7 million to DELL MARKETING L.P. for work described as: ENTERPRISE-WIDE PC AND MONITOR REFRESH CONTRACT - VA LIFE CYCLE PCS Key points: 1. Contract awarded to Dell Marketing L.P. for enterprise-wide PC and monitor refresh. 2. Utilized full and open competition, suggesting a competitive bidding process. 3. Contract duration was 1019 days, ending in July 2017. 4. The contract was a firm-fixed-price type, providing cost certainty. 5. The NAICS code 334111 indicates the product falls under electronic computer manufacturing.
Value Assessment
Rating: fair
The contract's total value was $24.7 million. Without specific per-unit pricing or comparison data for similar VA PC refresh contracts during that period, a precise value assessment is difficult. However, the use of full and open competition generally supports a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows all responsible sources to submit a bid. This method is expected to drive competitive pricing and ensure the government receives fair market value.
Taxpayer Impact: The use of full and open competition likely resulted in a more favorable price for taxpayers compared to sole-source or limited competition scenarios.
Public Impact
Ensured VA staff had updated computing equipment for operational efficiency. Supported the technology needs of a major federal agency. The contract's completion provided a baseline for future technology refresh cycles. Dell's role as a major vendor highlights the concentration in the PC market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract ended in 2017; current pricing and technology may differ significantly.
- Lack of detailed per-unit cost data hinders precise value analysis.
- Small business participation is not indicated, potentially missing opportunities.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract provides budget predictability.
- Clear contract end date allows for planning future procurements.
Sector Analysis
This contract falls within the IT hardware sector, specifically computer manufacturing. Spending benchmarks for enterprise PC refresh can vary widely based on quantity, specifications, and vendor. The $24.7 million value for a multi-year refresh suggests a significant deployment across the VA.
Small Business Impact
The data indicates that small business participation was not a stated factor in this contract award (ss: false, sb: false). This suggests that the primary focus was on securing the best value through full and open competition, potentially overlooking opportunities to engage small businesses in the IT hardware supply chain.
Oversight & Accountability
The contract was awarded by the Department of Veterans Affairs (VA) to Dell Marketing L.P. The use of full and open competition implies a structured procurement process. However, without specific oversight reports or audits related to this particular contract, detailed accountability assessment is limited.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Contract expired in 2017; data may not reflect current needs or market.
- Lack of detailed unit pricing hinders granular value analysis.
- No explicit mention of small business participation.
- Limited information on performance metrics and oversight effectiveness.
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 $24.7 million to DELL MARKETING L.P.. ENTERPRISE-WIDE PC AND MONITOR REFRESH CONTRACT - VA LIFE CYCLE PCS
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 $24.7 million.
What is the period of performance?
Start: 2014-09-29. End: 2017-07-14.
What was the average per-unit cost for PCs and monitors under this contract, and how did it compare to market rates at the time?
The provided data does not include specific per-unit costs for the PCs and monitors. To assess value, one would need to analyze the delivery orders issued under this contract and compare the unit prices to contemporaneous market data for similar Dell hardware procured through competitive means. Without this granular data, a definitive value assessment against market rates is not possible.
What were the key performance metrics and service level agreements (SLAs) associated with this contract, and were they met?
The data provided focuses on the contract's administrative and financial aspects (value, duration, competition type) but does not detail performance metrics or SLAs. Assessing effectiveness would require reviewing contract performance reports, user satisfaction surveys, and any documented instances of non-compliance or successful delivery against agreed-upon standards for hardware deployment and support.
How did the $24.7 million expenditure align with the VA's overall IT modernization strategy and budget during the contract period?
This contract represents a significant investment in essential hardware for the VA. To understand its strategic alignment, one would need to examine the VA's IT modernization plans and budget allocations from 2014-2017. Evaluating whether this refresh was a critical component of modernization or a routine operational expense requires contextualizing the spending within the VA's broader technology roadmap and financial priorities.
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: $25,693,082
Exercised Options: $24,656,927
Current Obligation: $24,656,927
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: VA798A11P0280
IDV Type: IDC
Timeline
Start Date: 2014-09-29
Current End Date: 2017-07-14
Potential End Date: 2017-07-14 00:00:00
Last Modified: 2017-07-06
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