DoD's $54.5M ECIA Hardware Refresh and Software Maintenance Contract Awarded to Dell Federal Systems L.P
Contract Overview
Contract Amount: $54,467,058 ($54.5M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Defense
Start Date: 2018-08-24
End Date: 2023-09-29
Contract Duration: 1,862 days
Daily Burn Rate: $29.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ECIA HARDWARE REFRESH, SOFTWARE MAINTENANCE FOR ALL MTFS
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $54.5 million to DELL FEDERAL SYSTEMS L.P for work described as: ECIA HARDWARE REFRESH, SOFTWARE MAINTENANCE FOR ALL MTFS Key points: 1. The contract covers essential hardware and software maintenance for multiple MTFs, indicating a critical operational need. 2. Dell Federal Systems L.P. secured this significant award, highlighting their established presence in the defense IT sector. 3. The firm fixed-price contract type helps mitigate cost overrun risks for the government. 4. The absence of small business participation warrants further investigation into potential missed opportunities.
Value Assessment
Rating: good
The contract value of $54.5M over approximately 5 years suggests a substantial investment in IT infrastructure. Benchmarking against similar large-scale hardware refresh and maintenance contracts would provide a clearer picture of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing taxpayer value for essential IT services.
Public Impact
Ensures continued operation of critical healthcare IT systems for military treatment facilities. Supports the technological infrastructure necessary for modern military healthcare delivery. Potential for future upgrades and enhancements to the IT environment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to technology obsolescence if not managed proactively.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type.
Sector Analysis
This contract falls within the IT sector, specifically focusing on hardware and software maintenance for government facilities. Spending benchmarks for similar IT infrastructure contracts within the Department of Defense can be high, reflecting the complexity and scale of these systems.
Small Business Impact
The contract data indicates that small businesses were not involved in this award. Further analysis could explore if opportunities were missed or if the scope of work inherently favored larger prime contractors.
Oversight & Accountability
The award was a delivery order under a larger contract vehicle, suggesting existing oversight mechanisms. However, the long duration necessitates ongoing monitoring to ensure performance and value.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for technology obsolescence due to long duration.
- Lack of small business participation.
- Dependence on a single vendor for critical IT infrastructure.
- Need for robust ongoing performance monitoring.
Tags
electronic-computer-manufacturing, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.5 million to DELL FEDERAL SYSTEMS L.P. ECIA HARDWARE REFRESH, SOFTWARE MAINTENANCE FOR ALL MTFS
Who is the contractor on this award?
The obligated recipient is DELL FEDERAL SYSTEMS L.P.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $54.5 million.
What is the period of performance?
Start: 2018-08-24. End: 2023-09-29.
What is the specific breakdown of hardware refresh versus ongoing software maintenance costs within this contract?
The provided data does not specify the cost allocation between hardware refresh and software maintenance. A detailed breakdown would be crucial for understanding the investment priorities and for future procurement planning. This information is typically found in the contract's statement of work or detailed line item breakdown.
What are the key performance indicators (KPIs) used to measure the effectiveness of the software maintenance and hardware support?
The data does not specify the KPIs for this contract. Effective oversight would require clearly defined metrics such as system uptime, response times for maintenance requests, patch deployment success rates, and user satisfaction surveys. These KPIs should be regularly reviewed to ensure the contractor is meeting performance expectations.
How does the pricing for Dell's hardware and software maintenance compare to commercial equivalents or other government contracts?
Without specific pricing details for individual components or services, a direct comparison is difficult. However, the contract's full and open competition award suggests that the pricing was deemed competitive at the time of award. Benchmarking against GSA schedules or other agency contracts for similar Dell products and services would provide further insight.
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
Solicitation ID: W81XWH18R0055
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Francisco Partners Management, L.P.
Address: 1 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: $54,467,058
Exercised Options: $54,467,058
Current Obligation: $54,467,058
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J16D0010
IDV Type: IDC
Timeline
Start Date: 2018-08-24
Current End Date: 2023-09-29
Potential End Date: 2023-09-29 00:00:00
Last Modified: 2024-06-14
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