DoD Awards $5.76M Lease for Multifunctional Devices to CDW Government LLC
Contract Overview
Contract Amount: $5,763,524 ($5.8M)
Contractor: CDW Government LLC
Awarding Agency: Department of Defense
Start Date: 2022-08-23
End Date: 2026-08-31
Contract Duration: 1,469 days
Daily Burn Rate: $3.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FORT STEWART GARRISON/ 3RD INFANTRY DIVISION (3RD ID) MULTIFUNCTIONAL DEVICES LEASE
Place of Performance
Location: FORT STEWART, LIBERTY County, GEORGIA, 31314
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $5.8 million to CDW GOVERNMENT LLC for work described as: FORT STEWART GARRISON/ 3RD INFANTRY DIVISION (3RD ID) MULTIFUNCTIONAL DEVICES LEASE Key points: 1. Lease for multifunctional devices valued at $5.76M. 2. CDW Government LLC secured the contract. 3. The contract falls under the Electronic Computer Manufacturing NAICS code. 4. Full and open competition was utilized. 5. The contract spans from August 2022 to August 2026.
Value Assessment
Rating: good
The contract value of $5.76M for a 4-year lease of multifunctional devices appears reasonable given the scope. Benchmarking against similar large-scale government leases for office equipment would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential office equipment through a competitive process, aiming for value for money.
Public Impact
Ensures operational readiness for Fort Stewart Garrison and the 3rd Infantry Division by providing necessary office technology. Supports the Department of the Army's need for modern printing, scanning, and copying solutions. The lease structure may offer flexibility and access to updated technology over the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if lease terms are not carefully managed.
- Reliance on a single vendor for critical office equipment.
Positive Signals
- Competitive award process.
- Long-term contract providing predictable costs.
- Modern equipment provision.
Sector Analysis
This contract falls within the Information Technology sector, specifically related to office equipment and electronic manufacturing. Government spending on IT hardware and services is substantial, with leasing often preferred for managing technology lifecycles and capital expenditures.
Small Business Impact
While the primary awardee is CDW Government LLC, a large entity, the contract's structure through full and open competition could potentially allow for subcontracting opportunities for small businesses involved in maintenance, support, or related services.
Oversight & Accountability
The Department of the Army's contracting process, including the use of delivery orders under a larger contract vehicle, is subject to standard federal oversight. Performance monitoring and compliance checks are crucial for ensuring value and accountability.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for higher long-term cost compared to purchasing.
- Dependence on vendor for maintenance and support.
- Risk of technology obsolescence if lease terms don't align with rapid tech advancements.
- Contract duration may not align with evolving operational needs.
Tags
electronic-computer-manufacturing, department-of-defense, ga, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.8 million to CDW GOVERNMENT LLC. FORT STEWART GARRISON/ 3RD INFANTRY DIVISION (3RD ID) MULTIFUNCTIONAL DEVICES LEASE
Who is the contractor on this award?
The obligated recipient is CDW GOVERNMENT LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $5.8 million.
What is the period of performance?
Start: 2022-08-23. End: 2026-08-31.
What is the total cost per device over the lease period, and how does this compare to outright purchase costs?
The total lease cost is $5,763,524.02 over approximately 4 years (1469 days). This equates to roughly $3,923 per device annually, assuming a fixed number of devices. A direct comparison to purchase costs would require knowing the number and type of devices, as well as their expected lifespan and maintenance costs if purchased outright. Leasing often shifts upfront capital expenditure to operational expenditure.
What are the specific performance metrics and service level agreements (SLAs) associated with this lease to ensure effective device operation?
The provided data does not detail specific performance metrics or SLAs. However, typical government contracts for leased equipment include requirements for uptime, response times for maintenance and repair, and provision of consumables. The Department of the Army would likely have defined these in the contract to ensure the devices are functional and supported throughout the lease term, mitigating operational risks.
How does the pricing of this lease compare to similar multifunctional device leases awarded by other federal agencies or military branches?
Without access to a comprehensive database of comparable federal lease agreements for multifunctional devices, a precise benchmark is difficult. However, the $3,923 annual per-device cost (estimated) should be evaluated against market rates for similar enterprise-grade equipment. Factors like the number of devices, included services (maintenance, supplies), and specific features significantly influence pricing, making direct comparisons challenging but essential for value assessment.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,225,045
Exercised Options: $6,225,045
Current Obligation: $5,763,524
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J16D0013
IDV Type: IDC
Timeline
Start Date: 2022-08-23
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2025-12-03
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