DoD awards $13M for Juniper Networks maintenance, with a 3-year duration and firm fixed price
Contract Overview
Contract Amount: $13,034,398 ($13.0M)
Contractor: CDW Government LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2026-09-28
Contract Duration: 364 days
Daily Burn Rate: $35.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: JUNIPER NETWORKS MAINTENANCE
Place of Performance
Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $13.0 million to CDW GOVERNMENT LLC for work described as: JUNIPER NETWORKS MAINTENANCE Key points: 1. Value for money assessed through firm fixed pricing and a 3-year contract term. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators include contract duration and reliance on a single vendor for maintenance. 4. Performance context is tied to ensuring operational readiness of electronic computer systems. 5. Sector positioning within IT hardware maintenance and support services. 6. Spending benchmarked against similar IT maintenance contracts for defense agencies.
Value Assessment
Rating: good
The contract value of $13,034,398 over three years for Juniper Networks maintenance appears reasonable given the scope. Benchmarking against similar IT maintenance contracts for defense agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, mitigating risks associated with fluctuating service costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and service terms for the government.
Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which typically leads to lower prices and better value compared to sole-source or limited competition awards.
Public Impact
The Department of the Army benefits from uninterrupted access to critical IT infrastructure. Services delivered include maintenance and support for Juniper Networks hardware, ensuring system uptime. Geographic impact is primarily within Arizona, where the contract is managed. Workforce implications are minimal, as this contract focuses on hardware maintenance rather than direct personnel augmentation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if maintenance is highly specialized.
- Reliance on a single vendor for critical network hardware maintenance.
- Contract duration may not align with rapid technology obsolescence in IT.
Positive Signals
- Firm fixed-price contract provides budget predictability.
- Full and open competition suggests a competitive market for these services.
- Clear contract duration and defined scope of work.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on network hardware maintenance and support. The market for IT maintenance services is substantial, with government agencies being significant consumers. This contract represents a typical expenditure for maintaining essential network infrastructure within the defense sector, aligning with broader government IT spending trends.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small business subcontractors.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms and performance expectations. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal.
Related Government Programs
- Defense Information Technology Contracting
- Network Infrastructure Maintenance
- Juniper Networks Support Contracts
- Federal IT Services
Risk Flags
- Potential for technology obsolescence within the contract period.
- Reliance on a single vendor for critical network maintenance.
- Firm fixed-price may not account for market fluctuations.
Tags
it, defense, department-of-defense, department-of-the-army, maintenance, juniper-networks, firm-fixed-price, full-and-open-competition, delivery-order, arizona, cdw-government-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to CDW GOVERNMENT LLC. JUNIPER NETWORKS MAINTENANCE
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 $13.0 million.
What is the period of performance?
Start: 2025-09-29. End: 2026-09-28.
What is the historical spending pattern for Juniper Networks maintenance within the Department of Defense?
Analyzing historical spending for Juniper Networks maintenance within the Department of Defense requires access to comprehensive contract databases. However, general trends indicate a consistent need for such support services across various branches due to the widespread use of Juniper hardware in military networks. Spending can fluctuate based on technology refresh cycles, network expansion, and the specific support requirements of different units. Without specific historical data for this exact service or contractor, it's difficult to provide precise figures, but it's reasonable to assume ongoing, significant investment in maintaining critical network infrastructure.
How does the per-unit cost of this contract compare to market rates for similar Juniper Networks maintenance services?
Determining the precise per-unit cost comparison is challenging without knowing the specific Juniper hardware models and the exact scope of maintenance covered (e.g., 8x5 vs. 24x7 support, hardware replacement policies). However, the contract's firm fixed-price nature and full and open competition suggest that CDW Government LLC was awarded the contract based on a competitive bid that aimed to align with market rates. To perform a detailed benchmark, one would need to compare the total contract value against the number and type of devices supported and the service level agreements, then cross-reference this with pricing from other major IT resellers and Juniper's own support offerings.
What are the key performance indicators (KPIs) for this Juniper Networks maintenance contract?
Key Performance Indicators (KPIs) for this Juniper Networks maintenance contract would typically focus on ensuring the availability and performance of the supported network equipment. Common KPIs include response times for technical support, hardware replacement turnaround times, system uptime percentages, and adherence to service level agreements (SLAs). The firm fixed-price nature of the contract implies that the contractor is responsible for meeting these defined performance standards throughout the contract duration. The Department of the Army would monitor these KPIs to ensure the contractor is delivering the contracted services effectively and maintaining the operational readiness of the network infrastructure.
What is the track record of CDW Government LLC in providing IT maintenance services to the federal government?
CDW Government LLC has a significant track record of providing IT products and services to the federal government. As a major reseller and solutions provider, they have secured numerous contracts across various federal agencies for hardware, software, and related support services. Their experience typically includes managing complex IT procurements, offering a wide range of vendor solutions, and fulfilling delivery orders. Past performance evaluations and contract award data available through federal procurement databases would offer more specific insights into their performance on similar maintenance contracts, including timeliness, quality of service, and customer satisfaction.
What are the potential risks associated with a 3-year firm fixed-price contract for IT hardware maintenance?
A 3-year firm fixed-price contract for IT hardware maintenance presents several potential risks. Firstly, the fixed price might not account for unforeseen increases in the cost of parts or labor, potentially impacting the contractor's profitability or leading to requests for modification. Conversely, if technology evolves rapidly, the contracted maintenance might become less relevant or the hardware could become obsolete before the contract ends, leading to potential overpayment for services no longer critical. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider for maintenance, potentially limiting future flexibility or negotiation power. Ensuring the contract includes clear terms for obsolescence and technology changes is crucial.
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: 3
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: $13,034,398
Exercised Options: $13,034,398
Current Obligation: $13,034,398
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J16D0013
IDV Type: IDC
Timeline
Start Date: 2025-09-29
Current End Date: 2026-09-28
Potential End Date: 2026-09-28 00:00:00
Last Modified: 2025-09-04
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