DOT awards $535K for Pure Storage hardware maintenance, extending support through mid-2027

Contract Overview

Contract Amount: $535,034 ($535.0K)

Contractor: CDW Government LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-01

End Date: 2027-06-30

Contract Duration: 455 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PURE STORAGE APPLIANCE HARDWARE MAINTENANCE & SUPPORT RENEWAL

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $535,034.4 to CDW GOVERNMENT LLC for work described as: PURE STORAGE APPLIANCE HARDWARE MAINTENANCE & SUPPORT RENEWAL Key points: 1. Value for money assessed through firm-fixed-price contract, aiming for predictable costs. 2. Competition dynamics indicate 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 relies on vendor's ability to provide timely and effective support. 5. Sector positioning within IT hardware maintenance and support services.

Value Assessment

Rating: good

The contract value of $535,034.40 for 455 days of hardware maintenance and support appears reasonable for enterprise-grade storage solutions. Benchmarking against similar Pure Storage maintenance contracts would provide a more precise value assessment. The firm-fixed-price structure helps manage cost predictability for the Federal Aviation Administration.

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 bids suggests a degree of market interest and competition, which typically aids in achieving fair market prices. The specific details of the bidding process and the number of bidders are crucial for a complete understanding of price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service offerings.

Public Impact

The Federal Aviation Administration (FAA) benefits from uninterrupted operation of its IT infrastructure. Services delivered include essential hardware maintenance and support for Pure Storage appliances. Geographic impact is primarily within the FAA's operational locations, likely across the US. Workforce implications are minimal, focusing on ensuring IT staff have reliable hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed proactively.
Reliance on a single vendor for critical hardware support could pose a risk.
Ensuring continued access to necessary technical expertise and parts.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market.
Clear contract end date allows for future re-evaluation of needs.

Sector Analysis

This contract falls within the IT hardware maintenance and support sector, a critical component of government IT infrastructure. The market for storage hardware maintenance is competitive, with several major vendors and third-party maintenance providers. The spending of $535,034.40 is a modest amount within the broader context of federal IT spending, reflecting a specific need for Pure Storage appliance support.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no explicit information provided regarding subcontracting plans. The impact on the small business ecosystem is likely minimal given the nature of the contract and the absence of set-aside provisions.

Oversight & Accountability

Oversight is managed by the Department of Transportation's Federal Aviation Administration. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the vendor to meet specific service level agreements. Transparency is facilitated through federal contract databases, though detailed performance metrics are not publicly available.

Related Government Programs

Federal Aviation Administration IT Infrastructure Support
Pure Storage Hardware Maintenance Contracts
Government IT Hardware Procurement
IT Maintenance and Support Services

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical support
Service level agreement adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $535,034.4 to CDW GOVERNMENT LLC. PURE STORAGE APPLIANCE HARDWARE MAINTENANCE & SUPPORT RENEWAL

Who is the contractor on this award?

The obligated recipient is CDW GOVERNMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $535,034.4.

What is the period of performance?

Start: 2026-04-01. End: 2027-06-30.

What is the track record of CDW Government LLC in providing hardware maintenance and support to federal agencies?

CDW Government LLC is a well-established reseller and provider of IT solutions to the public sector. They have a history of fulfilling numerous federal contracts across various agencies, including hardware, software, and related services. Their experience typically involves managing complex supply chains and ensuring timely delivery and support. While specific performance data for this exact type of Pure Storage maintenance contract may not be publicly detailed, CDW's broad federal contracting history suggests a capacity to manage such requirements. Further analysis would involve reviewing past performance evaluations and contract completion records for similar service agreements to assess their reliability and effectiveness in meeting government needs.

How does the pricing of this Pure Storage maintenance contract compare to market rates for similar services?

Benchmarking the exact pricing of this $535,034.40 contract against market rates requires detailed knowledge of Pure Storage's specific appliance models, support tiers, and the duration of the contract (455 days). Generally, enterprise storage hardware maintenance can be a significant ongoing cost. Given that this was awarded under full and open competition with 3 bidders, it suggests the price achieved was likely competitive within the market. However, without specific details on the hardware covered and the service level agreements (SLAs), a precise comparison is difficult. Third-party maintenance providers often offer lower costs, but may not provide the same level of OEM support or warranty coverage. The firm-fixed-price nature helps control costs for the FAA.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this contract include potential vendor lock-in, reliance on a single vendor for critical hardware support, and the possibility of service disruptions if the vendor fails to meet performance standards. Vendor lock-in is a risk because specialized knowledge and parts are often proprietary. Mitigation strategies include ensuring clear contract terms with defined service level agreements (SLAs), performance metrics, and remedies for non-performance. The FAA should also maintain internal expertise on their storage systems and consider market research for alternative support options as the contract nears its end. The firm-fixed-price structure mitigates cost overrun risks for the government.

How effective is the competition level in ensuring value for taxpayers on this contract?

The contract was awarded under full and open competition with three bids received, which is a positive indicator for ensuring value for taxpayers. This level of competition suggests that multiple vendors were interested and capable of providing the required Pure Storage hardware maintenance and support. A competitive bidding process generally drives prices down and encourages vendors to offer better service terms to win the contract. While three bidders represent a reasonable level of competition, a higher number could potentially yield even greater price discovery and value. The firm-fixed-price nature of the contract further ensures that the awarded price is the total cost to the government for the specified period, preventing unexpected increases.

What is the historical spending pattern for Pure Storage hardware maintenance and support within the Federal Aviation Administration?

Analyzing historical spending patterns for Pure Storage hardware maintenance and support within the FAA is crucial for context. Without specific historical data for this contract or similar ones, it's difficult to establish a trend. However, federal agencies typically renew maintenance contracts for critical IT hardware to ensure operational continuity. Spending in this area can fluctuate based on hardware refresh cycles, changes in technology, and evolving support needs. If this $535,034.40 renewal represents a consistent annual expenditure or a significant increase/decrease from previous periods, it would provide insight into the FAA's strategy and budget allocation for storage infrastructure. A review of prior years' spending on similar services would reveal if this award is in line with historical norms or represents a deviation.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - DATA CENTER

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: $535,034

Exercised Options: $535,034

Current Obligation: $535,034

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 692M1519D00007

IDV Type: IDC

Timeline