VA's $24M IT contract with Dell for computer equipment and services awarded under full and open competition
Contract Overview
Contract Amount: $24,038,509 ($24.0M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Veterans Affairs
Start Date: 2009-12-02
End Date: 2011-04-30
Contract Duration: 514 days
Daily Burn Rate: $46.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TASK ORDER #19 - EQUIPMENTS ON PO#116E00030 AND SERVICES ON PO#116E05199
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78772
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $24.0 million to DELL MARKETING L.P. for work described as: TASK ORDER #19 - EQUIPMENTS ON PO#116E00030 AND SERVICES ON PO#116E05199 Key points: 1. Contract awarded for IT equipment and services, indicating a need for hardware and associated support. 2. The contract was competed broadly, suggesting potential for competitive pricing. 3. A firm-fixed-price structure was used, which shifts cost risk to the contractor. 4. The contract duration of 514 days is relatively short, suggesting a need for ongoing procurement. 5. The award was made to Dell Marketing L.P., a major IT vendor. 6. The contract falls under the Electronic Computer Manufacturing NAICS code.
Value Assessment
Rating: good
The contract value of $24 million for IT equipment and services over approximately 1.5 years appears reasonable given the vendor and the nature of the procurement. Benchmarking against similar large-scale IT procurements for federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price contract type is generally favorable for the government in managing cost certainty.
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 specific number of bidders is not provided, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and terms for the government.
Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving the best possible value and price.
Public Impact
Veterans Affairs (VA) benefits from updated IT equipment and services to support its operations. The contract ensures the availability of essential technology for VA staff to serve veterans. The geographic impact is likely nationwide, as VA facilities are distributed across the US. Workforce implications include enabling VA employees to perform their duties efficiently with reliable technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific bidder count limits full assessment of competitive intensity.
- Limited detail on the specific types of equipment and services procured makes granular value analysis challenging.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- Firm-fixed-price contract type provides cost certainty for the government.
- Procurement by a major federal agency (VA) suggests adherence to established acquisition processes.
Sector Analysis
This contract falls within the Information Technology sector, specifically related to the manufacturing and provision of electronic computer equipment and related services. The IT sector is a significant area of federal spending, with agencies constantly needing to update hardware and software to maintain operational efficiency and cybersecurity. Comparable spending benchmarks would involve looking at other large IT procurements by agencies like the Department of Defense or GSA.
Small Business Impact
The provided data indicates that small business participation (sb) was false and that the contract was not a small business set-aside (ss). This suggests that the primary award was not specifically targeted towards small businesses. There is no information on subcontracting plans, so the impact on the small business ecosystem from this specific contract cannot be determined without further data.
Oversight & Accountability
The contract was awarded by the Department of Veterans Affairs, which has its own Inspector General (IG) office responsible for overseeing its programs and contracts. Oversight mechanisms would typically include contract performance monitoring, financial audits, and compliance reviews. Transparency is generally facilitated through public contract databases like FPDS, where basic award information is available.
Related Government Programs
- IT Equipment Procurement
- IT Services Contracts
- Department of Veterans Affairs IT Modernization
- Blanket Purchase Agreements (BPA)
Risk Flags
- Lack of specific bidder count for 'full and open competition'.
- Absence of detailed product/service breakdown within the summary data.
- Limited information on small business subcontracting implications.
Tags
it, department-of-veterans-affairs, dell-marketing-l-p, firm-fixed-price, full-and-open-competition, electronic-computer-manufacturing, task-order, blanket-purchase-agreement, texas, information-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $24.0 million to DELL MARKETING L.P.. TASK ORDER #19 - EQUIPMENTS ON PO#116E00030 AND SERVICES ON PO#116E05199
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 $24.0 million.
What is the period of performance?
Start: 2009-12-02. End: 2011-04-30.
What was the specific breakdown of costs between equipment and services within this $24 million contract?
The provided data does not specify the cost breakdown between equipment and services for this task order. The total award amount is $24,038,509.14. To determine the allocation, one would need to access the detailed task order documentation or contract line item details. Typically, such contracts would itemize costs for hardware acquisition (e.g., computers, servers, peripherals) and associated services (e.g., installation, maintenance, support, training). Without this granular data, it's impossible to provide a precise split, though IT procurements often involve a significant portion for hardware, especially if it includes substantial quantities of computing devices.
How many bids were received for this 'full and open competition' award?
The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' but does not specify the number of bids received. While full and open competition implies that all responsible sources were solicited, the actual number of proposals submitted can vary widely. A low number of bids, even under full and open competition, might suggest potential issues with market research, solicitation clarity, or contractor interest. Conversely, a high number of bids generally indicates robust competition. To assess the effectiveness of the competition, further investigation into the solicitation details and bid counts would be necessary.
What is the historical spending pattern of the VA on similar IT equipment and services from Dell?
Analyzing the historical spending pattern of the VA with Dell for similar IT equipment and services would require accessing historical contract data beyond this single task order. This specific contract (Task Order #19) was awarded on 2009-12-02 and ended on 2011-04-30. To understand trends, one would need to query databases like FPDS for all contracts awarded to Dell Marketing L.P. by the VA within relevant NAICS codes (like 334111) over a broader period. This would reveal if Dell is a consistent supplier, the typical value and duration of such contracts, and whether spending has increased or decreased over time, potentially indicating shifts in VA's IT strategy or vendor relationships.
What specific types of electronic computer manufacturing products were procured under this contract?
The NAICS code 334111 indicates 'Electronic Computer Manufacturing,' which broadly covers the production of electronic computers and related devices. However, the specific products procured under this task order are not detailed in the provided summary data. Typically, under such a contract, the VA might procure desktops, laptops, servers, monitors, keyboards, mice, and potentially related components or accessories. The 'EQUIPMENTS ON PO#116E00030' suggests hardware acquisition. To identify the exact products, one would need to consult the specific purchase orders or the contract's statement of work.
How does the firm-fixed-price (FFP) contract type impact risk and pricing for this VA procurement?
A Firm-Fixed-Price (FFP) contract type, as used in this VA procurement, places the primary responsibility for cost control and performance risk on the contractor, Dell Marketing L.P. This means the price is set and generally not subject to adjustment based on the contractor's cost experience. For the VA, this offers significant budget certainty, as the total cost is known upfront. The risk for the contractor lies in accurately estimating costs; if their actual costs exceed the fixed price, their profit margin shrinks or they incur a loss. Conversely, if they manage costs effectively, their profit increases. This structure incentivizes the contractor to be efficient and manage resources tightly to maximize their profit within the agreed-upon price.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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
Financial Breakdown
Contract Ceiling: $71,771,090
Exercised Options: $24,038,509
Current Obligation: $24,038,509
Parent Contract
Parent Award PIID: V200P1869
IDV Type: BPA
Timeline
Start Date: 2009-12-02
Current End Date: 2011-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2014-05-22
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