DoD Awards Dell $31.2M for Electronic Computer Manufacturing in Texas
Contract Overview
Contract Amount: $31,249,679 ($31.2M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of Defense
Start Date: 2023-09-29
End Date: 2024-07-25
Contract Duration: 300 days
Daily Burn Rate: $104.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AFRL B1 SYSTEM
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $31.2 million to DELL FEDERAL SYSTEMS L.P for work described as: AFRL B1 SYSTEM Key points: 1. Significant contract value of $31.2 million for electronic computer manufacturing. 2. Dell Federal Systems L.P. is the contractor, indicating a large, established vendor. 3. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 4. The contract is for a 300-day duration, indicating a medium-term project.
Value Assessment
Rating: good
The contract value of $31.2 million for electronic computer manufacturing appears reasonable given the scope and duration. Benchmarking against similar large-scale IT hardware procurements would provide further context.
Cost Per Unit: $104,166
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests that multiple vendors had the opportunity to bid, which typically drives competitive pricing. The award to Dell Federal Systems L.P. indicates they were the most advantageous offer.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this procurement.
Public Impact
Supports the Department of the Army's operational capabilities through advanced computing hardware. Potential for technology refresh and modernization within military systems. Impacts the IT hardware manufacturing sector and associated supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specific configurations are required.
- Dependence on a single large vendor for critical hardware.
Positive Signals
- Utilizes full and open competition.
- Firm fixed price contract type limits cost overrun risk.
Sector Analysis
This contract falls within the IT sector, specifically electronic computer manufacturing. Spending in this area is crucial for maintaining technological superiority and operational readiness for defense agencies. Benchmarks for similar large-scale hardware procurements are essential for evaluating value.
Small Business Impact
While the contract was awarded to Dell Federal Systems L.P., a large business, the use of full and open competition theoretically allows small businesses to participate as subcontractors or through joint ventures if they possess the necessary capabilities.
Oversight & Accountability
The contract is a delivery order under a larger contract vehicle, suggesting it has likely undergone some level of prior review. Further oversight would focus on the execution of the delivery order and adherence to the firm fixed price.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract awarded to a large business.
- Potential for vendor lock-in.
- Dependence on a single vendor's supply chain.
- Specific system details not provided in summary data.
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 $31.2 million to DELL FEDERAL SYSTEMS L.P. AFRL B1 SYSTEM
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $31.2 million.
What is the period of performance?
Start: 2023-09-29. End: 2024-07-25.
What specific electronic computer systems are being procured, and how do they align with current and future military requirements?
The data indicates the procurement is for 'Electronic Computer Manufacturing' under NAICS code 334111. While the specific systems are not detailed, such contracts typically involve servers, workstations, or specialized computing hardware essential for military operations. Alignment with requirements would necessitate a review of the statement of work and technical specifications to ensure they meet the Army's current and projected needs for data processing, command and control, or other critical functions.
What are the potential risks associated with relying on a single large vendor like Dell for this significant hardware procurement?
Reliance on a single large vendor can introduce risks such as potential vendor lock-in, where the government becomes dependent on that vendor's proprietary technologies or upgrade paths. This could limit future flexibility and potentially lead to higher costs in subsequent procurements. Additionally, disruptions to the vendor's supply chain or business operations could directly impact the government's access to critical hardware, affecting military readiness.
How effectively does the firm fixed price contract type mitigate financial risks for the government in this procurement?
A firm fixed price (FFP) contract is highly effective in mitigating financial risks for the government. Under an FFP agreement, the contractor assumes the primary responsibility for all costs incurred and is obligated to complete the work for the agreed-upon price, regardless of actual costs. This provides budget certainty and protects the government from cost overruns, making it a preferred contract type for procurements where the scope of work is well-defined and risks can be reasonably assessed.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
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: $33,485,675
Exercised Options: $31,249,679
Current Obligation: $31,249,679
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J16D0010
IDV Type: IDC
Timeline
Start Date: 2023-09-29
Current End Date: 2024-07-25
Potential End Date: 2024-07-25 00:00:00
Last Modified: 2025-06-30
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