VA's $49.3M Dell Lease Order: Corrective Action for FPDS Reporting
Contract Overview
Contract Amount: $49,330,138 ($49.3M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Veterans Affairs
Start Date: 2010-09-28
End Date: 2014-11-12
Contract Duration: 1,506 days
Daily Burn Rate: $32.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS CAR IS THE FIRST OF CORRECTIVE INPUT RELATED TO PC LEASE ORDER #19 REPRESENTATIVE OF MOD S/A13 TO ENSURE ALL FPDS REPORTING IS CORRECT FROM THIS POINT FORWARD.
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78772
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $49.3 million to DELL MARKETING L.P. for work described as: THIS CAR IS THE FIRST OF CORRECTIVE INPUT RELATED TO PC LEASE ORDER #19 REPRESENTATIVE OF MOD S/A13 TO ENSURE ALL FPDS REPORTING IS CORRECT FROM THIS POINT FORWARD. Key points: 1. Spending primarily on computer manufacturing (NAICS 334111). 2. Dell Marketing L.P. is the sole contractor. 3. Contract type is Firm Fixed Price. 4. No small business participation noted.
Value Assessment
Rating: fair
The contract value of $49.3M for a 1506-day lease is substantial. Benchmarking against similar IT equipment leases is difficult without more specific details on the hardware and services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition via a BPA. This method generally promotes price discovery, but the specific pricing for this lease order needs further scrutiny.
Taxpayer Impact: Taxpayer funds are being used for IT equipment leases. The value suggests a significant investment, and ensuring cost-effectiveness is crucial.
Public Impact
Veterans Affairs IT infrastructure relies on leased equipment. Potential for outdated technology if lease terms are not optimized. Corrective action highlights a focus on accurate government reporting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Corrective action indicates potential prior reporting issues.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This spending falls within the IT sector, specifically electronic computer manufacturing. Government IT spending benchmarks vary widely based on hardware, software, and service components.
Small Business Impact
The data indicates no small business participation in this contract. Agencies are encouraged to maximize small business opportunities, and this contract did not meet that goal.
Oversight & Accountability
The corrective action note suggests a review of FPDS reporting processes. Ongoing oversight is needed to ensure accurate and timely reporting of all contract actions.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lack of detail on specific equipment leased.
- Corrective action implies past reporting issues.
- No small business participation.
- Potential for technology obsolescence if lease terms are not managed effectively.
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 $49.3 million to DELL MARKETING L.P.. THIS CAR IS THE FIRST OF CORRECTIVE INPUT RELATED TO PC LEASE ORDER #19 REPRESENTATIVE OF MOD S/A13 TO ENSURE ALL FPDS REPORTING IS CORRECT FROM THIS POINT FORWARD.
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 $49.3 million.
What is the period of performance?
Start: 2010-09-28. End: 2014-11-12.
What specific IT equipment was leased under this order, and how does its configuration and lease term align with VA's operational needs and technology refresh cycles?
The provided data does not specify the exact IT equipment leased. Understanding the configuration (e.g., laptops, desktops, servers) and the lease duration (1506 days) is crucial to assess if it meets the VA's current and future technological requirements and if the lease term aligns with typical hardware lifecycles to avoid obsolescence.
Given the corrective action noted, what were the specific FPDS reporting deficiencies, and what measures are in place to prevent recurrence and ensure data integrity moving forward?
The data states the corrective action is related to PC lease order #19 and representative of modification S/A13 to ensure all FPDS reporting is correct. The exact nature of the deficiencies is not detailed, but it implies errors in previous reporting. The agency is implementing measures to ensure future reporting accuracy from this point forward.
How does the $49.3M lease value compare to the cost of purchasing similar IT equipment outright, considering the total cost of ownership over the equipment's expected lifespan?
A direct comparison between leasing and purchasing is not possible with the given data. A thorough analysis would require factoring in maintenance, upgrades, disposal costs for purchased equipment, and the residual value or upgrade costs associated with leased equipment. The firm fixed price nature of the lease provides budget certainty, but the long-term value proposition needs detailed assessment.
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
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $75,852,348
Exercised Options: $73,243,767
Current Obligation: $49,330,138
Parent Contract
Parent Award PIID: V200P1869
IDV Type: BPA
Timeline
Start Date: 2010-09-28
Current End Date: 2014-11-12
Potential End Date: 2014-11-12 00:00:00
Last Modified: 2014-11-13
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