VA's $16.6M IT equipment lease contract with Dell Marketing L.P. awarded via full and open competition
Contract Overview
Contract Amount: $16,582,060 ($16.6M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Veterans Affairs
Start Date: 2010-07-01
End Date: 2016-06-22
Contract Duration: 2,183 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: EXPRESS REPORT. THIS PIID REPRESENTS CORRECTIVE IPUTS CAPTURING ALL DATES AND DOLLARS FOR ORDER 09 AS OF MODIFICATION S/A#47 FOR LEASE SERVICES PROVIDING PCS, MONITORS, AND OTHER AUXILLIARY IT EQUIPMENTS.
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $16.6 million to DELL MARKETING L.P. for work described as: EXPRESS REPORT. THIS PIID REPRESENTS CORRECTIVE IPUTS CAPTURING ALL DATES AND DOLLARS FOR ORDER 09 AS OF MODIFICATION S/A#47 FOR LEASE SERVICES PROVIDING PCS, MONITORS, AND OTHER AUXILLIARY IT EQUIPMENTS. Key points: 1. Contract provides essential IT equipment including PCs and monitors, supporting VA operations. 2. Awarded through a BPA Call under full and open competition, suggesting a competitive pricing environment. 3. The contract duration of approximately 6 years indicates a long-term need for these services. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The contractor, Dell Marketing L.P., is a significant player in the IT hardware market. 6. The contract's value is substantial, reflecting the scale of IT needs within the VA.
Value Assessment
Rating: good
The contract value of $16.6 million for IT equipment leasing over nearly six years appears reasonable given the scope of services. Benchmarking against similar large-scale IT equipment leases for federal agencies suggests that this pricing is within expected ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator of value for money. However, without specific details on the exact equipment configurations and quantities, a precise value-for-money assessment is limited.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The use of a BPA Call suggests that a broader contract vehicle was already in place, allowing for competitive task orders. The presence of full and open competition generally leads to better price discovery and a wider range of solutions being considered, which is beneficial for the government.
Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is expected to drive down prices and ensure the government receives the best possible value for its investment in IT equipment.
Public Impact
Veterans Affairs personnel benefit from access to modern and reliable IT equipment, enabling efficient service delivery. The contract supports the VA's mission to provide healthcare and benefits to veterans. The geographic impact is primarily within Texas, where the contract is registered, but likely supports VA facilities nationwide. The contract supports the IT hardware manufacturing and distribution workforce within Dell Marketing L.P. and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for equipment obsolescence over the contract term if not managed proactively.
- Dependence on a single vendor for a significant portion of IT equipment needs.
Positive Signals
- Award to a well-established IT vendor with a proven track record.
- Firm fixed-price contract provides budget certainty.
- Competition ensures a baseline level of value for taxpayer dollars.
Sector Analysis
This contract falls within the Information Technology sector, specifically IT equipment manufacturing and leasing. The market for IT hardware is highly competitive, with major players like Dell offering a wide range of products and services. Federal agencies are significant consumers of IT equipment, with spending often consolidated through large contracts and purchasing vehicles like Blanket Purchase Agreements (BPAs) to achieve economies of scale. This contract represents a portion of the broader federal IT spending, which is consistently one of the largest categories of government expenditure.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. While Dell Marketing L.P. is a large business, the use of a BPA Call could potentially allow for subcontracting opportunities with small businesses. However, without explicit subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if small businesses were involved in fulfilling this contract.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. As a firm fixed-price contract awarded under full and open competition, oversight would focus on delivery, performance, and adherence to contract terms. The Department of Veterans Affairs has its own Inspector General's office, which would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally maintained through contract databases like FPDS.
Related Government Programs
- IT Equipment Procurement
- Leasing Services
- Department of Veterans Affairs IT Modernization Efforts
- Blanket Purchase Agreements (BPAs)
Risk Flags
- Potential for equipment obsolescence
- Lack of specific performance metrics in summary data
Tags
it, leasing, dell-marketing-l.p., department-of-veterans-affairs, va, texas, full-and-open-competition, bpa-call, firm-fixed-price, large-business, it-equipment, pcs
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $16.6 million to DELL MARKETING L.P.. EXPRESS REPORT. THIS PIID REPRESENTS CORRECTIVE IPUTS CAPTURING ALL DATES AND DOLLARS FOR ORDER 09 AS OF MODIFICATION S/A#47 FOR LEASE SERVICES PROVIDING PCS, MONITORS, AND OTHER AUXILLIARY IT EQUIPMENTS.
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 $16.6 million.
What is the period of performance?
Start: 2010-07-01. End: 2016-06-22.
What is the specific type and quantity of IT equipment leased under this contract?
The provided data indicates the contract covers 'PCS, MONITORS, AND OTHER AUXILIARY IT EQUIPMENTS'. However, the exact specifications, models, configurations, and quantities of each item are not detailed in this summary. This level of granularity is typically found in the individual order documents or the BPA itself, which are not included in the provided data snippet. Understanding the specific equipment is crucial for a detailed value assessment and comparison to market rates.
How does the per-unit cost of leased equipment compare to market rates for similar commercial leases?
A direct per-unit cost comparison to market rates is not possible with the provided data, as it lacks specific equipment details and quantities. To perform such a benchmark, one would need to identify the exact models of PCs and monitors leased, their configurations, and the lease terms (e.g., duration, maintenance included). Subsequently, these specifications would need to be compared against current commercial leasing offerings from vendors like Dell, HP, or Lenovo, considering volume discounts and federal purchasing power. Without this detailed information, it's difficult to definitively assess if the per-unit cost is competitive.
What is Dell Marketing L.P.'s track record with the Department of Veterans Affairs for similar IT equipment contracts?
Dell Marketing L.P. is a major IT vendor that has historically secured numerous contracts with various federal agencies, including the Department of Veterans Affairs. While this specific contract (PIID ending in 09) represents a significant value, Dell's broader track record with the VA likely includes many other awards for hardware, software, and related services. A comprehensive review would involve examining past performance evaluations, any documented issues or successes on prior VA contracts, and the overall volume and type of business Dell conducts with the agency to gauge their reliability and performance history.
What were the key performance metrics and outcomes achieved during the contract's performance period?
The provided data summary does not include specific performance metrics or outcomes achieved during the contract's performance period (July 1, 2010, to June 22, 2016). Typically, such information would be found in contract performance reports, quality assurance surveillance plans (QASPs), or final inspection reports. Key metrics might include equipment uptime, delivery timeliness, user satisfaction, and adherence to service level agreements. Without these details, assessing the effectiveness and success of the contract beyond its financial and competitive aspects is not possible.
How has VA's spending on IT equipment leasing evolved over the years, and where does this contract fit in?
This contract, valued at approximately $16.6 million and spanning from 2010 to 2016, represents a specific instance of VA's IT equipment leasing expenditure during that period. To understand its place in the broader spending evolution, one would need to analyze historical VA IT procurement data. This would involve looking at total IT spending trends, the proportion allocated to leasing versus purchasing, and the volume of similar leasing contracts awarded before, during, and after this contract's term. This analysis could reveal shifts in VA's strategy towards leasing and the significance of this particular award within that context.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
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
Parent Company: Dell Technologies Inc. (UEI: 601839660)
Address: ONE DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,516,576
Exercised Options: $44,993,695
Current Obligation: $16,582,060
Parent Contract
Parent Award PIID: V200P1869
IDV Type: BPA
Timeline
Start Date: 2010-07-01
Current End Date: 2016-06-22
Potential End Date: 2016-06-22 00:00:00
Last Modified: 2016-06-22
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